The underdeveloped economy is one which has low per capita income, high rate of population growth, dependence on backward agriculture, etc as when compared to developed economy.
- It is characterized by the co-existence in greater or less degree of under-utilization human and natural resources on account of low rate of capital formation and technological backwardness.
An underdeveloped economy is that economy which is characterized by the widespread poverty, the low economic performances of the economy as compared to advanced economies and under-utilization of production potential. The low per capita income is only a symbol.
PROF.SINGER,” An underdeveloped country is like a giraffe, difficult to describe but you know one when you see one.”
NURKSE,” Underdeveloped countries are those which compared with advanced countries are underdeveloped with capital in relation to their population and natural resources.”
- Low Per capita income.
- Economic inequalities.
- Low levels of living.
- Dependence on agriculture.
- Low growth rate of per capita income High rate of population growth Features concerning foreign trade Vicious circle of poverty Unemployment and underemployment Deficiency of capital Backward techniques of production.
- Backward industrial structure.
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