In this every day changing world, many of us are living in a comfortable home, have enough food to eat, well clothed, healthy, and financially independent. All these are provided to us because we are living in a well-developed country. Others in the third world nation are not so lucky. They may have no shelter, limited food supply, and unemployed. This is because their country is not well developed like ours. Problems that stop these countries from developing are

1. Low levels of living, comprising low incomes, high inequality, poor health and inadequate education.
2. Low levels of productivity.
3 High rates of population growth and Dependency Burdens.
4. High levels of Unemployment and Underemployment.
5. Significant dependence on agricultural production and primary product exports.
6. Dominance, dependence, and vulnerability in international relations.

Low levels of living is one of the major obstacles toward development. Low levels
of living is comprised of low incomes, high inequality, poor health and inadequate
education. The gross national product (GNP) is the most commonly used measure of the
overall level of economic activity. The gross domestic product (GDP) measures the total
value for final use of output produced by an economy, by both residents and nonresidents.
Thus GNP comprises GDP plus the differences between the income residents receive from
abroad for factor services (labor and capital) fewer payments made to nonresidents who
contribute to the domestic economy. Many Third World countries have a low level of per
capital income, in addition there is a slower GNP growth compare to the developed nations.
Secondly, many people in third world countries are unhealthy and constantly battle with
disease while trying to stay alive. The infant mortality rate is very high compared to
the developed countries. One reason that leads to this is that they do not have the access
to safe drinking water and health service. Clean drinking water is one of the major
factors necessary to avoid illness. Water-borne diseases such as typhoid fever, cholera,
and a wide array of serious or fatal diarrheal diseases are responsible for more than 35%
of the deaths of young children Africa, Asia, and Latin America. Most of these diseases
and resulting deaths can be eliminated with safe water supplies. In addition, health
service is very limited in the least developed countries. It is limited in the number
of doctors and beds provided for the patients. Also, all the hospitals and medical
facilities are located in the urban areas. People who are not living in the urban areas
will have trouble getting to hospital and use the medical facilities provide. Thirdly,
many people who live in the third world countries lack education. This is due to the
limited budget the government provides. In most countries, education takes the largest
share of the government budget.
Besides low levels of living, low level of productivity is also a major obstacle
toward development. A production function is often used to describe the way in which
societies go about providing for their material needs. In the developing countries, the
levels of labor productivity are very low compared with those in developed countries. The
reason which lead to this is that they lack capital and experienced management.
Developed countries have enough capital and experience to buy machinery to increase their
productivity. To raise productivity for third world countries, domestic savings and
foreign finance must be used to generate new investment in physical capital goods. This
will give more opportunity to the workers in terms of education and training and have more
high tech machinery to increase in the productivity.
The high rate of population growth is the third obstacle toward development. The
birth rate in the third would country is so high that it is counted as three-fourths of
the population out of the whole world. Children under the age of 15 is close to 40% of
the total population in the third countries as opposed to 21% in the developed countries.
Older people and children are often referred to as an economic dependency burden because
they are the nonproductive members in the society and therefore must be supported
financially by the government or the country\'s labor force. The dependency burden in
developed countries is one-third of their population, whereas 45% in the less developed
countries. The high dependency burden is stopping the country from developing because
most of the money generated in the