DEVELOPED VS UNDERDEVELOPED ECONOMIES OF THE WORLD. SUGGESTION AND RECOMMENDATIONS

1. UNDERDEVELOPED ECONOMIES OF THE
WORLD
By: Group A (BBA Evening)

2. Group A Members
Ahmed Raza
M. Aqib
Nimra Tariq
M. Shahraiz
Aqib
Underdeveloped Economies of the World 2
2021

3. The term “Underdeveloped Economy”
refers to low levels of living, absolute
poverty, low per capita income, low
consumption levels, poor health
services, high death rates, high birth
rates and dependence on foreign
countries.
Underdeveloped Economies of the World 3
Definition

4. Difference between a Developed and
Underdeveloped Economy
Developed Economy
A country with a higher GDP and a stable economy
enjoys a lot of benefits and has a higher success rate.
1. A Higher per capita income leads to a higher
standard of living.
2. Incidence of poverty is low.
3. Industrial and service sectors are predominant.
4. Resources are properly utilized and highly
advanced capital intensive techniques are used in
production. Therefore, productivity is high.
Underdeveloped Economy
Underdeveloped Economies of the World 4
2021
An underdeveloped economy faces many downfalls
and often relies upon foreign aids.
1. A Low per capita income leads to a low standard
of living.
2. Poverty is existent widely.
3. Agricultural Or the primary sector is
predominant.
4. Resources are under utilized and traditional
techniques are used in utilized productivity is low.

5. Underdeveloped Economies of Asia as of
2020 Asia is the largest continent on
Earth, spanning over 17.2 million
square miles (44.58 square
kilometers) and home to over 4.5
billion people as of June 2019. It
is home countries like china which
has the largest economy of the
world. Despite that most of the
countries in Asia are very far
behind due to unstable economic
circumstances.
Underdeveloped Economies of the World 5
1. North Korea
2. Nepal
3. Tajikistan
4. Yemen
5. Kyrgyzstan
6. Cambodia
7. Myanmar
8. Syria
9. Pakistan
10.India
Data Gathered from
worldpopulationreview.com

6. Pakistan’s Economic
Condition:
• Pakistan is the ninth-poorest country in Asia. With a per capita GDP of $1,279
• About 40% of Pakistan's population lives in extreme poverty. This is despite the country being very
rich in natural resources.
• This is because of several reasons, including corruption and elitism in the Pakistani government,
religious and secular conflict, and the lack of democratic ideals.
• The country also spends the largest part of its national expenditures on defense and, as a result, only
spends 2.6% of its total GDP on education. This has caused about half of the country's population to
be uneducated.
• Textiles and apparel account for most export earnings, but much of the economy is informal, and
unemployment remains high.
• China has pledged over $60 billion in infrastructure and energy investments in China–Pakistan
Economic Corridor (CPEC) projects which will help in improving the overall economy
Underdeveloped Economies of the World 6
Data Gathered from worldpopulationreview.com and heritage.org

7. Economic Condition of Nepal
Underdeveloped Economies of the World 7
2021
• Nepal is the second-poorest country in Asia. Nepal's per capita GDP is
$718.
• Nepal's poverty is due to political instability and corruption, a lack of
industry, and its dependence on only tourism and agriculture.
• Despite being rich in natural resources, Nepal has not utilized and
capitalized on its resources by selling it to other countries.

8. Underdeveloped Economies of Europe as of
2020 Europe is the world's second-
smallest continent, spanning
10,180,000km² (3,930,000
square miles). Europe is located
entirely in the Northern
Hemisphere and mostly in the
Eastern Hemisphere. There are 44
countries in Europe. Due to land
disputes and political distress some
countries in Europe are unable to
develop their economies.
Underdeveloped Economies of the World 8
1. Moldova
2. Ukraine
3. Kosovo
4. Albania
5. Bosnia
6. North Macedonia
7. Serbia
8. Belarus
9. Montenegro
10.Bulgaria

9. Economic Condition of Moldova
Underdeveloped Economies of the World 9
2021
• Moldova is the poorest country in Europe, with a GDP per capita of
$2,289.
• Part of the USSR, Moldova faced political instability, economic decline,
trade obstacles, and other hardships following the Soviet Union's
collapse in 1991.
• Factors contributing to poverty in the country include lack of large-
scale industrialization, food insecurity, economic collapse during the
transition into a market economy, and errors in social policy, among
other things.
• Despite being the poorest country in Europe, Moldova made recent
progress, with the percentage of the population living below the
national poverty line decreasing from 30.2% to 9.6% between 2006
and 2015.

10. Economic Condition of Ukraine
Underdeveloped Economies of the World 10
2021
• With a per capita GDP of $2,639, Ukraine is the second-poorest
country in Europe.
• Ukraine had the second-largest economy in the USSR; however,
after its collapse, Ukraine had difficulty transitioning into a
market economy, sending much of the population into poverty.
• Some of Ukraine's continuing issues contributing to its poverty
are government corruption, Russian aggression (specifically
Russia's illegal seizure of Crimea in 2014), and weak
infrastructure..

