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Economic Geography
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Patuakhali Science and Technology University Faculty of Business Administration and Management
BBA Program (Level-I, Semester-I)
July 15, 2009To
Md. Takibur RahmanLecturerDepartment of Accounting & Information SystemsFaculty of Business Administration and ManagementPatuakhali Science and Technology University Dumki, Patuakhali
Subject: Transmittal of the report on “A comparative study between developed & underdeveloped economy”.
Dear Sir,
We are grateful to you that you have assigned us to submit the report on “A comparative study between developed & underdeveloped economy” as a partial requirement of the course “Economic Geography” (Course code-AES 112).
This report focuses some comparisons between developed and underdeveloped economy. We engaged our best effort to discuss elaborately the various factors, which are very closely related with our topics.
We, therefore, would like to request you to accept our report. And at last, thank you for assigning us the report. We sincerely hope this report will live up to your expectation.
Sincerely yours
…………………………..
(Kaosar Ahamed)Group LeaderOn behalf of Group- ASSIDUOUS
Acknowledgement
It is with affection and appreciation that we acknowledge our indebtedness to our honorable course teacher Md. Takibur Rahman, Lecturer, Department of Accounting & Information Systems, Faculty of Business Administration and Management, Patuakhali Science and Technology University, Dumki, Patuakhali, who have assigned us to prepare this report and helped us with his support, encouragement and expertise. We had not enough knowledge to make a report on an advanced course like this. But we are very grateful to our course teacher because of his trust on us for delegating such a task. The interview schedule provided by our honorable teacher Md. Takibur Rahman, Lecturer, Department of Accounting & Information Systems was very helpful to complete this report. We are also grateful to our faculty members for providing us a complete layout for the research report.
We are also grateful to our friends, and many individuals, for their enthusiastic encouragements and helps during the preparation of this report and for their assistance in typing and proofreading this manuscript. And we are truly indebted to those individuals who supply us the raw data about our report.
Group- ASSIDUOUS
Serial No. Topics Page no.01 Executive summary 0402 Introduction 0503 Objectives of the report 06
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04 Limitation of the report 0705 Methodology 0806 Poverty 0907 Per Capita 1008 GDP 1109 HDI 1210 Population 1311 Industrialization 1412 Political 1513 Resource 1614 Education 1715 Findings of the report 1816 Recommendation 1917 Conclusion 2018 Reference 21
Table of content
1.Executive Summary
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This report is an assigned job as a partial fulfillment of course requirement by our honorable course teacher Md. Takibur Rahman, lecturer, Department of Accounting & Information Systems. Faculty of Business Administration and Management, Patuakhali Science And technology University Dumki, Patuakhali. It is an optimum aggregated outcome of ten pupils about the course “Economic Geography”.
The view of this report is to observe the comparisons between developed & underdeveloped economy. Here we have emphasized on poverty, per-capita, industrialization, education, GDP, resource, social values, political, HDI, population size. The collected information was thoroughly studied to make an effective report. The collected information was thoroughly revised first, and then the collected data were processed, organized and tabulated. The processed data were interpreted to achieve the report objective.
2.Introduction
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Economy of any country or nation reflects its progress and prosperity. Because of uneven distribution of world resources some countries are endowed with more natural resource than others. So logically that would make the people of those countries richer than the rest & their economy is also developed than others. Achievement of economic growth is the single most important goal of every nation. Economic growth refers to the ability of a nation to produce more goods and services and thereby raising the living standard of its people. But as we can see, not all nations of the world have fared well in their endeavors. Some nations have achieved very high standards of living, while others continue to languish in poverty. So the world economy is divided into two forms namely developed economy & underdeveloped economy.
3.Objectives of the report:
The first purpose of preparing the report is to meet up the course requirement of “Economic Geography” (Course code-AES 112). Moreover, as a business
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executive of the future, we should have to gather more experience beside our study. Under these circumstances, we have identified some purposes of the study. Our purposes of preparing this report are as follows-
To know the comparative difference between developed & underdeveloped economy.
To know the economic condition of developed & underdeveloped countries or nations.
4. Limitation of Study
No work in the world is complete without limitations. The study we made have some limitations. In spite of having some limitation we all have tried our best to fulfill our report. In preparing the report the limitations we found are as follows—
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There was limitation of time. To get satisfactory and reliable data sufficient time was needed. But the data were collected and analyzed within very short time.
The data which have been collected may not be free from error.
There was a shortage of our required books.
Internet connection is not available.
