The basic problem of the Indian economy is the problem of economic development, i.e., providing the minimum means of subsistence to its fast increasing population. Those who have been susceptible to the view that the problem may always evade a solution may take solace from the fact that another neighboring country, viz., China, has done it and has accomplished the task tolerably well. It has shown that the underdeveloped world is not doomed for ever to live in destination. Economic development is an accomplished fact; the need is to create the environment in which development becomes a self-generating process. In this research paper, we will ascertain the features of under-development, trace the forces that cause underdevelopment and identify the factors that promote development.
Table of Contents
I – Concept of Underdevelopment
II- Features of Underdevelopment
(i)Low per capita real income
(ii) Population
(iii) Unemployment, Underemployment, disguised unemployment and low productivity
(iv) Poverty
III - Conclusion
Research Objectives and Topics
The primary objective of this research paper is to define the concept of underdevelopment, identify its structural characteristics, and analyze the underlying economic and social forces that contribute to the stagnation of underdeveloped economies compared to industrialized ones.
- The conceptual framework of underdevelopment and economic disparities.
- Indicators of underdevelopment including low per capita real income.
- Demographic challenges, specifically the impact of population growth and demographic transitions.
- Labor market dynamics, focusing on unemployment, underemployment, and disguised unemployment.
- The root causes of poverty and its relationship to national income distribution.
Excerpt from the Book
(iii) Unemployment, Underemployment, disguised unemployment and low productivity
Yotopoulos, P. A. (1965) A characteristic common to most of the underdeveloped countries is the existence of widespread unemployment. Unemployment is caused by a number of factors like (a) the population pressure, (b) a low level of economic activity, (c) poor growth rates, (d) the choice of capital-intensive technique of production, (e) unrealistic education, (f) rigidity of the wage structure, and (g) lack of investment opportunities. One or more of these causes may be operating simultaneously. Reliable information about size of unemployment in the underdeveloped countries is lacking, but most of the studies undertaken in this respect suggest that the proportion of unemployment in underdeveloped countries may be between 8 per cent and 35 per cent of the total labour force.
Another related phenomenon is that of underdevelopment. The basic features of this situation are : (a) the type of employment is not much related to the qualifications of the employees, (b) wages are above the marginal productivity of labour, and (c) a large number of labour-hours remain unutilized. Again, no statistically accurate measurement the unemployed is available, but it has generally been estimated that the unemployed and the underemployed together in the underdeveloped countries would be about 30 per cent of the total work force.
Summary of Chapters
I – Concept of Underdevelopment: Introduces underdevelopment as a relative economic concept, distinguishing between developed and underdeveloped economies based on consumption standards and aggregate output.
II- Features of Underdevelopment: Analyzes the core indicators of economic underdevelopment, specifically focusing on low per capita income, population growth, labor market inefficiencies, and the prevalence of poverty.
III - Conclusion: Summarizes that while specific characteristics vary by country, identifying these common markers is essential for understanding and differentiating the levels of economic development across nations.
Keywords
Underdevelopment, Poverty, Low per capita real income, Population, Unemployment, Underemployment, Disguised unemployment, Productivity, Economic development, Labor force, Subsistence, Wage structure, Capital formation, Demographic transition, Income distribution.
Frequently Asked Questions
What is the core subject of this research paper?
The paper fundamentally examines the economic conditions and defining characteristics that classify a nation as underdeveloped, specifically within the context of the 19th-century economic framework.
What are the primary thematic areas covered?
The central themes include the definitions of development, the impact of population density, labor market dynamics such as disguised unemployment, and the structural causes of widespread poverty.
What is the main goal of the study?
The study aims to clarify the features of underdevelopment, trace the economic forces causing such states, and identify the factors that might promote a self-generating development process.
Which scientific methodology is employed?
The paper utilizes a comparative analytical approach, drawing on established economic theories and data from international bodies like the World Bank to examine developmental indicators.
What is discussed in the main body of the work?
The main body investigates specific indicators of underdevelopment, including the relationship between per capita income and national output, the demographic pressures of the 'population explosion,' and the complexities of labor productivity.
Which keywords characterize the paper?
The paper is best characterized by terms such as Underdevelopment, Poverty, Low per capita real income, Population, Unemployment, and Economic development.
How does the author define 'disguised unemployment'?
The author defines it as hidden unemployment, particularly in the agricultural sector, where workers appear employed but contribute little or nothing to actual production due to surplus labor relative to resources.
What relationship does the text establish between population growth and poverty?
The text explains that rapid population growth often leads to a 'population explosion,' which increases the number of people living at the subsistence level and exerts pressure on the labor market, thereby intensifying poverty.
- Quote paper
- Dr. Jose Prabhu Joseph John (Author), 2020, A Study and Analysis of Concepts and Features of Underdevelopment Economics at 19th Century, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/962509
