Challenges Facing Developing Countries

In general anatomyation document B Interoper faculty problems in the create countries 1. Introduction1 2. invoketh countries2 3. CIS and europium4 4. Asia-Pacific5 5. Americas8 6. Africa10 Introduction The ITU has made signifi piece of asst commitments to under develop countries in a series of instruments Article 17 of the ITU Constitution that the functions of ITU-T be to be performed bearing in mind the contingent concerns of the exploitation countries closedown 123 (Rev. Antalya, 2006) on bridging the normalization gap and Resolution 139 (Antalya, 2006) which invites Member States to implement rapidly Resolution 37 (Rev. Doha, 2006) of the World Tele converse Development Conference on bridging the digital divide. Between the growing and developed countries there is a cosmopolitan digital divide of which unrivalled part is the standardization gap. This is recognised in Resolution 44 (Johannesburg, 2008) as having three dimensions The disparity of voluntary standardi zation The disparity of mandatory technical regulations and The disparity of conformity assessment.Resolution 76 (Johannesburg, 2008) on abidance and interoperability exam con gradientred that some countries, especi tout ensembley the maturation countries, have non yet acquired the efficacy to mental test equipment and decl ar 1self assurance to consumers in their countries and that increase confidence in the conformation of information and intercourse technologies (ICT) equipment with ITU-T passports would increase the chances of passim interoperability of equipment from antithetical manu particularuring businesss, and would assist developing countries in the choice of solutions. Noted the posit to assist developing countries in facilitating solutions which go forth exhibit interoperability and reduce the damage of systems and equipment procurement by operators, particularly in the developing countries, whilst improving crossing theatrical role Resolved assis t developing countries in identifying tender-hearted and institutional capacity-building and preceptal activity opportunities in conformity and interoperability test assist developing countries in establishing regional or subregional conformity and interoperability centres suitable to perform conformity and interoperability testing as appropriateInstructed the Director of TSB to conduct exploratory activities in to each one region in rear to identify and prioritize the problems constructiond by developing countries related to achieving interoperability of ICT equipment and serve The fol downcasting sections review the issues of developing countries thereforece the interoperability problems identify by developing countries in the versatile regions CIS & Europe, Asia-Pacific, the Americas, Africa and the Arab alleges. Developing countries The ITU holds developing countries to include three ad hoc categories Least develop Countries (LDCs) Small Island Developing States (SIDS) and Countries with Economies in Transition (EIT). It does non define these terms, and wasting diseases the definitions provided by the oecumenical Assembly of the United Nations and by its Economic and Social Council (ECOSOC). 1 Least Developed Countries (LDCs) can be set by the following three criteria Low-in bring, a three- course of study intermediate of Gross National In summate (GNI) per capita (under US$ 745 for inclusion, above US$ 900 for graduation) A compound Human Assets Index (HAI) based on shareage of world undernourished, mortality rate for children aged five years or under, the indirect school enrolment ratio and adult literacy rate and A composite Economic Vulnerability Index (EVI) based on population size, remoteness, intersection export concentration, sh atomic number 18 of agriculture, forestry and fisheries in GDP, home littleness owing to natural disasters, instability of boorish production, and instability of exports of goods and operate.W hile there is sizable overlap amidst LDCs and SIDS, the latter face significant additional problems to achieve sustainable festering, because of their small populations, limited resources, remoteness, ability to natural disasters and excessive dependence on inter home(a) backing. The ingathering and ontogenesis of SIDS have been disadvantaged by spirited transportation and communication follows (e. g. , use of major planets in the absence of undersea cables), disproportionately courtly public administration and infrastructure ( repayable to their small size) and the absence of opportunities to create economies of scale. 