The experts present the reasons of political instability in under developed countries as unstable political system, influence of foregion countries in the domestic affairs of the countries, lack of consistency in goveerment policies, outdated judicial system etc.
On average, each citizen in western Europe, the United States and Japan consumers 32 times more resources such as fossil fuels than people in the developing world.
Economic problems in the developing world include corruption, poor infrastructure, lack of skilled labor, political instability, weak protection of intellectual rights, and the possibility of contacts being canceled on a whim.
Relatively few people have reaped the rewards of economic prosperity. Many villagers have been left behind. Some peasant have actually been made worse off by environmental damages caused by unbridled growth.
Many villagers are ill-equipped to deal with the modern economic world. One small factory owner told Arthur Zich of National Geographic, "Farmers find it hard to survive in an industrialized society. Farmer want to work in the factories, but transition is difficult and few of them adjust. They have no skills. They lack education. They lack the attitude one needs to learn. They have no sense of time, of living by the clock."
In his book The Fortune at the Bottom of the Pyramid , C. K. Prahalad says that the poorest two thirds of the world's population have $5 trillion in purchasing power.
Economic History in the Developing World
Sachs wrote: “The failure of the Third World to grow as rapidly as the First World is the result of a complex mix of factors, some geographical, some historical and some political. Imperial rule...left the conquered regions bereft of education, health care indigenous political leadership and adequate physical infrastructure."
“Often, newly independent countries in the post-World War II period made disastrous political choices such as socialist economic models or a drive for self-sufficiency behind inefficient trade barriers. But perhaps most pertinent today, many regions that have been left further behind have faced special obstacles and hardships: diseases such as malaria, drought-prone climates in locations not suitable for irrigation, extreme isolation in mountains and landlocked regions, an absence of energy resources such as coal, gas and oil and other liabilities that have kept these areas outside the mainstream of global economic growth."
The economies grew slowly after World War II.. There was little foreign investment. The gap between the rich and poor grew. There were large numbers of unemployed and under employed. In the countryside, peasants remained under the control of landowners.
With independence, governments controlled much of the revenues sources such as oil and local merchants obtained a lager percentage of the import-export trade. Large land owners were able to continue controlling much of the land. and were able to make handsome profits selling raw materials to Western countries.
In the 1960s and 70s, developing countries promoted self-reliance and regarded foreign investment as a form of imperialism and multinational corporations and as agents of evil.