International Economics: Developing States - Essay Example

As pointed out, some states within world nations are generally termed as ‘developing’ because those states show development in certain areas, but certain problems hinder those states from attaining development. For instance, less industrialization is a serious problem faced by the developing states in Asia and Latin America. Compared with poor states/nations, the standard of living in developing states is comparatively high. But this does not prove that the standard of living in the developing states is similar to that of the developed nations in Europe and America.

On the other side, most of the developing states lack economic independence. “These nations have often been handicapped by poor infrastructure, inadequate education, rampant corruption, and high trade barriers.”1 So, one can see that income disparity is a common problem faced by developing states. Still, developing states share certain societal, financial, and political characteristics. For instance, most of the developing states were under colonial rule. This resulted in the amalgamation of certain colonial elements with the social structure of these states.

For instance, one can easily identify the influence of European cultural characteristics in the developing states in Asia and Africa. Besides, almost all the developing states face the problem of unequal distribution of wealth. To be specific, the inefficient political systems within these states allow the elite class to enjoy all the economic benefits. So, one can see that developing states share certain common characteristics, apart from poor and developed states. Summing, the developing states show progress, but the same is insufficient to term these states as developed.

In addition, the lack of an effective political system is an important problem faced by developing states. One can see that the efficiency of the political system can lead a nation toward rapid economic development. Still, the political systems within developing states are far better than underdeveloped/poor nations. In short, the term ‘developing state’ is a transitory status assigned to certain states showing progress towards development.