Agricultural Backwardness 6. In other words, they constitute only potential resources. High growth rate of population. The level of per capita income being quite low, most of it is spent on satisfying the bare necessities of life, leaving a very little margin of income for capital accumulation. During the last some decades because of population explosion the pressure of manpower on land in the developing countries has largely increased. Political independence has naturally raised expectations of the people in the economic sphere. Already, the upper sections of society in developing countries are imitating the living standards prevalent in the rich countries. The United Nations has set a list of Sustainable Development Goals designed to help developing countries overcome these challenges. The great threat of this rapid population growth rate is that it sets at nought all attempts at development in as much as much of the increased output is swallowed up by the increased population. The awareness of the possibilities of development is growing every day. Once specific problem developing countries face is a general lack of wealth, which negatively affects quality of life in a variety of ways, particularly in access to education. A developing country is also known as an LMIC, or a low and middle-income country. They have more women working, particularly … Disclaimer Copyright, Share Your Knowledge It will be seen from Table 4.2 that in 2009, population of the world was estimated at 6,775 million in 2009 and its annual population growth in 1990-2009 was 1.3 per cent. In India the percentage of undernourished persons to total population was high at 21 per cent but Brazil has succeeded in lowering it to 6 per cent of the population. It is the relative difference between the rich and poor countries which will make the poor countries discontented. Since then there has been substantial increase in the rate of saving and investment in the developing countries. While almost all are poor in money terms; but there are variations in their cultural, social, political and economic conditions. Low rate of saving and capital formation. Imagine a big city in the United States and a small village in Ethiopia. The insufficient amount of physical and human capital is so characteristic a feature in all undeveloped economies that they are often called simply ‘capital-poor’ economies. This is because as a result of rapid population growth, capital per head is still very low. The United States is considered a highly developed country, which is a general category for countries that are highly industrialized and have … Privacy Policy3. It may however be noted that the extent of poverty prevailing in the developing countries is not fully reflected in the per capita income which is only an average income and also includes the incomes of the rich also. Nurkse has called this as “demonstration effect”. They have now realized that the solution of the problem of poverty lies in economic development. This technological dualism with the fact that modern sector has limited labour-absorptive capacity contains important implications for development strategy to be framed for less developed countries like India with surplus labour. The attitudes and social values of this sector are often such that it is prone to use its income for ‘conspicuous consumption’, investment in land and real estate, speculative transactions, inventory accumulation and hoarding of gold and jewellery. Besides, health enjoyed by the people is good in itself as it directly increases the happiness and welfare of the people, Lower health of the people of developing countries is manifested lower life expectancy at birth, higher mortality rate of children under 5 years age, undernourishment and malnourishment (i.e., underweight children) of the people and access to improved sanitation facilities. To quote Amartya Sen, “The valued functioning may vary from elementary ones, such as being adequately nourished and being free from avoidable diseases to very complex activities or personal states such as being able to take part in the life of community and having self-respect”. Wider income inequalities. According to the concept of technological dualism, the important difference between the traditional and the modern sectors lies in the difference between the production techniques or technologies used. While developing countries are countries where the level of welfare of the population is still in the middle of developing level. The natural resources in an underdeveloped economy are either unutilised or underutilised. The low levels of per capita income and poverty in developing countries is due to low levels of productivity in various fields of production. In developing countries today, despite their modern industrial growth in the last four decades not much progress has been achieved towards structural transformation in the occupational structure of their economies. In the present-day developed countries, the modern industrial growth brought about structural transformation with the proportion of working population engaged in agriculture falling drastically and that employed in the modern industrial and services sectors rising enormously. It has been possible for agriculture to contain the surplus labour because of the prevalence of extended family system in which both work and income are shared by the family members. It will be seen from this table that as compared to high income countries enrolment in secondary and tertiary educational institutions was 38% and 63% of person of relevant age group in 2009 as compared to 100 per cent in high-income developed countries. Higher contribution of agriculture to national income. Some of the characteristics are: 1. One important consequence of this rapid rate of population growth is that it throws more and more people on land and into informal sector to eke out their living from agriculture, since alternative occupations do not simultaneously develop and thus are not there to absorb the increasing numbers seeking gainful employment. Large inequalities in income distribution prevailing in these economies have made the lives of the people more miserable. High level of unemployment. The main problem in their case is that such resources have not been fully and properly utilised due to various difficulties such as shortage of capital, primitive technology and the small size of the market. The poor countries will agitate more and more for a share in prosperity and, consequently, their demand on the richer countries will grow louder and louder in volume and intensity. Such a situation threatens the economic and political stability of the world. There is ample evidence in the world of the fact that when nations cannot solve their domestic problems, their governments plunge them into war with their neighbours who may be prosperous. In … For the removal of poverty capabilities of the poor should be enhanced so that they should be able to meet their minimum basic needs which include getting adequate food, health, clothing and shelter. The commonalities between developed countries include an improved quality of life and greater access to basic necessities. These characteristics might include: Relatively low incomes per capita and a low level of absolute savings Lower absolute levels of productivity (labour and capital) While we have examples of India, Pakistan and Bangladesh with their teeming millions and galloping rates of population growth, there are the Latin American countries which are very sparsely populated and whose total population in some cases numbers less than a single metropolitan city in India and China. On the contrary, in high income, that is, developed countries only 4 per cent of their workforce is employed in agriculture, while 26 per cent of their workforce is employed in industry and 70 per cent in services. While most of them are located in many parts of Africa and Asia, some countries in South and Central America are also referred to as developing countries. However, the quantity of capital per head is still very low in them and therefore productivity