ABSTRACT
Low per capita real income is generally regarded as one of the main indicators of the socioeconomic conditions of the LDCs. A comparison with the economically developed countries (DCs) is striking (see Tables 1.1-5). It shows very clearly the difference between the DCs and the LDCs. If the per capita income of the United States and India are considered, it is clear that an average Indian earned about 1.5 per cent of the income of an average American in 1999. Most of the LDCs exhibit this very low ratio of income to population. It shows the relatively low level of national income in most LDCs, or a high level of population, or both. Low per capita real income is a reflection of low productivity, low saving and investment and backward technology and resources, while the level of population is determined by complex socioeconomic factors. Hence, the importance of population in relation to national income in the LDCs can hardly be overemphasized, and this is discussed in the next section.
