The Similarities And Differences Between Developing
living standards these include low income per capita, high income
inequality, widespread poverty, lack of access to resources, malnutrition,
poor health and short life spans. For example in Ethiopia ( HDI Rank 174)
GNP per capita is $478, 19.9% pop live on less than $1 per day, the Gini
Coefficient of income equality is 38.2, only 32% pop have access to safe
water and 21% have sanitation and male life expectancy is at a
demoralising 44 years.
F.of P. productivity- Labour productivity is low due to insufficient
resources and those resources available are usually of low quality.
Machinery, if available at all, is low quality and inefficient.
Infrastructure is poor and thus movement of capital and labour is
inhibited. For example in Brazil only 9.3% of roads are of good condition.
People are also lacking in skills due to the either complete lack of or
poor quality of education. This is improving but will take years to filter
through into a skilled working population.
population growth averaging 2.4% annually in low income countries
(excluding India and China). This is in comparison to high income
countries where it is 0.7%.
unemployment levels either the labour resources is not used at all, or
it is underused. Either way it is inefficient. This may be due to the poor
education resulting in skill shortages, but also to the lack of
investment, and therefore job opportunities, seen in low income countries.
focused economies there is the common trait of dependence upon one
resource or exporting product. Typically in agriculture for LEDCs and
especially in Africa. There are some developing countries that are
diversifying but agriculture still contributes to a large proportion of
dualistic economy this can be seen in two aspects. Firstly between the
agriculturally dependent rural areas and the industrialising urban areas.
And also between the affluent minority and the poor masses.
factors some countries, especially those in Asia and Africa, were
colonies belonging to European countries. Therefore unlike some countries
in Latin America for instance they may devote more effort to restoring
their political and economic independence than striving for
volatility it is a recognised fact that a countries political
decisions greatly effect its economic progress. Thus politically stable
countries such as those in Asia have been able to see fast growth whilst
others have been held back by political instability.
sectors the trend has been to increase private sector activity and
decrease public sector activity. This still varies greatly though, with SE
Asian and Latin American countries tending to have the larger private
available both physical and human resources available determine growth
capacity. Some countries have access to physical resources such as
minerals (South Africa) and oil (Iraq). Other countries have larger human
resources than others as they have larger populations. But this can cause
problems such as dependence and tension between different demographic
restrictions all countries are different shapes and sizes and have
different degrees of access. It is more difficult for instance for a
landlocked country in central Africa to trade for instance, than it is for
a country by the coast with a port.