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 capital real incomes of the U.S.A., Canada. Australia and Western Europe. This definition. though it focuses attention on a very important characteristic I)f 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.
According to Prof. Ranger Nurse, under-developed countries are those which compared with the advanced countries, are under-equipped with rap-to Their population and natural. Nut this too is not a wholly satisfactory dentition. As Nurse 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.
To Colin Clark, one of the pioneers in the studies of under-developed economics, economic development consists in the progressive enlargement of the proportion of tertiary occupations in the economy. But under- developed economies arc those in which primary occupations predominate. While it is broadly true that, with rising standards of living there occurs a proliferation of the various kinds of personal services ti.e., tertiary occupations), it has been often observed that in ‘under-developed’ countries the proportion of domestic servants is usually quite large. And since domestic service also fall in the category of tertiary occupations, this test of tertiary occupations cannot, therefore, be regarded as an unmistakable one.
Mass Puberty : Under-developed countries are suffering from mass poverty, that means a certain percentage of population is nil able to gel the basic needs of life. This phenomenon is not due to the misfortune in the form of droughts, floods. earthquakes or wars etc., but it is of a long standing. In developing countries mass-poverty exists due to certain sociology-economic and political conditions. In Asia. Africa, and South America, the mass poverty still exists
From the above discussing, it is obvious that defining an under-developed by no means a simple task. In current discussion, all low-income countries arc generally classified as under-developed. In general, all those countries with per capital income less than 25 per cent of the United States level or roughly less than $500 per year are included among under- developed countries. There is also a broad agreement among economists that low-income levels are largely associated with deficiency of capital.
[av_button label='Get Any Economics Assignment Solved for US$ 55' link='manually,http://economicskey.com/buy-now' link_target='' color='red' custom_bg='#444444' custom_font='#ffffff' size='large' position='center' icon_select='yes' icon='ue859' font='entypo-fontello']