Limited Budget for Basic Public Services Sample Clauses

Limited Budget for Basic Public Services. Poverty of consumers, small market size and massive informal economic activity all adversely influence the budget and, accordingly, the regulatory abilities of developing country governments. One result of limited financial resources of developing country governments is the inability to make the required investments in basic public services. In this regard, as noted above, poor condition of physical infrastructure (e.g. in transport, communication, water, electricity) increases production and distribution costs for companies, reduces their competitiveness and hinders integration of developing countries into global markets. Limited government resources often lead to poor education levels, in particular in the periphery of developing countries.29 As a result of the poor education system the majority of the working population in developing countries usually consists of low- waged, unskilled workers. In addition, developing countries with deficient education systems often face a lack of skilled workers to undertake complex governmental tasks and judicial duties. Likewise low education levels adversely affect technological development and the capacity of developing country firms to absorb new technologies.30 During the process of technological learning firms need to contact various agents, collect information, seek relevant experience, be involved in continual upgrading, deepen intellectual knowledge and, more importantly, allocate certain funds only to the technological learning itself. Due to human and financial constraints transmission of technological knowledge from TNC’s to developing country firms might not be easily achieved. Developing countries usually struggle to allocate necessary resources to enforcement by their competition agencies. As a result new competition agencies in developing