Developing economy
With the population growing at about 2.5 per cent per annum compared with about 1.25 per cent for the developed countries, the economical status of the country seems quite questionable.
A COUNTRY, which has not yet reached that stage of economic development characterized by the growth of industrialization and a level of national income sufficient to yield the domestic savings required to finance the investment necessary for further growth. The developing countries are mainly agricultural primary producers based on relatively primitive subsistence farming methods, and they rely heavily on the export earnings from the sale of their primary products to the developed countries.
Their attempts to obtain significant increases in their real incomes have been frustrated by the deterioration in their terms of trade and the rapid expansion of their population. Their trend growth of exports has been only about half that of world trade as a whole, and this has been reduced in real terms further by the fall in their terms of trade. Many ideas have been put forward to assist these countries to go some way towards bridging the gap between them and the developed countries. In addition, these countries have a chronic over-population problem.
Overall, their national income has been growing at about 4 per cent annum which is not far short of that of the developed countries as a whole. However, their population has been growing at about 2.5 per cent per annum compared with about 1.25 per cent for the developed countries.
The result is that, in terms of income per head, their growth has been only 1.5 per cent, i.e. about half that in the developed countries. The result is that the gap between the two is getting progressively wider. The countries which can be classified as developing countries do not have identical economic resources or even problems.
Those of South America and Indonesia have substantial underexploited resources in arable land and mineral deposits, whereas countries such as Greece and Egypt are relatively poor in this respect. Again, population is concentrated in India, Pakistan and Indonesia, which together include about 45 per cent of the total population of the developing countries, and here the dangers of population growth are far more.
In 1964, an International Trade Centre was set up by the members of general Agreement on Tariffs and Trade jointly with those of the U.N.C.T.A/.D to assist in the promotion of exports of the developing countries.
It gives free services to developing countries in the field of export training, market research and publications. But despite a very large population and many other constraints, India has been progressing very well and the time is not far away when ii will become the super power of the world.
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