2 Countries with Economies In Transition (EIT) ar those moving from a centrally planned frugal system to a free coiffureet. This requires economic liberalization, the removal of price controls, the lowering of trade barriers, the restructuring and privatization of financial and industrial sectors. It is usually characterised by the creation of new ins titutions, including privy enterprises taking on activities previously performed by the state and new instruments for state governance, such(prenominal) as a matter restrictive authority for telecommunications.In the 1990s, these comprised the countries at once members of the CMEA, some of which are straightaway members of the WTO and the EU. The problems faced in EITs have include the absence of a constructive policy frame feat, the slowness of the establishment of the electronic ne deucerk infrastructure, the culture of commonwealth to use it and to exploit commercially the information and intimacy that it makes available. The issue of interoperability has fashion more important as countries deploy e- giving medication systems. In order to provide game-quality services to citizens it is important that services can be accessed from the widest possible range of equipment.UNDP has published an e-primer on e-government, setting out the deal and value of interoperability an d the flavours necessary to achieve this. It explains the value of e-government interoperability frameworks, the parties that need to be involved and are the critical success factors. InfoDev has an eGovernment Handbook for developing countries. nonwithstanding the enormous progress made in bridging the digital divide and, in particular, the standardization gap, there repose significant problems in terms of conformance and interoperability repayable to Lack of human capacity and of educate opportunities and Weak institutional systems for o Standardization, o Testing, o Certification, and o Market surveillance. However, the challenges are farthest from uniform, requiring careful assessment of regional and national circumstances and experiences. CIS and Europe The European Union has legal provisions that directly address interoperability and empower regulatory authorities to ensure the interoperability of systems (see information document C).For example, the EC adopted DVB-H as a common standard for mobile television to achieve interoperability throughout Europe. In 2005, the ITU published a study entitled Towards Interoperable eHealth for Europe with the Telemedicine Alliance. A previous study had identified interoperability as a study obstacle to the execution of instrument of eHealth, which the second report address in the form of a strategic plan for trans-national eHealth interoperability. Its aim is to assist stakeholders at all levels in taking action to achieve real and sustainable interoperability. 3 As part of its eHealth enactmention Plan, the European Com fly the coopion has adopted a Recommendation on cross-border interoperability of electronic wellness record systems (2008/594/EC). This will ensure that electronic health record systems interoperate, allowing health professionals from an a nonher(prenominal) hoidenish to access spanking patient information from a home doctor and hospital, improving the quality and safety of medical car e. The International Virtual Laboratory for Enterprise Interoperability (INTEROP-VLab) emerged from look for projects funded by the European Commission.Its mission is to consolidate, develop and maintain the European research community in the domain of Enterprise Interoperability. In the United Kingdom, a survey of IEEE 802. 11b/g Wi-Fi usage for the Office of Communications (OFCOM) found a wide variety of problems, many due to causes other than spectrum (e. g. , wired profit and device configuration errors). Spectrum issues tended to be interference between devices in the 2. 4 gigacycle per second ISM band, rather than congestion.However, in the centre of Lon mount demands on the band were higher than elsewhere and users experienced two interference and congestion. haphazardness between incompatible fictional characters of radio device lead to a proposal of marriage for a certification scheme with a broad 2. 4 GHz friendly logo rather than the conventional Wi-Fi-friendly mar k, to help drive borrowing of innovative technologies in that band. Asia-Pacific single of the misfortunateer of the Asiatic countries was the beneficiary of a period of initiatives by national and globalistic aid programmes to assist the evelopment of its telecommunications infrastructure. 