Characteristics of developing countries Developed Countries verses Developing Countries Under developed Countries

Why the growth rate of Japanese economy since 1950's has been much higher than that of the USA? Why per capital income of the USA was about 200 times than per capital income of Nepal? What basically determines the growth rate of an economy?

A closed related measure of economic growth is the per capita output / income. Some economist of economic growth since it indicates the standard of living for the economy. This measure of economic growth is more relevant measure for the. So, called developing / under developing countries population pressure is tremendous. In many of these countries growth rate of population is more than the growth rate of GNP. In such cases living standard of people, in fact declines in spite of the growth in the real GNP. Any economy ultimately is interested in the well being of us people. Therefore, per capital income / output can better capture the economic growth achieved by an economy.

Human resources	Developed	Developing
(1) Size of labor forces (2) Literacy (3) Skills (4) Discipline (5) Motivation	Few but skilled Very high High skills Favorable Effective	More but un skilled Low Low skills Unfavorable Ineffective

Topics	Developed	Developing
(B) Natural resources (1)        Land (2)        Minerals (3)        Fuels (4) Environmental quality (C) Capital Formation (1) Machines (2) Factories (3) Infrastructure (4) Social overhead capital (D) Technology (1) Science (2) Engineering (3) Management (4) Entrepreneurship	Big size of land holding More and utilized More than needed Very good Modern technology Fitted Well and big factories Very good Fast and huge size formation Very well Modern technology Very well Brave & knowledgeable	Small size of land holding Few or more but unutilized Less than needed. Good or not Good Primitive technology Fitted. Not well & small scale factories Not good Slow and little size Formation. Not good Primitive technology Not good Not Knowledgeable

Every economy need not follow the same path to a higher level of economic growth .for example middle east countries achieved a high level of income because of their rich oil resources. Countries Japan, Hung Kong and Singapore focused on human resources and technology to reach a higher level of income ever though they are scarcely endowed with natural resources.