Lack of capital, population pressure, primitive agriculture practices, un-planned use of limited resoureces, poor infrastructure, low national and per capita income, lack of education and energy crisis are some major economic problems of under developed countries.
This article will focus on the economic problems of developing areas. This article will provide an overview of the United Nations' criteria for developing country classification as well as an analysis of different types of economic problems that affect developing areas. The economic problems of infrastructure, creditworthiness, corruption, and poverty will be described and analyzed. Economic problems will be discussed within their respective related cultural, social, political, and historical contexts. In addition, the issue of colonization's lasting influence on business climates in developing countries will be introduced.
Keywords Business Climate; Child Labor; Colonial Legacy; Corruption; Creditworthiness; Developing Country
Business
Overview
Developing areas, including developing countries and regions, have a unique set of economic problems and challenges to economic development. Developing countries, taken as whole, refer to countries characterized by an underdeveloped industrial base, low per capita income, and widespread poverty. Developing countries are often referred to as less-developed countries (LDCs) by international development organizations such as the United Nations and the World Bank. Less- developed countries have, by definition, small to medium-sized economies and structural handicaps that hinder economic development. In 2003, the United Nations' Economic and Social Council, along with the United Nations' Committee for Development Policy (CDP), formalized the use of the following three criteria for the identification of less-developed countries: