CHAPTER 2 - UNDERSTANDING b.

Human Resources
DEVELOPMENT AMONG Refers to the number of people and their level of
DEVELOPING COUNTRIES skills.
4. Ethnic and Religious Composition
Developing World It often plays a major role in the success or
The most common way to define a developing failure of development efforts.
world is by per capita income. The greater ethnic and religious diversity of a
An international agencies such as Organzation country, the more likely it is that there will be
for Economic Cooperation and Development eternal strife and political instability.
(OECD), and the United Nation (UN) offer 5. Private and Public Sector and Civil Society
classification of countries by their economic
status (Gross National Income). Most developing countries have mixed
economic system, featuring both public and
Classification of Economies based on Gross private ownership and use of resources.
National Income (GNI) per capita:
A voluntary action, including the non
a. Low Income Countries (LIC) government organization (NGO), outside the
It is defined by the world bank as having a per government and for profit – activities of the
capita gross national income of $765 or less. private sector.

b. Low Middle – Income Countries (LMC) 6. Industrial Structure

It is defined by the world bank as having a per Through rapid urbanizing, the majority of
capita gross national income of $766 to $3,035. developing countries are agrarian in economic,
social and cultural outlook.
c. Upper Middle – Income Countries (UMC)
Subsistence and commercial is a principal
It is defined by the world bank as having a per economic activity in terms of the occupational
capita gross national income of $3,035 to $9,385 distribution of the labour force if not in
proportionate contributions to national income.
The Structural Diversity of Developing
Countries 7. External Dependence: Economic, Political,
and Cultural
Any portrayal of the structural diversity of
developing nations requires an examination of The degree to which a country is dependence on
eight (8) critical components: foreign economic, social and political forces
related to it sizes, resources endowments, and
1. Size of the Economy
political history.
The physical aspect of the country (geographic
8. Political Structure, Power and Interest
Area, Population and Income) are important
Groups
factors in determining the economic potential
and developing nation from another. It is not the correctness of the economic policies
alone that determines the outcome of national
2. Historical and Colonial Background
approaches to critical development problems.
Economic structure of these nations as well as
Common Characteristics of Developing
educational and social institutions have typically
Nations
been modelled on colonial rulers.
The foregoing discussions should have
Countries like those in Africa that more
demonstrated why it is sometimes risky to
concerned with consolidating and evolving their
generalize too much about such a diverse set of
own national, economic and political structures
nation as those in Africa.
than with simply promoting rapid economic
development. I. Low levels of Living
3. Physical and Human Resources It characterizes by Low income, Inequality, poor
health and inadequate education.
a country’s potential for economic growth is
greatly influenced by its endowments of a. Gross National Income (GNI)
physical and human resources.
The most commonly used measure of the overall
a. Physical Resources level of economic activity.
It refers to factors of production such as land, It is often used as a summary index of the
mineral and other raw materials. relative economic well being of people in
different nations.
b. Poverty unemployment and growing income inequality
is the highly unequal distribution of economic
Extent of Poverty
and political power between rich and poor
The magnitude on the average level of national nations.
income and the degree of inequality in its
distribution.
Absolute Poverty
It represent a minimum level of income needed
to satisfy the basic physical needs in order to
continued survival.
c. Health
Constant battle against malnutrition, disease and
illnesses.
d. Infant Mortality rate
The number of children who died before the first
birthday out of every 1,000 live births.
f. Education
The attempt to provide primary school
opportunities probably been most significant of
all LDC development efforts.
II. Low level of Productivity
Deprivation in human development, concept of a
production function systematically relating
outputs different combinations of factor inputs
for a given technology to describe the way about
providing material needs.
III. High Rates of Population Growth
The crude birth rate is one of the most efficient
ways of distinguishing the less developed from
developed countries
IV. Substantial dependence on agricultural
production and primary product exports
The vast majority of people in LDC live and
work in rural areas. Over 65% are rural based,
compared to less than 27% in economically
developed countries.
Small Scale Agriculture
It provides a breakdown of population, labour
force, and agricultural production by regions of
the developed countries and the less developed
world.
V. Prevalence of Imperfect Market and
Incomplete information
There seemed to be a growing consensus that
there had been too much government
intervention in the workings of the developing
economies.
VI. Dependence and Vulnerability in
International Relations
- It is a final significant factor contributing to the
persistence of low levels of living, rising