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Undeveloped economy

An economy is said to be undeveloped if it has the following feature
  • The main occupation of 60-80% of the people is agriculture or its allied activities
  • There is a high level of poverty, due to which, savings are low and in turn, the rate of capital formation investment is also very low
  • The rate of growth of population and the burden of dependent population are high
  • The standard of living and productivity of labour are low
  • Production techniques are backward and unscientific
  • Investments on research and development are low
  • Unemployment and underemployment are common features
  • Income inequality is more
  • Human development and well-being which are measured in terms of real income, health and education are low
  • Traditional social life and orthodox ideologies restrict changes in socio-economic relations leading to low participation in foreign trade

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