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What are the external constraints on government action less developed countries?
External Constraints on Government Action LDCs face external factors beyond their control are:
• Globalisation: Less developed countries are part of a global, increasingly included and competitive international economy
• Conditionality: When seeking loans from the World Bank or IMF LDCs should implement structural adjustment programmes (SAPs).
• Open Economy: Less developed countries should accept the trade rules laid out by the World Trade Organisation when they are ignore facing high tariffs and limitations onto their exports
• World Business cycle: Less developed countries dependent onto exports will suffer during a world recession.
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