What are the similarities among the developing economies?
Common characteristics of LDCs (Less Developed Countries) include:
• Low living standards (that is low real income per capita) related with high income inequality, insufficient education and poor health and restricted life expectancy;
• Low levels of productivity probably due to limited resources; unskilled labour; weak complementary issues and backward technology and management practices;
• High population growth rate because of falling death rate resulting into significant dependency burdens;
• Huge-scale unemployment and underemployment;
• A small industrial sector along with outdated technology not able to employ large numbers of poorly educated employees.
• Large but ignored agricultural sector.
• Market imperfections. In various developing economies markets may not exist as an example of financial markets.
• Developing countries usually have a colonial past
• Restricted technology, social and infrastructure and political institutions.
• Low social capital and cohesion.