The role of government in fostering economic growth in DVCs has been criticized because
A) most governments operate as dictatorships.
B) there is often poor administration and corruption in government.
C) government is generally supportive of business at the expense of labor.
D) governments have adopted the unpopular method of forced savings to stimulate investment.

Question

Quizplus · Accepted Answer

Poor administration and corruption in government can hinder economic growth instead of fostering it. This includes misallocation of resources, nepotism, and lack of transparency which can scare away investors and discourage business activity. Therefore, the role of government in economic growth must be balanced with effective governance and anti-corruption measures.

The Role of Government in Fostering Economic Growth in DVCs