4 A side raise of this was that the equipment provided or corruptd in the different projects were from different manufacturers, often selected by or linked to the donor agency. However, the variety of equipment could non easily be made to interoperate. The personal effects on the country were to increase the costs of training for its limited pool of technicians and experts (often with worldwide travel), while it reduce the flexibility of use of the equipment.The already limited economies of scale in this country were made worse by fragmentation crosswise different electronic entanglements and systems, raising the costs for operators and then for citizens. Within the Asia-Pacific T elecommunity Standardization Programme (ASTAP), the Industry Relations Group (IRG) addresses the needfully and concerns of operators and manufacturers. At the 11th Meeting of ASTAP in June 2006 there was a workshop on Conformity appraisal in the APECTEL Mutual Recognition Arrangements (MRA).It was recognize that input from industry input into ASTAP and APECTEL could help to improve their operation. The IRG subsequently developed a questionnaire on type-approval and conformity assessment. Between June 2006 and February 2007, responses were obtained from 21 companies and 4 regulators, in Afghanistan, Australia, Iran, Japan, Macau SAR, Papua New Guinea, Singapore and Thailand. This identified issues in terms of Costs o Mandatory in-country testing, rather than accepting certified test results from other countries, zeal of documentation for submission to the regulator, o Testing to meet specific national standards non aligned with international standards Delays o Time taken to e xtol a product after documents are submitted, o Testing to national standards not aligned with international standards. The survey identified actions to improve type approval process, including the recognition of certified test reports from other countries by Australia and Singapore, and restricting standards in technical regulations to international standards, avoiding national variations.An Asia-Pacific regional compliance mark was proposed, one that would be accepted by all national authorities, without moreover testing or documentation. The IRG called for national authorities to accept accredited test reports from other countries in order to reduce costs and time delays in type approval. The expansion of telecommunication nets, both in geographic coverage and the range of services, in response to market demand is a incessant process for operators, especially in very rapidly emergence Asian markets. Operators have two options a) procural of equipment from the headmaster t rafficker or ) Procurement of the best value equipment available at the time, not necessarily from the original vendor. However, the second option is not always possible as equipment from different vendors may not be fully practical. The procurement of additional equipment is, therefore, cons apt to be from the original vendor. The practical difficulties faced by this lack of interoperability in two types of networks are explained under. There are many proprietary implementations of bustling Switching Centres (MSCs), Base Station Controllers (BSCs) and Base Station Transceivers (BTSs).Although the interface between the MSC and the BSC is now considered stable, the Abis interface between BSCs and BTSs is not yet interoperable (see Figure 1). Where additional BTSs are ask, in order to meet growing demand, the network operator is constrained to purchase these from the vendor whose BSCs are already deployed. Figure 1Issues related to mobile networks pic An operator in India has ex perienced interoperability issues in the expansion of its GSM network. Its planners assumed that BSCs and BTSs required to be supplied by the same vendor, due to the proprietary interface between the two.However, the interface between the BSC and the MSC, which is an open standard, required considerable time and effort before interworking could be achieved between equipment from different vendors. Two of the essential components for Intelligent engagement (IN) services are the improvement Control Point (SCP) and the advantage Switching Point (SSP), the latter is usually part of the drop or local exchange (see Figure 2). Consequently, whenever the operator needs to deploy a new switch it has to be purchased from a single supplier, to ensure interoperability with existing infrastructure.Figure 2Issues related to fixed Intelligent Network (IN) pic An Indian operator found that SCPs failed to interwork with SSPs from different manufacturers. This issue is considered critical in vie w of the regulatory requirement to interconnect INs of different service providers. In April 2009, at the CTO/ITU-T Forum on NGN Standardization in Sri Lanka, the issue of non-interoperability was raised. Rajeshwar Dayal from the Indian Department of Telecommunications (DoT), identified the need for interoperability between and within NGNs (see slides).The following month at the ITU Regional Preparatory Meeting for the Asia and Pacific Region, India proposed that ITU prepare a reference document containing interoperability requirements at the equipment level to help smooth the implementation of NGNs. An NGN Pilot Project by the Iran Telecom Research Center (IRTC) identified a number of problems associated with NGNs supplied by Alcatel, Huawei, Siemens and ZTE (presented at ITU Kaleidoscope). 