Developing economy is the term which is used with countries BRIC nations Brazil, Russia, India, China and many other countries of the world. Given below are the features of developing economy –
- In this type of economy majority of population is dependent on agriculture sector for earning their daily livelihood, and agriculture is to a large extent dependent on rains because of lack of modern facilities for irrigation.
- There is rapid industrialization going on and the demographics are constantly changing with many rural sector workers moving towards the urban areas in search of employment and settling in these areas.
- Another characteristic is that in these nations the Gross domestic product is increasing at rapid pace in comparison to developed economics but at the same time there are two sides of this growth or growth is lopsided in the sense that where rich are getting richer and poor are getting poorer.
- The strength of these economies lies in its young working population which is hard working, creative and has entrepreneurship abilities and hence it helps in negating various deficiencies like corruption, bureaucratic culture, lack of government support etc….
- Another feature of this economies is the growing middle class and shift of consumption pattern which make these economies a consumer growth economies because these countries typically have high population and when their income begin to rise they began spend more and hence many large companies begin to think of entering these markets from all over the world.
- There are infrastructure problems like lack of clean drinking water, road, power shortage, lack of hospitals and problems related to other such basic necessities.
- Literacy rates are at a stage where it is improving but still when one compares it with developed world they are low.