Challenges Facing Developing Countries

Challenges Facing Developing Countries
Janita Aalto
Principles of Microeconomics
ECO 204
Instructor Kathryn Armstrong
March 28, 2011
Developing countries, also known as third and fourth world countries; face economic challenges that first world countries do not face, on a large scale.
Poverty, low literacy rates, poor investments in both human capital and domestic capital, poor nutrition and devastation to populations due to the
HIVAIDS pandemic contribute to developing countries moving towards development. The primary focus of this paper is to explore the impact the
HIV/AIDS pandemic has had on Sub–Sahara African economies and to explore the challenges facing developing countries to stimulate...show more
content...
2002, p. 235).This would most likely be a controversial plan, but the strategy would help the people in those groups and buy time for skills training
and development of a new work force to replace those that will either lose their health or their lives. It would also boost the economy if industry
production levels can be maintained and exports of goods can remain at a profitable pace.
The pandemic is having a major effect on life expectancy, which has been dropping. " In Zimbabwe, for example, life expectancy is 40 instead of 69.
In seven countries in Sub–Saharan Africa, life expectancies are below 40 years of age", (CHG, 2009, p. 3). Not only does this impact the work force,
but impacts the children, many of whom lose not only one, but both parents, and other family members that might be able to take them in. Instead
these children now become a government responsibility, as they are put into orphanages, group homes, etc. It is estimated that there are 15 million
orphaned children across Africa. Standards of living are decreasing, and countries that were once starting to make progress both socioeconomically
and economically are headed backwards instead of forward. Poverty is increasing as the family breadwinners are dying or becoming incapacitated by
their illnesses. If

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Developing Countries Essay
Developing countries are closely linked to debt. This is because developing countries needs to allocate more funds to resolve debt crises. Debt can
create a negative effect to the host country's economy and the social condition of a country. This issue of indebtedness is usually solved using domestic
capital. Since developing countries have low income, therefore they have low level of savings. The savings are insufficient to repay debt. Thus the
government resolves the issue by imposing higher tax. But this will lead to inflationary tax, which is a burden to the further generation. Therefore, the
government resorts to foreign borrowings. Domestic borrowings and foreign borrowings have further increased the total debt accumulated by the...show
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Thus, the higher the degree of receptiveness enhances the nation capacity to attract foreign direct investment. The level of education attained can be
represented by the human capital development of the nation meanwhile the economic integration is through the financial development and
environmental condition of the nation. Education builds human capital and prepares them for the rapidly changing global economy. Education fitness
improves the ability to process information, creation through research & development that prepares a fertile ground. Hence, human capital can create a
location advantage. Human capital also includes education and training. Training develops people by transferring information and knowledge to
employees, equipping employees to translate information and knowledge into practice with a view to enhance organization effectiveness, productivity
and the quality of managing people. This will direct the inflow of foreign direct investment to robust the economy. Market in a nation is also the
economic and financial indicator in attracting foreign direct investment. Financial development has a strong positive effect on economic growth
because well–developed financial systems could channel financial resources to the most productive use. Thus it will reduce the transaction and
information costs in an economy. Market fitness should be exposed to competition with protective regulation. This is essential because it involves

The Divide between Developed and Developing Countries. Why are Some Nations Richer than Others: Culture? I have chosen the above topic as the
passage of reading to share on, briefly my thoughts. Economic historian David S. Landes argued that culture played a key role in the development of
any region. He believes that the tenets of that culture especially its religion will determine its progress toward development. He supported his claim, by
referencing that the history in the development of Germany, Netherlands, Britain, and the United States, is due to the nature and tenets of their early
religion [protestant Christianity] which advocated "literacy and time conservation". Consequently, these societies became very productive, resulting in
rapid development (Landes, n.d., quoted in "Globalization 101", n.d., p. 4, para. 4). I completely concur with this argument; however, I do not hold that
it is the only factor, but rather one such contributing element. To further elaborate the point, one need only to look at countries [such as some African
and the Middle East territories] where culture has negatively impacted the development of such regions. For example, in most African cultures that are
highly patriarchal, women are often considered inferior to men. Also, women and children are often forbidden to take advantages of educational
opportunities, making the younger generation unequipped to meet the new global changes and challenges, and, further preventing those [the women]