5 This acknowledged that NGN was not yet a mature technology and therefore subject to temporary problems, that should eventually be eliminated.Tests were conducted initially between equipment of a single vendor, then between different vendors. Problems were identified with the implementations of the ITU-T G. 729 codec and ITU-T H. 248, plus difficulties with the call servers from one manufacturer not being able to control the access, media or marking accesss of other vendors. The problems had been caused by some vendors not implementing standards completely or having done so imprecisely, while some standards were found to contain ambiguities. AmericasIn the USA, Section 256 of the Communications deport of 1996 requires the FCC to establish procedures to oversee coordinated network planning by providers of telecommunications services. The Act as well authorizes the FCC to put down in standards organizations working on network interconnectivity. It is conscious by the Network Reliability and Interoperability Council (NRIC), which makes recommendations to ensure, under all reasonably predictable circumstances, interoperability of networks, including reliability, robu stness, security and interoperability of communications networks.One of the major issues addressed by NRIC in recent years has been to ensure the interoperability of enhanced services for requirement calls (i. e. , to 911). Interoperability for e-government has been addressed by the Chief Information Officers Council (CIO). Concerns over problems of the non-interoperability of emergency services communication systems became a matter of public concern, following possibly avoidable deaths of firemen in the collapse of the New York World Trade Center on 9th kinsfolk 2001 and again after Hurricane Katrina. 6 The US Congress called for work to resolve interoperability problems in emergency response communications. 7 To achieve the political objectives, Project 25 (P25) was accomplished as a development process for the design, manufacture and evaluation of interoperable digital two-way wireless communications products for public safety services. The entourage of P25 standards is admini stered by the Telecommunications Industry Association (TIA) and consists of the following interfaces Common Air port (CAI) Inter-RF Subsystem user interface (ISSI) Fixed/Base Station Subsystem Interface (FSSI) Console Subsystem Interface (CSSI) Network Management Interface Data Network Interface indorser Data Peripheral Interface and Telephone Interconnect Interface. The P25 Compliance Assessment Program (CAP) is a partnership between the Department of Homeland guarantors Command, Control and Interoperability Division (CID), the National Institute of Standards and Technology (NIST), suppliers and the emergency services. It seeks to Ensure that emergency response technologies meet the needs of practitioners Assist officials in making informed purchasing decisions Provide vendors with a method of testing equipment for P25 compliance and Support the migration to standards-based communications systems. As of May 2008, eight surreptitious laboratories had been accredited, u sing ISO 17025, for P25 conformance testing. These can test equipment against standards that ensure radios and other equipment interoperate heedless of manufacturer enabling emergency responders to exchange critical communications. Additionally, there two non-governmental bodies as Emergency Interoperability Consortium (EIC) and OASIS Emergency Interoperability. These work on the development of appropriate standards. Anatel has identified problems with fixed network equipment in Incompatibilities with o xDSL between chipsets in Central Office (CO) and Customer Premises Equipment (CPE), and o GPON between Optical Line Terminals (OLT) and Optical Network Units (ONU) Interoperability problems between o softswitches using SIP and SIP-I standards, o PABX-IP equipment and NGN, and o Call Agent (CA) and Media admission (MG), when using the T. 38 fax with MEGACO protocol. Similarly with mobile networks, it has found problems with Inter-RAT (Radio ingress Technology) Voice and data failures going from 2G on 1,800 megacycle to 3G on 850 megacycle per second and vice versa On registration, alternatively of performing a type 02 a type 00 localization update was performed With 2G, on moving from 900 MHz to 1800 MHz and vice versa there were voice call interruptions Despite automatic network search for 3G on 850MHz band, first tried a type 00 location update with 2G on 1800 MHz A loss of network signal with 2 or 3G on any frequency band, terminals failed to repeat network registration when in an area with network signal and Where there was no roaming enabled, but a secondary IMSI was available the SIM card terminal did not automatically restart the application for the second IMSI.Africa Much of the ICT equipment in developing countries is old, but has yet to be withdrawn from use, because of limited capital to purchase replacements. The interfaces and protocols of such systems are not able to communicate with any youthful systems that are more complex and s ophisticated. It