Quiz 34: The Future of the European Union


Low agricultural productivity The following are the reasons for low agricultural productivity in developing countries: • Use of labor intensive technology in production process • Unskilled labor employed to operate advanced technology • Following highly traditional patterns of production • Lack of proper irrigation facility

Characteristics of developing and industrial economy a.Diversity of the industrial base Developing countries are highly dependent on agricultural sector. Hence, agriculture is the major source of employment generation, providing for more than 50 percent of total employment. On the other hand, industrial based economy has a broader base of manufacturing and services. The major employment generating source is manufacturing and services. The major exportable items in a developing country are agricultural products and raw materials. On the other hand, industrial based economy exports highly technology oriented products which earn more revenue than the primary products. Therefore, a developing country's income is lesser than that of an industrial based economy. b.Child mortality rate High child mortality rate is due to poor health facility and lack of nutritious food. This indicates unhealthiness of the work force, which is an important factor in the development process. The child mortality in the developing countries is more than that in an industrial based economy. Hence, the developing countries are poor in human resources; thereby developing countries' performance is not up to the mark of the industrial based economy. c.Education level of the labor force Since child labor is common in developing countries , the education level of the labor force in developing countries is very low. However, in case of an industrial economy, the education level of the labor force is very high.Since skilled man power is an important factor in an economy's growth of a country, the growth rate of the developing countries is lower than that of an industrial based economy.

Economists from Brown University have embarked on unconventional methods to measure economic growth. They study light density during the night and compare it to growth levels. They claim that for exchanges and transactions to be made at night, lights must be on. Their research is founded upon the simple principle that correlation does not imply causation. However, it does not necessarily commit the association is causation fallacy. The economists are very careful not to make incorrect or farfetched inferences about their data. They merely monitor and document the positive correlation between light density and growth rates. Through these methods, they are able to make comparisons between countries, such as the former Soviet Republics and neighboring Eastern European countries.

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