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Low-income countries today differ from developed nations in their early stages primarily due to disparities in physical and human resources, population growth rates, and climatic conditions. Developing countries face challenges such as high population growth, resource exploitation hindered by conflict, and brain drain from skilled migration. Additionally, the efficacy of domestic institutions and the role of international trade are critical factors influencing their economic development.

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eco4

Low-income countries today differ from developed nations in their early stages primarily due to disparities in physical and human resources, population growth rates, and climatic conditions. Developing countries face challenges such as high population growth, resource exploitation hindered by conflict, and brain drain from skilled migration. Additionally, the efficacy of domestic institutions and the role of international trade are critical factors influencing their economic development.

Uploaded by

mennaazzat205
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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How Low-Income Countries Today Differ from Developed Countries in

Their Early Stages


1. Physical and Human Endowments
Example, in Africa, where natural resources are more plentiful, and geologists
anticipate that there is far more yet to be discovered, heavy investments of
capital are needed to exploit them, which until very recently has been strongly
inhibited by domestic conflict.
2. Relative Levels of Per Capita Income and GDP
Nearly 40% of the population of developing countries is attempting to subsist
at bare minimum levels. Today’s developing countries began their growth
process at the low end of the international per capita income scale.
3. Population Size, Distribution, and Growth
Before and during their early years, Western nations experienced a very slow
rise in population growth. As industrialization proceeded, population growth
rates increased primarily because of falling death rates but also because of
slowly rising birth rates. At no time did Europe and North American countries
have natural population growth rates more than 2% per annum, and they
generally averaged much less.
The populations of many developing countries have been increasing at annual
rates of more than 2.5% in recent decades, and some are still rising that fast
today.
4. Climatic Differences
Almost all developing countries are situated in tropical or subtropical climatic
zones. It has been observed that the economically moist successful countries
are located in the temperate zone.
The extremes of heat and humidity in most poor countries contribute to
deteriorating soil quality and the rapid depreciation of many natural goods.
They also contribute to the low productivity of certain crops, the weakened
regenerative growth of forests, and the poor health of animals.
5. The Historical Role of International Migration
The irony of international migration today, is not merely that traditional outlet
for surplus people has effectively been closed off but that many of the people
who migrate from poor to richer lands are the very ones that developing
countries can least afford to lose: the highly educated and skilled resulting to
brain drain, which could also result to loss of valuable human resources that
could lead to serious constraint on the future economic progress of developing
countries.
6. The Growth Stimulus of International Trade
International free trade has been called the “engine of growth” that propelled
the development of today’s economically advanced nations. Rapidly
expanding export markets provided an additional stimulus to growing local
demands that led to the establishment of large-scale manufacturing
industries.
Free trade is a trade in which goods can be imported and exported without any
barriers in the form of tariffs, quotas, and other restrictions.
7. Research and Development Capabilities
Scientific investigation with a view toward improving the existing quality of
human life, products, profits, factors of production, or knowledge.
8. Efficacy of Domestic Institutions
Economic development lies in the efficacy of domestic economic, political,
and social institutions. The developed countries enjoyed relatively stronger
political stability and more flexible social institutions with broader access to
mobility.

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