What are the similarities among the developing economies?

Common characteristics of LDCs (Less Developed Countries) include:

• Low living standards (that is low real income per capita) related with high income inequality, insufficient education and poor health and restricted life expectancy;

• Low levels of productivity probably due to limited resources; unskilled labour; weak complementary issues and backward technology and management practices;

• High population growth rate because of falling death rate resulting into significant dependency burdens;

• Huge-scale unemployment and underemployment;

• A small industrial sector along with outdated technology not able to employ large numbers of poorly educated employees.

• Large but ignored agricultural sector.

• Market imperfections. In various developing economies markets may not exist as an example of financial markets.

• Developing countries usually have a colonial past

• Restricted technology, social and infrastructure and political institutions.

• Low social capital and cohesion.