Question

How does low rate of economic development leads to poverty?​

Answer 1

Answer:

Low rate of economic development leads to poverty: Physical and natural resources are underutilised because of lack of technology, capital and entrepreneurial ability. Therefore, the productive capacity and gross domestic product of the economy are low. ... This backwardness in agriculture has given rise to rural poverty.

Answer 2

Answer:

A low rate of economic development shows that Government has less funds to spend on public initiatives. This fuels the rich-poor divide and gross inequalities in resource distribution arise. Realization of revenue for development becomes scarce and the Governments are forced to resort to increased borrowing.