Why the economies of underdeveloped countires are in turmoil?

Why are some countries underdeveloped?Why their economies are in turmoil?These questions
are quite complicated and their answers are based on a lot of assumptions and facts.This
research document will cover all aspects of these problems based on our research and findings.

Theoretical Clarifications

This research document includes some terminalogies that need to be familiarized.

Underdeveloped Countries

Underdeveloped countries are additionally alluded to as nations of the Southern side of the equator or
creating nations.The nations included in this category are from the mainlands of Asia, Africa and Latin
America. As per Dirk and Nobert (2003:3):

Underdeveloped nations are nations at the periphery of the world economy and create principally
agrarian and mineral crude materials for industrialized states under for the most part negative terms of
exchange. Moreover, because of high populace development and rustic urban movement, a
considerable lot of these nations have expanding number of underestimated segments of the populace
which have particular settlement examples and livingconditions.

As indicated by the Chinese (Peking Review No. 44, 1974):

The First World is that of the superpowers; the Second that of the created nations; and the Third, the
underdeveloped nations.

The proximate reasons for underdevelopment in these nations according to various definitions are:

(I) Poor per capita wage

(ii) Capital insufficiency

(iii) Unutilised potential for development

(iv) Underutilized labor and common assets

(v) Poor base in the financial determinants of advancement

(vi) Orthodox, wasteful and conventional systems of creation

(vii) Poor human advancement file