.

What are the common features of developing countries

The common features of developing countries are following.

1. Low per capita real income

2. High population growth rate

3. High rate of unemployment

4. Dependence on primary sector

5. Dependence on exports of primary sector

Low per capita real income:

Low per capita real income is one of the most defining characteristics of developing

economies. They suffer from low per capita real income levels, which results in low savings and

low investments.

It means the average person doesn’t earn enough money to invest or save money. They spend

whatever they make. Thus, it creates a cycle of poverty that most of the population struggles to

escape. The percentage of people in absolute poverty (the minimum income level) is high in

developing countries.

2. High population growth rate:

Another normal attribute of creating nations is that they either have high populace

development rates or enormous populaces. Frequently, this is a direct result of an absence of

family arranging alternatives, absence of sex instruction and the conviction that more kids could

bring about a higher work power for the family to gain salary. This expansion in ongoing
decades could be a direct result of higher birth rates and diminished passing rates through

improved social insurance.

3. High rate of unemployment:

In rural areas joblessness experiences huge occasional varieties. Nonetheless,

unemployment is an increasingly issue in developing countries and government has make

policies to reduce it for development.

4. Dependence on primary sector:

Practically 75% of the number of inhabitants in low-salary nations is rural based.

As pay levels rise the structure of interest changes, which prompts an ascent in the assembling

part and afterward the administration division.

Low level of human capital:

Human capital – education, health and skills – are of crucial importance for economic

development. In our analysis of human development index (HDI) we noted that there is great

disparity in human capital among the developing and developed countries. The developing

countries lack in human capital that is responsible for low productivity of labour and capital in

them.

Lack of education manifests itself in lower enrolment rate in primary, secondary and tertiary

educational institutions which impact knowledge and skills of the people. Lower levels of

education and skills are not conducive for the development of new industries and for absorbing

new technologies to achieve higher levels of production.