The Lack of Institutional Infrastructure Hinders the Development of Poor

question 61

Essay

The lack of institutional infrastructure hinders the development of poor nations, and it may render capital less productive. As a result, some say that foreign aid is ineffective in stimulating economic development. Explain.

---

Definitions:

Supplies Expense

The cost of supplies used during an accounting period, typically classified as an operating expense.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Fixed Asset Account

An account on a company’s balance sheet that reports the cost and accumulated depreciation of assets with a useful life of more than one year.