Question

discuss any five features of developing economy​

Answer 1

Common characteristics of developing economics:

1. High population growth rate /size.
2. High rates of unemployment.
3. Dependence on primary sector.
4. Dependence on exports of primary commodities.

Hope it helps you!

Answer 2

Answer:

World Development Report, 2004 categorizes countries having less than $735 per capita income as developing economy. The features of the developing economy are as follows:

1. Low per capita income: The per capita income in the developing countries is low. Their lesser national income gets divided by a larger population. As a result, the standard of living is poor.

2. Higher population growth rate: The population growth rate per annum is 2% or more in these countries. There is pressure of population on the natural resources such as land.

3. Agrarian economy: The principal economic activity in these countries is agriculture. More than 60% of the total population is engaged in agriculture. The contribution of agriculture to the

national income is about 26%.

4. Uneven distribution of income: There is Concentration of wealth and income. 20% rich account for 40% of the national income. On the Other hand, the poorest 20% account for about 10% of the national income. Disparity in income between the rural and urban areas is another indication of the uneven distribution of income.

5. Unemployment: The ratio of unemployment is more than 3% of the entire labour force. There is seasonal unemployment and disguised unemployment in the rural areas. Industrial

unemployment exists in the urban areas.

6. Poverty: About one third of the population lives in dire poverty. They are unable to satisfy their basic needs of food, clothing, shelter, education and health.

7. Dual economy: In these countries backward village economy and traditional society exists side by side with the modern urban economy.

8. Inadequate infrastructure : Means of transport and communication, education and health and banking facilites are inadequate. This hampers economic development.

9. Adverse balance of trade: These countries export agro products and minerals and import industrial products. Their income from exports is less than expenditure on imports. Due to adverse balance of trade their foreign debt goes on increasing.