Development economy and its characteristics

     

             

Development economy: 

A county whose per capita income is low as compared to developed countries of the world like USA, UK etc is called developing economy or developing country, or underdeveloped economy. 

Characteristics of developing economy:

A developing economy or underdeveloped economy has the following common characteristics.

1.     Low per capita income:

Low per capita income is a common feature of developing economy in case of developing economy per capita income is very low as compared to advanced countries average per capita income is less than one thousand dollars while in developed countries like USA, UK. It is greater than 300, 00 dollars per annum.

2.      High unemployment:

High unemployment is another notable characteristic of developing countries of the world like Pakistan.

3.   Agriculture main occupation:

In less developed countries of the world like Pakistan, main source of occupation is agriculture sector, majority of the people are engaged in agriculture sector. About 70% of total population directly or indirectly connected with agriculture sector.  

4.     Illiteracy:

illiteracy is another common feature of less developed countries of the world like Pakistan. Literacy rate in developing countries is very low as compared to developed countries.

5.   Under utilization of natural resources:

Under utilization of natural resources is another notable feature of less developed countries of the like Pakistan. Due to lack of capital and technological backwardness the available natural resources are not properly utilized. 

6.  Lack of infrastructure facilities:

In less developed countries of the world like Pakistan there are inadequate infrastructure facilities like road, railways, banking, power houses etc.

7.     High population growth rate:

High population growth rate is another common feature of less developed countries of the world like Pakistan. In less developed countries of the world population countries. It is 0.7%.

8.   Unequal distribution of income:

In developing countries of the world like Pakistan there is inequality in the distribution of income poor is very poor and rich is very rich in less developed countries.

9.Technological backwardness:

Technological backwardness is another common feature of developing nations of the world. They use old and outdated technologies of production.

10.   Dependence on external resources:

There is deficiency of capital in less developed countries of the world, therefore they generally depend upon external resources and take loans and aid from international institution like IMF and world bank and other developed countries of the world.

11.   Balance of payment problems:

Developing country of the world like Pakistan generally has balance of payment problems. They export primary products, and import finish products which is badly effects balance of payment of under developed countries.