Definition of all Under-Developed Economy
It is not easy to define an under-developed economy. According to the United Nations experts, an under-developed country is one “in which per capital real income is low when compared with the per capita real incomes of the U.S.A., Canada. Australia and Western Europe.'” This definition. though it focuses attention on a very important characteristic under-development, viz., poverty, can by no me 11 be considered adequate. A country may be poor not under-developed in relation to its resources II .e resources happen to be scanty or inadequate. It may have fully developed its resources and yet be among the poorest countries in the world. U.N.O. Measures for Economic Development of Underdeveloped Countries, 1951. p. 3.
According to Prof. Ranger Nurkse, ‘under-developed’ countries are those which “compared with the advanced countries, are under-equipped with rapi o Iheir population and natural. Uut this too is not a wholly satisfactory determination. As Nurkse himself points out, “Economic development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is necessary but not a sufficient condition of progress.