Developing nations are characterized by low standards of living and income relative to population. They typically have high population growth associated with low income. Most developing economies are located in the southern hemisphere. Key features include high levels of poverty, income inequality, lack of access to basic necessities, and vulnerability to economic shocks. According to the World Bank, 734 million people lived on less than $1.90 per day in 2015, though COVID-19 is expected to reverse progress made in reducing poverty.

1. CHARACTERISTICS OF
DEVELOPING NATION

2. DEVELOPING NATION
• Developing countries are, in general, countries that have not achieved a
significant degree of industrialization relative to their populations, and have, in
most cases, a medium to low standard of living.
• There is an association between low income and high population growth.
• Low income and middle income economies are developing economies. It may be
noted that the term third world does not cover all developing economies, it
covers only the low income economies.

3. • The developed economies as a group are sometimes
referred to as the North as they, with some exceptions
such as Australia and New Zealand, are in the northern
hemisphere and the developing economies are referred to
as the South as most of them are in the southern
hemisphere

4. • Low income is just an indication of deprivation.
• It prevents access to even basic necessities, not only better and modern
amenities.
• Further, in developing economies the inequality in the distribution of income is
very high and, as a result, a large proportion of the population lives in abject
poverty.
• Although many countries have achieved considerable reduction in poverty, the
incidence of poverty is still very high in many countries.

5. DIMENSION OF POVERTY
• The magnitude of global poverty is indeed alarming. According to the most
recent estimate by WBG, 10 Percent of world population or 734 million people
lived on less than $1.90 per day in 2015.
• That’s down from nearly 36 percent or 1.9 billion in 1990
• However due to Covid 19 and oil price drop , this trend probably will reverse in
2020
• The covid 19 crisis will have a disproportionate impact on the poor, through job
loss, loss of remittance , rising prices, disruption in services such as education and
health care

6. DETERMINANTS OF DIMENSIONS OF POVERTY
• Lack of income and assets to attain basic necessities food, shelter, clothing, and
acceptable levels of health and education.
• Sense of voicelessness and powerlessness in the institutions of state and society.
• Vulnerability to adverse shocks, linked to an inability to cope with them

7. ADDITIONAL FEATURES OF DEVELOPING
COUNTRIES BY HARVEY LEIBENSTEIN
• Economic
• (a) General Characteristics
• . A very high proportion of the population in agriculture
• Evidence of considerable disguised unemployment and a lack of employment
opportunities outside agriculture.
• Very little capital per head
• Low income per head and, as its consequence, existence near the subsistence level

8. • Practically zero savings for the large mass of the people.
• Major proportion of expenditures on food and necessities.
• Low volume of trade per capita. In the recent decades the volume of trade of
many developing countries has, however, increased substantially
• Poor credit and marketing facilities
• Poor credit and marketing facilities

9. • (b) Characteristics in Agriculture
• Although there is low capitalisation on the land, there is simultaneously an uneconomic use of
whatever capital exists due to the small size of holdings and the existence of exceedingly small
plots
• The level of agrarian techniques is exceedingly low and tools and equipment are limited and
primitive in nature.
• Even where there are big landowners, the openings for modernised agricultural production for
sale are limited by difficulties of transport and the absence of an efficient demand in the local
market.
• It is significant that in many backward countries a modernised type of agriculture is confined to
production for sale in foreign markets.

10. • There is an inability of small landholders and peasants to weather even a short-
term crisis, and as a consequence, attempts are made to get the highest possible
yields from the soil, which leads to soil depletion.
• 5. There is a widespread prevalence of high indebtedness relative to assets and
income.
• 6. The methods of production for the domestic market are generally old
fashioned and inefficient, leaving little surplus for marketing. This is usually true
irrespective of whether or not the cultivator owns the land, has tenancy rights, or
is a share cropper.
• 7, subdivision and fragmentation of land

11. • Demographic
• 1. High fertility rates. As a consequence, the population growth rate in countries
like India is still very high.
• 2. High mortality rates and low expectation of life at birth. 3. Inadequate nutrition
nutrition and dietary deficiencies. A very large number of people continue to be
below the poverty line.
• 4. Rudimentary hygiene, public health and sanitation.
• 5. Rural overcrowding.

12. • Cultural and Political
• 1. Rudimentary education and usually a high degree of illiteracy.
• 2. Extensive prevalence of child labour.
• 3. Inferiority of women's status and position.
• 4. Traditionally determined behaviour for the bulk of the populace

13. • Technological and Miscellaneous
• 1. Low yields per acre.
• 2. Inadequate and crude communication and transportation facilities,
especially in the rural areas.
• 3. Existence of crude technology in many spheres.

14. • Benjamin Higgins points out that the developing countries are characterized by
the existence of what he calls vicious circle where each characteristic has a hen-
and-egg nature that makes it impossible to separate causes from effects.
• The factors act and react upon each other creating a vicious circle and
perpetuating the problem. For example, poverty is the cause and consequence of
poverty and vice versa.
• Because of poverty the savings are very low and consequently the investment is
also low. Because of low investment income generation is low, thus creating a
vicious circle