The Developing Countries: Challenges in the Global Economy

Abstract

The growth of the global economy and the increasing complexity in the international trade raised questions about the competitiveness capacity of the developing countries and the ability to integrate efficiently into the global economy, given the challenges and the difficulties experienced. Different types of barriers leave the developing countries unable to benefit and be competitive in the global economy, where Asian and western countries are achieving great economic success with an impact. In our study, we identified the developing countries in Latin America and Africa, where both of those regions shared common challenges during their integration in the global economy. Furthermore, there are significant challenges that inhibit developing countries in Latin America and Africa from achieving sustainable economic growth, creating a host environment for capital flows, and encouraging the establishment of a complex industrialization sector instead of relying on the raw material supply sector. Besides, the significant obstacles in the developing countries centered on the unstable political and economic system, lack of diversification in the economy, the weak investment in human capital, and the lack of transparency and enforcement of rules and regulations. In the end, we provided some recommendations for the developing countries to catch up with the globalized competitive international market through adopting a comprehensive multidimensional enhancement in the system.