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.