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    Features of An Underdeveloped Economy Ba Part 3

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    lavanya sivakumar
    The document discusses the key features of an underdeveloped economy according to various definitions and reports. It outlines 15 main features: 1) low per capita income, 2) low growth rate, 3) economic inequalities, 4) low level of living, 5) deficiency of capital, 6) backward techniques of production, 7) backward human resources, 8) underdeveloped natural resources, 9) high population growth rate, 10) dependence on agriculture, 11) backward industrial sector, 12) backward tertiary sector, 13) unfavorable institutional structure, 14) external indebtedness, and 15) the vicious circle of poverty in both supply and demand. The features indicate low development, productivity, and standards of living compared to

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    Features of An Underdeveloped Economy Ba Part 3

    Uploaded by

    lavanya sivakumar
    395 views22 pages
    The document discusses the key features of an underdeveloped economy according to various definitions and reports. It outlines 15 main features: 1) low per capita income, 2) low growth rate, 3) economic inequalities, 4) low level of living, 5) deficiency of capital, 6) backward techniques of production, 7) backward human resources, 8) underdeveloped natural resources, 9) high population growth rate, 10) dependence on agriculture, 11) backward industrial sector, 12) backward tertiary sector, 13) unfavorable institutional structure, 14) external indebtedness, and 15) the vicious circle of poverty in both supply and demand. The features indicate low development, productivity, and standards of living compared to

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    The document discusses the key features of an underdeveloped economy according to various definitions and reports. It outlines 15 main features: 1) low per capita income, 2) low growth rate, 3) economic inequalities, 4) low level of living, 5) deficiency of capital, 6) backward techniques of production, 7) backward human resources, 8) underdeveloped natural resources, 9) high population growth rate, 10) dependence on agriculture, 11) backward industrial sector, 12) backward tertiary sector, 13) unfavorable institutional structure, 14) external indebtedness, and 15) the vicious circle of poverty in both supply and demand. The features indicate low development, productivity, and standards of living compared to

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    395 views22 pages

    Features of An Underdeveloped Economy Ba Part 3

    Uploaded by

    lavanya sivakumar
    The document discusses the key features of an underdeveloped economy according to various definitions and reports. It outlines 15 main features: 1) low per capita income, 2) low growth rate, 3) economic inequalities, 4) low level of living, 5) deficiency of capital, 6) backward techniques of production, 7) backward human resources, 8) underdeveloped natural resources, 9) high population growth rate, 10) dependence on agriculture, 11) backward industrial sector, 12) backward tertiary sector, 13) unfavorable institutional structure, 14) external indebtedness, and 15) the vicious circle of poverty in both supply and demand. The features indicate low development, productivity, and standards of living compared to

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    Features of an Underdeveloped

    Economy
    Introduction World
     The term Development
    ‘underdeveloped Report
    country’ is relative.
     The World Bank in
    its World
    Development Report
    classified various
    countries on the Low Income
    Countries
    Middle Income
    Countries
    High Income
    Countries
    basis of Gross GNI Per Capita
    National GNI Per Capita
    of
    Ranging
    Between GNI Per Capita
    Income(GNI) Per $906 $906 and of $11,116
    And below $11,115 Or more
    Capita.

    1
    Meaning of an Underdeveloped
    Economy
    Inefficient and
    Conventional
    Technique &
    Production

    Good
    Potential
    Low Economic
    Prospects &
    Performance
    Enthusiasm in
    Its People
    Under
    Developed
    Economy

    Un-utilized
    Low Per Capita Human and
    Income Natural
    Resources
    2
    Definitions Of Underdeveloped
    Economy
    U.N.O Group of Experts: “ We use the term
    underdeveloped countries in which per capita real
    income is low compared with per capita real
    income of the United States of America, Canada,
    Australia and Western Europe.”
    ( Evaluation: Narrow
    definition refer to just one parameter i.e. Low
    income per capita)
    Nurkse, “ Underdeveloped countries are those
    which compared with advanced countries are
    underdeveloped with capital in relation to their
    population and natural resources.”
    (Evaluation: Refer to only
    one of the determinants of underdevelopment)

    3
    Features of Underdeveloped
    Economy
    Main features are:

    Deficiency of Capital Low Per Capita Income

    Low Growth Rate of Per Capita Income


    Backward Techniques of Production

    Economic Inequalities
    Backward Human Resources
    Low level Of Living

    Underdeveloped Natural resources High Rate of Population Growth

    4
    Features of Underdeveloped
    Country
    Features

    Dependence on Agriculture

    Backward Industrial Sector

    Backwardness of Tertiary Sector

    Unfavourable Institutional Structure

    External Indebtness

    Vicious Circle of Poverty


    5
    Explanation of Features
    1. Low Per Capita Income:

    6
    Explanation of Features
    2. Low Growth Rate
    Growth rate of low income economies (excluding China, India, Pakistan and
    few other countries) is less than that of developed countries.

    7
    Explanation of Features
    3. Economic Inequalities

    8
    Explanation of Features
    4. Low Level of Living

    9
    Explanation of Features
    5. Deficiency of Capital

    10
    Explanation of Features
    6. Backward Techniques of Production

    11
    Explanation of Features
    7. Backward Human Resources

    Backward
    Low wages Human Resources

    Poor health Low productivity


    Of labor Of labor

    Shortage of efficient
    and literate
    labor

    12
    Explanation of Features
    8.Underdeveloped Natural Resources
    Resources like For example: Africa
    Land, Minerals, possess 44% of
    Forests and total water power of
    Water are the world , utilizes
    underutilized. only 0.11%.

    13
    Explanation of Features
    9. High Rate of Population Growth

    14
    Explanation of Features
    10. Dependence on Agriculture

    In nutshell Agriculture in underdeveloped economies are:


     Backward
     Low Productive
     Outmoded Techniques 15
    Explanation of Features
    11. Backward Industrial sector

    Weak Industrial Structure because


    of:
     Lack of basic key industries
     Shortage of able entrepreneurs
    16
    Explanation of Features
    12.Backwardness of Tertiary Sector
    Underdeveloped
    Economies
    25% of working
    Trade, Banking, population is
    insurance services engaged in this
    and infrastructure sector.
    are in a state of
    underdevelopment. Developed
    Economies
    45% of working
    population is
    engaged in this
    sector.

    17
    Explanation of Features
    13.Unfavourable Institutional Structure
    Institutional
    Structure of
    Underdeveloped
    Economies

    Uneconomic Customs Political


    Culture and Traditions Corruptions

    Old customs
    Philosophical
    Believers and Unstable Politically Corrupt
    and religious
    in Faith Orthodox Governments weak politicians
    obstacles
    approach

    18
    Explanation of Features
    14. External Indebtedness
    u n tr i e s i s
    v e l op e d co
    f u nd e rd e rr ow f r om
    b t e d n es s o s th e y b o
    n d e m e a
    Foreign iheir national inco e scale.
    37% of t ountries on a larg
    foreign c

    19
    Explanation of Features
    15a. Vicious circle of poverty : Supply side
    “ A country is a poor because it is poor.” –Nurkse.

    Low productivity Low per capita


    income

    Low investments Low saving

    20
    Explanation of Features
    15b. Vicious circle of poverty: Demand side

    Low income Low demand

    Low inducement
    Low productivity to
    invest

    Low investment

    21
    22

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