Question

In: Economics

1.Why are some countries more developed than others? Who is responsible for changing the current situation?...

1.Why are some countries more developed than others? Who is responsible for changing the current situation? (15 points)

2.Some people think that as poor countries seek to develop economically, they should focus on economic results first and then worry about the environmental consequences later. The sustainable development strategy will block their economic development. Do you agree with them? Why? (15 points)

Solutions

Expert Solution

Answer-Some countries are more developed than others because of their distinct and specific characteristics such as-

1.A developed country has high per capita income and less income inequality. Per capita income is nothing but thr total output (GDP) of the country divided by the total population. Income inequality exists when huge share of wealth is concentrated on a few group of wealthy people. A developed country has high per capita income which implies high disposable income.

2. A developed country has access to high quality health care and education facilities.Unlike in developing countries, developed countries has better health facilities and low illiteracy rate.

3. A developed country is industrialised. It is dependent upon the manufacturing sector which is quite developed like manufacturing automobiles, computers, aircrafts etc. Developed countries are not dependent upon agricultural sector like the developing countries.

4.A developing country has strong infrastructure. Strong infrastructure like power, roads, bridges, communication and transportation also attracts foreign investments into developed countries.

5. The economy of a developed country is stable and there is no political instability as well. Institutions ans regulations are also quite stringent in such countries.


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