Understanding Underdevelopment
Underdevelopment means a country has a low level of development. This includes low income, widespread
poverty, low literacy, short life expectancy, and poor use of natural resources. Many people in such countries
live in poor conditions, facing hunger, poor health, and lack of basic needs.
Underdevelopment is a relative concept, meaning a country is called underdeveloped when compared to
more developed countries. But even though it's relative, it still causes absolute poverty, where people cannot
afford basic things like food, clothing, and shelter.
In underdeveloped countries, most people depend on farming and traditional methods, which don't produce
much. There's a big gap between rich and poor, and most people have a low standard of living.
Dependency theory says poor countries are poor not because they aren't part of the world system, but
because of the unfair way they are included. They provide cheap labor and resources to rich countries, which
keeps them poor. If they try to change this, rich countries may punish them through economic or military
means.
Characteristics of Underdeveloped Countries
1. Low Income Levels
People in underdeveloped countries earn very little. The average income is much lower compared to developed nations.
Income is also unequally distributed, where a few are very rich but most people live in poverty. This gap worsens the
quality of life for the majority.
2. Mass Poverty
A major portion of the population lives in poverty. This is not temporary, but a deep-rooted problem caused by traditional
production methods and weak social systems. Factors like population growth, inflation, and inequality make poverty
even worse.
3. Low Capital Formation
Due to low incomes, people are unable to save money. Low savings lead to low investment, resulting in slow economic
growth. Without investment, industries and infrastructure cannot develop.
4. High Population Growth
Underdeveloped countries have a high population growth rate. The birth rate is high while the death rate is falling. This
puts pressure on resources like food, jobs, housing, and land, and makes it hard to raise living standards.
5. Agricultural Backwardness
A large part of the population depends on agriculture, but the methods used are old and inefficient. Despite being vital,
agriculture doesn't produce enough, and modern tools are rarely used.
Characteristics of Underdeveloped Countries
6. Unemployment and Underemployment
There are not enough jobs, especially outside of farming. Many people work in agriculture even when they are not
needed (disguised unemployment). Educated people also find it hard to get proper jobs due to slow industrial growth.
7. Unexploited Natural Resources
Many underdeveloped countries have natural resources like minerals, forests, and water. But these resources are not
used properly due to lack of capital, poor infrastructure, and old technology.
8. Lack of Technology and Skills
These countries lack modern technology and trained workers. This leads to low productivity and poor economic
performance. Growth is slow because new and efficient technologies are not being used.
9. Poor Infrastructure
Basic infrastructure like transport, electricity, and communication is weak. Without good infrastructure, development is
difficult and costly.
10. Slow Industrialization
Industries grow slowly due to lack of money, tools, and skilled workers. People are also less likely to start businesses.
Industrial development is limited to a few areas.
11. Underdeveloped Markets
Markets in these countries are small and lack variety. There is poor market information, low demand, and weak
connections between different markets.
Characteristics of Underdeveloped Countries
12. Mass Illiteracy
A large number of people cannot read or write. Illiteracy holds back progress, as people resist change and lack the skills
needed in a modern economy.
13. Poor Social Conditions
Social customs like joint families, expensive traditions, and inheritance laws make it harder for people to move forward
economically and socially.
14. Inefficient Administration
Governments in these countries often suffer from weak planning, corruption, and poor management. This results in bad
decisions, poor use of resources, and slow progress.