ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are several nations which are poor and so impoverished in the economy that they largely depend upon other countries for the resources such as food and raw materials etc.

Detailed explanation-2: -What does this mean for our theory of development? Economist Peter Edward argues that instead of pushing poorer countries to “catch up” with rich ones, we should be thinking of ways to get rich countries to “catch down” to more appropriate levels of development.

Detailed explanation-3: -Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP-the productivity of labor and capital resources. Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty.