Some key issues Less-developed countries (LDCs) –countries with low levels of per capita output Why have LDCs remained poor? The potential roles of: –comparative advantage –industrialization –international debt –structural adjustment –aid The world distribution of income In 1998 there were 3.5 billion people living in low-income countries with average annual income of about £313 per person. In 1998, there were 0.9 billion people living in high-income countries with average annual income of about £15,367 per person.