Patuakhali Science and Technology University

Faculty of Business Administration and Management

BBA Program (Level-I, Semester-I)
July 15, 2009
To
Md. Takibur Rahman
Lecturer
Department of Accounting & Information Systems
Faculty of Business Administration and Management
Patuakhali Science and Technology University
Dumki, Patuakhali
Subject: Transmittal of the report on A comparative study between developed &
underdeveloped economy.
Dear Sir,
We are grateful to you that you have assigned us to submit the report on A
comparative study between developed & underdeveloped economy as a partial
requirement of the course Economic Geography (Course code-AES 112).
This report focuses some comparisons between developed and underdeveloped
economy. We engaged our best effort to discuss elaborately the various factors,
which are very closely related with our topics.
We, therefore, would like to request you to accept our report. And at last, thank you
for assigning us the report. We sincerely hope this report will live up to your
expectation.
Sincerely yours
..
(Kaosar Ahamed)
Group Leader
On behalf of
Group- ASSIDUOUS

Acknowledgement
It is with affection and appreciation that we acknowledge our indebtedness to our
honorable course teacher Md. Takibur Rahman, Lecturer, Department of
Accounting & Information Systems, Faculty of Business Administration and
Management, Patuakhali Science and Technology University, Dumki, Patuakhali,
who have assigned us to prepare this report and helped us with his support,
encouragement and expertise. We had not enough knowledge to make a report on
an advanced course like this. But we are very grateful to our course teacher because
of his trust on us for delegating such a task. The interview schedule provided by our
honorable teacher Md. Takibur Rahman, Lecturer, Department of Accounting &
Information Systems was very helpful to complete this report. We are also grateful
to our faculty members for providing us a complete layout for the research report.
We are also grateful to our friends, and many individuals, for their enthusiastic
encouragements and helps during the preparation of this report and for their
assistance in typing and proofreading this manuscript. And we are truly indebted to
those individuals who supply us the raw data about our report.

Group- ASSIDUOUS

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Topics
Executive summary
Introduction
Objectives of the report
Limitation of the report
Methodology
Poverty
Per Capita
GDP
HDI
Population
Industrialization
Political
Resource
Education
Findings of the report
Recommendation
Conclusion
Reference

Table of content

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1.Executive Summary
This report is an assigned job as a partial fulfillment of course
requirement by our honorable course teacher Md. Takibur
Rahman, lecturer, Department of Accounting & Information
Systems. Faculty of Business Administration and Management,
Patuakhali Science And technology University Dumki, Patuakhali.
It is an optimum aggregated outcome of ten pupils about the
course Economic Geography.
The view of this report is to observe the comparisons between
developed & underdeveloped economy. Here we have emphasized
on poverty, per-capita, industrialization, education, GDP, resource,
social values, political, HDI, population size. The collected
information was thoroughly studied to make an effective report.
The collected information was thoroughly revised first, and then
the collected data were processed, organized and tabulated. The
processed data were interpreted to achieve the report objective.

2.Introduction

Economy of any country or nation reflects its progress and prosperity. Because of
uneven distribution of world resources some countries are endowed with more
natural resource than others. So logically that would make the people of those
countries richer than the rest & their economy is also developed than others.
Achievement of economic growth is the single most important goal of every nation.
Economic growth refers to the ability of a nation to produce more goods and
services and thereby raising the living standard of its people. But as we can see, not
all nations of the world have fared well in their endeavors. Some nations have
achieved very high standards of living, while others continue to languish in poverty.
So the world economy is divided into two forms namely developed economy &
underdeveloped economy.

3.Objectives of the report:

The first purpose of preparing the report is to meet up the course requirement of
Economic Geography (Course code-AES 112). Moreover, as a business executive
of the future, we should have to gather more experience beside our study. Under
these circumstances, we have identified some purposes of the study. Our purposes
of preparing this report are as follows To know the comparative difference between developed & underdeveloped
economy.
To know the economic condition of developed & underdeveloped countries
or nations.

4. Limitation of Study
No work in the world is complete without limitations. The study we made have
some limitations. In spite of having some limitation we all have tried our best to
fulfill our report. In preparing the report the limitations we found are as follows
There was limitation of time. To get satisfactory and reliable data sufficient
time was needed. But the data were collected and analyzed within very short
time.
The data which have been collected may not be free from error.
There was a shortage of our required books.
Internet connection is not available.

