Characteristics of developing nations

Common economic feature of developing countries permit us to view them in broad framework. The characteristics are as follows:

1.     Low level of living: in developing nations, general level of living tends to be very low for the vast majority of people. This is true not in relations to their counter parts in rich nations but often also in relation to small elites groups within their own society.

2.     Low level of productivity: developing countries are characterized by relatively low level of labor productivity. Throughout the developing worlds, levels of labor productivity are extremely low in compared to developed countries. 

3.      High rates of population growth and dependency burdens: of the worlds population of approximately 5.8 billion people in 1995, more than three-fourths live in the third world countries and less than one-fourth in the more developed nations.

4.     High and rising levels of unemployment and underemployment: underutilization of labor is manifested in two forms: first, as underdevelopment- people (both rural and urban) who are working less than they could and the second form is open unemployment-people who are able and often eager to work but for whom no suitable jobs are available.