Q2) Various labels exist to define developing countries.

Analyse how and in what ways,

countries are classified as developing. The answer should include a discussion of the
characteristics of developing countries.
According to the principles in action of Economics, a Developing country can be
defined as a nation or a country in which the industrial base is not developed. The
country can be measured by its Human Development Index (HDI) relative to the other
countries. The HDI of a country factors in statistical indexes such as life expectancy,
education, and income per capita of the countrys citizens. Developing countries are a
group of countries, spread around the world, characterized by low level of economic and
social comparison with developed countries.
Developing countries are financially unstable and have a generally low per capita
income. The low income of these countries leads to lesser savings and more
expenditures, which in turn, leads to less capital and lesser investment. This vicious
circle of poverty makes poor countries remain poor as it is harder for them to earn. By
definition, the GDP and per capita income are at a low level. Thus, the standard of living
of people in these countries is low to very low. The poverty in these nations significantly
affects the other factors that characterize a developing nation.
The vicious circle of poverty can be explained by beginning at a lack of basic
infrastructure. Infrastructure refers to the fundamental structures, systems, and facilities
serving a country including the services and facilities necessary for its economy to
function. Infrastructure includes technical structures such as roads, bridges, tunnels,
water supply, sewers, electrical grids, telecommunications, etc. There is a stark lack of
infrastructure in developing nations as they simply do not have the necessary funds to
construct, facilitate, or maintain these infrastructure projects.
Due to a lack of infrastructure, there is a lack of industries and enterprises. The
industrial sector in developing countries is at the primary stage of development. Its
contribution to GDP is less than 10% employing 2 to 4% of the labour force. Industrial
growth is very slow as the rate of new industries is slow and existing industries function
poorly because they cannot carry out operations to the fullest extent.
Developing nations also have underutilized their natural resources. Even though most
developing countries are very rich in natural resources, they are not utilized by their own
industries. They may be exploited by foreign organizations by either setting up plants in
the developing countries or importing goods. This may bring in employment to the locals
and some income generated due to exporting. However, that is negligible compared to

the amount of revenue made by the foreign organizations because of these natural
resources.
Consequently, the developing countries rely largely on agriculture by making it their
main occupation. More than 70% of the available labor force is engaged in the
agriculture sector. Due to the increased labor in this occupation, there is also a low
output per head.
Some developing nations can be characterized by the poor wealth distribution with
majority of the population being extremely poor and a very small minority being
extremely wealthy. Modern, high-paying employment opportunities and activities may
exist in urban areas but traditional methods prevail in rural areas.

Q 4) Eco-tourism is often considered to be the solution for developing countries. With

reference to any case study of your choice, provide an analysis of the case for
ecotourism
The World Conservation Union (IUCN) and the Ecotourism Society define ecotourism as responsible travel to natural areas that conserves the environment and
sustains the well-being of local people. It is a form of tourism involving going to fragile,
pristine, and relatively undisturbed natural areas. Ecotourism serves many purposes
such as to educate the traveller, to provide funds for ecological conservation, or to
directly benefit the economic development and political empowerment of local
communities. Ecotourism is often positioned as an alternative to mass tourism. It is
seen by developing countries as a means not only to ensure conservation, but also to
improve the living conditions of adjacent inhabitants with respect to health, education
and levels of revenue generated.
Tourism might not be the ultimate answer to poverty and economic woes, but it is a
major boon for places around the world that suffer from a lack of natural resources or
industry. For instance, tourism is a hugely important industry in the Caribbean. Without
flocks of resort-goers, nations in this part of the world would have to rely more heavily
on agriculture, leaving their economies at the mercy of the fluctuating prices of
commodities like coffee, sugar and bananas.
However, Ecotourism receives its fair share of criticism as well. Some people believe
that ecotourism or sustainable tourism is a paradox and cannot be possible. For
example, tourists arrive in airplanes that contribute to the local greenhouse effect. Due
to the need for hotels and resorts to be built in the area, deforestation occurs and
disturbs local flora and fauna. Tourists may also create the need for additional electricity

generation, increased garbage production and may also introduce new diseases in the
area.
Let us consider the case study of ecotourism in Costa Rica. By the 1990s, Costa Rica
became the most popular country when one spoke of ecotourism. The nation is among
numerous countries that look to ecotourism as a method for taking advantage of the
developing interest for this prominent type of travel. Ecotourism attracted tourists to visit
the broad national parks and secured territories around the nation. Costa Rica was a
pioneer in this kind of tourism, and the nation is perceived as one of only a handful few
with genuine ecotourism. While Costa Rica is prominent for its improvement of a fruitful,
yet ecologically sound ecotourism industry, nature activists and financial experts alike
argue whether an economy fixated on tourism delivers more good than harm.
Ecotourism in Costa Rica has brought about many environmental changes, both
positive as well as negative. Over time, ecotourism has come to be seen as a way to
preserve natural areas throughout Costa Rica. With rise of ecotourism, numerous
initiatives were advanced to help tourism in the country. Costa Rica boosted their
national park framework along with their protected areas by 70%. In this way,
ecotourism has given more beneficial forces to environment preservation as stateprotected ranges and private grounds. With almost half million acres of assigned as
ensured zones, tourism in Costa Rica has surged, with experimental and nature
travellers from around the globe merging in this country.
Ecotourism has also aided the economy significantly. The tourism industry has
generated from USD 136 million in 1987 to a whopping USD 577 million in 1993 and
continues to grow till date. This has made tourism the key contributor to economic
development in Costa Rica.
In the case of such developing countries, it is now possible to say that there are a large
number of obstacles and challenges facing the execution of ecotourism. By dealing with
these obstacles and having some trade-offs, fragile eco-systems can be sustained by
participation of locals and simultaneously benefitting the country economically.