Economic development is a qualitative concept. According to M.P Todaro, “developing economy is that economy in which there is coexistence of underutilized manpower on one hand and unexploited natural resources on the other“.
Features of developing economy
- Low per capita income
- Disparities in income distribution
- Dominance of agriculture
- Heavy population pressure on agriculture
- Overpopulation
- Unbalanced economic development
- Lack of capital
- Low rate of capital formation
- Low savings
- Market imperfections (lack of mobility, specialisation which hinders smooth operation)
- Limited availability of transport and communication facilities
- Backward industrial sector (but rising slowly)
- Inefficient administrative setup
- Poor quality of human capital
- Unexploited natural resources
- Limited options
- Dependence and vulnerability in international relations
- Poor health facilities
- Dual economy (high and low)
Problems of developing economy
- Rapidly growing population
- Gender inequality
- Corrupt and inefficient administration
- Illiteracy
- Unproductive expenditure
- Consumption oriented societies
- Customs and traditions
- Outflow of best brains
- Shortage of technology and skills
- Agricultural backwardness
- Unemployment problem
- Lack of infrastructural development
- Too much dependent upon agriculture
- Misuse of natural resources
- Vicious circle of poverty
- Internal and external debts
- Joint family and caste system
- Political instability
- Lengthy legal process
- Favouritism and nepotism
Indicators of economic development
- Rise in GNP
- Rise in per capita income
- Rise in per capita consumption
- Productivity per hectare of land
- Physical quantity of life index (PQLI)
- HDI
- Entrepreneurs
- Industrial progress
- Structural transformation
Features of economic development
- Qualitative concept
- Sectoral transformation
- Public participation
- Role of economic and non-economic factors
- Long term concept
- Increase in real national income
Refer Economics Important Topics for more other such topics