Question

while many developing countries have reformed their economies in order to imitate the success of the successful industrial economies, the process remains incomplete and most developing countries tend to be characterized by all of the following except a. seigniorage. b. control of capital movements by limiting foreign exchange transactions connected with trade in assets. c. use of natural resources or agricultural commodities as an important share of exports. d. a worse job of directing savings toward their most efficient investment uses. e. reduced corruption and poverty due to limited underground markets.

Answer 1

Developing countries often exhibit several persistent economic challenges despite efforts to reform their economies. Reduced corruption and poverty due to limited underground markets is not typically among these characteristics.

Step-by-step explanation:

Many developing countries have attempted to reform their economies to reflect the success of industrialized nations. Nonetheless, these reforms are often partial and several characteristics persist within these economies. When considering attributes that most developing countries tend to be characterized by, reduced corruption and poverty due to limited underground markets is not an accurate description. Instead, developing countries often continue to struggle with issues such as seigniorage, the control of capital movements, reliance on natural resources or agricultural commodities for exports, and a comparative inefficiency in directing savings towards their most efficient investment uses.

Among the reforms undertaken are attempts at market liberalization and privatization, yet this process can be painful and might lead to increased corruption, income inequality, and a host of economic problems. While modern technology has created opportunities for investment in education and human capital, which is crucial for development, the thorough success of market reforms and their ability to include poor people who lack education and health amenities remains an open question.