policy-based lending to LDCs. As a matter of great concern the global energy sector has since 2004 exposed the global economy to stagflation, because of the spike in oil price. All these countries have embraced the market system which is now thought to be a more efficient mechanism for solving societys economic problems, promoting faster economic growth and improving the living standards of the people. In struggling against this, the Katrina hurricane ignited its flames. Thus there is need for coordinating investment decisions when the value (rate of relation) of one investment depends on the presence or the extent of other investments.
Devastating trends in exchange rates was sensed in, when the American dollar peaked suddenly and later on essay on government power of youth sharply declined. Investment should be concentrated in those industries which have the strongest linkagesboth backward (to enterprises that sell inputs to the industry) and forward (to units that buy output from the industry). Now suppose we show average rate of investment expected of other key firms or in the economy as a whole on the horizontal axis or profitable rate of investment for a particular firm on the vertical axis, given what other firms are expected to invest. Thus the curve YY does not rise quickly at first as more agents take the decision to invest. In consideration the present economic characteristics, it would be ignorant act to overlook the state of the equity or earnings market. For Baran LDCs were unlikely to achieve growth and development because of Western economic and political domination, especially in the colonial period. Global economic growth 0 macroeconomic variables The above graph illustrates the trends which can be assumed by any economy, including the global economy. For example, the extent of effort of each firm in a developing region puts to increase the rate of technological transfer depends on effort put by other firms. Rosenstein-Rodan (1943 the factors that contribute to economic growthsuch as demand and investment in infrastructuredo not increase smoothly but are subject to sizable jumps or indivisibilities.