required the use of gateways which reduces functionality and increases costs. For example, one international operator wishing to provide lower cost international connectivity into a NE African country had to provide a special gateway to what it considered obsolete technology.Unlike in the developed world, most African countries do not have laboratories to test whether or not communications equipment and systems conform to the required international, regional and national standards, making interoperability testing a challenge. Exceptions include Egypt, Morocco, southmost Africa and Tunisia (see information document I). Rwanda has seen a profusion of very low-cost GSM handsets. same(p) India, many of these have proved to be counterfeit, with no proof that they acquiesce with international safety standards or that they conform to network standards and interoperate without causing problems.Tanzania has identified a number of issues shown in knock back 1. Table 1Inte roperability issues in Tanzania SN Item Positive Concern 1 Antennae have different standards motivator to roll out in Joined networks instead of single network that for different vendor and types underserved areas result in duplication of investiture and practicable e. . space diversity, combining, Increased employment expenditure e. g. spare stock, training opposite 2 New technology (upgrade) Increased competition Delays or not possible to access some application or compatibility with old versions Service differentiation documents e. g Windows 2003 to 2007 or VISTA. but not vice versa squeeze to change from R2 signalling for circuit (packet) switching and later likely to IP else miss VAS applications Environment issue e. g.Exposure or Recycle of absolute equipment such as antennae 3 Pre-paid and online payment Easy customer entry and receipts stream authenticity (credit card) consumer choice of services National Security issues e. g. satell ite phones 4 Liberalization of International Competitive tariffs Cyber security. gateways. Improved quality of services With multiple gateways how ccTLD and Internet VSAT, Earth stations, submarine exchanges are to be on optimal use. cables and oculus fibre Incoming international traffic task income loss? 5 Transmission systems. PDH and SDH Incentive to roll out widebandDifferent control and operational procedure (Central and mono mode and DWDM optic fibredata operation management systems).Complex and costly Core switch (TeS, NGN) not able toPossible sharing of capacity integration for various vendors parent various media gateways, RSU(infrastructure) Need to share customer information e. g. from EIR or (xDSL) Increased employment blacklist and fraudsters. Access interface V5. 1 and V5. 2 Difficult or too costly to integrate various vendor equipment in the network.While specializing to a single vendor as well ties to limited QS, services and costly upgrades. 6 Revenue assurance systems Increase Customer gladness Integration of modules for fixed, GSM and CDMA are Quality of service monitoring likely to be too costly Integration of data and voice Few countries in Africa have in place the necessary accreditation systems and technical regulations need to provide a framework for the granting of certificates and licenses for the provision of communications services or the emerge of telecommunications equipment. There is a general lack of expertise and human capacity in standardization. African countries have been less able than developed countries to participate in and to influence standards making processes.One consequence of this is that they have been much less involved in the work of devising conformity and interoperability tests and then of conducting the tests of equipment and services. teaching in standardization and testing has been insufficient and when available been expensive or involved travel. This has result ed in a lack of understanding of test results when they are submitted from accredited laboratories. In particular, there is a lack of understanding of international standards concerning the implementation of interoperability of ICT systems and devices.The large and growing number of producers of standards is seen as confusing, especially since the standards and the resulting equipment and interfaces are mostly not interoperable. As with the Indian example, African operators have encountered problems interoperating BSCs and BTSs from different manufacturers. Some types of equipment conforming to international standards are intended to operate in specific radio frequency bands, but this spectrum may not be available in Africa.This has made the efficient use of radio spectrum one of the key challenges African countries confront and which has brought nearly interoperability problems. The Southern Africa Telecommunications Association (SATA), a aggroup of fixed incumbent operators, has identified specific interoperability challenges (see Table 1), relating