Question

Which of the following problems do LDCs face? a. Low per capita income and high GDP growth rate b. Low population growth and low per capita income c. Rapid population growth and low human capital d. Low per capita income and high saving rate

Short answer

The short answer is: LDCs face problems such as rapid population growth and low human capital, making option c the correct choice.

Step-by-step solution

Understand LDC Characteristics

To solve this problem, it is important to understand the characteristics of Less Developed Countries (LDCs), such as low per capita income, rapid population growth, low human capital, and low saving rate.

Evaluate Each Option

Let's evaluate each option based on this understanding of LDCs: a. Low per capita income and high GDP growth rate: LDCs typically have low per capita incomes, but high GDP growth rate is not a common problem faced by these countries. So, this option is incorrect. b. Low population growth and low per capita income: LDCs do have low per capita income, but they usually face rapid population growth rather than low population growth. This option is incorrect. c. Rapid population growth and low human capital: This option correctly describes two problems faced by LDCs. They have rapid population growth, which puts pressure on resources, and low human capital, which hampers development and growth. So, this option is correct. d. Low per capita income and high saving rate: While LDCs do have low per capita income, they typically have low saving rates, not high saving rates. This option is incorrect.

Identify the Correct Option

Based on the evaluation of each option, the correct answer is: c. Rapid population growth and low human capital

Key concepts

Low Per Capita Income

One of the significant challenges faced by Less Developed Countries (LDCs) is the low per capita income. This means that the average income per person is quite low, which directly affects the quality of life. When most people earn very little, it limits their purchasing power.
LDCs often struggle to provide basic services and necessities to their citizens. A low per capita income can lead to:

• Poor access to healthcare and education, which are essential for personal well-being and development.
• High levels of poverty, which can create a cycle hard to break as individuals have restricted ability to afford better conditions.
• Limited economic growth, since consumer spending drives demand and can stimulate the economy.

Increasing income remains a primary goal for LDCs to improve living standards and achieve sustainable development.

Rapid Population Growth

Rapid population growth is another major issue impacting LDCs. It refers to a significant increase in the number of people within a short period. When a country has more people than it can properly support, several problems arise. With too many people and scarce resources, LDCs may face:

• Overburdened healthcare systems, where resources are stretched, affecting service quality.
• Insufficient educational facilities, leading to overcrowded classrooms and substandard education.
• Increased demand for food, water, housing, and jobs, which can strain the country's economy.

Rapid population growth often puts pressure on the environment and can lead to issues like deforestation and pollution as people struggle to meet their basic needs.

Low Human Capital

Low human capital is also a significant challenge for LDCs. Human capital refers to the skills, knowledge, and experience possessed by people that can be used to produce economic value. When a population lacks education or training, it limits the country's ability to grow economically. Factors contributing to low human capital in LDCs include:

• Lack of access to quality education, which restricts individuals' ability to develop skills.
• Insufficient vocational training programs, hindering economic diversification.
• Poor health outcomes, which can reduce productivity and economic participation.

Developing human capital is crucial as it empowers individuals, boosts productivity, and paves the way for innovation and progress in these countries.