Essay On Underdevelopment

Underdevelopment is a macro-economic term used to describe the underdeveloped countries/economies in the world. Underdevelopment usually suggests unusual potential, i.e, an economy that has not developed as it could, or an economy that has a long way to go in achieving full capacity. An undeveloped country is a country with good prospects for using more capital or more labour, or more available natural resources, or all of these to support its present population to achieve a higher level of living standard.

It is important to note that Underdevelopment is a relative concept. It makes sense only by comparison. In this sense, we may consider an underdeveloped or developing economy as one whose levels of development - economic and social

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. For example, Sub-Saharan Africa is credited with the lowest per capita income of $450. This means that the standard of living of the average sub-Saharan African is low compared to her counterparts in other regions of the world whose per capita income is higher.

* A high consumption ratio or a low saving ratio. This is a fallout of a low average real income. There is so much to spend the little income on, coupled with high price levels, such that very little or nothing of it is left for