Question

characteristic of underdeveloped countries​

Answer 1

Characteristic # 3. Lack of Capital Formation: Developing or underdeveloped countries of the world are suffering from poor rate of capital formation. As the level of per capita income in these countries is very low thus their volume and rate of savings are also very poor.

Answer 2

fourteen basic characteristics of underdeveloped countries. Some of the characteristics are: 1. Low Level of Income 2. Mass Poverty 3. Lack of Capital Formation 4. Heavy Population Pressure 5. Agricultural Backwardness 6. Unemployment Problem 7. Unexploited Natural Resources and Others.

Characteristic # 1. Low Level of Income:

Underdeveloped countries are maintaining a very low level of income in comparison to that of developed countries. The per capita incomes of these groups of countries are extremely low if we compare it with that of developed countries. Moreover, inequality in the distribution of income along with this low level of income worsens the situation in these economies to a disastrous level.

Characteristic # 2. Mass Poverty:

Existence of chronic mass poverty is another characteristic of underdeveloped economies. This problem of poverty arises not due to any temporary economic maladjustment but arises mainly due to existence of orthodox methods of production and social institutions. The degree of poverty in these economies gradually increases due to increase in its size of population, growing inequality in income and increasing price level.