Example Of Development Essay

Jeffrey Sachs and Tyler Cowen present a conversation in which they are discussing the future of economic development. According to Cowen, Jeff’s cited work reveal that natural resources play a great role towards economic development. Jeff supports this idea by relating natural resources relates to wealth and purports that countries with oil resources have rich economy. They concur that the countries rich in resources will continue to grow and develop in economy while those with poor economy will face slow growth and development in economy. For instance, a nation like Canada rich in resources will have its economy developing in the future as compared to Venezuela that does not have many resources.
Cowen believes that there are various factors that influence the growth and development of economies in the future. Some of these factors include resources, politics and financial institutions among many others. Furthermore, according to Jeff, it is true that economic development is subject to two fundamental factors namely innovation and catching up. Innovation is driver to future economic development. On the other hand, catching up is another driver that is playing a great role towards the future development of the economy. This is to mean that those countries that are catching up very fast with respect to the changing environmental factors such as technology will experience a development in economy. For instance, China economy is rapidly growing and this is due to the countries response to changes in the world environment of business.
Although Cowen believes that corruption is a fundamental factor affecting the future economic development, Jeff clearly brings an understanding that corruption may or may not affect the future economic development. For instance, U.S.A and China are having been subject to corruption and yet the economies are growing and developing with time. Catching up to the changing economic environment remains the most fundamental factor towards the growth and development of world economies in the future.