7/31/2019 Features of Less Developed Countries

1/13

Created by:- Group 2

7/31/2019 Features of Less Developed Countries

2/13

IntroductionCountries that are not fully industrialized or do not

have sophisticated financial or legal systems.

These countries, also called members of the Third

World, typically have low levels of per-capita income,

high inflation and debt, and large trade deficits.

The World Bank may be helping them by providing

loan assistance.

7/31/2019 Features of Less Developed Countries

3/13

Features Poverty

PER CAPITA INCOME

INFLATION

ILLITERACY

AGRICULTURE AND FOOD

CORRUPTION

7/31/2019 Features of Less Developed Countries

4/13

PovertyPredominant poverty.

An extreme differencebetween absolute povertyand great wealth.

An extreme minority holdsthe wealth and a hugemajority are in abjectpoverty.

7/31/2019 Features of Less Developed Countries

5/13

Case studyLarge populations of the 420 million people living in Latin

America and Caribbean have begun the third millennium

living under conditions of poverty.Near 40% of households are poor and 16% extremely

poor .

Poverty is even more widespread and deep in rural

areas where 32% of population live and work.

Near 55% of rural households are poor and about 33%

extremely poor.

7/31/2019 Features of Less Developed Countries

6/13

Per Capita IncomeAn LDC economy needs toinvest 10 to 15% of netincome to grow and many

cannot manage this.

Rates of return less thanpopulation growth.

Low rates of return frustratefuture investment and leavedebt unpaid.

7/31/2019 Features of Less Developed Countries

7/13

Case study The Soviet invasion of 1979 destroyed much of the

country's limited infrastructure patterns of economicactivity .

Gross domestic product has fallen substantially sincethe 1980s due to disruption of trade and transport aswell as loss of labor and capital.

According to the IMF, the Afghan economy grew 20%in the fiscal year ending in March 2004, afterexpanding 30% in the previous 12 months

7/31/2019 Features of Less Developed Countries

8/13

inflation The overall general upward pricemovement

ofgoodsandservicesin aneconomyis called inflation. Inflation is often caused bya increase in the supplyofmoney,

usually as measured by the Consumer Price Indexand theProducer Price Index.

Over time, as the cost of goods and services increase, thevalue ofa dollar is going to fall because apersonwon'tbeabletopurchaseas much with that dollar as he/shepreviously could.

The Fed actively tries to maintain a specific rate of inflation,which is usually 2-3% but can vary depending oncircumstances. opposite ofdeflation.

http://www.investorwords.com/2209/goods.htmlhttp://www.investorwords.com/6664/service.htmlhttp://www.investorwords.com/1652/economy.htmlhttp://www.investorwords.com/1652/economy.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/3149/movement.htmlhttp://www.investorwords.com/2209/goods.htmlhttp://www.investorwords.com/6664/service.htmlhttp://www.investorwords.com/1652/economy.htmlhttp://www.investorwords.com/1062/Consumer_Price_Index.htmlhttp://www.investorwords.com/1062/Consumer_Price_Index.htmlhttp://www.investorwords.com/4822/supply.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.investorwords.com/3873/Producer_Price_Index.htmlhttp://www.investorwords.com/1062/Consumer_Price_Index.htmlhttp://www.investorwords.com/3873/Producer_Price_Index.htmlhttp://www.investorwords.com/5209/value.htmlhttp://www.investorwords.com/7129/dollar.htmlhttp://www.investorwords.com/1148/cost.htmlhttp://www.businessdictionary.com/definition/person.htmlhttp://www.investorwords.com/5209/value.htmlhttp://www.businessdictionary.com/definition/able.htmlhttp://www.businessdictionary.com/definition/able.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.businessdictionary.com/definition/person.htmlhttp://www.businessdictionary.com/definition/able.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/1892/Fed.htmlhttp://www.investorwords.com/1892/Fed.htmlhttp://www.investorwords.com/1376/deflation.htmlhttp://www.investorwords.com/1376/deflation.htmlhttp://www.investorwords.com/1376/deflation.htmlhttp://www.investorwords.com/1892/Fed.htmlhttp://www.investorwords.com/1892/Fed.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.businessdictionary.com/definition/able.htmlhttp://www.businessdictionary.com/definition/person.htmlhttp://www.investorwords.com/7129/dollar.htmlhttp://www.investorwords.com/5209/value.htmlhttp://www.investorwords.com/1148/cost.htmlhttp://www.investorwords.com/3873/Producer_Price_Index.htmlhttp://www.investorwords.com/1062/Consumer_Price_Index.htmlhttp://www.investorwords.com/1062/Consumer_Price_Index.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.investorwords.com/4822/supply.htmlhttp://www.investorwords.com/1652/economy.htmlhttp://www.investorwords.com/6664/service.htmlhttp://www.investorwords.com/2209/goods.htmlhttp://www.investorwords.com/3149/movement.htmlhttp://www.investorwords.com/3807/price.html

7/31/2019 Features of Less Developed Countries

9/13

Agriculture & Food

Predominantly

agricultural (70 - 90% ofthe labour force).

Predominantly rural

population (80% urban inUK, less than 20% inLDC).

Subsistence or cashcrop based poverty.

7/31/2019 Features of Less Developed Countries

10/13

Insufficient quantity offood for a daily diet.

Insufficient quality offood for a daily diet.

Poor diet leaves

openness to disease,poor growth, early deathand childhood mortality.

7/31/2019 Features of Less Developed Countries

11/13

IllitracyEducationalprovision is

very low or inadequate foreconomic or informationneeds.

Open to disease throughlack of knowledge, e.g.

sexually transmitteddiseases.

7/31/2019 Features of Less Developed Countries

12/13

Inability to produceeducated workforce fortechnological growth.

Inequality and absence ofwomen's rightsundermine essential birth

control, education,resistance to custom andgood health.

7/31/2019 Features of Less Developed Countries

13/13

Referenceshttp://www.globalissues.org/issue/2/causes-of-

poverty.

http://www.change.freeuk.com/learning/socthink/ldcs.html.