Q2General Studies
Question
5 marks
[CO2] Discuss the non-economic factors in brief.
Answer
Non-economic factors of development include social, political, cultural, institutional, and psychological elements that influence a country's development beyond mere economic growth.
- Political Stability: A stable and efficient government creates an environment conducive to investment and growth. Political instability deters development.
- Social Factors: Education levels, health standards, gender equality, and social mobility determine the quality and productivity of human capital.
- Cultural Factors: Cultural attitudes towards work, innovation, saving, and entrepreneurship affect economic behaviour.
- Institutional Factors: Strong legal systems, property rights, contract enforcement, and anti-corruption mechanisms support economic activity.
- Historical Factors: Colonial history, wars, and past exploitation can create structural barriers to development.
- Psychological Factors: Motivation, entrepreneurial spirit, risk-taking ability, and the will to change status quo drive innovation and development.