Street Children’s Issues and the Role of SPARC

5.1     CONCLUSION:

          The conclusion drawn from these case histories showed that most of the children are compelled by their parents to work because of their financial problems. Due to their poor economic status, these children came out for work to support their families and are unable to get education. Therefore the main hurdle in their education is poverty and compelling behavior of their parents toward labor in their early ages. SPARC organization plays a key role in the improvement and education of many children’s especially street children’s.That is why most of the street children take active part in influential their families, communities and environment after SPARC facilitations. SPARC authority make this possible to brought street children to Drop in Center (DIC) and provide Psycho social support, education, recreation and food and hygiene to street children. Through the program of mainstreaming, DIC providing admissions to street children in different government schools after providing basic education. DIC provides education to these children with the help of flash cards, charts, alphabetical building blocks, animated movies and games. DIC also provides skill of making handicrafts, dress making, making shopping bags, lather work and candles making. These skills are especially for female children. After 6^th months of training children skills are tested and awarded them with certificates. But most of these skilful children waste their skills because of no machines and equipments. So it is necessary that government and other NGOs provide these equipments to serve their future.

The current studies and literature cited showed that 60% of such children do not get education. Out of them 20% are in fear of corporal punishment and dishearted to join schools. Only 20% of the children among the current study are getting education.

5.2 SUGGESTIONS

Ø  Education is the only solution to build the bright future of children’s.

Ø  If parents are unable to support their education then it is better to handover children’s to SPARC to improve their education, psycho social status and recreation for better society

Ø  There should be friendly environment among SPARC staff members and street children’s.

Ø  Awareness regards SPARC and its services should be raised in people.

Ø  The government of Pakistan should also support the Drop-on Centre of SPARC.

Ø  Government should support and encourage the activities of organization which is working for the betterment of children. 

Street Children’s Issues and the Role of SPARC

INTRODUCTION TO SPARC

SPARC is Pakistan’s leading child rights organization. It works on a broad range of child rights issues, addressing the overall system and policy framework, with added focus on specific thematic areas of special importance to children.

SPARC’s work is guided by international human rights principles and standards which are integrated at policy and program level. The main guiding documents include the UNCRC (United Nations Convention on the Rights of the Child) and relevant ILO Conventions.

2.2       HISTORY OF SPARC

SPARC an independent non-governmental organization was registered as a society in Pakistan in December 1992. It has been working utterly on child related issues since that time. It’s inspired from the United Nations Convention on the Rights of the Child.

The establishment of SPARC was done to act as an advocacy group for child rights. Initially the work of SPARC was based on small issues such as baby milk and food problems but nowadays their main focus includes other issues such as child labor, juvenile justice, education and violence against children. SPARC has also been working on issues that ultimately affect the condition of children in this country, such as corruption, freedom of association and the “myth or reality” of NGOs.

SPARC has been involved actively in introducing the concept of child rights and in raising issues that were formerly not part of the national debate in Pakistan. While realizing the importance of maintaining its independence, SPARC has found it useful to employ the government to persuade it to keep commitments and bring about legislative changes where necessary.

2.3       SPARC ACHIEVEMENTS

1.	SPARC wrote for UNICEF the publication titled Pakistani Laws and the Convention on the Rights of the Child, which encouraged the Government in finally deciding to sign the UN CRC;
2.	It drafted Pakistan’s response to the Concluding Observations of the UN Committee on the Rights of the Child after its consideration of Pakistan’s first report to the Committee.
3.	SPARC was the only Pakistani NGO that submitted an Alternative Report to the Committee on the Rights of the Child in 2003.
4.	It played a key role in the drafting and later endorsement of the Protection of Breastfeeding and Young Child Nutrition Ordinance 2002.
5.	It was actively involved in getting the Juvenile Justice System Ordinance 2000 enacted and the Rules subsequently notified in all four Provinces.
6.	It secured the release of juvenile prisoners through several Presidential Orders by working through its Board Member and then Federal Minister for Social Welfare, DrAttiyaInnayatullah;
7.	It Improves the conditions of juvenile sections of jails and provide other basic facilities such as water coolers, fans, exhaust fans, indoor games and books to children in jail.
8.	SPARC played a vital role in the notification of Rules under the Employment of Children Act 1991 in the Frontier Province.
9.	SPARC played a key role in getting the Employment of Children Rules extended to FATA (Federally Administered Tribal Areas) and PATA (Provincially Administered Tribal Areas).
10.	It has organized annually since 1999 a Child Labor-Free Week from November 13 to 20, during which organizations and individuals throughout Pakistan organize activities to raise awareness about child labor and mobilize public and official support for its elimination.
11.	It formed and later served (to date) as the national secretariat of CACL (Coalition Against Child Labor) that now consists of more than 350 organizations, including trade unions.
12.	It established CRCs (Child Rights Committees) in more than 40 districts to monitor and advance child rights in their respective localities.
13.	It produced a large number of brochures on almost all aspects relating to child rights, almost all of which are available in Urdu.
14.	It produces an annual report, The State of Pakistan’s Children, monitoring the year’s developments with regard to child rights in Pakistan.
15.	It published three major books on child labor, juvenile justice and child rights – the first of their kind.
16.	It publishes a magazine newsletter entirely devoted to coverage of news relating to child rights in English, Urdu and Sindhi.
17.	SPARC publishes a biannual magazine, Discourse, on child rights.

