Economic Failure is Nation Failure

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"The economy is the start and end of everything. You can't have successful education reform or any other reform if you don't have a strong economy."

~ David Cameron



Hello Inleo Community! Welcome to my blog. In many countries, economic failure is a big issue. These countries are struggling hard to improve their economic structure. Although, they are doing their best but there are factors that affected their economic growth badly. I have witnessed many of these factors in my country, hence my homeland has bad economy nowadays.

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Image by Gencraft


Factors that result Economic Failure



Everytime when a new government control the management of the country, they present their planing to improve economy. Most of the Targets, they mentioned at the start of their government are ignored and never implemented. All basic factors that destroyed the economy of a country are stated as.

  • Inflation Explosion
  • -ve Trend in Stock Market
  • Local Currency Degrading
  • Debt Increments

These all factors make inverse relationship with economy. If any of these factors become high, economy will fall downward.


Inflation Explosion




In all countries of the world, inflation is big issue for the public. Many products are beyond the purchasing excess from the Public. Even the average things have sky kissing prices. People are under continuous burden of inflation.

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Source


-Ve Trend In Stock Market



Everyday there are hundreds of shares that are sold and bought. The Stock Holders play the key role in Stock Market. If they trust in a country they do business with different companies. If a country economy is instable then they didn't show any interest of investment hence -Ve Trend in Stock Market is very evident.


Local Currency Degrading




When the local currency of a country depleted in value, the economy of the country collapsed. People savings become half in value. Dollar is usually compared with local currency of any Country. When I was analyzing the local currency of Pakistan, it's local currency value was 80 PKR/ worth of one dollar. Now, the local currency is 290 PKR worth of one dollar. You can see the local currency value degrading in couple of years.

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Source


Debt Increments




Many Countries to save themselves take loans from IMF (International Monetary Fund). Although, IMF provides loans to these countries but this institute implements some conditions for this debt. Mostly these conditions demand more public Tax collection. Many Countries like Pakistan that are taking loans from IMF, still are unable to improve their economic structure. Hence, they have to take loans to pay their loans for saving themselves from default. When all the other factors dominant in a country their local currency decreases in value as a result dollar price become uncontrollable. When dollar price increases then Sovereignty Debts increases on a country.
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Source


How can we Improve our Economy?



To improve economy of a country is not tough. If Sincere people are running a country then they fight well with economy failure challenge and do their best to bring much better economic structure. To save our economy, we should win the trust is the big Bussiness man men. We should be able to generate high revenue from tax collection. We should pay the sovereignty debts instead of taking more loans. We should have control on dollar circulation. We should promote our local products instead of imported items. All these things will be possible when our Political Leaders will stop corruption activities and think about a country sincerely.


Conclusion




I always feel panicked when my country is trended in the list of those countries who are near to deficit. I want to change things. I want to bring improvement especially in our economic structure. I hope, hyperinflation, local currency crisis, sovereignty debts crisis and stock market crash will not be the issues with my country. These are some of those things that I can mention for improvement of economy for any country.


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6 comments
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These factors outlined, really affects the economy of the nation. Thanks for sharing

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thank you my dear for learning such an amazing comment.

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In my country the situation is almost similar but a little bit better compared to your country. The inflation is making too much impact and I am a little bit worried thinking about the future financial crisis.

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Your country is also Pakistan but with better people who are brave and took the right decision at the right time. Inflation is a big torture today 😔.

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