why is Investment a necessary condition for economic growth?
To stimulate economic growth and reduce poverty, governments in developing countries should strive to improve conditions for private investment, the World Bank said Tuesday. The bank said a good investment climate provides opportunities and incentives for entrepreneurs and businesses ranging from street vendors to multinational corporations to invest, create jobs and expand. “A good investment climate is central to growth and poverty reduction,” said Francois Bourguignon, the bank’s chief economist presenting the Washington-based lending institution’s annual World Development Report. But he said too often governments put up roadblocks to such a climate by creating unjustified risks, costs and barriers to competition. The 271-page report, “A Better Investment Climate for Everyone,” draws on surveys of more than 26,000 firms in 53 developing countries and other bank data. “While governments have limited influence on such factors as geography, they have more decisive influence on the secu
