Question

what are the common characteristics of less developed countries and justify them, and is there a strong relationship among health, labor productivity and income levels and explain?

Answer 1

The common characterstics of the less developed society are:

1. Low levels of literacy
2. High growth of population
3. High income inequality
4. Less developed secondary and tertiary sector.
5. Prevalent poverty
6. Low performing health statistics

A small proportion of the population has the access to resources and as a result there is high income inequality consequently high consumption inequality. The patterns of consumption of the various sections of the population differ largely. Those in the high and middle income group has excess and can afford the quality education and thus low human capital in the economy and thus low labour productivity and lower levels of income. There is in effect a circular causation of low income, poverty, lower education and health standards and low productivity and then consequently low income and the cycle repeats itself.