It is stated that global growth and development has increased by 3.3% in 2015. The findings are less than the calculated 6.1% documented for the
previous year. In total, in 2013, over 130 billion dollars have been contributed to development in specifically, developing countries and countries far
below the poverty line. Many countries maybe facing their internal financial issues, but the funding towards developmental assistance has increased.
This paper is focused to investigate if foreign aid is in fact assisting the appropriate and relevant subjects. To demonstrate the effect of foreign aid on
developing countries, data has been used from developing countries on different continents, such as sub–Saharan Africa, and Asia. The correlation
between the net ODA (official development assistance) given and the GDP (gross domestic product) is not significant, even though the coefficients
between the FDI (foreign direct investment) and the GDP establish a positive correlation. Developing countries are advised to keep their savings rate
low, and not attempt at utilizing policies in order to grow their economies alone according to the current aid policies towards foreign aid. Foreign aid
is meant to help and truly assist developing countries to reach out of their poverty line and grow their economies. After analyzing the countries, the aid
received, it will be evidently shown that foreign aid does not help the underdeveloped and poverty poisoned countries.
Introduction:
In the

Poverty In Developing Countries
In today's global economy, if we want economic growth and development in developing countries, improvements need to be made that provide
opportunities for the well–being of the citizens. Economic growth and development has factors that include poverty and life expectancy rates. The
various causes of poverty make a huge impact and it changes trends in many countries that effect the way people live. Even with certain changes that
the government has made, numerous individuals and nations are still living in a state of poverty. Poverty is a significant issue to society that may be
overlooked in certain countries because it is normalized, especially in developing countries, such as India, Africa, Haiti and more. The citizens of
these countries may be living off of $2.00 or less to provide for themselves and their family. The level of poverty that increased and changed the lives
of millions is the main cause of conflict in developing countries.
Poverty has a wide range of causes and is defined as when a "community lacks the financial resources and essentials to enjoy a minimum standard of
life..." ("Poverty– Investopedia"). Many developing countries, or third–world countries, are living in a state of poverty. Developing countries may be
based off of literacy rates, economics, or "lower ratings based on these statistical criteria..." (Kuepper). Kuepper is a financial journalist and has had
over a decade of experience in domestic markets. Over the span of decades, countries have

This paper examines the similarities and differences of a culture between a developed country and a developing country. This paper explores the
comparison of culture to our country, Belize's and the culture of the United States.
According to Maconis Culture can be define as the "ways of thinking, the ways of acting, and the material objects that together form a people's way
of life. Culture includes what we think, how we act, and what we own. Culture is both our link to the past and our guide to the future" (2011). Culture
also includes "language, norms, values, beliefs, and more that, together, form a people 's way of life" (Study.com). People all over the world share
many different cultures that is either similar or differs from another.
As a developing country such as Belize's our culture varies due to the many ethnicity living here. As in any other country, the various types of food,
music, clothing, beliefs and education is enjoyed by different cultures. Comparing Belize's culture to a developed country such as the United States can
either share similar or different aspects of culture.
Food
Belize enjoys a cuisine that crosses many cultures due to the different ethnicities. Sharing a border with Mexico, Guatemala and Honduras has also
brought many different flavors to the food of the country. With the many native varieties of fruits and vegetables, there is no lack of fresh food. Rice
and red kidney beans are two main staples of the traditional