5. Methodology of the Study

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It is very much relevant that a partial job is done by following proper methods. As
we tried to make a rational report we have followed the proper methods to perform
our job. Every study is done on the basis of primary data and secondary data. Our
presented report is related with secondary data.
Some specific steps have been taken by us to prepare this report. At first we have
planned about the overall study. We have collected data from internet & books.
Then we have analyzed these data by group working. After that we have tried to
make a report on A comparative study between developed and underdeveloped
economy. Here the process is given below:

Assigned a topic

Collecting information

Analyzed the information

Submitted the report to the proper authority

Figure: The reporting process

6. Poverty

Poverty implies a financial condition where people are unable to

maintain the minimum standard of living. Poverty is the major
challenge that is facing the world economy at present Poverty
leads to financial crisis and reduces the overall purchasing
capacity of a nation. Poverty can be of different types like
absolute poverty and relative poverty. Whatever be the type of
poverty, the basic reason has always been lack of adequate
income. Here comes the role of unemployment behind poverty.
Lack of employment opportunities and the consequential income
disparity bring about mass poverty in most of the under
developed economies of the world. But in case of developed
economy they are able to maintain a high standard of leaving. So
poverty rate is low.
Economy
U.S.A (developed economy)

Poverty rate
10.2%

Bangladesh ( underdeveloped
economy)

43.3%

From above table we see that in developed economy poverty rate

is low & in under developed economy poverty rate is high.
Because economic growth refers to the ability of a nation to
produce more goods and services and thereby raising the living
standard of its people. In developed economy economic growth is
high, so they can raise their living standard of people.

7.Per Capita income

Per capita income (or) output per person is an indicator to show the living standards
of people in a country. If real PCI increases, it is considered to be an improvement
in the overall living standard of people.PCI is arrived at by dividing the GDP by the
size of population. It is also arrived by making some adjustment with GDP

GDP

Per
capita
income
---------------------------------------------------

Total number of population

Country
Switzerland
USA
Australia
Bangladesh
Niger
Liberia

Per capita
$ 51032
$ 44155
$ 37433
$ 429.26
$ 245
$ 186

Economic Condition
Developed Economy
Developed Economy
Developed Economy
Underdeveloped Economy
Underdeveloped Economy
Underdeveloped Economy

From the above data we find that every underdeveloped country per capita rate is
low. Because their economic condition is not developed. Inversely for less per
capita their economy is not strong but in developed economy the per capita is high.

8. GDP
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Gross Domestic Product (GDP) is the total value of output (goods and services)
produced by the factors of production located within the countrys boundary in a
year. So, of course, developed economies, would produce more. They have more
infrastructures, more capital, and more industry, better paid workers, more
consumer spending. If the local consumers (citizens) cannot afford to buy your total
production, then it has to be sold to foreign countries.

China, for example, has a growing total production, but their people are so poor,
they cannot afford to consume it all, the goods have to be sold to USA, or Europe.
Arab countries are high producers in petroleum, but their own people could not
possibly buy all that production, so it's sold on the world market.
Normally, countries with developed economy buy natural resources from third
world. Developing countries produce goods that are sold back to either their own
consumers, or sold in the world market.
In East Asia and Pacific having developed economies, GDP was expected to rise
5.0 percent in 2009 and 6.6 percent in 2010, while South Asia would expand 4.6
percent.
But in the Middle East and North Africa having under developed economy, GDP
was expected to rise 3.1 percent in 2009 and 3.8 percent in 2010.

9.HDI

(Human Development Index)

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The Human Development Index (HDI) is a summary measure of human

development that is published by the United Nations Development Programmers
(UNDP). The HDI provides an alternative to the common practice of evaluating a
countrys progress in development based on per capita Gross Domestic Product
(GDP). The HDI is the signature trademark of the Human Development Report
(HDR), an independent report commissioned by the UNDP that is written by a team
of scholars, development practitioners and members of the Human Development
Report Office of UNDP. The HDI has had a significant impact on drawing the
attention of governments, corporations and international organizations to aspects of
development that focus on the expansion of choices and freedoms, not just income.
The HDI measures the average achievements in a country in three basic dimensions
of human development:

A long and healthy life, as measured by life expectancy at birth.

Knowledge, as measured by the adult literacy rate (with two-thirds
weight) and the combined primary, secondary and tertiary gross
enrollment ratio (with one-third weight).
A decent standard of living, as measured by GDP per capita in
purchasing power parity (PPP) terms in US dollars.

The HDI for 2004

The following table shows the HDI value for 2004. A higher value indicates a
higher level of development as indicated by the HDI. Developed economy based
country and its rank in HDI
Country

HDI Rank

Value

Economic Condition

Australia

0.957

Developed Economy

Sweden

0.951

Developed Economy

Japan

0.949

Developed Economy

United States

0.948

Developed Economy

Bangladesh

137

0.530

Underdeveloped Economy

Nepal

138

0.527

Underdeveloped Economy

Nigeria

153

0.448

Underdeveloped Economy

Senegal

156

0.460

Underdeveloped Economy
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Here higher value indicates the higher development. From the above table we find
that developed economy has a higher HDI value.

