Low Per Capita Income

The most commonly accepted criterion of underdevelopment is the low per capita income of under developed countries as compared with the advanced countries. Strictly speaking, this is also not satisfactory. The datas on per capita income of the country are inaccurate, unreliable and often misleading due to many conceptual and computational difficulties. Further international comparisons of national income and per capita income are meaningless. Finally the concept of standard of living varies from nation to nation and from race to race.However the per capita income is the most widely used indicator of underdevelopment. From this, we can find that it is very difficult to define and explain the concept of underdevelopment. In order to understand the purpose, we have to spell various characteristics of the underdeveloped economy.