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Q. Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises.
Answer: Mainly Latin America population residue in poverty for the reason that bad advice and inefficient proliferated about investment decisions having taken. At the similar time the revenues available to those able to exploit limited domestic markets inspired lobbying for imports licenses and expanding the market as well as corruption. Discrimination in the import that varies financial system and poverty at the lowest income levels grew over time. Government bad administration and corruption of money have been one of the factors that enable Latin America population from growing. Sine in 1950s and 1960s several of the Latin America countries in the region were able to attain amazing growth rates by exploiting the initially high returns from moving resources in to industrial uses from incompetent agricultural activities. As a substitute of using the growth to get rid of debts and decrease the deficit of the country governments along with corrupt people wasted for getting about the debt that the country was facing.
Q. Write an essay on the importance of a sound banking system in developing countries. Answer: Students must describe the phenomena of moral hazard as a part of their answer,
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