11. Underdeveloped Economies of Africa as of
2020 Over half of the nations in Africa are
considered to be the poorest in the world. The
continent has lower levels of success
economically than the other six continents
around the world. Africa, however, is
developing very quickly and has seen
significant economic improvement and
development in the past decade. However,
many nations aren’t showing economic growth,
and even the countries that are improving are
not experiencing nearly as much growth as the
nations would like. Economic insecurity,
political instability, and civil wars within these
nations have left many of Africa’s citizens
living a life of poverty.
Underdeveloped Economies of the World 11
1. Somalia
2. Central African Republic
3. Congo
4. Burundi
5. Liberia
6. Niger
7. Malawi
8. Mozambique
9. Eritrea
10.South Sudan

12. Economic Condition of Somalia
Underdeveloped Economies of the World 12
2021
• About three-fifths of Somalia’s economy is based on agriculture; however,
the main economic activity is not crop farming but livestock raising.
• Between 1969 and the early 1980s, the military government imposed a
system of “Scientific Socialism,” which was characterized by the
nationalization of banks, insurance firms, oil companies, and large
industrial firms.
• In the end, this weakened the Somalian economy considerably, and, since
the collapse of the military regime, the economy has suffered even more
as a result of civil war.
• In the early 21st century, the country remained one of the poorest in the
world, and its main sources of income came from foreign aid and
remittances.

13. Economic Condition of Central African
Republic
Underdeveloped Economies of the World 13
2021
• The Central African Republic's economy is based primarily on
subsistence agriculture, with important mining and timber industries
the main source of export earnings.
• Diamonds are the country's most profitable export, while agriculture
occupies most of its working population.
• Farmers grow cotton, coffee, and tobacco for export and crops for
local markets, but economic development is handicapped by the CAR's
landlocked position, limited infrastructure , and the low education of
its work-force .
• Poor government management and political instability have further
weakened the CAR's economic condition.

14. Underdeveloped Economies of South
America as of 2020 As a group, the economies of South American
countries have changed profoundly since the
1970s. This has come as a result both of
external conditions beyond the control of
these nations and of internal policy decisions
made to produce change. At the most
fundamental level, these countries mainly are
exporters of relatively low-value primary
products and semi processed materials and
importers of higher-value manufactured goods.
Great efforts have been made across the
continent to expand the manufacturing sectors
and to reduce dependency on imports.
Underdeveloped Economies of the World 14
1. Montserrat
2. Anguilla
3. Dominica
4. Saint Vincent and the
Grenadines
5. Saint Kitts and Nevis
6. Turks and Caicos Island
7. British Virgin Island
8. Grenada
9. Sint Maarten
10.Saint Lucia

15. Economic Condition of Montserrat
Underdeveloped Economies of the World 15
2021
• Severe volcanic activity, which began in July 1995, has put a damper
on this small, open economy.
• A catastrophic eruption in June 1997 closed the airport and seaports,
causing further economic and social dislocation.
• The agriculture sector continued to be affected by the lack of suitable
land for farming and the destruction of crops.
• Half of the island remains uninhabitable.
• In January 2013, the EU announced the disbursement of a $55.2
million aid package to Montserrat in order to boost the country's
economy.

16. Economic Condition of Anguilla
Underdeveloped Economies of the World 16
2021
• Anguilla has few natural resources, is unsuited for agriculture, and the
economy depends heavily on luxury tourism.
• Anguillan officials have put substantial effort into developing the
offshore financial sector, which is small but growing.
• In the medium term, prospects for the economy will depend largely on
the recovery of the tourism sector and, therefore, on revived income
growth in the industrialized nations as well as on favorable weather
conditions.

17. Underdeveloped Economies of North
America as of 2020 North America is home to the United States,
the largest economy in the world in terms of
nominal GDP of $21.44 trillion. The U.S. is
regarded as an economic superpower as its
GDP constitutes almost one-fourth of the
global economy.
Other countries in North America, however,
are not as wealthy as the United States.
Underdeveloped Economies of the World 17
1. Haiti
2. Nicaragua
3. Honduras
4. Guatemala
5. El Salvador
6. Jamaica
7. Dominican Republic
8. Saint Vincent
9. Saint Lucia
10.Cuba

18. Economic Condition of Haiti
Underdeveloped Economies of the World 18
2021
• Haiti is the poorest country in North America with a per capita GDP of
$671.
• Haiti is experiencing rapid population growth, which is happening faster
than the country can keep up to provide for its current population as is.
• In January of 2010, Haiti was hit with a devastating earthquake, the
biggest natural disaster in the country’s history which caused its
economy to fall.
• Haiti has had a long history of slavery, revolution, deforestation,
corruption, debt, and violence – all factors that have led to its lack of
infrastructure, political instability, and poverty.

19. Economic Condition of Nicaragua
Underdeveloped Economies of the World 19
2021
• With a GDP of $1,997, Nicaragua is the second-poorest country
in North America. Factors contributing to the country’s high rate
of poverty include natural disasters, political instability, and the
lack of education.
• Constant earthquakes, floods, and hurricanes have destroyed
livestock, crops, schools, and homes, leaving many families with
nothing.
• Communities are starting to prioritize natural disaster
preparation to prevent natural disasters wiping out peoples’
entire lives.

20. Goals for an underdeveloped economy
Utilizing Vital Resources
Underdeveloped economies of the world 20
2021
Education Equality
Eradication of Crime and
Corruption Make Good Allies Opportunities for new
businesses and ideas
For any underdeveloped economy it is
essential for them to identify and make
the best use of their resources whether
they are natural or man made
One of the key ingredients for an economy
to grow is to increase the literacy rate in
the population, education plays a pivotal
role in developing a economy.
Every individual regardless of gender, race
or religion can do a lot for an economy if
they are united which is why equal rights
is also very essential for any country
Corrupt leaders and criminals can bring
even the healthiest economies to its knees
it is quite essential for a country to make
their judicial system strong in order to
eradicate crime and corruption.
A friend in need is a friend indeed, same goes
for countries with underdeveloped economies
they need to have friendly relationships with
countries around the world which can help
them grow the economy.
If any country wants to grow their
economy they must give opportunities to
the people to bring new ideas and start
new businesses which will bring lots of
revenue to the country.

21. THANK YOU!
If you have any questions feel free to ask!