Economic Reforms

Q.1 What are the factors that characterize underdevelopment.

Ans: An underdeveloped economy is characterised by high population growth rate, abundant but unutilised temper resources, a misfortunate rate of capital formation, a low rate of standard of living accompanied by constant and sustained efforts to raise it through a proper recitation of available natural, manpower, financial and entrepreneurial resources.

This definition helps to bring at one place the characteristics common to most of the underdeveloped countries. unless it should non mean that alone these countries which are classified as underdeveloped countries possess all these characteristics in the same measure. in that respect may be instances in which a country does not have most of these characteristics and is still classified as underdeveloped country. The definition simply serves as a sign-post and is positively not all-comprehensive. Its merit lies only in the fact that it helps to identify the elemental characteristics of an underdeveloped country.

Moreover we cannot treat a country as developed merely because its per capita income is comparable to that of the U.S.A or Australia.



For several of the Arab States, gross national product per capita suddenly jumped to levels which exceed that of the richest Western States, yet in these countries are found some of the poorest and least developed communities in the world. This clear indicates that underdevelopment or development of a country or a region may not always be reflected in its per capita national product or the average living standard.

tally to Prof. Jacob Viner, an underdeveloped country is a country which has good electromotive force prospects for using more capital or more savvy or more available natural resources, or all of these, to support its present population on a higher(prenominal) level of living or if its per capita income level is already plum high, to support a large population on a not lower level of living. This definition lays examine on the fact that the problem...If you want to get a full(a) essay, order it on our website: Orderessay



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