Poor countries often have difficulty investing in capital because

Question

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Poor countries often have a population that is living at subsistence level, which means that most people are struggling to meet basic needs such as food, shelter, and clothing. This leaves very little room for saving and investing in capital. As a result, these countries struggle to develop and grow economically. Development assistance and multinational corporations may play a role in addressing this issue, but ultimately the lack of capital is rooted in the low income and saving capacity of the population. The cost disease of personal services may also be a factor, but it is not the primary reason why poor countries have difficulty investing in capital.

Poor Countries Often Have Difficulty Investing in Capital Because