Any growth in economy of a country is expected to bring about an improvement in the quality of lives of the citizens in that particular nation. As such, there is expectation that economic growth will result to an increase in per capital income of every household. However, there are various reasons that act as a hindrance to this development.
Political instability in most countries has been as a key hindrance to development. For example, a nation that has been experiencing steady growth in the economy may be disrupted by political upheavals that may cause closure of most of the businesses. Investors also are scared of investing in those nations that are prone to political unrests.
Corruption is another major constraint to growth of the economy. In most third-world countries, corruption has seen retarded rate of growth because funds that could have need been used to launch various development projects ends up in the pockets of a few people.
Poverty is another major contributor to slower economic growth. You find that in most developing countries, the level of poverty is so high such that there are little or no savings; no capital to invest slows development. Additionally, such a population lacks the knowledge and know-how becoming an obstacle to growth of the economy.
Natural calamities such as earthquake and floods may result to slowed economic growth. For example, a nation may have predicted a high growth rate only for it to be slowed by occurrence of a natural calamity. A calamity does not only take the lives of citizens but also destroys property such as buildings, infrastructure all of which are crucial to economic growth.
There are a variety of factors that acts as obstacles to growth of an economy. Some are human made and others are natural. As such, any country needs to put measures in place to ensure that it can avoid or reduce the impact of any obstacle as much possible.