The cause of Economic Problems are as follows

1 Weak infrastructure - The underdeveloped countries lack an adequate & efficient means of transport & communications , a well organised & developed banking system & adequate facilities for technical education.

2.High population - when the population is high the majaor part of the income goes to fulfilling the necessary wants therefore the chances of savings & investment are less .its also causes unemployment

3.Lack of technological skills- Itis another very important drawback for Economic growth.old methods of production are less productive & inferior in quality as compared to modern techniques & the small extent to market

4.Under utilisation of natural resources- The resources are not exploited fully due to various difficulties such as deficiency of capital equipment,the inaccesibilty of natural reources ,primitive techniques & small extent to market

5.Foreign trade orientation- The country which export raw materials instead of utilising them & imports finished goods on export makes their economics precarious & unstable & affects in terms of trade 6.Capital Deficiency- Its also crucial factor in fall of Economic problem .low amount of capital per head of population indicates deficiency in capital


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