Question

Among the problems facing low-income nations are low living standards, inequality, inadequate health care and education, high unemployment, and the concentration of the labor force in low- productivity agricultural work.

explain each the following

1.inequality,

2. inadequate health care and education,

3.high unemployment,

4. the concentration of the labor force in low- productivity agricultural work.

Answer 1

a) Low income nations are suffering from the problem of inequality. Inequality can take various forms including economic and social inequality. This basically relates to the unequal distribution of resources in the society as well as unequal access. Access to education health sanitation and other utilities is difficult to be provided in low income Nations and this becomes a cause of inequality between the rich and the poor.

b) Quantity of Healthcare that is required in a low income nation is well above than what is actually provided. From low income we can analyse the fact that people spend too little on their health because they do no enough financial resources in terms of per capita income. Most of their expenditure is spent on basic utility services and therefore there is an inadequate provision of health care and education. Government also have limited means to raise revenue because people have low income. Low income nations are mostly dependent on the grants or foreign aid that are received by them from high income nations and the World bank.

c) There is high unemployment because the government is not able to create enough jobs for the people. The role of private sector is also limited and therefore people are not able to find either the government job or private job. The cause of high unemployment is lack of skill and lack of educational opportunities which leads to a reduction in the productivity of workers. Lower productivity means the demand for labour is also reduced

d) The reason for majority of its working population engaged in the agricultural sector is because agriculture is the most important factor for a low income economy. Industrialisation is not verified and therefore it employees only few workers that are skilled enough to be employed in the factories. Most of the GDP is generated by the agricultural sector and it employees sometimes hidden workers who have zero marginal productivity and they add nothing to the agricultural output. Agriculture is also subsistent so that it is able to generate only enough income that is sufficient for the family of the farmer.