Why many countries are still developing?

These days I am studying about developed and developing nations and the reasons why many countries are still developing.

                                                                     

                                                                                                source 

How countries are categorized?

They are also known as MEDC(more economically developed country). These countries have a highly developed economy and advanced infrastructure. The degree of economic development can be evaluated based on "per capita income", "gross domestic product (GDP)", gross national product (GNP), level of industrialization, amount of widespread infrastructure and general standard of living. Most important part factor here is per capita income.

                        Per capita income = (total income of the country)/(total population)

Example: If a country has an income of $1,0000,000 and total population is 500, then per capita income of the country is $20000.

Developed Countries: Countries with "per capita income" is more than $12000

Moderated developing countries: Countries with "per capita income" is between $1000 and $12000.

Least developed country: Countries with "per capita income" is less than $1000.

                                              

                                                                         source: understandglobalization

Why some countries are less developed?

--Landlocked:

Some countries are landlocked meaning these countries have land around them making trade more difficult for them. Few examples are middle African counties and there countries also does not have infra to support other mode of trade. Bolivia is an other example of similar sort.

--Corrupt government:

Corrupt governments lead to big scams. Taxes collected in these countries are not efficiently utilized for transportation, infrastructures and to other development. Then these countries asks for loan from MEDC countries and often have to pay lot of debts.

--Foreign investment:

Many big companies(MNCs) sets up factories in developing country like India and China. They produces many jobs to people. And sometimes developing countries become too much dependant on MNC. These MNC can close at any team creating lots of troubles for developing nations.

--Exploiting Developing countries: 

Many countries import cheap raw materials from developing countries, process those and export those to developing countries at very high prices which leave developing country with very less profit to develop themselves.

--Distribution of money: 

In developing country, money distribution is not consistent. A very small group of people holds the control of major amount of money. And very large group gets very small money. So, less people pay good taxes and thus low contribution to development of the country.

--Climate:

Climate of developing countries may effect the development as natural disaster can stop the development and produce a lot of damage. Developing country also have climate supported for "EPIDEMIC" like plague. So they are always fighting with these and spending a big chunk on these epidemic.

--Population growth

Developing countries have population growth rate more than 10-15% and they can not improve their resources to such a huge extent, thus keeping lower per capita income and less urbanized growth.

                                                

                                                                                source: intechopen

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