Characteristics of Developing Countries

Characteristics of Developing Countries

            Those countries where the process of economic development has started but not completed are called developing or underdeveloped countries. In such countries there is low rate of economic growth and high rate of population growth. Similarly, there is no proper use of natural resources and human resources in these countries. The major characteristics of developing countries are as follows:

1. General Poverty:

Developing countries are poor. There is mass poverty in these countries. The per capita income is very low in these countries. The majority of people live below poverty line. The disease and hunger can be found wide spread in this countries. Therefore, a majority of people in developing countries are born in poverty and die in poverty.

2. High Dependence in Agriculture:

Agriculture is the main occupation in developing countries. Majority of people depends directly or indirectly on agriculture. Majority of people live in rural areas in these countries.

3. High Population growth rate:

There is serious population problem in developing countries. The growth rate of population is very high in these countries. The ratio of dependent population is high. There is high density of population. The pressure of population on land is very high. The birth rate and death rate are both high and life expectancy is very low in these countries.

4. Under utilized natural resources:

Most of the developing countries are rich in natural resources. But these resources have not been properly exploited due to the lack of capital, technology and infrastructure.

5. Low level of productivity:

Most of the developing countries are technologically backward. Therefore, there is low productivity in these countries.

6. Low level of Investment:

There is shortage of capital in developing countries. The available stock of capital is less than the need of economic development. The capital formation is very low due to low level of saving and investment.

7. Lack of basic infrastructures:

There is lack of basic infrastructures in developing countries like transport, communication, electricity, canals, banks, financial institution, etc. No nation can develop without these facilities.

8. Dualistic economy:

Most of the developing countries have dualistic economy. There is market economy in urban areas and subsistence economy in rural areas.