The least developed countries (LDCs) are a group of countries that have been classified by the UN as "least developed" in terms of their low gross national income (GNI), their weak human assets and their high degree of economic vulnerability.
Characteristics of LDCs + Pakistan case study Exports of Primary Goods:
The primary and agricultural products are the main exports of these countries. For example the main exports products of Pakistan are rice, cotton yarn, fish and garments Etc.
The deficiency of capital is an important feature of developing countries. Therefore they are often called capital poor economies. The shortage of capital is reflected in the very low capital labour ratio in these countries.
Over Dependence on Agriculture:
68% population in Pakistan is living in 46,894 villages; back-ward agriculture is the major occupation of the population. Agriculture sector is back ward due to old and traditional methods of cultivation. In-efficient farmers, tack of credit facilities, unorganized agriculture market etc. 66.7% population is directly or indirectly depending on agriculture sector in Pakistan.
Mostly there is shortage of natural resources in developing nations and this is also a cause of their economic backwardness. In various poor countries natural resources are available but they remain un- utilized under-utilized and miss- utilized due to capital shortage, less efficiency of labour, lack of skill and knowledge and limited home market.
Out Flow of Best Brain:
The brilliant and brightest students of developing countries go to developed countries for higher education. After completing their education, they do not want to come back to their own country due to un-satisfaction with low salaries and material comforts, Therefore, they remain in search of better jobs in foreign countries.
The market imperfections are found in developing countries. It is due to imperfection of markets, the productive efficiency in these countries is low and resources are misallocated.
High rate of inflation in poor nations causes economic backwardness. Due to high level of price, purchasing power and saving of the consumers tend to decrease. Rate of inflation is 13.3 in 2009 in Pakistan.
Control of Govt.:
In poor countries, wealthy persons, landlords and elite class not only control the Government but also they have full control over all the major sectors of the economy. This upper class is not interested in solving welfare problems of the poor but they make government policies for their own improvement. Capital formation:
In developing countries the per capita income is very low as compared to the developed countries. So their savings and investments are also low. Due to low savings and investments capital formation rate is also low. Per capital income of Pakistan is $1051 but it is more than $24000 in developed countries,
High Degree of Illiteracy:
The illiteracy rate is much higher in developing countries as compared to developed countries. The illiterate persons do not know the importance of economic development. Pakistan literacy rate is 57% while in advanced countries; it is near to 100%.
Agricultural & Industrial Backwardness:
Agricultural & Industrial sectors of developing countries are backward. Countries like Pakistan depend mostly on the Agricultural sector. In Pakistan, the agricultural sector contributed 21.5% of G D P in 2009-10, due to low investment and improper utilization in the Industrial sector.
Rapid Population Growth:
A rapidly increasing population growth rate is a common feature of developing countries (2.5 In Pakistan), despite of diversity in size, density and age structure. An increasing population growth rate adds to low per capita income and low rate of capital formation and there is no marked improvement in the living standards of masses. The death rate has fallen due to advance in medical