Structural Diversities in Developing Countries – 8 Critical Components | Development Economics

Structural Diversities in Developing Countries

A national and international perspective is needed to understand the phenomenon of underdevelopment. It is important to recognize that the causes and potential solutions of problems such as poverty, low productivity, population growth, unemployment, and reliance on primary product exports originate both domestically and globally. The poor, inequity, and low productivity that characterize most developing countries are the result of economic and social forces, both internal and external.

In order to achieve economic and social development, developing countries must develop appropriate strategies, while the present international economic order must be modified to make it more responsive to the development needs of poor nations . Following are eight critical components of developing economics.

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Contemporary Theories and Approaches to Economic Development – Modernization Theory and Dependency Theory | Development Economics

Contemporary Theories and Approaches to Economic Development

Contemporary Theories and Approaches to Economic Development

There is a wide disparity between rich and poor populations in underdeveloped nations, as well as an unhealthy trade balance. Job opportunities, health care, drinkable water, food, education, and housing are some of the symptoms of underdevelopment. Economic development is based on two theories and approaches:

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Characteristics of Developing Economies – 6 Common Characteristics | Development Economics

Characteristics of Developing Economies

Concept of Developing Economies

Both traditional economics and political economy are enriched by development economies. Development economics, although necessary to address efficient resource allocation and steady growth of aggregate output over time, is mainly concerned with the economic, social, and institutional mechanisms necessary to improve the living standards of the masses of poor in developing countries rapidly and significantly. Therefore, development economics needs to be concerned with the formulation of public policies that will facilitate major economic, institutional, and social transformations in a short amount of time. As a result, the gap between aspiration and reality will continue to widen. For this reason, in development economics the public sector plays a much greater and more influential role than in neoclassical economics.

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