remains low. For example, the recent estimates reveal that about 28 per cent of India’s population (i.e. Similarly, Table 4.3 reveals that adult literacy rate (percentage of population of ages 15 and older that can read and write a short simple statement in their everyday life) is much lower (62% in low income and 80% in lower middle income developing countries) in 2009 as compared to 98% in high income developed countries. The situation in other developing countries is no better. The first important feature of the developing countries is their low per capita income. The per capita income of the people of India is very low in comparison with that of the USA, the UK, Canada, Australia and Japan. This un-nourishment impairs the working capacity of the individuals and also makes them unable to acquire education and skills needed for high productivity job. Some of the indicators used to define a state as either developed or developing include the World Bank Income Classification, Human Development Index, and fall in Extreme Poverty among others. Mortality rate of under 5 years age children per 1000 live births in 2009 was 118 in low income countries (LIC) and 57 in lower middle income countries (LMC). What makes a country developed? However, it is technological dualism rather than Boeke’s social dualism which has an important bearing on the problem of economic growth and surplus labour in the developing countries. characteristics of poverty include inadequate diet, poor health, short life expectancy, and illiteracy. On the other hand, in the large traditional sector covering agriculture, handicrafts and allied activities, in which there exist extended family system and self-employment, labour-intensive technology is generally used. Low Per Capita Real Income. The same is the case with regard to access to improved sanitation facilities. A developing country is generally predominantly agricultural. Low Levels of Productivity 3. This lowers the quality of the people of developing countries as productive agents and wealth creators. Todaro classifies these common characteristics into six broad categories: Indian economy possesses all the characteristics common to underdeveloped or developing countries. As the gulf between the rich and poor countries widens, the tension in the world will grow. Besides, it is important to note though at present (2011-12) agriculture employees 50 per cent of workforce, it contributes only 13 per cent to its GDP. Famous Lewis model of economic development with unlimited supplies of labour and Fei-Ranis model of “Development in a Labour Surplus Economy” explain how in dualistic economies, the unemployed and underemployed labour in the traditional sector is drawn into a modern high productivity sector. Thus this concept is normally applied to know the productivity of labor. They are no longer prepared to reconcile to their poverty as resulting from fate. DEVELOPING COUNTRIES. Common Characteristics of LDCs: According to United Nations’ data, there are 130 (74) developing countries in the world. When increasing population cannot obtain employment in the modern non-agricultural occupations, such as industry, transport and other services, then the people remain on land and agriculture and do some work which they are able to get. Disguised unemployment means that there are more persons engaged in agriculture than are actually needed so that the addition of such persons does not add to agricultural output, or putting it alternatively, given the technology and organisation even if some of the persons are withdrawn from land, no fall in production will follow from such withdrawal. Health conditions in South Asia and Sub-Saharan Africa are highly deplorable and they continue to suffer from problems of acute undernourishment, malnourishment and children’s mortality rate. Second, Child nutrition which is here measured by malnourishment of children under 5 year’s age who are underweight. There may also be high levels of pollution and a high percentage of people with infectious diseases. This has resulted in disguised unemployment in agriculture. Developing countries are the poor countries of our world. Economic development is needed so that living standards of their people may be raised. We thus see that the problem of unemployment and underemployment in less developed economies has been intensified by the technological dualism caused by the use, in the modern manufacturing and mining, of capital-intensive technology imported from abroad which is wholly unsuitable to the factor endowments of these less developed economies with abundant labour and small capital. However, there appears to be a common feature, namely, a rapid rate of population growth. The economies of these two countries are one major characteristic that set them apart. However, despite this great diversity there are many common features of the developing economies. Besides, lack of education and skills makes people less adaptable to change and lowers the ability to organise and manage industrial enterprises. Due to the use of highly capital-intensive techniques very few employment opportunities have been created in their organised industrial and services sectors. TOS4. Their birth and death rates are stable. About 70% of the world’s 7 billion people live in underdeveloped countries.. The World Bank describes the terms ‘developing world’ and ‘developing country’ as ‘tricky.’ The World Bank is a UN institution that offers loans to developing countries for capital projects.Using the terms is tricky even when people use them cautiously and are not judging the country’s development status.When listing or categorizing countries for statistics and reports, the World Bank does not use the term ‘developing country.’Accord… Unemployment and Poverty: Low: High: Rates In India at the time of independence about 60 per cent of population was employed in agriculture and with six decades of development the percentage of population engaged in agriculture has fallen to around 50 per cent in 2011-12. In the small modern sector consisting of large-scale manufacturing and mining which provides wage employment, highly capital-intensive techniques imported from the developed countries are used. The population growths in low-income developing countries have been 2.3 per cent per annum during 1990-2009 and of middle income developing countries as a whole has been 1.3 per cent per annum. The term refers to the current state of a nation and is not used to determine changing dynamics or future progress. The term "developing" describes a currently observed situation and not a changing dynamic or expected progress direction. Characteristics of Developing Countries BY Hafeez260 The theme of this essay is: the importance of a study of other semi-developed countries as they struggle for economic growth, the elimination of mass poverty and, at the political level, for democratisation and the reduction of reliance on coercion. Characteristics. As against this, for high income countries dependency burden of old persons is relatively very high being 23 per cent. It will be seen from Table 4.4 that percentage of under-weight persons to total population is very high in developing countries 31 per cent in low income countries (LIC) and 15 per cent in lower middle income countries whereas it is very low at 5% in high income developed countries in the year 2009. In such an economy, the low level of per capita income limits the size of the market demand for manufacturing output which weakens the inducement to invest. What do we find today? With the explosive rate of growth of population and labour force and the limited creation of employment opportunities in the modern sectors because of the highly capital-intensive technology, surplus labour has emerged in the agriculture and services. Besides, there are lot of differences with regard to levels of education, health, food production and availability of natural resources. It is usually caused through media like films, television or through foreign visits. Lack of Capital Formation 4. 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