10. Population Size

Population in a country is either a curse or blessing or resource. But over and
illiterate population is a great problem for any country because she cannot give
affords to give her people the basic needs. Thus the over population is burden to
any country. In which country the density of population is less, most of time it is
found that their economy is developed or is turning to development. Sometimes it is
also seen that in developed country or economy, the population growth rate is low.
With excessive population no country can do very well in the field of economy.
Like in Bangladesh, the population growth rate is high. Here the density of
population is also high. So we cannot progress our economy so we are remained
underdeveloped. As a result she cannot afford to provide her people the basic rights
because our wealth is limited. So, the standard of our living is much lower than the
other developed nations of the world. But in case of USA the population growth
rate is low and their density of population is also low. So the standard of living is
very high and their economy is running well.
Population condition in Developed and underdeveloped economy based country
Country
USA
Australia
Bangladesh

Total Density of Population Economic

Population population growth
condition
rate
306,900,000 30.50
0.883
Developed
economy
21,007,310 2.73
0.12
Developed
economy
162,221,000 1099
1.47
Underdeveloped
Economy

From this table we find that both the density of population and population growth
rate of USA and Australia is less than Bangladesh. Like this every developed
economy

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11. Industrialization
Industrializing is the process of social and economic change whereby a human
group is transformed from a pre-industrial society into an industrial one. It is a part
of a wider modernization process, where social change and economic development
are closely related with technological innovation, particularly with the development
of large-scale energy and metallurgy production. It is the extensive organization of
an economy for the purpose of manufacturing. Industrialization also introduces a
form of philosophical change, where people obtain a different attitude towards their
perception of nature.
Today industrialization is increasing day by day. Most developed economies are
based on industrialization. Industrialization leads a nation in better progress.
Industrialized countries are naturally developed in economy. Because living
standard of the people in these countries is high. Their GDP growth is also high so
they can invest more and more in the industrial sector. So the industrialization rate
is very high.
On the other hand in underdeveloped economy most of the people live below
poverty line. They cannot maintain their basic need. So they depend on developed
country. Their industrialization rate is low because without maintaining basic needs
the industrialization can not be possible.

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12. Political
Political aspects influence any economy. Constructive politics is very helpful for
economic progress. Stable politics is also helpful for economy. In most of the
developed economics politics is stable. Political violence can destroy any economy.
Destructive political policy is harmful for any economy.
For example in Pakistan, Iraq their economy is being destroyed by their political
violence. In Bangladesh our politics is also harmful for our economy. Because our
politics is very unstable and political violence is increasing day by day. Like this, in
many other underdeveloped economy politics is also unstable. So their economy is
being hampered by their political instability and it is the one of the major cause for
their underdevelopment.
On the other hand in USA , UK and Australia their politics is more stable than any
others and their economy is developed. So it can be said that political aspects play
vital role in economy.

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13. Resource
Resource means countrys collective wealth. It may be different types like natural
resource, human resource. Resources are very much necessary for economy. A
nation having huge resource can improve its economy if the resources are utilized
properly. For geographical location some country has huge natural resource but
anothers are deprived from it. Most often we see that those country which have
huge resource they have also a developed economy because resource play a vital
role in economic activities. But sometimes it can be different.
In case of the economy of Arab countries we see that they have a huge natural
resource like petroleum. For this reason their economy is very much developed.
And it is being developed day by day by using this resource. But sometimes it is
found that in spite of having resource some countries may not be developed and
most often this matter happens in underdeveloped economy. Like Bangladesh has a
huge natural gas but we cannot use it properly. Because of our economy is
underdeveloped.

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14. Education
Education in its broadest sense is any act or experience that has a formative effect
on the mind, character, or physical ability of an individual (e.g., the consciousness
of an infant is educated by its environment through its interaction with its
environment); and in its technical sense education is the process by which society
deliberately transmits its accumulated knowledge, values, and skills from one
generation to another through institutions

Education rate in developed economy based country

Country
Luxemburg
Switzerland
Japan
USA

Education rate
100%
100%
100%
96%

Education rate in underdeveloped economy based country

Country
Gina
Liberia
Senegal
Bangladesh

Education rate
35%
40%
36.4%
62.66%

From the above two tables we find that in developed economy the education rate is
high on the other hand the underdeveloped economy education rate is low. Low
education rate is also a major problem for economy. By rising education rate one
underdeveloped economy can be turned into developed economy.

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15. Major findings

Every study which is conducted has some findings which are very interesting
implications of the study. So our present study conducted on A comparative study
between developed & underdeveloped economy has also some interesting
implications which are as follows:
Poverty is the main problem in any underdeveloped economy.

Political instability is very harmful for any economy.

In developed economy resources are utilized properly but in

underdeveloped economy recourses are not utilized properly.

Developed economy dominates underdeveloped economy.
In under developed country growth rate of population is high.
The low level of earnings in the underdeveloped economy is reflected in

their low level of living.

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16. Recommendations
After completing the report on A comparative study between developed &
underdeveloped economy we are in position to recommend the following
implications:
Developed country should supply modern technology in underdeveloped
country at low cost.
Developed country should give loan to underdeveloped country at low interest
rate.
Resources should be utilized properly in underdeveloped economy.
Underdeveloped economy should set up their economic policies according to
their own requirements.

17. Conclusion
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Today world economy is into two forms namely developed economy and
underdeveloped economy. But most of the countries of the world are bearing
underdeveloped economy and so they are called underdeveloped country. On the
other hand the country having developed economy is called developed country. So
for economical support is underdeveloped countries are being dominated by
developed countries. But the developed countries want to raise their economy more.
So as a result actually the underdeveloped countries do not get any kind of help
which can be effective for their economy.

18. Reference
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1. www.google.com
2. General knowledge book.

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