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Types of economies
1. Types of Economies; World
Population-Distribution & Density
and Trends & Prospects
www.StudsPlanet.com
2. Types of Economies
• On basis of level of economic
development-3 types of economies
1. Highly Developed or Industrial –
commercial economies
2. Semi-developed or mixed industrial –
agricultural economies
3. Underdeveloped or predominantly
agricultural economies
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3. Highly Developed Economies
• Main Features
1. High per capita gross domestic product
(exceeding $ 17,000) 1995-USA $
26,000, Switzerland $ 42,416
2. Very High Rate of Economic Growth-is a
result of high per capita income, rate of
savings,
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4. Dominance of Industrial &
Commercial Population
• High % of population is engaged in
manufacturing and tertiary industries
• Agriculture accounts for < 20% labor force
• Manufacturing and Tertiary absorb 25-
30% and almost 40%
• Agriculture highly mechanised
• Metal industries important among
manufacturing industries.
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5. Highly Developed Economies
• Very large share in world trade- 1994-Total
value of world exports 42,258,73 million dollars
69% accounted for by developed economies
USA accounted for 2%
• Imports-43,16,002 million developed
economies accounted for 48% (USA 6%)
• Urbanization
• Very high expectation of life
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6. Semi-Developed Economies
• High per capita Gross Domestic Product-
1994- 10,000 -17,000 $
(Portugal-$ 10,428)
• Relatively lower rate of economic growth
• Dominance of Industrial – Agricultural
Population (Agriculture 35-55%)
• Relatively lesser Urbanization
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7. Underdeveloped Economies
• Very low per capita GDP $ 250 to $ 2500
Ex-Uganda, Zambia
• Very low rate of economic growth < 3% per
annum
• Dominance of Agricultural/Rural Population
• Very small share in world trade
• High rate of population growth
• Low expectation of life
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8. Centrally Planned Economies
• Rate of savings in these countries is quite high-
as it is determined by Government to a certain
extent
• Core sector-Fuel, Power, Iron & Steel,
Communication, Infrastructure, Transportation
• Consumer goods expenditure kept at a
minimum
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9. World Population
• Census Data-
1.Total number of human beings
2.Age groups of people
3.Sex ratio
4.Literacy
5.Economic Occupation
6.Birth & Death Rates
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10. Factors affecting population
distribution
1. Geographical Factors
a) Relief of land-Plains promote settlements
where as big mountains prevent settlements
b) Accessibility-by roads, water ways (air ways)
c) Climate-Very cold-Polar regions 1/50 sq Km; V
rainy- Amazon basin – S America <2/sq km.
d) Adequate Water-Supply-Nile valley – Superior
cotton; Rajasthan – canal work
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11. Factors affecting population
distribution
e) Soils
f) Mineral Deposits
2.Economic & Cultural Factors
a)Ability to obtain outside income-FII/FDI/Foreign
Trade/Tourist Income
b)Excessive Urbanization- around 20% of the
worlds population live in big cities and towns
(>1 million)
c)Growth of means of transport
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12. d) Cultural (& technological) Factors-(Life style) –
moving away from less efficient and polluting
fuels to cleaner fuels. Wood to Gas; Faster
methods of communication-Internet, Cloud,
Intranet, Web etc..makes trade
commerce/business possible 24/7/365 days a
year for any person any where in the world.
3.Religious, Political & Social Factors
Polygamy, Early marriage, Religious beliefs
(church); Preference of particular gender
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13. Consequences of varying
densities of population
• Advantages of densely populated areas-
1.Abundant supply of labor
2.Market
3.Development of new industries
4.Demand for services
5.Economies of scale
6.Technical & Scientific Discoveries
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14. Advantages of densely
populated areas
7) Economic Process-leads to greater
opportunities
8) Education & Social Facilities
9) Efficient transport network
10) Modern amenities
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15. Disadvantages of densely
populated areas
Social Problems-a) Traffic congestion b)
Lack of housing space c) Poor public
health and sanitary conditions d)
Susceptible to epidemics
Scarcity of resources-Land, Water, Power
Exposure to attack
Lack of labor supply
High costs
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16. Population & Underdeveloped
Countries
• Food Problem
• Very Low Standard of Living (even basic
requirements are not available)
• Large scale unemployment
• Low Productivity of Agricultural Workers
• Low rate of saving and capital formation
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17. World Population-Trends &
Prospects
• The World population has increased 5
times during the period 1650 – 1950 (500
million to 2500 million)
• Increased life expectancy
• 1950 to 1995 World Population increased
from 2517 million to 5716 million (increase
of 300 million in 45 years)
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18. Continent Wise World
Distribution of Population
• Asia – 59 %
• Africa – 12.5 %
• Europe – 9.3 %
• North America – 8.4 %
• Former USSR – 5.4 %
• S America – 5 %
• Oceana (incl NZ and AUS) – 0.4 %
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19. High Population Density Areas
• > 80 persons / Sq Km – High density
• Moderate – 10 to 80 / sq Km
• Low < 10 persons/sq Km
4 high human concentration areas-a) Eastern
Asia, including China, Japan, Korea
b) Southern Asia-India, Bangladesh, Sri Lanka
c) North Eastern Parts of USA
d) Central & North Western Europewww.StudsPlanet.com
