TEN CHARACTERISTICS OF AN UNDERDEVELOPED COUNTRY

    TEN CHARACTERISTICS OF AN UNDERDEVELOPED COUNTRY

It is not too difficult to distinguish a healthy person from an un-healthy one. An un-healthy

person may be lean, too frail and sometimes with many other complications. An

underdeveloped country may be compared with an un-healthy individual. For example, a

person suffering from malaria would have headache, high body temperature etc.

An underdeveloped country in contrast to a developed country, also has its own characteristics

which distinguishes it from a developed one. The following are the symptoms of an

underdeveloped country which are;

1. LOW LEVEL OF LIVING

General levels of living tend to be very low for the vast majority of people in the

developing nations. This is true not only in relation to their counterparts in rich nations

but often also in relation to small elite group within their own societies. These low level

of living are manifested quantitatively and qualitatively in form of; low income, poor

health, high infant mortality etc.

The gross national product (GNP) per capita tends to be very low for most developing

countries. It is often used as a summary index of the relative economic well being of the

people in different nations.

2. LOW LEVEL OF PRODUCTIVITY

In addition to low level of living, relatively low level of productivity characterize

developing countries. The level of labour productivity (i.e output per worker) is

extremely low compared with those in developed countries.To raise productivity, domestic saving and foreign finance must be mobilized to

generate new investment in physical capital goods and also to build up the stock of

human capital (e.g management skills) through investment in education and training.

3. TECHNOLOGICAL BACKWARDNESS

The LDCs are in a state of backwardness technologically. The technological

backwardness is in the production function in existence. Archaic production instrument

and equipment are in used in the traditional sector and there is the absence of modern

machines and equipment in the economy.

The technological backwardness is reflected in high labour-output and capital-output

ratios and on the average given constant factor prices. These reflect a low productivity

of labour and capital. Also is the predominance of untrained and unskilled labour which

are incapable of increasing output at a faster rate.

4. INSUFFICIENT CAPITAL

Capital here is used collectively for funds and capital equipment. Even were capital in

the form of funds is available, it is mismanaged or misallocated. The capital stocks in

these countries are low and the current rate capital formation is also very low. The low

rate of capital formation is not enough to provide a rapidly growing population (growing

at between 2-3 per-cent per annum) enough to replace obsolete equipment not to talk

of investing in new capital projects.

In fact it is difficult for these countries to cover depreciation of capital and at the same

time replace the existing ones.

5. FOREIGN TRADE

The economics of LDSc are geared towards foreign trade. The trade involves the

exportation of primary product such as cotton, coffee, cocoa, tea, timber, crude oil, gold

etc and the importation of consumer goods such as textiles, television sets, radios, car,

jewelry and machinery. The share of these primary products in the export of the LDCs is

sometimes as much as 80-90%.

This now brought the case of Nigeria in the exportation of crude oil which account for

over 90% of its foreign earning from the 1970s. during this time crude oil still dominates

the Nigeria economy which makes the structure of the economy to be less diversified.

6. UNEMPLOYMENT AND UNDEREMPLOYMENT

One of the principle manifestations of and factors contributing to the low level of living

in developing nations in their relatively inadequate or inefficient utilization of labour in

comparison with the developed nations.

Under-utilization is manifested in two forms; first, it occurs as under-employment of

those people who are working less than they could. Under-employment also include

those who are normaly working full time but whose productivity is so low that a

reduction in hours would have a negligible impact on total output. The second form is

open unemployment of those who are able and often eager to work but for whom no

suitable jobs are available.

7. SUBSTANTIAL DEPENDENCE ON AGRICULTURAL PRODUCTION

The vast majority of people in third world nations live and work in rural areas. Over 65%

are rural based compared with less than 30% in economically developed nations

similarly, 58% of the labour force is engaged in agriculture compared with only 49% in

developed nations.

Agriculture contribute about 14% of the GNP of developing nations versus only 3% of

the GNP of developed nations.Agriculture productivity is low not only because of large number of people in relation to

available land but also because LDSc agriculture is often characterized by primitive

technologies, poor organization and limited physical inputs.

8. HIGH RATES OF POPULATION GROWTH AND DEPENDENCY BURDEN

This could be accounted for by low birth rate and a striking increase in crude birth rate

for developing countries.

The major implication of high birth rate in LDSc is that children under age of 15 are more

relative to what holds in the developed countries. Therefore, most active labour in LDSc

has to support children more than in developed countries. On the other hand, the

proportion of people over the age of 65 and above in more in developed countries.

9. GENERAL POVERTY

Poverty is like the devil looking for whom to devour. It is a state of hopelessness in man.

Poverty is easily seen than felt. A poor person when seen looks haggard, emaciated,

underfed and above all is less confident in himself or herself. The child of the poor can

best be describe as a living corpse. This is the state which man finds himself today.

An underdeveloped country is poverty-ridden. This poverty is reflected in low GNP and

low per capita income. Over 70% of the worlds population today is poor. These poor

people are found in the LDCs especially in the sub-Saharan Africa, the Caribbean’s, the

Latin American countries and in the south-east Asian sub-region.

10. LACK OF ENTREPRENURIAL ABILITY

Entreprenuship development is lacking in LDCs. Entrepreneurship is inhibited by several

factors which include level of enucation in the society. The social system in existence

which denies the people opportunities for creativeness.Lack of market familiarity, lack of business know how, legal constrains, regulation, red-

tapism etc.

The existing few entrepreneur are sole minded and which they pass to be great beyond

there is no legacy for continuity. In fact many of them are married to many wives and on

their demise the business empire is fragmented thus hindering enterprise development.

The entrepreneur in existence are also found in manufacturing, mine and plantation and

tend to be monopolistic in operation.

REFRENCES

BAKARE I. A. O (2002): Elements of development Economics. ”Revised Edition”.

KEHINDE A. O (1998): Fundamentals of development Economics.