Examine the factors responsible for underdevelopment in your country

Internal factors

• High population growth rates. This discourages savings and investment   due to high dependence burden which leads to a reduction in the per capita income hence low standards of living.
• Vicious circle of poverty. Developing countries are imprisoned by short comings arising from low incomes, low savings that lead to low investments and consequently low productivity and then back to low incomes.
• Limited skilled manpower. This is reflected in the limited number of people with critical entrepreneurial skills and knowledge. This is due to the poor colonial education system which aims at white color jobs making development of technical skills difficult yet they are required in the exploitation of natural resources that can assist in enhancing economic   growth and development
• Poor and inadequate social and economic infrastructure. This is reflected in form of poor transport network, few power generation plants and limited financial institutions. This makes it difficult to produce and market the produced goods and services.
• Low levels of technology. Most developing countries use traditional, out dated and inefficient technology. This leads to resource underutilization and production of low output and ·of poor quality hence under development.
• Economic    These are in form of inflationary tendencies and exchange rate fluctuations and agricultural price fluctuations. Inflation increases the cost of production hence underdevelopment.
• Limited number of entrepreneurs.  This is due to limited skilled manpower required for business management and expansion which leads to low profit margins and capital accumulation in developing countries.
• Limited capital. This is due to low levels of incomes and limited access to credit facilities from financial institutions due to lack of collateral securities.   This limits the expansion of business opportunities in developing countries.
• Limited markets for the products. This is due to low aggregate demand resulting from high levels of poverty in developing countries.
• Bad social cultural practices. These are manifested in form of negative traditional attitudes and conservative cultural beliefs and values that characterize ways of lives of people. Such practices limit positive social cultural transformation hence under development in developing countries.
• Rampant political instabilities in developing countries. These are manifested in form of wars and political sabotage which discourage investments and other income generating activities hence under development.
• Poor planning and resource   misallocation   in developing      Developing countries allocate   resources    to unproductive    ventures   like   frequent   foreign   presidential    trips,   a large number   of well   facilitated    political    leaders   at various    levels   and   importation    of military hardware   at the expense   of investments    in education,   health,   agriculture    and industry   hence underdevelopment.
• High levels of corruption   and embezzlement    of the public resources.   Such resources meant for productive   investment   are diverted for personal interests hence under development.
• Lack   of strategic   basic raw materials   like iron, coal, oil etc.  Most developing   countries   lack such resources which are a key to development.
• Poor land tenure systems   in developing   countries.   In developing   countries,   the system of land ownership   and use is poor.  Many people   do not own land and therefore,   they cannot   use it to effectively use it to carry out large scale production hence underdevelopment
• Occurrence    of unfavorable    natural   factors    like draught,   heavy   destructive    rains,   pests   and diseases all of which limit investments   in the agricultural   sector hence  under  development.

External factors

• Unfavorable trade positions    of developing      They  experience   poor  terms  of trade  due to  the   exportation    of   cheap   primary   products    and  determination     of  prices   of   exports   by developed  countries  hence  low gains  from international   trade.
• Persistent huge external public     This  leads  to capital  outflow  in  form  of  debt  servicing through  the repayment  of the interest  and principle  on the external  public  debts.
• High levels of brain drain. Developing   countries  persistently   lose  highly  skilled  man  power  to developed   countries   in search  for  ‘greener   pastures’    in  form  of  good  working   conditions   and high pay. This leads to depletion of skilled human resource in developing   countries hence under development.
• High levels of profit repatriation    in developing      This is due to the presence   of multinational   co operations   in developing   countries.   This limits capital accumulation    in developing countries hence underdevelopment.
• Colonial factors. Despite of achieving   political independence   developing   countries   continue to be subjected to political   manipulation   and economic   exploitation   by developed      They have been forced to adopt unfavorable   policies which are not in their line of development   hence perpetuating   underdevelopment.