Developing Countries : Section 3 : financing economic development
- Developing countries have different ways of making an economy, therefore, have different ways of saving. If the country will save as a market economy, high interest rates will encourage saving. Saving encourages investing in capital and better economic health for the country. Savings in a command economy doesn't work as well, since the government will try to force the people into savings. This does not help the economy in the long run.
- Countries can develop further by external trade. This happens with foreign nations loaning money, or organizations loaning money with no interest for long periods of time. Countries can also eliminate trade barriers between countries, and become a single market, like the European Union.
- Other countries have tried to follow the European Union's example, like ASEAN, Association for Southeast Asian Nations. Other organizations, like OPEC, control the economy by raising or lowering prices through their production.
- Other developing countries can be very successful. South Korea used to be a very poor country, eventually they evolved their economy from toys to clothing, to manufacturing, and then industry.