Characteristics of underdevelopment

  

Date Posted: 5/8/2012 9:55:41 AM

Posted By: rodriguez mwalenga  Membership Level: Silver  Total Points: 110

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Underdevelopment is the state in which full realization of development in a country has not been attained either due to lack of resources or under-utilization of the available resources.

The affected country portrays the following characteristics:
1. Low per capita income
The per capita income of underdeveloped countries is very low compared to that of the developed countries. This low per capita income reflects the low standards of living in these countries.
2. Inequitable distribution of income
The majority of underdeveloped countries suffer from income inequality, where a small percentage of the population earn very high incomes and a big percentage of it earn very low incomes. This means that the poverty is actually worse than what the per capita income figures (an average of total income divided by number of people) reveal for these countries.
3. High population growth rate
The population growth rates for underdeveloped countries are very high. These growth rates are primarily as a result of high birth rates, low death rates, improved health standards, high fertility rates and improved nutrition.
4. High dependency ratio
In most of the developing countries, majority of the population is below the age of 16. These people have to be supported by the few who are in the working age bracket, creating a burden on the few employed people. This phenomenon is normally referred to as the dependency burden.
5. Untapped resources
Underdeveloped countries have not been able to fully exploit their natural resources. The main drawbacks to this have been lack of capital, technology and skilled labour.
6. Lack of capital
As already pointed out, less developed countries have low per capita income. This means that savings and investment are low, resulting in low capital formation. This makes it difficult for these countries to create the necessary infrastructure to support economic development.
7. Low levels of technological developments
Most of the developing countries

lack the necessary technological know-how to fully exploit their resources. This is a result of inadequate education and training, insufficient research and dependency on inappropriate foreign technologies.
8. High unemployment rates
Developing countries experience problems of high unemployment rates. This is caused by the under-utilization of resources, high population growth rates and use of inappropriate technology.
9. Dual economies
In many developing countries there exists a modern commercialized industrial sector alongside a traditional subsistence sector. In the subsistence sector production is not intended for the market, but for the direct use of the producers. This is a drawback to rapid economic development.
10. Lack of skilled manpower
The majority of less developed countries suffer from lack of skilled manpower. This has been brought about by inappropriate education systems that have not been producing the relevant manpower for the economy. The problem of brain drain, whereby skilled manpower from developing countries is lured to the more developed countries by better employment terms.
11. Trade dependence
The underdeveloped countries mainly depend on the export of a few primary products. This is dangerous in case of a natural calamity.

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