2.4       VISION

A world in which children are valued and empowered and their rights promoted and protected.

2.5              MISSION STATEMENT

To promote and protect the rights of children and to empower them using international standards as a yardstick through advocacy supported by research, awareness raising, service delivery and human and institutional development.

SPARC was registered in December 1992 as a society under the Societies Registration Act 1860. 

SPARC has consultative status with the United Nations ECOSOC (Economic and Social Council) and the United Nations Department of Public Information. It also has partnership with Defense for Children International (DCI).

In 2003, SPARC received the United Nations Recognition Award in recognition of its work in highlighting the plight of children and promoting the rights of children in Pakistan.

In 2006 SPARC received USAID certification under the USAID Institutional Management Certification Programmer (IMCP).

2.6       OBJECTIVES OF SPARC

1.       SPARC has been instrumental introducing the concept of child rights and raising issues that were previously not part of the national debate.

2.   SPARC has found it useful to engage the government to convince it to keep commitments and bring about legislative changes were necessary.

3. SPARC act to protect the rights of the child to empower children with in the frame work of recognized standards through advocacy, research, outreach activities human development, and institutional capacity building

2.7     OFFICE

SPARC has offices in five cities: the head office is in Islamabad and provincial offices are in Peshawar, Lahore, Quetta and Karachi.  In addition there are three field offices; Hyderabad, Multan and Nowshera.

2.8              GOVERNING BODY

SPARC's Board of Directors comprises of leading civil society leaders and activists. The Board meets at least twice a year and provides support and guidance on policy issues, and also participates in various SPARC activities

2.9       OUTREACH
SPARC’s outreach at district level is based on Child Rights Committees (CRCs). These are volunteer groups consisting of local activists working on children’s issues. There are currently a total of 54 CRCs: 16 in Sindh, 20 in Khyber Pakhtunkhwa and FATA, 16 in Punjab and 2 in Baluchistan.

2.10     SPARC APPROACH

Lobbying with government to make child rights a priority issue and develop legal and institutional mechanisms;

Accountability of state and society though media, conferences and periodic shadow reports to relevant international human rights committees;

Monitoring of the child rights situation in the country through annual status reports on children’s issues;

Research to assess and highlight issues facing children and make recommendations, and SPARC also works in the field of publication.

Street Children’s Issues and the Role of SPARC

1.1       GENRAL BACKGROUND

Article 1 of the Convention on the Rights of the Child (CRC) states that “a child means every human being below the age of eighteen years unless under the law applicable to the child, majority is attained earlier”

Despite article 1 allowing a lower age of majority, there are rights in the Convention that continue to apply to all those under 18, regardless of the age of majority. These include the prohibition of the application of the death penalty for people under 18 and, in an Optional Protocol to the Convention, the prohibition of recruitment of those under 18 into the armed forces.

Other international instruments also use 18 as the age limit for determining when a person loses the right to the special protection to which children are entitled. Furthermore UNICEF and other key international organizations working with children use 18 as the defining age for their work.

The Convention recognizes that the way children exercise their rights and the limits imposed on the exercise of their rights can and should vary according to the age of the child. Article 5 states that:

States Parties shall respect the responsibilities, rights and duties of parents or, where applicable, the members of the extended family or community as provided for by local custom, legal guardians or other persons legally responsible for the child, to provide, in a manner consistent with the evolving capacities of the child, appropriate direction and guidance in the exercise by the child of the rights recognized in the present Convention.

1.2       WHAT IS A STREET CHILD?

Street children facts

·         There are an estimated 100 million children living in the streets in the world today.

·         Children living on the streets are especially vulnerable to victimization, exploitation, and the abuse of their civil and economic rights.

·         International indifference to the problem has led to continual neglect and abuse of these children.

1.3       DEFINITION OF STREET CHILD

“Street child a homeless child especially one forsaken or orphaned; "street children beg or steal in order to survive"

“A street child, whatever the country of origin, is a minor, fully cut off from their family, who must struggle to survive.”

“Any girl or boy … for whom the street (in the widest sense of the word, including unoccupied dwellings, wasteland, etc.) has become his or her habitual abode and/or source of livelihood; and who is inadequately protected, supervised, or directed by responsible adults” (UNHCR, 2000).

1.4       TYPES OF STREET CHILDREN’S

There are two groups of street children. The first group is ‘Children of the street’, which refers to children who are homeless, and streets in urban areas are their source of livelihood, where they sleep and live. The second group is ‘Children on the street’, who work and live on the streets in the daytime but return back home at night where they sleep, although some of them sleep occasionally on the streets (UNCHS, 2000). Nevertheless, there is no clear distinction between the two groups as they often differ from their common definition: some ