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.

The structure of third world economy

Any portrayal of the structural diversities of developing nations requires an examination of 8 critical components:

1.     the size of the country(geographic area, population and income)

2.     It’s historical and colonial background.

3.     Its endowment of physical and human recourses

4.     It’s ethnic and religious composition

5.     The relative importance of its public and private sectors

6.     The nature of its industrial structure

7.     Its degree of dependence on external economics and political forces

8.     The distribution of power and the institutional and political structure within the nation

 Of the 145 developing countries that were full members of the united nation in 1992, 90 had fewer than 15 million people, 83 fewer than 5 million. Large and populated nations like, brazil, India, Egypt, and Nigeria with the small countries. Most Africans and Asian nations were at one time or another colony of western European countries, primarily Britain and France but also Belgium, the Netherlands, Germany, Portugal, and Spain. a country’s potential for economic growth is greatly influenced by its endowment of physical recourse and human recourses. Today, more than 40% of the world’s nations have no more than five significant ethnic populations. Over half of the worlds LDCs have recently experienced some form of inherent conflict.

Classification of developing countries

In attempting to classify the countries, some analysts, using the U.N classification system, prefer to distinguish among three major groups within the third world: the 44 poorer countries designated by the united nation as “least developed”, the 88 non oil exporting, “developing nation”, and the thirteen petroleum rich members of the organization of petroleum exporting countries (OPEC), whose national incomes increased dramatically during the 1970s. Other follows the classification system established by the international bank for reconstruction and development (IBRD), more commonly known as the WORLD BANK. it divides 132 countries (both developing and developed countries) with population in excess to 1 million into four categories according to the per capita income levels: low income, middle income, upper middle income, and high income economies. United nation development program focuses on aspects of “human development” that go beyond income to include such noneconomic variables as life expectancy at birth and educational attainment along with real per capita income. It then construct a Human Development Index (HDI) in which all countries are ranked into three human development aggregates- high, medium and low.

The objective of business

We may conclude that development is both a physical reality and a state of mind in which societies has, through some combination of social, economical, and institutional processes, secured the means for obtaining a better life. whatever the specific components of better life, development in all societies should have at least the following three objectives.

1.To increase the availability and widen the distribution of basic life-sustaining goods such as food, shelter, health, protection.

2. to raise levels of living including, in addition to higher incomes, the provision of more jobs, better income and greater attention to humanistic and cultural values, all of which will serve not only to enhance material well being but also to generate the greater individual and nation self-esteem.

3. to expand the range of social and economic choices available to individual and nations by freeing them from servitude and dependence not only in relation to other people and nation-states but also to the forces of ignorance and human misery.

Core values of development

What constitute the good life is a question as old as philosophy and humankind, one that must be periodically reevaluated and answered afresh in the changing environment if the world’s society. The appropriate answer for the third world nations of the last decade of the twentieth century is not necessarily the same as it would have been in previous decade. But we agree at least three basic components or the basic core values should serve as the conceptual basis and practical guideline for understanding the inner meaning of development.

The core values are:  sustenance, self-esteem, and freedom.

They relate to fundamental human needs that find their expression in almost all societies and cultures at all time.

Sustenance:  all people have certain basic needs without life would be impossible. These lives sustaining basic human needs include food, shelter, health and protection. When any of these is absent or is in critically short supply, a condition of “absolute underdevelopment” exists.

Self-esteem: a sense of worth and self-respect, of not being used by the others for their own ends. All peoples’ and societies seek some basic form of self-esteem although they may call it authentication, identity, dignity, respect, honor, or recognition.

Freedom: freedom here is to be understood in the sense of emancipation from alienating the material conditions of life and from social servitude to nature, ignorance, other people, nature etc.