The Pros And Cons Of Developing Countries
If I were the advisor to a government of a small developing country, I would advise that said country to take caution when attempting to integrate into
the world economy. Simply put, it seems that smaller developing countries should open their borders slowly and selectively. The concepts of "free
trade" may seem enticing, particularly for a developing country based on the rhetoric demonstrated by organizations such as the World Bank for
example. Hunter–Wade suggests that the general consensus surrounding trade liberalization is largely based on assumptions that in order to achieve
further development, trade liberalization is entirely necessary (Hunter–Wade 2005). Moreover, Hunter–Wade claims that there's also an accord on trade
liberalization that infers that developing countries would benefit economically in the event that they reduced trade barriers. It's further suggested that
developing countries would also collectively experience economic gains in the event that rich countries were to remove barriers to their exports
(Hunter–Wade 2005). When these types of ideas are widely dispersed and agreed upon, it can be difficult for smaller developing countries to reject
such claims. In reality, the decision on whether or not to expand further into the global economy is much more complex and must thus, consider factors
that are seldom discussed by free–trade advocates. Hunter–Wade presses that even if trade barriers were removed for exports from developing
countries, the

Geographers like to differentiate countries by grouping them into developed and developing countries. A developed country is a country that has
progressed relatively far during time and has a highly developed economy and advanced technological infrastructure. Some examples of developed
countries are the U.S.A, Canada, the United Kingdom, Japan, Netherlands and many others. They are normally the more profound countries that we
hear about more often than developing countries. Adeveloping country is a country that is at an early stage in economic development and has a less
developed industrial base, and a low Human Development Index (HDI). The Human Development Index is a composite statistic of life expectancy,
education, and income per capita indicators and is used to rank countries into tiers of human development. Having a low HDI means the country has a
low life expectancy, a shorter length of education and the income per capita is lower. Some examples of developing countries areBrazil, Uganda,
United Arab Emirates, India, Afghanistan, and many others. I plan to bring you into an in depth explanation about the many differences in
population studies between Japan and Brazil. First off, we'll start with a little bit of background information on both countries. Japan is an
archipelago of 6,852 islands in East Asia with a population of 126,919,659 (July 2015). It has a land area of about 140,728 square miles and a total
area of about 145,913 square miles. It's area can

Developed and Developing Countries
Countries are divided into two major categories by the United Nations, which are developed countries and developing countries. The classification of
countries is based on the economic status such as GDP, GNP, per capita income, industrialization, the standard of living, etc. DEVELOPED
COUNTRIES refers to the sovereign state, whose economy has highly progressed and possesses great technological infrastructure, as compared to other
nations.
After a thorough research on the two, the difference between developed countries and developing countries considering various parameters, in tabular
form.
Developed Countries Vs Developing Countries
1.Comparison Chart
2.Definition
3.Key Differences
4.Conclusion
Comparison Chart
Basis for ComparisonDeveloped CountriesDeveloping Countries
MeaningA country having an effective rate of industrialization and individual income is known asDeveloped Country.Developing Country is a country
which has a slow rate of industrialization and low per...show more content...
Key Differences between Developed and Developing Countries
The following are the major differences between developed countries and developing countries
1.The countries which are independent and prosperous are known as Developed Countries. The countries which are facing the beginning of
industrialization are called Developing Countries.
2.Developed Countries have a high per capita income and GDP as compared to Developing Countries.
3.In Developed Countries the literacy rate is high, but in Developing Countries illiteracy rate is high.
4.Developed Countries have good infrastructure and a better environment in terms of health and safety, which are absent in Developing Countries.
5.Developed Countries generate revenue from the industrial sector. Conversely, Developing Countries generate revenue from the service

Developing Countries
Developing nations are filled with hope and aspirations of one day becoming a wealthy, dominating, and influential country. These nations can
sometimes be unsafe, difficult to live in, and hard for workers to earn good compensation for their labor. On the other hand, living in a developed
nation has many upsides. Developed nations are wealthy, which in turn have good infrastructure, labor and worker laws, and have less crime.
Developed nations have the superior infrastructure. These countries have more bridges that are better maintained. They also have better highways and
roads that are paved with fewer potholes. In addition, sewers, hospitals, housing systems, and police stations are modernized with sewers having large
pumps pushing the water through to avoid floods. For instance, the city of Miami has initiated a project aimed towards flood prevention by "raising
roads, installing pumps, and water mains and redo sewer connection" (Flechas, 2017). Hospitals, as well as, police stations have powerful generators
that can power all of their electrical equipment allowing them to still be effective and serve the population. On the other hand, developing nations are
very old–fashioned. They are sometimes corrupt and because they do not allow outside access from other countries they lack the knowledge and
resources. These countries are not able to create advanced hospitals with modern equipment and laboratories to treat their patient's conditions. They
also lack medical supplies

