Developing and Transitional Economies Essay Example | Topics and Well Written Essays - 250 words

Developing and Transitional Economies - Essay ExampleProfessionals, who have talents, alter to substantial nations in search of better living standards. To increase the standard of living in underdeveloped nations straightlaced infrastructure removes to be developed, literacy rate needs to be increased and investment rates need to elevate. Developing countries face the curse of low productivity due to low saving rate as there are very few attractive saving options. Even those who have the power to save, transfer their funds to developed nations to gain higher returns. Foreign aid is one of the best ways for developing underdeveloped nations, foreign aid is used to build infrastructure, develop educational and medical centers (Gravelle, 1992, p.300).Two countries having equivalent size can have different living standards. Living standard is calculated by dividing discipline income with the number of people, this tells us the income earned by each individual at an average (World Bank, 2009, p.391). This measure does not helps in identifying what actually per house in a particular country is spending as sure households may be spending the highest percentage of the total national