Introduction

The countries in which the process of development has started but is not
completed, have a developing phase of different economic aspects or dimensions
like per capita income or GDP per capita, human development index (HDI), living
standards, fulfillment of basic needs, and so on. The UN identify developing
countries as a country with a relatively low standard of living, underdeveloped
industrial bases, and moderate to low human development index. Therefore,
developing nations are those nations of the world, which have lower per capita
income as compared to developed nations like the USA, Germany, China, Japan,
etc. Here we will discuss the different characteristics of developing countries of the
world. Developing countries have been suffering from common attributes like
mass poverty, high population growth, lower living standards, illiteracy,
unemployment and underemployment, underutilization of resources, socio-political
variability, lack of good governance, uncertainty, and vulnerability, low access to
finance, and so on.

Developing countries are sometimes also known as underdeveloped

countries or poor countries or third-world countries or less developed countries or
backward countries. These countries are in a hurry for economic development by
utilizing their resources. However, they are lagging in the race of development and
instability. The degree of uncertainty and vulnerability in these countries may
differ from one to another but all are facing some degree of susceptibility and
struggle to develop.

The common characteristics of developing nations are briefly explained below.

MAJOR CHARACTERISTICS OF DEVELOPING COUNTRIES

Low per Capita Real Income

The real per capita income of developing countries is very low as compared to
developed countries. This means the average income or per person income of
developing nations is little and it is not sufficient to invest or save. Therefore, low
per capita income in developing countries results in low savings, and low
investment and ultimately creates a vicious cycle of poverty. This is one of the
most serious problems faced by underdeveloped countries.

Mass Poverty

Most individuals in developing nations have been suffering from the problem of
poverty. They are not able to fulfill even their basic needs. The low per capita in
developing nations also reflect the problem of poverty. So, poverty in
underdeveloped countries is seen in terms of lack of fulfillment of basic needs,
illiteracy, unemployment, and lack of other socio-economic participation and
access apart from low per capita income.

Rapid Population Growth

Developing countries have either a high population growth rate or a larger size of
population. There are different factors behind higher population growth in
developing countries. The higher child and infant mortality rates in such countries
compel people to feel insured and give birth to more children. Lack of family
planning education and options, lack of sex education, and belief that additional
kids mean additional labor force and additional labor force means additional
income and wealth, etc. also stimulate people in developing countries to give birth
to more children. This is also supported by the thought of conservatism existed in
such nations.

The Problem of Unemployment and Underemployment

Unemployment and underemployment are other major problems and common

features of developing or underdeveloped nations. The problem of unemployment
and underemployment in developing countries is emerged due to excessive
dependency on agriculture, low industrial development, lack of proper utilization
of natural resources, lack of workforce planning, and so on. In developing nations,
the problem of underemployment is more serious than unemployment. People are
compelled to engage themselves in inferior jobs due to the non-availability of
alternative sources of jobs. The underemployment problem in high extent is found
especially in rural and back warded areas of such countries. 

Excessive Dependence on Agriculture

The majority of the population in developing nations is engaged in the agriculture

sector, especially in rural areas. Agriculture is the only sole source of income and
employment in such nations. This sector has also a higher share of the gross
domestic product in poor countries. In the case of the South Asian economies,
more than 70 percent population is, directly and indirectly, engaged in the
agriculture sector.

Technological Backwardness

The development of a nation is a positive and increasing function of innovative

technology. Technological use in developing countries is very low and used
technology is also outdated. This causes a high cost of production and a high
capital-output ratio in underdeveloped nations. Because of the high capital-output
ratio, high labor-output ratio, and low wage rates, the input productivity is low and
that reduces the gross domestic product of the nations. Illiteracy, lack of proper
education, lack of skill development programs, and deficiency of capital to install
innovative techniques are some of the major causes of technological backwardness
in developing nations.

Dualistic Economy

Duality or dualism means the existence of two sectors as the modern sector or
advanced sector and the traditional or back warded sector within an economy that
operates side by side. Most developing countries are characterized by the existence
of dualism. Urban sectors are highly advanced and rural parts are having the
problems like a lack of social and economic facilities. People in rural areas are
majorly engaged in the agriculture sector and in urban areas they are in the service
and industrial sectors of the economy.
Lack of Infrastructures

Infrastructural development like the development of transportation,

communication, irrigation, power, financial institutions, social overheads, etc.is not
well developed in developing nations. Moreover, developed infrastructure is also
unmanaged and not distributed efficiently and equitably. This has created a threat
to development in such nations.

Lower Productivity

In developing nations, the productivity of factors is also low. This is due to a lack
of capital and managerial skills for getting innovative technologies, and policies
and managing them efficiently. Malnutrition, insufficient health care, a healthy
support system, living in an unhygienic environment, poor health and work-life of
workers, etc. are factors that are attributed to lower productivity in developing
nations.

High Consumption and Low Saving

In developing countries, income is low and this causes a high propensity to

consume, a low propensity to save and capital formation is also low.People living
in such nations have been facing the problems of poverty and they are being unable
to fulfill most of their needs. This will compel them to expend more portion of
their income on consumption. The higher portion of consumption out of earned
income results in a lower saving rate and consequently lower capital formation.
Ultimately these countries will depend on foreign aid, loans, and remittance
earnings that have limited utility to expand the economy.   

Summary

The above-explained points show the state and characteristics of developing

countries. Apart from explained points, excessive dependency on developed
nations, having inadequate provisions of social services like education facilities,
health facilities, safe drinking water distribution, sanitation, etc., and dependence
on primary exports due to lack of development and expansion of secondary and
tertiary sectors of the economy, etc. are also major characteristics of developing
countries of the world. These countries are affected more severely by the economic
crisis derived from the coronavirus of 2020. So, challenges to development for
developing nations have been added furthermore. In a summary, the major
characteristics of developing countries are presented in the following table.

References

Ahuja, H.L (2016). Advanced Economic Theory. New Delhi: S Chand and
Company Limited.

Todaro, M.P. & Smith, S.C. (2009). Economic Development. New York: Pearson
Education.