Answer to Question #314990 in Microeconomics for MANDISI

Question

  Identify and discuss five (5) of the characteristics the developing world share. What are some dimensions in which developing countries show notably wide variations?

Answer 1

1. Low per capita real income. The real per capita income of developing countries is very low compared to developed countries. This implies that the average income of developing countries is little and it is not sufficient to invest or save.
2. Rapid population growth. Developing countries have either a high growth rate or a larger size of the population. Higher child and infant mortality rate in such countries compel people to feel insure and give birth to more children.
3. Unemployment and underemployment. This problem emerged due to excessive dependency on agriculture, low industrial development, lack of proper utilization of natural resources, lack of workforce planning, and others. People are compelled to engage themselves in inferior jobs due to non availability of alternative sources of jobs.
4. Technological backwardness. The development of a nation is a positive and increasing function of innovative technology. Technological use in developing countries is very low and used technology is outdated.
5. Mass poverty. Most of the people in developing countries have been suffering from the problem of poverty. They are not able to gather for even basic needs. The low per capita in this countries also reflects the problem of poverty.