Challenge of the Economies

The main challenge of any economy is to fulfill the needs of its populations. Every population needs to be supplied some goods and services for its survival and well being. These goods might include basic needs such as food, shelter, garmenst, etc. while it might also consist of refrigerators, air conditioners, cars, medicines, computers, etc. Similarly, the services people need may range from healthcare, drinking water supply, education to advanced and highly sophisticated services like banking, insurance, airways, telephomes, internet,etc. As an economy moves on the ladder of development, the process of fulfilling the needsd of the population becomes nerver-ending phenomenon. As an economy achieves success in supplying one set of goods and services to its population, the population starts demanding another set of goods and services which are of a higher order. And thus goes on the struggle of the economy-solving one challenge and focusing on another. Standard of living of one set of population varies from another depending upon the attempts and the successes of the concerned economies as to which comparative extent they have been able to fulfill the needs of their population.

There are two aspects of this challenge. First, the availability of the goods and services required by the population and second, the presence of the supply networks. Every economy has to guarantee required level of goods and services out of its production process at first. For this, proper level of production capacity is bult up which requires a particular level of capital formation or investment. From where the investible funds will be managed is altogether a seperate question. Whether the investment will come from the government, the domestic private sector or the foreigners? Once these details are cleared and selected as per the socio-economic conditions of the economy, a proper distribution network for the goods and services produced is assured.