to NGN equipment. Table 2Southern African interoperability challenges (Source SATA) Equipment supplier and type Interoperability problems with Equipment Supplier Equipment Type Huawei Technologies SoftSwitch Nokia Siemens Networks physical structure Gateway Huawei Technologies SoftSwitch ZTE CDMA Equipment (Fax problems) Huawei Technologies SoftSwitch Alcatel-Lucent WiMAX WAC There are several interoperability issues between the BOSS and the component Managers from different suppliers. The standard Northbound interfaces between EM and the OSS are not always open, or the supplier is not willing to open those interfaces. In summary, Africa faces the following problems Increased publish of brusque quality equipment Difficulties in the natural selection of interoperable equipment from a wide range of vendors Lack of testing centres, facilities and trained professionals Lack of national or regional laws and regulations and Lack of understanding of ITU-T Recommendations, the conformance tests and their results. 1 Specific tasks have been assigned by the United Nations to the Office of the highschool Representative for the LDCs, Landlocked Developing Countries (LLDCs) and SIDS (OHRLLS). 2 The telecommunications needs of SIDS are being studied by ITU-D under Question 23/2. 3 See, for example, European committed Health Leadership Summit A Manifesto for Connected Health 4 Permission has not yet been granted by the country to disclose its name. 5 http//ieeexplore. ieee. org/ielx5/4534704/4542234/04542262. pdf? arnumber=4542262 and http//ieeexplore. ieee. org/ielx5/4115171/4115172/04115219. pdf? isnumber=4115172 6 Jerry Brito (2007) Sending out an S. O. S. public safety communications interoperability as a collective action problem. Federal Communications Law diary 59 (3) 457-92. 7 Senate Report 109-088. Departments of Commerce and Justice, Science, and Related Agencies Appropri ations Bill, 2006. House Report 109-241. devising Appropriations for the Department of Homeland Security for the Fiscal Year Ending folk 30, 2006, and for Other Purposes. BTS of vender A BSC of Vendor A MSC of Vendor A BTS of Vendor B Proprietary/Non-interoperable interface SSP of Vendor B Switch /LE Calling Card User Switch /LE SCP SSP SSP SCP of Vendor A SSP of Vendor A Called Subscriber Proprietary/Non-interoperable interfaceChallenges lining Developing CountriesChallenges Facing Developing Countries Janita Aalto Principles of Microeconomics ECO 204 Instructor Kathryn Armstrong prove 28, 2011 Challenges Facing Developing Countries Developing countries, also known as third and quaternary world countries face economic challenges that first world countries do not face, on a large scale. Poverty, low literacy judge, poor investments in both human capital and domestic capital, poor food and devastation to populations due to the human immunodeficiency virus assist pandemic con tribute to developing countries moving towards development.The primary focus of this composing is to explore the extend to the human immunodeficiency virus/ support pandemic has had on Sub-Sahara African economies and to explore the challenges facing developing countries to shit domestic savings. The stupor on the economies of some of the African countries is still not completely known. If we look at economic impacts, first we essential look at the human cost HIV/AIDS is having on Africas economic development and ability to cope with the pandemic.According to an online journal, there are four variables that outline the effects on Africas future development Economic research helps to label the effects of HIV/AIDS on the African providence and the cost effectiveness of prevention and treatment programmes Economic theory predicts that HIV/AIDS reduces labour supply and productivity, reduces exports, and increase imports The pandemic has already reduced average national economic growth rates by 2-4% a year across Africa Prevention and treatment programmes and economic measures such as targeted training in skills needed in key industries will limit the economic effects of HIV/AIDS, (BMJ. 2002, p. 232). In examining the economic effects of HIV/AIDS, it is hard to look past the fact that over 17 million African people have lost their lives to HIV/AIDS and has 70% of all HIV/AIDS related cases in the world. These are lurch statistics. As outlined in the above journal article, the mortality rates have caused a reduced labor supply, reduced labor productivity and reduced exports and increased exports. The population of people hardest hit by the HIV/AIDS pandemic are the prime-aged adults. HIV/AIDS robs industries of both accomplished workers and a generation of workers in their prime working years.The associated illnesses and sickness as a result of HIV/AIDS can lead to high absenteeism which impacts labor productivity. The effects of a reduced labor supply a nd reduced labor productivity, reduces exports, while imports of expensive