International Trade of Developing Countries
International trade of developing countries is the classic weak vs. strong dichotomy, and underdeveloped or developing countries cannot make it solely
on their own efforts; the have nots need help from the haves. Developed nations trumpet the claim that the answer to developing nations' international
trade issues is untrammeled or open market activity as opposed to government intervention by developed nations' governments. This begs the question
as to what extent the governments of developed nations are or should be responsible for supporting developing countries' growth in international
trading markets. Often the protectionist actions of developed nations' governments to enhance their own international trading activities are the very
...show more content...
511):
Recent literature on international trade negotiation accords considerable attention to the ways in which developing countries increasingly coalesce to
effect gains for themselves in negotiation, mostly with the developed world. This is both appropriate and important: from the Uruguay Round to the
Doha Round, coalitions have facilitated the gains (and, at times, the losses) made by the weak against the strong. (Singh, 2006, p. 499).
Regional agreements and export–import aid by developed nations to developing nations have provided some relief through the U.S. Export–Import
Bank (Ex–Im Bank), the North American Free Trade Agreement (NAFTA), the Association of Southeast Asian Nations (ASEAN), and the European
Union/Common Market, among others (Carbaugh, 2013).
Import Substitution and Export–led Growth
The two key approaches by developing nations to implement their own trade policies are import substitution and export–led growth. Import substitution
strategy is inward oriented: trade and industrial incentives favor the domestic market over the export market of developing nations, a strategy utilized
extensively in Latin America by Argentine, Brazil, and Mexico (Carbaugh, 2013, p. 247). Advantages of this approach include:
Risks of developing the domestic industry to replace imports are low because the market already

India Is Developing Country Essay
What is the difference between a developed and developing country? Best Answer– Chosen by Asker A developing country is a nice way of saying a
third world country; or a country that is still trying to create an advanced civilization. A developed country has an advanced civilization. Signs of an
advanced country are the Gross National Product, the amount of poor, the infra structure of the country and so on. Most of Africa and South
America is still developing, but there are major cities that are developed or appear to be. When you check the countryside sometimes it is like going
back in time 100 years or more. China is an example of a developing nation that still has a lot of growing to do. There are towns in the west that haven't
Most commonly the criteria for evaluating the degree of economic development are gross domestic product (GDP), the per capita income, level of
industrialization, amount of widespread infrastructure and general standard of living.[1] Which criteria are to be used and which countries can be
classified as being developed are subjects of debate. Developed countries have post–industrial economies, meaning the service sector provides more
wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialization, or undeveloped countries,
which are pre–industrial and almost entirely agrarian. According to the International Monetary Fund, advanced economies comprise 65.8% of global
nominal GDP and 52.1% of global GDP (PPP) in 2010.[2] In 2011, the ten largest advanced economies by

Globalization, love it or hate it, but you can't escape it. Globalization may be regarded as beneficial from an economic and business point of view, but
however cannot be perceived the ditto when examined from the social sciences and humanities side of it. Globalization can be argued as a tool for
economic growth, advancement and prosperity through co–operation between the developed and developing countries. The pro–globalization critics
argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may
even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is
Human rights violations have risen since globalization has made advancement in technology, and one of the main reasons human rights have
statistically risen is because of human trafficking. Human trafficking is defined by oxford dictionaries as "the illegal movement of people, typically
for the purposes of forced labour or commercial sexual exploitation,"1 and it still is an abundant factor that makes labour exploitation in the modern
world. In 2010, a news article was published by AsianNews, that stated 'more than hundred million children in India are forced to work in slave–like
conditions.'2 The current population of India is stated to be 1.23 billion people approximately, of which the article states that hundred million children
are forced to do labour, meaning roughly 8.13 percent of India's population consists of children who are forced to do labour, and exploited by making
them do long, tedious hours of hard labour. The pro–globalizers that argue that globalization brings education to developing countries should also take
into consideration how it is taking education away from children. Another factor that plays a part in labour exploitation by the gimmick of
globalization is defined by Robert Mayer, known as 'discretionary exploitation'3. Discretionary exploitation, in simple terms is defined as the free
choice to choose labour, but the fact

