The problems of economic development in African countries

This diploma thesis points to the barriers which impede backward African countries in economic development. It sees an imperfect institutional environment of the poor countries as a major issue. It outlines the problems on specific cases of Rwanda, Botswana and Kenya and it also suggests possible solutions for overcoming persisting poverty. The first chapter focuses on explanation of development theories and effectiveness of foreign aid. The next chapter regards economic development from the institutional point of view. Moreover, it presents the theoretical concept of property rights as the main factor of economic prosperity. The last theoretical chapter describes a role of government and its effect and effect of interest groups on the economy of particular country. The economic policy development of concrete African countries is discribed in analytical part of the thesis. In conclusion of the work the particular findings are summed up and furthemore, the certain solutions which should help to overcome big poverty in poor African countries are offered.