Underdeveloped countries today are facing so many problems which are not letting them to grow and get in to the line of the developed countries and that is one major reason that there are so many countries which are still considered as under developed today in this world. An underdeveloped country has to get rid of so many problems and have to cope from them which increases the burden and pressure on the country’s economy.
The Problem Of The Underdeveloped Countries Essay
The very initial but the most crucial problem which is being faced by the underdeveloped country is the ever decreasing value of their currency and that is whey because the developed countries which have the real emphasis and contribution in the international market are growing day by day which is making their economy more and more strengthened, and due to this the comparison between the currency of developed country and the under developed country is getting more and more wider, this ever widening gap is creating more and more troubles for the under developed countries.
The other very common and a very devastating issue which is being faced by the under developed countries is the energy crisis which is one of the most threatening problems which is being faced by such countries. Under developed countries do have the shortage of energy sources and this is because due to their weak economy there are unable to invest in this industry, although they might have the reserves and the resources but at the same time they do need the man power of those competent skills and with it the leverage of finance which they can invest in it so that they can overcome such problems, for that respective cause they are forced to either rent such power plants from developed country which is a temporary solution to the problem or sit back and watch the situation getting even worse.
Inflation is another very common problems in the under developed country which means that their expenses do increase very drastically but their income and their earnings are not increased in the same manner which makes it difficult for the local people to buy and consume the basic necessities of life. The deficit in the budget is also one repeated problem in the under developed countries which means that their total imports are greater than their total exports which increases the deficit and hence they have to either take loans from the world bank or other developed countries which further creates problems and obstacles in the way of growth and development for such countries.