Developing Countries Competing with Developed Countries
Discuss the alternative methods that developing countries might use to overcome the difficulties that they have when trying to compete with
developed countries.
No industry attracted
Including Foreign Direct investment (FDI)
Economic development occurs when a country improves the economic welfare of its population through, for example reducing poverty. Some
economists discuss the world as being the 'developed north' and
'underdeveloped south'. This refers to the gap between rich countries, which are mainly in the northern hemisphere and poor countries, which are
located mainly in the southern hemisphere. This is not the only method used to categorise countries, The...show more content...
Manufactured
Goods
Agricultural Goods
If countries find it difficult to develop on their own their main priorities are for example reducing poverty in the country. Therefore underdeveloped
countries will stand little chance of competing on the global market.
Less Economically Developed Countries find it hard to compete in the global market with More Economically Developed Countries (MEDC's) as they
have much weaker economies. There are a number of reasons why
LEDC's are underdeveloped and have weak economies, which I will now describe. Many people in LEDC's survive on subsistent farming. This results
in very little money being invested into the economy and this is one of the reasons why there is little money available to spend on development.
LEDC's generally have much larger populations than

MEDC's. Children are essential to the survival of LEDC families as their 'free labour' is needed by their parents to help produce food and help the
family survive. As LEDC's have poor educational systems the majority of the population is poorly educated and population will continue to grow. This
will slow down development as the countries youth dependency will increase and the GDP per capita will decrease. A country with a continually high
birth rate will have to devote resources, which could have been

Benefits Of Globalization In Developing Countries
Globalization is assuming a progressively considerable role in developing countries. It has convinced advantages like technological developments,
economic processes, health systems and social and natural environment factors and so on (Hamdi 2013, p.142). International trade brings about
large economic benefits for many countries and it is because of globalization. In addition, global trade is essential to support advancement, growth,
reduction of poverty. International merchandise trade in worth terms was $16.4 trillion in 2015. This is more than 3 times greater than in 1990 in
volume terms (Gonzalez, 2016). Some people believe that the impact of globalization for developing countries has just negative things. However,
this essay will argue that globalization is beneficial for developing countries for several reasons. To begin with, developing countries can get many
economic benefits through globalization. People who live in developing countries can get more employment opportunities for globalization. This is
because they can get jobs in other countries and can do business through the international trade and through the Internet. For example, some
developing countries' economies have increased for globalization. In these countries, China is a really good example as a country which has
succeeded by improving its economy because of globalization. According to Kunnanatt (2013, p. 51), China is the largest beneficiary of globalization
and has added $3.9 trillion to the global GDP. Also, China supplied 180 million people with new jobs and approximately 375million people moved
out of poverty. As a result, the number of people suffering from poverty will reduce in developing countries and income of people who live in
developing countries will improve because of globalization. In addition, developing countries can receive support for infrastructure development
through foreign direct investment (FDI) from other countries, especially developed countries such as the United States, Japan and Australia. This is
because of globalization. As an example, Ghimire (2016) states that Nepal needs better technology and qualified human resources. The growing role of
FDI for infrastructure development cannot be refused, especially

