Factors Affecting Development

1. Historic

1.1. Colonialism - Colonialism could allow a part of the area to develop greatly while the other part does not. Since, colonists rise with power, they acquire wealth and make improvements to areas they seem fit.

1.2. Colonialism - Resources coming from the area that was previously for the local people are being sent to the country the colonists came from.

2. Social

2.1. Education - Education in LEDCs seem to be hard to provide. Not providing education can greatly increase the dependency ratio.

2.2. Healthcare - Money needs to be saved in order to afford healthcare. healthcare being so vital needs to be a high priority so governments will spend large amounts of money. Although, if healthcare isn't available, then it becomes a great problem where people become sick and fewer and fewer people will be able to work hindering the economic development.

3. Economic

3.1. Unfair World Trade - LEDCs have a hard time competing with other LEDCs in order to trade. This causes to decrease in the amount farmers earn. MEDCs trade processed goods therefore do not need to go through the trouble that LEDCs have to making world trade unfair.

3.2. Bias Foreign Investment - Africa contains 15% of the world's population yet only receives less than 5% of foreign investment whereas Europe holds 7% of the world's population yet receives 45% of foreign investment. Foreign investment seems to be in favor of MEDCs which causes the LEDC's development to slow down even more.

4. Political

4.1. Poor Government Oversight - Money that could be spent on further developing the country is spent on strengthening military forces. For example, Nigeria is an oil rich country yet its spending aren't put into useful things further hindering their development.

4.2. Leadership - Leadership plays an important role in affecting development. If a government has good leadership, then money could be put to good use. Oil-rich countries may be more developed than other oil-rich countries because of what they do with the money. That money could be spent on providing free healthcare or education. For example, Brunei and Iran are both oil rich countries yet Brunei is more developed as it spends its income on free education and healthcare.

5. Physical

5.1. Natural Resources - Countries with natural resources such as minerals, gas, and oil have the potential to improve their level of development. Although, these resources can be "exploited" to help the country. For example, the UAE has a great deal of oil so they decided to put some of it to create Dubai a tourist attraction. This decision has greatly improved the level of development of the UAE.

5.2. Natural Resources - Countries like Japan have little to no natural resources so they need to depend on other sources of income in order to develop. Examples would range from education to skill advancements.

5.3. Landlocked Countries - Countries fully surrounded have a difficult time trying to export and import having no access to large bodies of water. Shipping items will need to go through other countries and that itself will cost a lot of money further hindering the development of a country.

5.4. Natural Disasters - Natural disasters can cause lots of damage. For example, earthquakes can cause a great deal of property damage which will cost a large number of money. Droughts can also slow down the development as it stands as an agricultural obstacle.