• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

In Haiti, Abductions Hold Nation Hostage

Extracts from this document...


Economic growth is defined as an expansion of real output as a result of the supply, demand, and efficiency factors. This concept can be summarized through the extended AD-AS model (Figure 1.1). Other factors that account for economic growth are labor input and productivity. Although both are of equal importance, labor productivity entails factors that have a greater effect on economic development within a nation. These include technological advance, quantity of capital, and education and training or what is also known as "human capital." However, there are barriers to economic growth. These are institutional and political factors, such as political instability and lack of infrastructure. In the article dealing with the kidnappings that have been plaguing the nation of Haiti, these barriers are illustrated. Despite the presence of U.N troops, armed thugs are in control of the capital, Port-au-Prince, spreading terror in a city where "2 million residents live in tin shacks." ...read more.


This demonstrates one of the barriers to economic growth in Haiti. Most of the labor force is already in poverty and the kidnappings have only placed them in a worse situation. A majority of the labor force constitutes agriculture and many farmers and fishers are no longer able to work on their land in order to grow crops which could be supplied on the domestic market. This causes a reduction of labor input and further lowers growth. Structural unemployment abounds because many of these workers are not able to get the education necessary to find new jobs. Because many schools have been closed, there will be a less educated work force which equals less productivity. Another issue related to education and training is that a large percentage of young people and professionals have been leaving the country, creating a "massive brain drain" that causes the economy to potentially lose a more productive labor force. ...read more.


A second goal would be the equal distribution of wealth, which is a reason behind the armed thugs resorting to violence and intimidation. Taxes could be increased for those who are in the elite, while educational reforms are being set which would lower tuition costs for students and save parents a large part of their income. Preval's administration could also follow policies regarding the agricultural sector of the labor force and have there be programs in which a portion of the crops are sold as regional exports and the rest are used by the farmers for subsistence. In respect to the international community, Haiti has been readmitted to CARICOM, which could mean increased foreign aid if Preval follows through with the aforementioned policies and others which could benefit the economy and return foreign interest. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. An Investigation of Vietnam's Barriers of Economic Growth and Development

    Lowering the standard of living in Vietnam. As mentioned above, the bureaucracy of official procedures stops the country from building the roads, power stations and other public works due to the slow speed at which such changes take effect. These factors are needed to maintain efficient production of goods and services and, hence, growth rate.

  2. Economics Extended Essay - To what extent has the market for paintings in South ...

    A gallery owner had been quoted as saying that because speculators had left the market, collectors had started coming back (page 10). Therefore the drop in demand from genuine collectors was not that great as the art funds though they would be.

  1. economics extended essay

    The properties that make this structure an oligopoly - * The number of firms is small, but the size is large (malls). * High barriers to entry, like high setup cost, high maintenance cost etc. * Production of both homogenous and non homogenous products.

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    or supply and demand to find the most efficient output and price for all. These balances, which Smith claimed to naturally occur, indeed found the most efficient medium between the buyer and the seller. Smith?s most compelling argument towards mercantilism in my opinion is easily summed up.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work