Wallerstein notes that never before had an economic system encompassed that much of the world, with trade links crossing so many political boundaries. Lenin and prolonged by Rudolphe Hilferding. The system was a killer for anyone wanted to be better and to know more then an average person. In the international market the prices of raw material are very low while the prices of capital goods are high. Democracy tried, seemed easy, generally failed Most democratic: Trinidad, Bahamas, Uruguay, Costa Rica, Brazil, India, South Korea Taiwan b.
Underdeveloped countries are the ones which could not develop tothe full potential. In other words, it is an economy, having a potentiality to grow. Another trait of these countries is the dominance of the primary sector, with a mediocre industry yielding low outputs and a confined tertiary sector, which as a whole cannot absorb the surplus of farm labor. On account of low per capita income population suffers from poor health, low education, high infant mortality and low life expectancy. Economic growth is the population of peoples, animals, or plants that are gaining a role a n important cycle in people … s or animals lifes.
Deficiency of Capital: Another criterion of underdevelopment is the low ratio of capital availability per head of population. Political underdevelopment:most significant characteristic in the world; brings poverty through government repression. Richest 20% of population compared to the poorest 20% of population. Rwanda, Somalia and Ethiopia are all examples of underdeveloped countries. Dependency theory refers to group of theories which propose that some countries and societies are poor, not because of their traditional culture, attitudes and values but because they are nit dominated and exploited by the rich and powerful countries. This permits a bottleneck mechanism to extend the field of induced investment and foment decision making and new investments. But colonialism started to separate people based on identity.
Lack of Capital :- It is the main cause of poverty in the under developed countries. The underdeveloped or developing countries are spread throughout the continents of Asia, Africa, South America and even Europe. An underdeveloped economy shows the following features: a In the underdeveloped countries, natural resources remain unexploited and underexploited due to various reasons. Doesn't have to be a class struggle. Ethnicity: social construct; way of identifying common qualities of one group that set them apart from another group.
This excessive population pressure has been creating the problem of low standard of living and reduction in the average size of holding. In addition it was believed that the lesser developed countries would develop and grow faster than developed countries. Rostow, Gerschenkron, Nurske, And Singer Currently, the most prominent theories are the liberal modernization theory , the dependency, and the Marxist, and the neo-Marxist theory. Mass Illiteracy: Underdeveloped countries are mostly characterised by the existence of mass illiteracy. Canada, Australia and Western Europe. Nigeria has a higher population living on less than 2 a day.
In countries where agriculture is well developed; the disposable agricultural surplus income will be generally used to subsidize uneconomic urban industries. Usually accepted univerally by all people within a state including business, labor, the military, etc groups that have the power. They will be importing consumer goods and machinery. In the investment sphere the ratio of gross investment came down to around 36. In short, there will be market towns and cities with factories, banks, business houses, swimming pools, colleges and five-star hotels. Low levels of productivity 3. Sometimes, natural disaster impedes underdeveloped countries even further.
This phenomenon is normally referred to as the dependency burden. Unexploited Natural Resources and Others. Technical assistance to farmers, peasant access to credit, market, better irrigation, improved education and better health care. National identity becomes polically significant when its members, believe their common history and destiny distinguish them from other groups. This is because of high birth rate and social circumstances. Unemployment and Underemployment: Unemployment is a phenomenon of all economies whether developed or underdeveloped.
Indian peasant is born in debt, lives in debt and dies in debt. Predominance of Agriculture: In an underdeveloped country two-thirds of the people live in rural areas and their main occupation is agriculture. In contrast, unemployment in India is structural and has arisen due to lack of capital. Thus by utilising its natural resources, underdeveloped countries can develop their economies with minimum initiative of their own. If we look at the endowment position of these countries then we can see that some of the underdeveloped countries are having natural resources like land, water, minerals, forest etc. Unexploited Natural Resources: For maintaining a rapid pace of economic growth in these underdeveloped countries, possession of different types of natural resources in sufficient quantity and its utilisation are very important.
A cultural and institutional theory defends the idea that to promote development, sociocultural and institutional action the state are necessary. High population growth rate The population growth rates for underdeveloped countries are very high. High Rate of Population Growth: Like all other underdeveloped countries, the population of India has been increasing at an alarmingly high rate. The periphery nations own very little of the world's means of production even when they are located in periphery nations and provide less-skilled labor. The question arises of how to measure if a country is underdeveloped.