Free 1000 words essay on PROBLEMS OF UNDER DEVELOPING COUNTRIES for school and college students.

The geographical north-south divide is not just a physical distinction but reflects a much deeper and a glaring picture of struggle, survival, and subsistence. Nations in accordance with per capita income are considered to be developed, developing and underdeveloped. The lowest income group nation constituting around 500million of the world population is trapped in absolute poverty. This imbalance where a quarter of world population controls the rest of it is the testament to the failure of our global economic system.


The Resource curse:

The ‘paradox of plenty’ conspicuous in countries like Ghana, Mozambique, Uganda etc. is linked to the ‘resource curse’ where countries rich in natural resources are amongst the poorest in the world.  The reasons for this curse are: –

  • The resource-rich countries suffer ‘Dutch Disease’ whereby resource sector drives up the local currency impeding the economy.
  • Resource extraction generates fewer jobs giving rise to unemployment and poverty.
  • Dependency on resources causes instability in the economy.
  • A nexus of politicians and companies resulting in disproportionate share leads to a conflict of interest with local citizens.
  • High level of corruption, poor governance and flight of resource wealth often generate grievances leading to civil war.

In the light of this sorry picture, many international initiatives have been designed to combat corruption and bring transparency to ward off this curse.

Some of these International initiatives are: –

  1. i) Equator principles: ensure that private sector bank investment does not exacerbate environmental and social risks.
  2. ii) Stolen Assets Recovery (stAR): assist governments to track down wealth looted by autocrats in the past.

iii)extractive industries transparency initiative: Overhaul revenue management in resource-rich regions.

  1. iv) Dodd-Frank Act: mandates U.S extracting companies to disclose payments to host governments.

The above basket of initiatives can transform the ‘curse’ of resources to ‘blessing’ by bringing transparency and transferring benefits to the locals.

A vicious cycle of Overpopulation:

Underdeveloped countries are earmarked by heavy population pressure and high fertility rates. Overpopulation poses the biggest challenge in low-income countries as the government has to constantly scale up and increase the size of various institutional facilities to chase the growing population. Neo-Malthusians blames over-population for causing environmental destruction, poverty, and hunger and argues it to be a leading cause of socio-economic problems.

The cycle of low-income and productivity-

Low productivity:

Skilled, educated and well-trained population increases productivity and efficiency. The large population negates the effort of government resulting in insufficient health care facilities, an educational institution which renders a large number of people unhealthy, inefficient and jobless.

Low incomes:

High population level makes the resources scarce and reduces the opportunities. Because of low income, there is hardly any investment in new production techniques forcing to rely on old inefficient methods.

Hence Population control may not be the panacea to alleviate poverty but if ignored it can further aggravate the dismal situation.

Poor Infrastructure:

Infrastructure is the key determinant of economic growth.

There are two types of infrastructure:

Economic Infrastructure: infrastructure that promotes the economic growth of a country like – roads, railways, ports, ICT. They play a significant role as: –

  • Provides services that are part of consumption
  • Give impetus to the economy
  • Serves as an input in production hence raising the output and efficiency.

The locals of LDC’s have to bear the cost of poor and inadequate infrastructure by paying rates several times higher for infrastructure services like electricity, sanitation, water, telecommunication, and transport. For example- Africa accounts for 2% of total global service trade, a share which has remained constant for past 20 years. The problem is further aggravated in the landlocked countries such as Burkina- Faso, Mali, Niger where transport prices are much higher because of anti-competitive behavior, lack of openness, corruption and inefficiency.

Social Infrastructure:

It is fundamental in ensuring that people are safe, healthy and productive. Inclusive growth is the real growth which is reflected not in the GDP but through literacy rate, mortality rate, levels of employment and housing amenities. These are facilitated by the social infrastructure such as healthcare centers, hospitals, and educational institutes.

The recent Ebola epidemic underscored the compelling need for stronger and resilient healthcare systems. After the Abuja declaration in which African countries agreed to allocate 15 % of their budget to health, Africa has witnessed a rapid rise in the number of healthcare facilities. Lack of regulatory tools made these health systems underequipped and inefficient making the situation worse.

The government should adopt the more measured approach to achieve universal health coverage.

Human development deficits:

The World Bank pledge to eliminate extreme poverty by 2030 definitely brings confidence in some despair regions gripped in extreme poverty and hunger.

Less developed countries bear the burden of poverty where almost three-quarters of worlds poor live in middle-income countries and a quarter in the least developed countries. LDCs accounts for 40% of child mortality in the world. These countries suffer from acute hunger and malnutrition. The LDCs still faces a chronic problem of water supply as they lack the technology and investment to collect, treat and redistribute water. Over 500 million people are oblivious to sanitation facility and 200 million to clean water.

Although the share of aid stipulated to LDCs has increased manifold but the ground results reflect the loopholes in the implementation process.

Global Crisis:

Globalization strongly interconnected the world and swung the whole world in the same direction. As the world economy was riding high and reaping the profits with the developed nations taking the maximum pie the poorest of the nation also tasted the growth and beamed with optimism. Before the complete trickle down happened, the world economy bumped bringing the growth to negative culminating to the global crisis. In this time of crisis developed nations confined their responsibility to their respective nations and reverted to protectionism policy. In absence of global response, incapability to afford bailouts and subsidies several poor countries will face bankruptcy and nearly 200million people will be pushed into the poverty.

The world is connected like never before and so are its problems. Political instability, extreme poverty, health epidemics in one corner of the world travels to another part in form of terrorism, pandemics or refugees. “Together we stand divided we fall” is an age-old adage which finds perfect relevance in times of today’s global crisis. Resorting to the ‘Robin Hood principle: take from the rich and give to the poor’ formally known as “cosmopolitan prioritarianism” the help should be granted to those who need the most. The least developed and developing nations are the inheritors of the fragile economy but are the emergent societies which will play a critical role in shaping the future of the world dynamics. Nations should come together to support and exist as one indivisible entity.

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