Case 1 Economists have identified the economic models of underdeveloped countries. Most of these countries which are underdeveloped shares some common factors. They are low in GDP per capita, higher unemployment level, low level of savings by the people in the country, and agrarian economic dependence, low level of technology and lack of entrepreneurship and managerial capacity, and trade with developed countries. There are stories of many types of scarcities in these economies like water scarcity poor educational facilities, health care systems. The global organizations tackling such issues are giving policy making support to these countries. experts from these organizations advise these countries to focus their attention in the country on the following areas. Favorable business environment needs to be created by the legislation of proper rules and regulations, Technology based education needs to be developed provided to its citizens. Techniques to improve agricultural productivity to be adopted. There is non- availability of capital in these countries because of that the employment generation is very less which puts most of the labor force unemployed. There are arguments from the economist that if these low-income countries can import capital from the developed countries they may progress to better levels. By strengthening the role women in the workforce of the country it can improve its high dependence of earning members of a family.
- How do you think countries with low per capita income can improve their economic performance? Identify any five suitable arguments from the above case.