Potential ways to raise the standard of living in less developed countries.
Discuss how the standard of living in a developing country might be improves.
Economic growth is paramount to the prosperity and development of any country. For the standard of living to be improved in developing countries, the factors that restrict its growth have to be considered. For instance, where the distribution of income is unequal and the standard of living is very low, the government can levy higher taxes on the wealthier part of the population and offer better assistance to the poor (Grant, 2014). What could also improve the standard of living, is improving health care and education by redirecting government expenditure from other areas, or borrowed funds from organisations such as the World Bank or the International Monetary Fund. The government could also encourage the access of multinational companies to the country, and by this, there will be resources for the secondary and tertiary sectors, raising the incomes and living standards.
Attracting such companies can be beneficial to the living standard in a number of ways. Higher incomes could be paid as comparison to the income available in the country; infrastructure can be improved; employment can be increased (Grant, 2014). Population control can also be managed by appropriate measures, with the aim of improving the standard of living. This can be effected by providing family planning advice, or financial incentives. This would help the standard of living, as women’s health can potentially be improved by having fewer children, and further, reduce the impact on housing, health and educational services.
S Grant. (2014). Cambridge IGCSE Economics Student’s Book. Cambridge: Cambridge University Press.