CHARACTERISTICS OF UNDERDEVELOPED

COUNTRIES (KASARI DEVELOP NAHUNE

KARAN)
• Trick to Remember: (PHD ko DES)
1. Political characteristics
2. High dependence of agriculture
3. Dual Economy
4. Demographic characteristics
5. Economic characteristics
6. Socio-cultural characteristics
1. ECONOMIC CHARACTERISTICS:

Nepal ma poor people---cannot fulfill basic needs (food, cloth, shelter)

Poor people- uneducated
No good infrastructures( road, transport, communication etc.)
Low income----Low saving-----Low capital----Low investment-----Low production-----
Low income
2. DEMOGRAPHIC CHARACTERISTICS

• No idea of control of population due to illiteracy

• Children rate---40%
• Old age people rate---5%
• Total------------------45%---------No income generating (High dependency rate)

Due to that it affects.

3. SOCIO-CULTURAL CHARACTERISTICS

• Expenses---festival less income generating

• Work divided on basis of male and female—male also in field work women household
work
• Socio cultural(religion, cultures, castes , languages etc.)
4. POLITICAL CHARACTERISTICS

• No political stability
• Frequent changes in government
5. HIGH DEPENDENCE ON AGRICULTURE

• 60% on agriculture using traditional method..

• GDP low
6. DUAL ECONOMY

• Traditional and modern sector sum is dual economy.

• Traditional means agriculture field work
• Modern– Business work
• Both sector not uses scientific method..
OTHERS:

• Poverty
• Unemployment
• Lack of information
• Under utilization of natural resources
• High dependent on agriculture
• Technological backwardness
INDICATORS OF ECONOMIC DEVELOPMENT
(ECONOMIC DEVELOPMENT NAPNE TOOLS- DEVELOP KI UNDEVELOP)

1. PCI- Per Capita Income

2. PQLI- Physical quality of life index
3. HDI- Human development index
4. Rise in factor productivity and living standard
5. Basic human needs
6. Poverty alleviation and inequality reduction
1. PCI (PER CAPITA INCOME)

• Per capita Income = Total income/Total population

• Determined by World Bank;
$995<<< less-------low income----least developed
$995 - $3945 more-------Middle income-----developing
$3945>>> more than-----High income----developed
2. PQLI (PHYSICAL QUALITY OF LIFE INDEX)

• It measures------birthrate, infant rate, literacy rate

• Measure in scale of 0----------100
• If 0-50----developing
• 50----100----developed countries
3. HUMAN DEVELOPMENT INDEX (HDI)

• Introduced by United Nations Development Programme (UNDP)

• Measure on the basis of PCI, literacy rate, birth rate
• Measure scale from 0------------to-----------1
• 0 to 0.5-----Low HDI (Nepal 0.558)
• 0.5 to 0.7-----Middle HDI
• 0.7 to 1----High HDI (Norway 0.949)
4. RISE IN FACTOR PRODUCTIVITY AND LIVING
STANDARD:
• Development rise---high production
• Production high---quality, enough quantity, factor of production more

• So factor production like (land, labor, raw material high it results more production which
results development)
5. BASIC HUMAN NEEDS:

• Basic needs who can fulfill like (health, education, security, employment water, etc)
• Fulfill-develop
• Unfulfilled-developing
6. POVERTY ALLEVIATION AND INEQUALITY
REDUCTION:
• Develop huna kaam poverty hunaparchha…..
• If rich and poor gap is maintain fulfilled the gap of poverty regarded as developed if not
then regarded as developing.
PROCESS OF CAPITAL FORMATION

• 1. Creations of Saving:
Saving= Income – Consumption or Saving= Income- Expenditure
a. Ability to save: high income higher will be saving…….So, if the saving capacity of
people is large, there will be more capital formation.
b. Willingness to save: More willingness to save more saving…….Tara kahile kahi
willingness huda pani it is affected by social prestige, habit, interest rate paying etc.
2. MOBILIZATION OF SAVINGS

• Saving gareko lai mobilization grnu parxxa business ma investment garera…..

• No utilization saving by investing it will be idle and no capital formation.
• More financial institutions or business investment done then helps to increase capital
formation of country.
3. INVESTMENT OF SAVING IN REAL CAPITAL

• Real savings lai Real assets ma convert garera

• Real saving lai capital market ma lagani garera pani that means in share.
• Real assets means land,house etc. converting by real saving by investing in industries,
education, health, communication, banking etc.

• (Point to Note: Jogako saving lai business, bapar, share, ma lagani garera sampati jodnu)
CHAPTER -5
NEPALESE ECONOMY

• 5.1- Overview of Nepalese Economy (Page no.

205)
• Characteristics of Nepalese Economy
• Major Economic Indicators of Nepal
NEPALESE ECONOMY

• Natural Resources of Nepal – Page no. 212

• Agriculture- Page no. 240
• Tourism- Page no. 256
• Transport and communication- Page no. 280
THANK YOU..

TO BE CONTINUED TOMORROW WITH NEW TOPIC..

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