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8/7/2019 Underdeveloped economy
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CHACTERISTICS OF
UNDERDEVELOPED ECONOMY
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GDP per capita
GDP per capita is the total value of (final i.e.not intermediate) goods and servicesproduced 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 2009as compared to $46,000 of US in the sameyear.
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Life Expectancy
Life Expectancy shows Average age of people in thecountry. It is generally low in developing countries ascompared to developed ones.
A variety of factors may contribute to these differencessuch as the stability of food supplies, the extent towhich an area is contested by war, and the incidence ofdisease are all important.
It is therefore possible for countries with similar levelsofGDP per head to have very different lifeexpectancies: for example, Vietnam currently has analmost identical income per head to Ghana, but aconsiderably 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 75years in 2008 and 76 years in 2009
The main reason for this high rates is the
excellence of health services provided in the
UAE.
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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 thesame levels of education as men.
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The literacy rate in Pakistan was 49.9% in2009, Out of which 63% are males while 36 %are females.
The UAE currently devotes approximately 25percent of total federal government spendingto education
male: 76.1%female: 81.7%
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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.
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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 UAES population are below
poverty line in 2009.
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Unemployment
Unemployment is the situation when a
person is able to work, willing to work but
cant 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.