Assignment (MBA 1-C) Question: 34

Subject - Accounting for Management

Topic:

Economic development of Developing countries..?

Submitted to : Mr. Gurdeepak Singh

Submitted by : Saksham Duggal (MBA 1 C)

These are the areas, which are briefly covered in this assignment:

1. Introduction

2. Discussion

3. Conclusion

Introduction

“Developing country” is a term generally used to describe a nation with a low level of material well-being. The levels of development may vary widely within so-called developing countries. Some developing countries have high average standards of living.

Yet, the development of developing countries has been taking different curves and it depends on country to country. In this assignment, we will be briefly discussing the Economic Development of developing countries.

Let us now go further and discuss the topic…

Discussion

Natural resources have historically been responsible for growing economies. Much of the developed world has long ago been through the cycle of utilizing natural resources to bring people out of poverty. However, developing countries are relatively new to this process. Yet despite their newcomer status, some emerging economies have been quick to learn from both the successes and failures of developed nations.

The development of a country is measured with statistical indexes such as income per capita (per person) (GDP), life expectancy, the rate of literacy. The UN has developed the HDI, a compound indicator of the above statistics, to gauge the level of human development for countries where data is available.

Economic growth of developing countries at risk – A supply constraint for infrastructure implementation

These are the words taken from ‘’The World Economic Forum’’

There are a number of developing or under-developed countries like Afghanistan, Bangladesh, India, Iraq, Iran, Kenya and many others. In total around 150 countries are still under developed.

There are a number of reasons why they are still behind other developed countries.

Since World War 2, we have been experiencing a worldwide struggle for the improvement if living conditions in the so-called developing countries. At the beginning, there was a little query as to the causes of under-development.

1. Population’s is low saving ability. As the saving rate is determined by the low real income, the circle is closed.

2. Potential entrepreneurs are hindered in their decision-making by institutional factors: either group considerations play a -great role and hinder the potential entrepreneur, or entrepreneurs aim at personal gains at the cost of others and are thus equally detrimental to development.

3. The domination of underdeveloped areas by industrialized countries as the consequence of different economic and technological levels and unequal power potential resulting from a different economic growth.

4. Other reasons Include: Dependence on other (developed) countries, Corruption, Political corruption, Political/Economic injustice, Poverty, Terrorism, Over population, Illiteracy, Unskilled labor etc.

ROBERT RUBIN: With today’s global interconnection due to trade, transportation, modern technology, travel, and migration, the inability of developing countries to deal with a whole host of issues because of lack of resources can also powerfully affect the industrial countries. Transnational environmental issues like global warming, spread of disease, illegal immigration, crime, and much else make this point. In addition, developing countries that are successful economically can provide additional markets and additional sources of effective supply in the industrial countries’ economies.

(Source: http://www.imf.org/external/pubs/ft/issues)

The better we understand the causes and characteristics of the various problems

facing developing countries, the closer we are to finding ways of removing the barriers to progress.

Now after discussions about the major problems faced by under developed countries, we must look at the goals as per the developing countries:

From the common denominator "basic needs," one can deduct five basic goals of development:

• economic growth to secure food and other requirements for the
  population;
• social justice to reduce inequality;
• employment as means of earning an income but, as well, because of
  its ethical and social value;
• participation as political involvement and social sharing;
• Independence as freedom from external domination.

The authorities’ / government should come forward in order to achieve these goals and remove the tag of under-developed or country. With the above discussions and understanding, I have concluded as given below in brief:

Conclusion

The reason behind the underdevelopment of underdeveloped countries is the lack of determination, if people and the Government work together for the better future of their nation they can do, but problem is this who to start and where to start because the system is very weak. I believe developed states not guide properly to underdeveloped nations, developed nations take them as their competitor. Yes, underdeveloped states can be developed with the help of proper utilization of wealth, resources, and labor. The focus of underdeveloped states should be on the education of their people, because educated people and skilled people can play the fruitful role in the development of nation and its economy.

Regards,

Saksham (MBA 1-C)