PROJECT No: 2 TAKE A DEVELOPED COUNTRY SUCH AS USA AND A DEVELOPING COUNTRY SUCH AS INDIA ANALYSE THE MAIN CHARACTERISTICS OF THESE ECONOMIES.

PROJECT No: 2

TAKE A DEVELOPED COUNTRY SUCH AS USA AND A DEVELOPING

COUNTRY SUCH AS INDIA ANALYSE

THE MAIN CHARACTERISTICS OF

THESE ECONOMIES

INTRODUCTION ( 2nd Page) 

                                          The World Bank in its World Development Report 2013 has classified the various countries on the basis of Per Capita income of 2011. They are low income Countries, middle income countries and high income countries. Low income countries and middle income countries taken together are described as under developed economies or developing economies. Higher income countries are called developed countries. Developed country such as U.S.A has just 15 Per Cent of the World Population and account for more than 78 Per cent of the World GNP. Under developed or developing countries like India have about 85 Per cent of the World Population and account for 22 Percent of the World GNP.

PRESENTATION (3rd Page) 

                                     

                                                                                         An individual’s Standard of living is measured by his/her income, while a country’s Standard of living is measured by its Per Capita income. Hence a developed economy is one which has high Per Capita income. Example: Economies of U.S.A, Canada, England etc. An under developed economy is one where level of Per Capita income is low and the people have a miserable living. Under developed economies are also known as developing economies, because these economies are passing through the Process of growth and development. Example: India, Sri Lanka, Brazil etc. The main characteristics of these economies are given below.

1.    National income and Per Capita income are high in developed countries whereas it is low in under developed countries because a large proportion of the country’s Population lies below Poverty line.

2.    Generally, agriculture is the main occupation of the people in underdeveloped economies. Developed economies are dominated by large industrial and service sectors.

3.    In developed countries there is full utilisation of resources whereas underdeveloped countries are not utilising their resources properly.

4.    In a developed economy there is technological advancement but in underdeveloped countries there is technological backwardness.

5.    The living standard of people in developed countries is very high. People are highly educated and healthy. The living standard in under developed countries in very low because of low education and unemployment.

6.    The Productivity level in  developed economies is vey high because of capital intensive techniques and modern techniques of Production but I t is low in underdeveloped economies because of  lack of availability of inputs, poor techniques of Production etc. 

Conclusion (5th Page) 

                                                              In developed countries quality of human capital is better,  i.e, high literary ratio, adequate availability  of health and Sanitation facilities etc. Whereas in underdeveloped countries quality of human capital is poor , i.e. , low literary ratio, inadequate health facilities etc. Therefore, in developed countries rich becomes richer and in underdeveloped countries poor becomes poorer. Now most of the developing countries are on the path of development.

Reference ( 6th Page)