Developing Countries Economics

Topics: Developing country, Human Development Index, Developed country Pages: 9 (1598 words) Published: September 25, 2014
A developing country, or LDC (less developed country, is defined by it’s relative economic standing when compared to other countries around the world. Several aspects make up what is a developing country. These types of countries usually have a relatively lower standard of living, lower economic growth, weak and sometimes corrupt governments, a wide gap between the wealthy and the poor, and a lower gross domestic product per capita.

These developing economies can be found throughout the world, but are most common in Latin America, Africa, Asia, Russia and the South pacific. Most other regions are either developed economies, or are on their way to becoming one.

This paper will analyze the country of Honduras. It will describe the reasons for it being a developing nation and the issues that cause or are caused by their poor economy.

Honduras is considered part of Latin America, and more specifically Central America. Among the other six countries in Central America, Honduras ranks the 2nd poorest and has a GDp per capita of $4,700. Nicaragua is the poorest country in Central America and has a GDp per capita of $4,500, only $200 less per capita than Honduras.

Apart from the fact that Honduras is a less developed country, it is known for its beautiful beaches and nice weather. It lies approximately 1000 miles southwest of Miami and its Northeastern coast is nearly surrounded by the Caribbean Sea. Inward from the coast, the country changes to have roughly 48,200 square miles of mountainous regions.

Economic planning is defined as a deliberate attempt by a country’s government to coordinate economic decisions over a long period and influence, direct, or control the level of growth of a nation’s economic variables, to achieve predetermined objectives.

Honduras could use both partial (a particular part of the economy} and comprehensive (the economy as a whole} economic planning. An incident that had been occurring in Honduras was related to the company Nike. Nike had owned two clothing factories in the country, which were shut down because they did not pay the factory workers. This caused a labor dispute, which was supposedly the fault of the factory owners for not paying their employees. There are many clothing factories, among many other industries, that outsource to Honduras because of the cheap, and usually “sweatshop” labor.

This sort of cheap labor and lack of pay, could lead to a market failure when the factory workers go on strike. It should be the Honduran government’s responsibility to step in these situations and clear things up. I think that it is unfair to the workers to be exploited like that. Working in sweatshops usually means low pay and harsh conditions, but I suppose sweatshop work is better than no work at all.

Nearly four years ago, the Honduran president was taken out of office via military. The Washington-based Center for Economic and policy Research said that during the first two years after the president was taken out of office; Honduras became the country with the most unfair distribution of income in the Central American area. During this time, poverty increased as well as unemployment. During his time in office, Zelaya also increased spending on healthcare and education. From what I read, Zelaya seemed like an eccentric leader, but he did a lot more good than bad. The political structure in Honduras seems so unstable that it is hard to completely understand why he got taken out of office. All sorts of corruption, but probably drug cartels, could have caused it.

Honduras is by far one of the poorest countries between the North and South American continents. 60% of all Hondurans are living in poverty, usually doing manual labor jobs in the industrial or agricultural sectors. Before former president, Manuel Zelaya was kicked out of office, the country was decreasing their poverty numbers and...

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