5. Methodology of the Study
It is very much relevant that a partial job is done by following proper methods. As we tried to make a rational report we have followed the proper methods to perform our job. Every study is done on the basis of primary data and secondary data. Our presented report is related with secondary data.Some specific steps have been taken by us to prepare this report. At first we have planned about the overall study. We have collected data from internet & books. Then we have analyzed these data by group working. After that we have tried to
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make a report on “A comparative study between developed and underdeveloped economy”. Here the process is given below:
Figure: The reporting process
6. Poverty
Poverty implies a financial condition where people are unable to maintain the minimum standard of living. Poverty is the major challenge that is facing the world economy at present Poverty leads to financial crisis and reduces the overall purchasing capacity of a nation. Poverty can be of different types like absolute poverty and relative poverty. Whatever be the type of poverty, the basic reason has always been lack of adequate income. Here comes the role of unemployment behind poverty. Lack of
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Assigned a topic
Collecting information
Analyzed the information
Submitted the report to the proper authority
employment opportunities and the consequential income disparity bring about mass poverty in most of the under developed economies of the world. But in case of developed economy they are able to maintain a high standard of leaving. So poverty rate is low.
Economy Poverty rateU.S.A (developed economy) 10.2%
Bangladesh ( underdeveloped economy)
43.3%
From above table we see that in developed economy poverty rate is low & in under developed economy poverty rate is high. Because economic growth refers to the ability of a nation to produce more goods and services and thereby raising the living standard of its people. In developed economy economic growth is high, so they can raise their living standard of people.
7.Per Capita income
Per capita income (or) output per person is an indicator to show the living standards of people in a country. If real PCI increases, it is considered to be an improvement in the overall living standard of people.PCI is arrived at by dividing the GDP by the size of population. It is also arrived by making some adjustment with GDP
GDP
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Per capita income = ---------------------------------------------------
Total number of population
Country Per capita Economic ConditionSwitzerland $ 51032 Developed EconomyUSA $ 44155 Developed EconomyAustralia $ 37433 Developed EconomyBangladesh $ 429.26 Underdeveloped EconomyNiger $ 245 Underdeveloped EconomyLiberia $ 186 Underdeveloped Economy
From the above data we find that every underdeveloped country per capita rate is low. Because their economic condition is not developed. Inversely for less per capita their economy is not strong but in developed economy the per capita is high.
8. GDP
Gross Domestic Product (GDP) is the total value of output (goods and services) produced by the factors of production located within the country’s boundary in a year. So, of course, developed economies, would produce more. They have more infrastructures, more capital, and more industry, better paid workers, more consumer spending. If the local consumers (citizens) cannot afford to buy your total production, then it has to be sold to foreign countries.
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China, for example, has a growing total production, but their people are so poor, they cannot afford to consume it all, the goods have to be sold to USA, or Europe.
Arab countries are high producers in petroleum, but their own people could not possibly buy all that production, so it's sold on the world market.
Normally, countries with developed economy buy natural resources from third world. Developing countries produce goods that are sold back to either their own consumers, or sold in the world market.
In East Asia and Pacific having developed economies, GDP was expected to rise 5.0 percent in 2009 and 6.6 percent in 2010, while South Asia would expand 4.6 percent.
But in the Middle East and North Africa having under developed economy, GDP was expected to rise 3.1 percent in 2009 and 3.8 percent in 2010.
9.HDI (Human Development Index)
The Human Development Index (HDI) is a summary measure of human development that is published by the United Nations Development Programmers (UNDP). The HDI provides an alternative to the common practice of evaluating a country’s progress in development based on per capita Gross Domestic Product (GDP). The HDI is the signature trademark of the Human Development Report (HDR), an independent report commissioned by the UNDP that is written by a team of scholars, development practitioners and members of the Human Development Report Office of UNDP. The HDI has had a significant impact on drawing the
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attention of governments, corporations and international organizations to aspects of development that focus on the expansion of choices and freedoms, not just income.
The HDI measures the average achievements in a country in three basic dimensions of human development:
A long and healthy life, as measured by life expectancy at birth. Knowledge, as measured by the adult literacy rate (with two-thirds
weight) and the combined primary, secondary and tertiary gross enrollment ratio (with one-third weight).
A decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) terms in US dollars.
The HDI for 2004
The following table shows the HDI value for 2004. A higher value indicates a higher level of development as indicated by the HDI. Developed economy based country and its rank in HDI
Country HDI Rank Value Economic Condition
Australia 3 0.957 Developed Economy
Sweden 5 0.951 Developed Economy
Japan 7 0.949 Developed Economy
United States 8 0.948 Developed Economy
Bangladesh 137 0.530 Underdeveloped Economy
Nepal 138 0.527 Underdeveloped Economy
Nigeria 153 0.448 Underdeveloped Economy
Senegal 156 0.460 Underdeveloped Economy
Here higher value indicates the higher development. From the above table we find that developed economy has a higher HDI value.
10. Population Size
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Population in a country is either a curse or blessing or resource. But over and illiterate population is a great problem for any country because she cannot give affords to give her people the basic needs. Thus the over population is burden to any country. In which country the density of population is less, most of time it is found that their economy is developed or is turning to development. Sometimes it is also seen that in developed country or economy, the population growth rate is low. With excessive population no country can do very well in the field of economy.
