Question

What are the common features of developing countries?

Why was china considered most polluted country in the world and how did china reduced it some extent?

What is grameen bank and what is its contribution tackling rural poverty?

What is FDI and how it may affect local economy?

Answer 1

There are a myriad of characteristics which says about a developing country. Let's take a gander at few:

• A growing GDP and a very low per capita income when compared to developed economies. The reason for this could be large population, which brings about the next point.
• A high growth rate of population. Take for example India which is set to overtake China as the most populous country in the world.
• High unemployment rate is prevalent.
• Heavy dependence on primary sector. For instance the dependence of Agriculture in India's GDP is an example for this.

Due to the heavy population, large scale industrialization and increased buying of personal vehicles China faced alarming rates of pollution levels. To curb this, China implemented the infamous odd-even rule. The rule stated that in even days of a month, the vehicles with even last digit in their number plate was allowed to use public road space. Similarly on odd days, the same was followed. And as expected, the exhaust gases began to slowly decrease in China.

Grameen bank is a microfinance organization and a developmental bank aimed to provide non-collateral loans to rural poor in Bangladesh. The agenda of the bank was to address the rural poor in Bangladesh by setting up a safe and secure credit system for them. Impoverished people who are in need of money for urgent requirements or for businesses generally go to these banks for loans. This gradually reduces the poverty in the long run.

A foreign direct investment (FDI) is an investment made by a firm or individual belonging to one country into businesses located in a different country. In general a FDI is said to happen when investor clearly establishes foreign business operations or in many cases cquires foreign business assets in a company. As far as the local economy is considered, we can see a raise in jobs as the company extends its business operations in a new country, and the output generated through the business contributes to the local country's GDP as well. Furthermore, the entry of a foreign company into the market ensures a more competitive market than before.

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