Economics Report: Factors Affecting Third World Economic Development

This economics report analyzes the economic development challenges faced by third world countries. It begins by defining the term 'third world' and highlighting its key characteristics, such as low standards of living, underdeveloped economies, and issues like poor infrastructure, limited access to healthcare, and low levels of education. The report then delves into the factors that impede economic progress in these nations, including lack of capital formation, weak currency strength, inefficient economic systems, corruption, and inadequate infrastructure. It emphasizes the impact of low literacy rates, high birth rates, and high unemployment rates on economic development. The report concludes by summarizing the major obstacles to economic growth and suggesting areas for further research and policy interventions. The report uses references to support its arguments.

Running head: ECONOMICS
Economics
Name of the university
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Author note

ECONOMICS
Economic development of third world countries
Introduction
The economic development is termed as the economic growth which is accompanied
by the changes in output distribution along with the economic structure. The third world
countries are known as those countries which are typically poor with underdeveloped
economies. In these countries poor infrastructure, low level of education, limited access to
health along with improper sanitation (Dixon, 2015). The term “third world” is used for
describing a developing nation. These countries are mostly characterized by low standard of
living and poverty.
The third world countries are mostly underdeveloped in nature which are mainly because-
Lack of capital formation: It have been found out that many developing countries lack
capital formation which is termed as the main obstacle of development. For this reason, the
nation will not be able to achieve economic progress when the rate of capital accumulation
will be low.
Poor strength of currency: The currency strength is referred to the relationship between the
currency of nation and the US dollar (Rodwin & Sazanami, 2017). The currency of
developing countries are usually very weak in nature and therefore when these countries will
rely on the imported raw materials rom the rich nation, it will find it expensive on the global
market.
Economic system: The third world nations will not be able to raise the necessary resources
either with the help of foreign trade or colonial exploitation. The economic system of these
countries are quite poor in nature where they can follow capitalist path of development that
will need an efficient market system.

ECONOMICS
Corruption and lack of infrastructure: the third world countries are known to suffer fro
corruption in many sectors of the economies (Packenham, 2015). As a result of corruption,
the operation of the price mechanism had already weaken. For this reason, the economic
development is known to lag behind. There is also a large number of disease ridden, unskilled
as well as illiterate people whose productivity is quite low which reduce the economic
development. Another drawback of the developing countries is the lack of infrastructures.
Conclusion
The economic development in the third world countries had been quite elusive for
many reasons. Some of the characteristics of the third world countries are that usually there
are low rate of literacy, high birth rate, low life expectancy, lack of infrastructure and poor
access to healthcare. The economic development in the third world countries are quite low
since there is high level of unemployment, over population in the country, unfavourable trade
balance, lack of external resource and huge amount of debt burden in the economy. One of
the main reason of the low development in the underdeveloped nations is poverty. The
development experience of the countries of third world have been quite informative in nature.

ECONOMICS
Reference list
Dixon, C. (2015). Rural development in the third world. Routledge.
Sørensen, G. (2016). Democracy, Dictatorship and Development: Economic Development in
Selected Regimes of the Third World. Springer.
Packenham, R. A. (2015). Liberal America and the Third World: Political development ideas
in foreign aid and social science. Princeton University Press.
Blumberg, R. L. (2018). Introduction: engendering wealth and well-being in an era of
economic transformation. In EnGENDERing wealth and well-being (pp. 1-14). Routledge.
Rodwin, L., & Sazanami, H. (2017). Industrial change and regional economic
transformation: the experience of Western Europe. Routledge.
Sherif, S., & Sumpio, B. E. (2015). Economic development and diabetes prevalence in
MENA countries: Egypt and Saudi Arabia comparison. World journal of diabetes, 6(2), 304.