Following are some of the basic and important characteristics which are common to all developing economies: An idea of the characteristics of a developing economy must have been gathered from the above analysis of the definitions of an underdeveloped economy. Various developing countries differ a good deal from each other. Some countries such as countries of Africa do not face [...]
Most of the developing countries were under colonial rule prior to 1950. They were greatly exploited by the colonial powers. For instance, India, which was once quite prosperous, became underdeveloped and poor during the British rule. Its handicrafts could not compete with the cheap imported industrial products, and as a result the artisans and workers employed in them were rendered [...]
After the Second World War, the developing countries are making concerted efforts to achieve rapid economic growth so as to alleviate problems of poverty and unemployment. Besides, there has been rapid growth of international trade. The developing countries like India have been facing the problem of shortage of capital. To meet this shortage, capital flows from the developed countries to [...]