Primary Determinants of Levels of Economic Performance and Productive Capacity Building in Global Economy. “Review of Recent Studies”

How do you think it feels to be called ‘less developed’ or developing? It is not just countries that are called ‘underdeveloped’, but regions and people too. Despite the vast amount of technical and material aid given to the developed societies, in last five decades, there has been a growing gap in per capita income and level of development between rich and poor nations. Over the last 30 years, the poorest poor 30% of the population have seen their share of world income fall from 2.3 to 1.4%, whereas the wealthiest 20% have seen their income rise from 70 to 85%. The average Income in India is one-twentieth of the average income in the USA. What are the cause and factors impeding development and growth in some regions and nations?

In this paper, an attempt has been made to review the literature on the factors enhancing/impeding economic growth and development in developing economies, and provide an insight into causes and pre-requisites of underdevelopment.