new topics all relating back to the economical approach. Beginning this discussion is the topic of underdevelopment.Many factors can lead to the underdevelopment of a country. The most common sign of underdevelopment is that of a Dual Economy , this takes place when a small modern elite and middle class make up about 20-30% of a countrys population while the poverty stricken excess make up the rest2. Secondly low productivity over a period of time can result in a Poverty Trap. Incomes are low and increase very slowly compared to developing countries, usually around 7-14% over a time span of about 5 10 years1. Insufficient capital poses problems because of low wealth in infrastructure and capital. Lastly the lack of human capital, or the personnel to fill various positions in a country that holds importance when promoting development. This can be due to lack of professional services such as schooling and medicine. Without sufficient educational and employment opportunities, the middle class in an under developing country remains very small, leaving the gap between high and low classes too large.After revealing how all countries are categorized through GNP and the evaluation of development. The chapter than moves on to discuss some of the underlying causes that may have started some countries on their way to underdevelopment. Colonial Rulers in the 1800s initiated some problems than, that developing countries face today. Colonial empires of European states (especially Britain and France, but also Belgium, the Netherlands, and Portugal) covered much of the world, influencing trade in ways beneficial to their wealth and distribution. These colonies dismantled political economic threats to economic welfare that is they bought out and shut down, or politically forced countries to discontinue, their production of certain industry that looked promising and may have taken any potential trade away from them. The colonial rulers w...