Like in Bangladesh, the population growth rate is high. Here the density of population is also high. So we cannot progress our economy so we are remained underdeveloped. As a result she cannot afford to provide her people the basic rights because our wealth is limited. So, the standard of our living is much lower than the other developed nations of the world. But in case of USA the population growth rate is low and their density of population is also low. So the standard of living is very high and their economy is running well.
Population condition in Developed and underdeveloped economy based country
Country Total Population
Density of population
Population growth rate
Economic condition
USA 306,900,000 30.50 0.883 Developed economy
Australia 21,007,310 2.73 0.12 Developed economy
Bangladesh 162,221,000 1099 1.47 Underdeveloped Economy
From this table we find that both the density of population and population growth rate of USA and Australia is less than Bangladesh. Like this every developed economy
11. Industrialization
Industrializing is the process of social and economic change whereby a human group is transformed from a pre-industrial society into an industrial one. It is a part
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of a wider modernization process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy production. It is the extensive organization of an economy for the purpose of manufacturing. Industrialization also introduces a form of philosophical change, where people obtain a different attitude towards their perception of nature.Today industrialization is increasing day by day. Most developed economies are based on industrialization. Industrialization leads a nation in better progress. Industrialized countries are naturally developed in economy. Because living standard of the people in these countries is high. Their GDP growth is also high so they can invest more and more in the industrial sector. So the industrialization rate is very high. On the other hand in underdeveloped economy most of the people live below poverty line. They cannot maintain their basic need. So they depend on developed country. Their industrialization rate is low because without maintaining basic needs the industrialization can not be possible.
12. Political
Political aspects influence any economy. Constructive politics is very helpful for economic progress. Stable politics is also helpful for economy. In most of the developed economics politics is stable. Political violence can destroy any economy. Destructive political policy is harmful for any economy.
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For example in Pakistan, Iraq their economy is being destroyed by their political violence. In Bangladesh our politics is also harmful for our economy. Because our politics is very unstable and political violence is increasing day by day. Like this, in many other underdeveloped economy politics is also unstable. So their economy is being hampered by their political instability and it is the one of the major cause for their underdevelopment.
On the other hand in USA , UK and Australia their politics is more stable than any others and their economy is developed. So it can be said that political aspects play vital role in economy.
13. Resource
Resource means country’s collective wealth. It may be different types like natural resource, human resource. Resources are very much necessary for economy. A nation having huge resource can improve its economy if the resources are utilized properly. For geographical location some country has huge natural resource but
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another’s are deprived from it. Most often we see that those country which have huge resource they have also a developed economy because resource play a vital role in economic activities. But sometimes it can be different.
In case of the economy of Arab countries we see that they have a huge natural resource like petroleum. For this reason their economy is very much developed. And it is being developed day by day by using this resource. But sometimes it is found that in spite of having resource some countries may not be developed and most often this matter happens in underdeveloped economy. Like Bangladesh has a huge natural gas but we cannot use it properly. Because of our economy is underdeveloped.
14. Education
Education in its broadest sense is any act or experience that has a formative effect on the mind, character, or physical ability of an individual (e.g., the consciousness of an infant is educated by its environment through its interaction with its environment); and in its technical sense education is the process by which society deliberately transmits its accumulated knowledge, values, and skills from one generation to another through institutions
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Education rate in developed economy based country
Country Education rateLuxemburg 100%Switzerland 100%Japan 100%USA 96%
Education rate in underdeveloped economy based country
Country Education rateGina 35%Liberia 40%Senegal 36.4%Bangladesh 62.66%
From the above two tables we find that in developed economy the education rate is high on the other hand the underdeveloped economy education rate is low. Low education rate is also a major problem for economy. By rising education rate one underdeveloped economy can be turned into developed economy.
15. Major findings
Every study which is conducted has some findings which are very interesting implications of the study. So our present study conducted on “A comparative study between developed & underdeveloped economy” has also some interesting implications which are as follows:
Poverty is the main problem in any underdeveloped economy.
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Political instability is very harmful for any economy.
In developed economy resources are utilized properly but in underdeveloped economy recourses are not utilized properly.
Developed economy dominates underdeveloped economy.
In under developed country growth rate of population is high.
The low level of earnings in the underdeveloped economy is reflected in their low level of living.
16. Recommendations
After completing the report on “A comparative study between developed & underdeveloped economy” we are in position to recommend the following implications:
Developed country should supply modern technology in underdeveloped country at low cost.
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Developed country should give loan to underdeveloped country at low interest rate.
Resources should be utilized properly in underdeveloped economy.
Underdeveloped economy should set up their economic policies according to their own requirements.
17. Conclusion
Today world economy is into two forms namely developed economy and underdeveloped economy. But most of the countries of the world are bearing underdeveloped economy and so they are called underdeveloped country. On the other hand the country having developed economy is called developed country. So for economical support is underdeveloped countries are being dominated by developed countries. But the developed countries want to raise their economy more. So as a result actually the underdeveloped countries do not get any kind of help which can be effective for their economy.
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