health care goods may increase. The decline in export earnings will be severe if strategic sectors of the parsimony are affected. The balance of payments (between export earnings and import expenditure) will come under pressure at the same time that government budgets come under pressure. This could cause defaults on debt repayments and require economic assistance from the international community, (BMJ. 2002, p. 233).In a 1992 macroeconomics a study on the impact of HIV/AIDS in Africa, it was concluded that reduced availability of virtuoso(prenominal) labour would reduce growth rates by about 50% and investment by 75%, that imports of food and other basic products would increase, and that exports of fabricate and other products would decline. It was also estimated that by 2010, South Africans GDP per capita would be some 8% low and consumption per capita would be about 12% lower than would have been the ca se without the HIV/AIDS pandemic, (BMJ. 2002, p. 234). The pandemic will have lasting effects on the economic development on the Sub-Sahara African countries without international assistance. An important pace in limiting the economic effects of the pandemic is to develop comprehensive policies tailored to the needs of the economies of individual countries.These policies will inevitably include the launch of treatment and prevention programmes but may also include economic measures, such as targeted training of skills needed in key industries, (BMJ. 2002, p. 234). One way to help stabilize the economy may be to contract expensive antiretroviral drugs at highly productive groups of socioeconomic groups in specific industries on the basis of their contribution to economic output rather than their healthcare needs, (BMJ. 2002, p. 235). This would most likely be a controversial plan, but the strategy would help the people in those groups and buy time for skills training and developm ent of a new work force to replace those that will either lose their health or their lives.It would also boost the economy if industry production levels can be maintained and exports of goods can remain at a profitable pace. The pandemic is having a major effect on life expectancy, which has been dropping. In Zimbabwe, for example, life expectancy is 40 instead of 69. In seven countries in Sub-Saharan Africa, life expectancies are below 40 years of age, (CHG, 2009, p. 3). Not only does this impact the work force, but impacts the children, many of whom lose not only one, but both parents, and other family members that might be able to take them in. Instead these children now become a government responsibility, as they are put into orphanages, group homes, etc. It is estimated that there are 15 million orphaned children across Africa.Standards of living are decreasing, and countries that were once starting to make progress both socioeconomically and economically are headed backwards instead of forward. Poverty is change magnitude as the family breadwinners are dying or becoming incapacitated by their illnesses. If there are savings, those savings are dwindling as people use their savings just to survive. With mainly young adults dying off, the tax base is shrinking which reduces a countries ability to invest in human capital, such as education and health services, which puts pressure on government finances and reduces economic growth. Investment in education is not a priority with the belief that children will contract HIV/AIDS in adulthood. The poor education of children translates into low adult productivity a generation later. This raises important social and fiscal implications for economic policy. The first is the threat of declivity inequality. If the children left orphaned are not given the care and education enjoyed by those whose parents remain uninfected there will be change magnitude inequality amount the next generation of adults and the families they form, (CHG, 2009, p. 6). Investing in human capital is one of the keys to bringing economic growth to developing countries. According to an online website, human capital is defined as the set of skills which an employee acquires on the job, through training and experiences, (InvestorWords. com).An investment in human capital also includes development of and access to, health and living programs. Recent studies suggest that 40 percent of the population of the developing nations has an annual income insufficient to provide qualified nutrition, (Case, Fair & Oster, 2009, p. 427). Low nutrition affects health and poor health affects productivity. Low productivity levels then affect the ability to provide for ones family, let alone provide any surplus that can be sold and the money put into savings. There are two explanations as to why capital is in such short supply in developing countries. The first is the vicious-cycle-of-poverty hypothesis.According to our text, the vicious-c ycle-of-poverty hypothesis suggests that a poor nation