Developing countries face a vast range of problems. One of the problems they face is a low standard of living. With the exception of small elite groups the people in these countries have low incomes, inadequate housing, poor health, limited education, high infant mortality, and low life expectancies.
Low levels of living and low production go hand-in-hand. If a country doesnt produce a lot of goods and services, it cant consume them either. Poor nutrition during childhood can hinder mental and physical development which creates low productivity.
These countries face a high dependency burden rate. This means that there is a relatively large portion of the population that is unable to produce and depend on others to produce for them. These people include children and the elderly.
The dependence on agriculture is another problem facing developing countries. With low levels of technology and knowledge the farmers can barely produce enough food to provide for their families. If anything is left over then they may trade with a neighbor in exchange for clothing or other essentials.
Present developing countries differ from current more developed countries in their earlier periods of development in many ways. Developing countries today dont have the abundance of resources that current developed nations had during their development. Todays developing countries also dont have the educated population to be able to use their resources efficiently.
Climate is another difference between current developing and current developed countries. Almost all developing countries today live in the tropical or subtropical climates. However, most economically successful countries are located in the temperature zone. The extreme heats contribute to poor soil quality and deterioration of many natural goods.
Another difference is the rate of population growth. Current developing countries have been increasing at annual rates of over 2. 5% recently whereas the currently developed countries never experienced population growth rates in excess of 2%. The developing countries have a high person-to-land ratio which means that they are densely populated.
In the nineteenth century, European and North American countries participated in a lot of international traded primarily because they had relatively free trade, free capital movements, and international migration of unskilled surplus labor. Todays non-oil-exporting developing countries arent able to obtain rapid economic growth because of a lack of international trade.
Scientific and technological advancements are important for developing countries. When currently developed countries were developing they were far superior in science and technology than the rest of the world. Consequently they could focus on staying ahead by designing and developing new technology to further develop themselves. Todays developing countries are far behind the rest of the world when it comes to science and technology which makes it difficult for them to catch up.
Bibliography: Todaro, Michael. Economic Development 9th Edition. 2006