Balance of Payments BoP : BoP is the systematic record of all economic transactions like trade of goods, trade of services, unilateral transfers, foreign investment, etc. High Rate of Population Growth and Dependency Burden Fast growing population in the Third World is both a cause and effect of underdevelopment. Some authors organize the theories along the scientific disciplines which are basic for the analysis and differentiate between economic theories, sociological theories, demographic theories, climate theories, etc. In other words, in an underdeveloped country resources must be lying unutilised which can be used for increasing the rate of production and thereby raising the level of living of the people. In the absence of efficient and sound administrative set up, these countries are suffering from lack of proper economic organisation, lack of investments and lack of appropriate decisions leading to total mismanagement of these economies. Since dependency theory was introduced to challenge modernization theory, many would think that were to be hardly any similarities between these two groups of theories.
Consequently, a change of these endogenous factors is the strategy for development Kuhnen, 1986. Countries like Bangladesh has not shown the political willingness to do that probably because its politicians likes its so called underdeveloped status for a variety of political economic reasons. A person borned in say Japan has the higher average age than one being born in Nepal. The modern or the developed part contains mainly the large scale industry, mines and plantations. Dominance, dependence and vulnerability in international relations 1. It is mainly carried on in an old fashion way with obsolete methods of production.
World-system refers to the international , which divides the world into , and the. Now, more money is coming into the country than going out. They trajectory will probably be more unbalanced, with great diparities etc etc. It has few hospitals and few institutions of higher learning. The periphery nations own very little of the world's means of production even when they are located in periphery nations and provide less-skilled labor. In India food is the major item of consumption and about 75 per cent of the income is spent on it compared to 20 per cent in advanced countries.
If the resources of a country are meagre and scanty, then even after having fully developed them, it will remain poor. This has resulted lack of capital formation and which is again responsible for low rate of investment in these countries. In India, the life expectancy at birth was 32 in 1947 and the literacy was only 17 per cent. The share of income in agriculture is however, considerably less than the share of employment in agriculture which clearly reflects the relatively low productivity per labour unit in the agricultural sector. So low investment leads to low production. The country is passing through the second stage of demographic transition which is characterised by a falling death rate without a corresponding decline in birth rate. Unequal Distribution of Wealth :- It is an important feature of under developed economy.
Due to low production and productivity, level of income is less, and consequently, less amount of capital is available to adopt better technique of production. Some of the characteristics are: 1. The primitive part mainly comprises agriculture and is confined to rural areas. And per modernisation theories, internal factors in the countries, such as illiteracy, traditional agrarian structure, the traditional attitude of the population, the low division of labour, the lack of communication and infrastructure, etc. The resulting inequality reinforced existing unequal development Arrighi G.
Rwanda, Somalia and Ethiopia are all examples of underdeveloped countries. Due to illiteracy the people in these countries are very much superstitious and conservative which is again responsible for lack of initiative and enterprise on the part of people of these countries. Ok , I also think that most of the countries are dependent on their import and export. These are following : 1. But unfortunately agriculture is hopelessly in a backward stage in the developing countries, the average land holding and per acre yield is low. Most of its people cannot read and write.
Development is also characterised by variety of elements in a society thus good transportation system, strength in currency, high agricultural and industrial productions, and high number of elites, high science and technology and transparent which is accompanied with accountability of the community leaders Tausch, 2006. Inequitable Distribution of Wealth and Income: Like most underdeveloped countries the distribution of income and wealth in India is inequitable. This is caused by the under-utilization of resources, high population growth rates and use of inappropriate technology. The underdeveloped or the developing countries, as these are popularly known, inspite of their diverse structure, have some common characteristics. Morocco is one of the developing countries occupying a strategic position nowadays.
This excessive population pressure has been creating the problem of low standard of living and reduction in the average size of holding. They tend to be countries moving towards industrialization and a more diversified economy. Low Level of Income 2. Bankers of the dominant nation tend to receive more control of the world's financial resources. Thirty-five per cent of the people are below the poverty line, who are ill-fed, ill-clothed, ill-housed and ill- educated. The high birth-rate and low death-rate are responsible for a break-neck rise in Indian population.
Proponents of world-systems analysis see the world stratification system the same way viewed class ownership versus non-ownership of the means of production and viewed class which, in addition to ownership, stressed occupational skill level in the production process. Lack of Proper Market: Underdeveloped countries are also suffering from lack of properly developed market. According to Wallerstein, there have only been three periods in which a core nation has dominated in the modern world-system, with each lasting less than one hundred years. Malnutrition also lowers life expectancy and renders many incapable of working. Far from being separate societies or worlds, the world-economy manifests a tripartite with core, semi-peripheral, and peripheral zones.
A poor farmer who sells his product below market value and he is compelled to purchase industrialised product at a highly inflated price! At the beginning, there was little query as to the causes of underdevelopment; the newly independent countries as well as United Nations bodies and industrialized countries tried to promote development by applying measures like the introduction of know-how through the assignment of experts, the expansion of education, the development of infrastructure, etc. Lack of capital As already pointed out, less developed countries have low per capita income. Your examples are very good. In spite of having huge potential for industrial development, these countries could not develop the industrial sector on a sound footing. In the 21st century, nations like China, India, Brazil and South Africa are usually considered semi-periphery Arrighi G. It is not compensated for its depreciation like capital,. Due to high birth rate, the dependency burden is about half of the population as against one fourth in developed countries.