Underdevelopment denotes stagnant
situation how ?
Answers
In Development Economics,economic stagnancy and underdevelopment are interrelated somehow or one can gradually lead to the other.
Explanation:
Economic underdevelopment basically refers to a comprehensive and overall lag or deterioration of the social,economic and political conditions in any country or nation.It is commonly characterized or exemplified by low overall living standards of the domestic population,consistently low levels of economic growth or GDP growth,alarmingly poor sectoral growth such as agriculture,manufacturing,service industries,incredibly poor level of economic productivity in all industries,high levels of unemployment and inflation,dismal conditions of the educational and health sector in the economy and so forth.Hence,underdevelopment implicates a consistent and prolonged situation of economic stagnancy,poor growth and overall backwardness.
Now,economic stagnancy can be described as a long term and prolonged period of poor economic growth and slowdown of the overall economy.The persistent symptoms of underdevelopment such as falling economic productivity in all the industries or consistently high levels of unemployment and various industrial shutdowns with no or little government interventions can eventually lead to the vicious cycle of economic stagnancy.One important characteristic of economic stagnancy denotes long periods of economic downturn or recession which can be impelled by prolonged existence of the signs and symptoms of underdevelopment in any economy.Therefore,the terms underdevelopment and stagnancy are conceptually and practically synonymous and the former,if unchecked,can lead to an eventual long term economic stagnancy.