Effects of a Poor Institution on the Economy

INTRODUCTION Since most developing countries can see evidence that corruption and institutional failures lead to economic recession, poor institutions can not build a strong economy for the country (Figure 1). Corruption affects economic growth, GDP per capita, investment activities, international trade and price stability (Dreher & Herzfeld, 2005). Nevertheless, in the case of Cote d'Ivoire, institutional failures have caused domestic civil war, which has influenced the country's economic growth over the past 10 years and a half.

The K - 12 will help improve poverty education, which will also boost the economy. Poor education is one of the main problems affecting the country's economy. Low national educational standards brought three negative effects, such as incompetent students, unemployment, economic downturn. One of the results of our low educational background is that students can not accept other countries with the quality of education. Education and innovation in nine countries in Southeast Asia are receiving high quality education. Seventh place in nine countries including Singapore, Brunei, Malaysia, Indonesia, Thailand and Vietnam, Colombia and Laos have acquired 8th and 9th place.

How many poor people have encountered obstacles or are beaten badly? In addition, lack or lack of education may impair the ability to be economically self-sustaining, elderly people may be too trusted and deceived. I do not know the answer, it does not imply population statistics, I hinted at knowing what the cause is. I suggest that the difficulty of the modern economy itself is a bit wrong.

Marshall Steinbaum, research director at Roosevelt Institute, said this impact was mainly due to increased consumer demand. Think tanks think that the economy is sluggish as the middle and low income people have insufficient incomes for inflation. For high-income people who are more likely to save than low-income people, economic growth is disproportionate and they tend to spend more. In an interview, Mr. Steinbaum says, "It is like buying a yacht, savings are more likely to be rich."