Common Characteristics Of Developing Countries:

It introduces the reader to some common features exhibited by developing nations. Developing nations are nations in transition. A careful study of these nations will reveal the following characteristics:

(i) Low standards of living: In developing nations general standards of living tend to be very low for the vast majority of the people. These low standards of living are manifested quantitatively and qualitatively in the form of low incomes (poverty), inadequate housing, poor health, limited or no education, high infant mortality, low life and work expectancy and sometimes a general sense of hopelessness. Income levels in Ghana and Nigeria are relatively low as compared to levels in the developed world. The distribution of GDP is also severely unequal.

(ii) Health and Life Expectancy: In addition to struggling on low income, many people in the developing nations fight a constant battle against malnutrition, disease and ill health. The average life expectancy in developing nations in 2003 was 57 years as compared to 74 years in developed nations. Infant mortality rate is approximately 73 (66 for Ghana). This compares poorly with 12 in developed nations. Medical care is an extremely scarce social service in many parts of the developing world.

(iii) Low levels of productivity: In addition to low standards of living, developing countries are characterized by relatively low levels of labour productivity. Throughout the developing world, levels of labour productivity (output per worker) are extremely low compared with those in developed countries. In crop production, rural small-scale farmers form the majority of the producers. Their productivity level is low due to the use of rudimentary tools (such as hoes, cutlasses and sticks) and simple and outmoded technology.

(iv) Dependence on agricultural production and primary product for exports. The external sector comprises Imports and Exports. Ghana shows dependence on a single crop, Cocoa, for export. In Ghana, the major exports including cocoa account for about 60 per cent of the total foreign exchange earnings of the country. Minerals in general earn on the average about 15 per cent of our total foreign exchange earnings. Normally, primary products in LDCs account for between 80-90% of export earnings but in the developed countries it is about 35 per cent. In Ghana, the primary sector accounts for on the average, about 80 per cent of our foreign exchange earnings implying that Ghana is more of a developing country than a developed country.

(v) Dominance, dependence and vulnerability in international relations. A greater volume of Ghana's exports comes from primary commodities like cocoa, timber and gold. The contribution from other sectors, for instance, manufacturing in terms of export is relatively insignificant. Since exports are mainly primary products, it is quite apparent that income from export will fluctuate. This stems from the fact that prices of primary raw materials fluctuate more than those of manufactured goods. It is therefore, inevitable that our revenue from export will fall because the terms of trade will be unfavourable and consequently, this will have adverse effect on our Balance of Payment (BOP).