GEOGRAPHY PROJECT
PART ONE
Developing country selected: Ethiopia
1.Describe the differences between developed countries and developing countries (100 words)
Developed nations are which can are countries that are more industrialized and have higher per capita income levels. A developed nation has a per
capita income around or above $12,000. Most developed countries have an average per capita income of approximately $38,000. Some developed
nations include the United States, Canada, Japan, Republic of Korea, Australia, New Zealand and countries of Western Europe.
Developing nations is a broad term that includes countries that are less industrialized and have lower per capita income levels. Moderately developed
countries have an approximate per capita income of between $1,000 and $12,000. The average per capita income for moderately developed countries
is around $4,000. Some of the most recognizable countries that are considered moderately developed include Mexico, China, Indonesia, Jordan,
Thailand, Fiji, and Ecuador. Undeveloped countries have the lowest income, with a general per capita income of approximately less than $1,000. In
many of these countries the average per capita income is around $500. The countries listed as less developed are found in eastern, western, and central
Africa, India, and other countries in southern Asia.
2.Create a profile on the developing country you have chosen using development and inequality indicators (300 words)
IndicatorsEthiopia

Developed Country Vs. Developing Countries
Developed Country vs. Developing Country Developed and developing are the titles that countries around the world are being labeled by based on the
development of their economy and technological infrastructure. Although these countries may carry a likely similar name, they are however
completely different in many ways. The two types countries usually differ in their environment, population, education , and living conditions. Most
importantly, they obtain distinct economies, which makes them part of two different worlds.
What is a developing and developed country, what makes them so uncommon? A developing country is defined as a poor agricultural country that is
seeking to become more advanced economically and socially. A developed country on the other hand is described as a sovereign state that has a highly
developed economy and advanced technological infrastructures. The most obvious distinction between the two are the suffixes placed at the end of
each label. Just as it was stated in the previous definitions, one country is already advanced and elaborated, while the other country is struggling in
order to reach that limit/or level/catch up with the world. Developed countries tend to have good living conditions, great education programs for
children, a high employment rate, and an increasing population. Meanwhile, developing countries obtain extremely poor living conditions, learning
programs that are inadequate, a high unemployment rate, and a decreasing population. The

Country As A Developing Country
Honestly, one would think that in todays modern world every country should be developed. However, few realize that there are still many developing
countries. Mostly due to ignorance, and the majority doesn't pay attention to the needs of developing countries. For instance, the only time a person
may think of a developing country is when the see the commercials on television, and believes that this must be the only issues facing developing
countries. Normally, people visualize those commercials asking for money to feed, or asking for help of some type of medical expenses. Take the
United States as an example, and often this country would release funds to foreign aid before their own citizens. Which could easily cause tension
amongst the government and the American people. According to, SAE there are about 137 developing countries, and countries that earns on average
11,905 or less are a developing country. There are many different choices when comes to picking a developing country. However, the country of Sierra
Leone will be the country up for discussion. Sierra Leone is one example of what the World Bank considers to be a developing country, and it is in West
Africa. As well as, the capital, Freetown, was founded as a home for reported former slaves. Currently, Sierra Leone has a population of about 6.1
million citizens, and on average the life span expectancy is 48 years old male, and 49 years old female. However, this country's most brutal civil war
ended in 2002, and

NAME: OSI PAUL–UMOGBAI
STUDENT NUMBER: 101067871
RESEARCH PAPER
Democracy in developing countries and underdeveloped countries and why they don't thrive as much as in developed countries.
A large number of the world's population of underdeveloped countries were recently under non–democratic rule or are still under non–democratic rule.
In my personal opinion, the political structure and how it functions is one of the factors that has a large role to play in the development of a nation or
society. It has been proven in many cases that democracy is one of the political structures that has proven successful in the development of a nation,
e.g. India. Liberal democracy has proven more of an aid to developing countries that other methods of government. It is a trend that has been proven
time and time before, if a country wants to develop politically and economically, they will have to develop democratically as well. it is a known fact
that economic development follows closely behind a successful democracy. Recent findings have shown that the level of economic development isn't
related to the transition to democracy, but rather the likelihood of that democracy enduring. Democracy is less likely to fail or collapse in a wealthy
and prosperous state or society. However, the transition to liberal and true democracy is quite difficult, I say liberal because many developing
countries, especially in Africa, don't practice liberal democracy, they practice what Richard Joseph

Challenges Facing Developing Countries

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