Characteristics of Under Development

The term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population. Underdeveloped countries are now known as ‘developing countries’ signifying that such nations are capable of and are indeed making serious efforts to overcome their problems of poverty and low income.

  • Lower per-capita income
  • Low levels of human capital
  • High levels of poverty and under-nutrition
  • Higher population growth rates
  • Predominance of agriculture and low levels of industrialization
  • Low level of urbanization but rapid rural-to-urban migration
  • Dominance of informal sector
  • Underdeveloped labor, financial, and other markets.
  • Low rate of saving
  • Dependence on the Western economies.
  • Technological back
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