The Role of the Financial Sector in Developing Economies: Challenges and Interventions

The video explores the role of the financial sector in developing economies, highlighting challenges such as low productivity, poor infrastructure, and high unemployment. It distinguishes between economic growth and sustainable development, emphasizing the need for investment. The Harrod-Domar model is discussed, illustrating the importance of savings for investment. Barriers to investment, including low savings and interest rates, are examined. Finally, interventions like the Grameen Bank and interest rate caps in Kenya are reviewed.

How does the Harrod-Domar model relate to investment and economic growth?

What challenges do developing economies face in retaining skilled individuals?

In what ways can NGOs contribute to the financial independence of developing economies?

What were the outcomes of the interest rate caps introduced in Kenya?