They are unable to satisfactorily cater for the economic, social, and other basic needs of the population. The general natire of an underdeveloped/developing society may be gathered from common economic characteristics of such society. While it may be difficult to locate a representative underdeveloped country, it is much easier to bring our some fundamental characteristics common to underdeveloped/developing societies. These characteristics include: * A low average real income and a low growth rate of per capital income. Most of the other characteristics of Underdevelopment derive from this singular ominous favtor - low per capita income.
He argues that this is because restructuring an entire economy from the top down is almost always bound to fail. This is because these methods often lack feedback from the people of poor nations who are actually suffering. According to Easterly, one of the main reasons foreign aid does not efficiently reach those in need is because the organizations’ top down method does not get past the corrupt governments of these poor nations. To fix this, he argues that aid should be given by a more pragmatic, bottom up approach, going directly to those in need. Easterly also says that aid should be given in a more scientific way, using statistical testing to discern which forms of aid work best.
Civil law systems yield unpredictable changes that reduce people 's willingness to invest long-term. Lack of long-term invests results in slowed growth and lowers the standard of living. Adhering to legally binding contracts and protecting people 's property are major reasons why common law systems show 1/3 higher economic growth and a standard of living that is 20% greater than their counterpart. Lastly, the author identifies two other broad categories of institutions, inclusive
Secondly, to sustain the cost that supply for the common goods, the economic surplus of leadership decreased gradually, even been using up. On the country, the benefit side grows faster than the hegemony, despite the Gilpin (1988), Keohane (2012) also mentioned that the free riders increased without efforts and would not share a load of hegemonic power, which made the predominance may not be sustainable. Thirdly, according to Webb and Krasner (1989), all countries are of benefit in the open market and public goods regardless of whether or not they assist in it. However, only the hegemon has sufficient motivation could they maintain a free economic system, open market and supply goods for international partners. The situation that other
This is what’s contributing to the decline of the west. Another influence is that we are very materialistic and capitalistic. Money and properties tend to have a higher affection value for people in western countries than in eastern countries. Therefore the title of the story “The decline of the west” depicts the story of how a western family forgets the values that make us happy and focuses on the capitalistic and materialistic values which end up ruining their relationship. We have to take note on the eastern countries, and their values.
Furthermore, the effects of poverty are said interrelated as they do not occur alone. According to Wilkinson and Pickett (2014), when there are inequalities in the country it resulted in poorer health, lower educational attainment, higher crime rates, lower spending of social capital and lower cooperation with and trust of government. All these resulted from poverty actually affect the political stability in developing world. Inequalities in wealth distribution often link with the living condition of the people in country. Inequalities basically widen the gap between the rich and the poor (Shah, 2014).
Less developed countries, such as African countries, largely depend upon single primary commodities for economic growth. There are several drawbacks to such a reliance on a primary product for the growth of the economy (Stein 1970: 607). Such economies are not able benefit from comparative advantage, due to the inability to direct resources towards other sectors, such as industry, with a greater potential for growth (Stein 1970: 611). According to Nafziger (2006: 611), less developed countries are “vulnerable to declining terms of trade due to the inability to shift resources to accommodate shifting patterns of comparative advantage”. Additionally, manufacturing exports are produced at a much faster rate than primary products.
than the profit USA will earn after adapting the metric. It is true that adapting the metric will cost money. However, National Institute of Standards and Technology wrote on “The United States and the Metric System”: Sooner is better. America remains dependent upon two systems of measurement – a situation that is uneconomical, inefficient, and confusing. Time is of the essence because our transition to the metric system is not becoming cheaper or easier.
There are many aspects to this issue that why are some countries not able to come out of poverty. In the present case, scenario wealth of a nation depends on how well the nation is good in its trade of goods and services. Up to an extent, we can say that infrastructure play a great deal in the trade of a nation. In addition, infrastructure depend on investment. It is not a question of why the country is poor but why the country is not developing.
This can give rise to cultural conflicts. ❖ Uneven Wealth Distribution It is said that the rich are getting richer while the poor are getting poorer. In the real sense, globalization has not been able to reduce poverty. Instead it has led to the accumulation of wealth and power in the hands of a few developed economies. Therefore the gap between the elite and the underprivileged seems to be a never ending road, eventually leading to