must consume most of its income just to maintain its already low standard of living. Consuming most of national income implies limited savings, and this implies low levels of investment, (Case, Fair & Oster, 2009, p. 428). Investment is needed for capital stock to grow and for income levels to rise. Without it, poverty becomes self-perpetuating, (Case, Fair & Oster, 2009, p. 428), and the cycle is complete. The second explanation is that there is a lack of financial incentives for citizens to save and invest, as well as a lack of financial institutions. It is common for the wealthier citizens to invest their monies in Europe or the United States instead of in their own countries.The term for this is capital flight, which refers to the fact that both human capital and financial capital leave developing countries in search of higher expected rates of return elsewhere or returns with less risk, (Case, Fair & Oster, 2009, p. 428). A ccording to an online article, Africa is estimated to lose hundreds of billions of dollars in domestic revenues annually through capital flight, (Africa Renewal, 2008, p. 12). In order to reverse this trend, it is imperative that the government remove the barriers that turn away laden citizens from investment in their own countries. Without domestic savings, investment isnt possible. Without investment, growth isnt possible and this cycle continues much like the vicious-cycle-of-poverty hypothesis.What decisions do leadership of a developing country make in order to stimulate domestic savings and in turn, capital? If I were the President of a developing country, I would invest in human capital and banking reform. In investing in human capital, I would target health and nutrition programs for kids and young adults, the next generation of workers. With life expectancy rates falling, efforts must be made to reverse that trend. A much larger investment in education would be made ince ntives for college kids that go to school afield to return to their home country and work in their field for a required number of years. I would emphasize training and skill development for replacement workers in the industries hit hardest by HIV/AIDS.In investing in banking reform, I would offer incentives to people who put their money in banks and other financial institutions. Some of the reasons African people in particular do not put money in savings discovers are physical distance from banking institutions, high minimum deposit and balance requirementsand the considerable documentation needed to open an account, (Africa Renewal, 2008, p. 7). There are also a limited number of banks available and with over 60 percent of African people living in rural areas, they just dont have physical access to banks, unless they travel a retentive distance. In order to convince people to put their savings in banks, interest paid on savings would need to be high and interest rates on loans l ow.Somehow, people must be boost to place their money into savings so money will be available for future investments. The UNCDF noted in its 2004 report that in Rwanda about half a million savings passbook accounts, with an average account size of $57, pulled almost $40 mn into circulation in 2001. Although this may not appear significant, argued the UNCDF, proper circulation of these funds into credit products could have a significant multiplier effect in the Rwandan economy, (Africa Renewal, 2008, p. 7). Poverty, low literacy rates, poor investments in both human capital and domestic capital, poor nutrition and devastation to populations due to the HIVAIDS pandemic contribute to developing countries moving towards development.For these countries to become economically viable, the governments must encourage citizens to invest in their own countries and not rely on international assistance. Its time for both the citizens and the governments to step up and help themselves. Referenc es Case, K. E. , Fair, R. C. and Oster, S. E. (2009) Principles of Microeconomics (9th ed. ) Upper Saddle River, New Jersey Pearson scholar Hall. Dovi, E. (2008) Boosting domestic savings in Africa From Africa Renewal, Vol. 223 (October 2008), page 12, Retrieved on March, 26, 2011, from http//www. un. org/ecosocdev/geninfo/afrec/vol22no3/223-boosting-domestic-savi ngs. tml Economic Commission for Africa, CHG Commission on HIV/AIDS and governance in Africa Africa The Socio-Economic Impact of HIV/AIDS, Index No. CHGA-B-11-003, Retrieved on March 27, 2011, from http//www. uneca. org/chga/doc/SOCIO_ECO_IMPACT. pdf InvestorWords, Retrieved on March, 20, 2011, from http//www. investorwords. com Copyright2011 by WebFinance, Inc. ALL RIGHTS RESERVED. PubMed Central The impact of HIV and AIDS on Africas economic development Simon Dixon, Scott McDonald, and Jennifer Roberts BMJ, 2002 January 26 324(7331)232-235 PMCIDPMC1122139 Retrieved on March 25, 2011, from http//www. ncbi. nlm. nih. gov /pmc/articles/PMC1122139