1. Underdeveloped economy
Characteristics of
Underdeveloped economy

2. Introduction
All economies of the world are not equally developed. Some are more developed and advanced than others. Therefore, the economics of the world have been classified into developed economies and under-developed economies.

3. Definition
According to the United Nations experts, “an underdeveloped country is one in which per capita real income is low when compared with the per capita real income of the United States of America, Canada, Australia and Western Europe. In this sense, an adequate synonym would be poor countries.” This definition brings out an important feature of underdevelopment, namely, poverty.

4. characteristics Poverty Agriculture the main occupation
Dualistic economy
Underdeveloped natural resources
Demographic features
Unemployment and underemployment
Economic backwardness
Lack of enterprises
Insufficient capital equipment
Technologival backwardness
Foreign trade orientation

5. conclusion
An important goal of an economy, especially a developing economy is to achieve economic growth so as to raise the living standards of the people. There is a need for economic growth even in today’s developed economies but in developing economies the need for economic growth is very urgent since it is through the increase in productive capacity that the problems of poverty and unemployment can be solved.