Development Economics
What is An LDC?( Pg 363 & 364.)
It is extremely difficult to characterise a typical LDC. One way to define a typical LDC is to use the World Bank's classification in terms of GNP. In terms of international ranking, LDCs are the tend to be the low income countries with a low income per capita. Each of these countries have different characteristics that could explain its development or underdevelopment. Due to these unique characteristics there is no one path towards successful development. Countries often have substiute ways to overcome obstacles and achieve greater economic development. An example of this would be Taiwan, a country not endowed with natural recources that succeeded in attaining economic development through other means.
"The initial condiions from which an LDC Launches on to a pathway to development will differ among LDCs." These intitial conditions will differ depending on a countries current circumstances such as:
÷ Resources - both human and physical
÷ The countries size in terms of population, area and GDP.
Gross domestic product growth in the advanced econ...
English: World GDP growth rate and GDP growth rate...
World map showing GDP real growth rates for 2010. ...÷ The economic structure and the predominance of primary, secondry and tertiary sectors.
÷ The current economic system employed by the government, whether market orientated or centrally-planned.
÷ The countries dependance on foreign markets and investment.
÷ Political power structures: for example, totalitarian or democratic government.
However Despite popular belief there is no correlation between a country's standard of living and its history of colonial power(Bechara 1982.). Some of the countries in the world that presently enjoy a relatively high standard of living either never possessed colonies or, if they did, the history of their colonialism is inconsequential. Switzerland, Denmark, Sweden, Norway and the United States are examples of this. Some of the great colonial powers, on the other hand, are presently facing economic difficulties. Portugal, for example, possessed...