Essay The 12 Most Important Characteristics of under-developed or developing countries are:
(1) Low Levels of Living:
In developing nations general levels of living tend to be very law for the vast majority of people. The causes for this are as follows:
(i) Slow growth rates of national income
ADVERTISEMENTS:
(ii) Stagnating rates of income per capita growth
(iii) Concentration of income in the hands of few persons and unequal distribution of national income
(iv) Large segments of the population suffering from ill-health malnutrition and disease with high infant mortality rates, and
(v) Low level of literacy and inadequate educational facilities.
(2) Low level of productivity:
ADVERTISEMENTS:
Throughout the developing world levels of labour productivity (output per worker) are extremely low due to lack of technology, capital, etc.
(3) High rates of population growth and dependency burdens:
The under-developed countries are characterised by higher rate of population growth, and dependency burden. Birth rates are generally at very high levels. Death rates are also at high levels compared with the developed countries but because of improved health conditions the death rates are subsequently smaller than the birth rates.
(4) High and rising levels of unemployment and underemployment:
Under utilization of labour in manifested in two forms. First, it occurs as under-employment who are working less than they could. Underemployment also includes those who are normally working full time, but whom no suitable jobs are available. Disguised unemployment is a special feature of developing countries.
(5) Substantial dependence on agricultural production:
The vast majority of people almost three-fourths like and work in rural areas. Similarly, three-fourths of the labour force is engaged in agriculture. Agricultural contribution to the gross national product of developing nations is very high compared with the developed nations.
(6) Dependence on primary product:
ADVERTISEMENTS:
Most economies of less developed countries are oriented towards the production of primary products as opposed to secondary activities. These primary commodities form their main exports to other nations.
(7) Dependence in international relations:
The higher unequal distribution of economic and political power between rich and poor nations are manifested not only in the dominant power of rich nations to control the pattern of international trade but also in their ability often to dictate the terms in which technology, foreign aid and private capital are transferred to developing countries.
(8) Dualistic Economy:
Almost all under developed countries have a dualistic economy. One is the market economy; the other is the subsistence economy. One is in and near the town; the other is in the rural areas.
(9) Misdistribution of Wealth:
Inequalities in wealth and asset distribution are the principle cause of unequal distribution of income in the rural areas. On the industrial front, there has been a high degree of concentration of assets in the hands of big business houses.
(10) Lack of natural resources:
There are no fertile lands, water resources and mineral resources of iron, coal etc. in under developed countries.
(11) Lack of enterprise and initiative:
Another characteristic feature of underdeveloped countries is the lack of entrepreneurial ability. Entrepreneurship is inhibited by the social system which denies opportunities for creative faculties.
(12) Inefficient capital equipment and technology:
The capital equipment and technology is poor and the current rate of capital formation is very low.