Question

Discuss any five features of developing economy.

Answer 1

Following are the features of developing economy:
(1) Less per capita Income : National income of developing countries is less, while population growth rate is high. So, per capita income remains low. Because of less per capita income, living standard of people is low.
(2) Population growth: Population growth rate is high in developing nations. Rate of population growth is 2 or more in these nations.
(3) Dependence on agriculture : Main occupation of the people of developing countries is agriculture. More than 60% of the population is dependent on agriculture for employment .
(4) Unequal distribution of income: Unequal distribution of income and factors of production is seen in developing countries. This inequality is seen in cities as well as villages.
(5) Unemployment: Unemployment may be counted as an important feature of developing countries.
Other than this Poverty, Dual economy and Insufficient infrastructure facilities are also important features.