CHACTERISTICS OF

UNDERDEVELOPED ECONOMY
 GDP per capita

• GDP per capita is the total value of (final i.e.

not intermediate) goods and services produced
within a country divided by the total
population.
• GDP Per Capita of UDC is always lower as
compared to MDCs.
• GDP Per Capita of Pakistan was $2400 in 2009
as compared to $46,000 of US in the same year.
 Life Expectancy
• Life Expectancy shows Average age of people in the country. It
is generally low in developing countries as compared to
developed ones.
• A variety of factors may contribute to these differences such as
the stability of food supplies, the extent to which an area is
contested by war, and the incidence of disease are all
important.
• It is therefore possible for countries with similar levels of GDP
per head to have very different life expectancies: for example,
Vietnam currently has an almost identical income per head to
Ghana, but a considerably higher life expectancy of 67.8 years.
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• Life Expectancy at birth in Pakistan was 65.63
yrs in 2009.
• Average life expectancy in UAE has risen to 75
years in 2008 and 76 years in 2009
• The main reason for this high rates is the
excellence of health services provided in the
UAE.
 Literacy Rates

• The UN Development Report defines adult

literacy rates as the percentage of those aged
15 and above who are able to read and write a
short, simple, statement on their everyday life.
• A number of countries have a considerable
gender divide, denying women access to the
same levels of education as men.
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• The literacy rate in Pakistan was 49.9% in 2009,
Out of which 63% are males while 36 % are
females.
• The UAE currently devotes approximately 25
percent of total federal government spending
to education
male: 76.1%
female: 81.7%
 Poverty
• Absolute poverty refers to the inability to
acquire goods necessary to satisfy basic needs
e.g. the means to obtain the minimum level of
nutrition necessary to sustain an active life.
• 24% of population is living below Poverty Line
(BPL) in Pakistan in 2009.
 Poverty in Pakistan is a growing concern.
Although the middle-class has grown in
Pakistan to 35 million.
• According to the Human Development Index
(HDI), 60.3% of Pakistan's population lives
below poverty line in under $2 a day in 2009.
• 17% of the UAE’S population are below
poverty line in 2009.
 Unemployment
• Unemployment is the situation when a
person is able to work, willing to work but
can’t find a job.
• In Pakistan Unemployment rate in 2008 was
13.6% And it was increased to 15.2% in 2009.
• The UAE unemployment rate increased slightly
to around four per cent in 2009 from nearly
3.45 per cent in 2008.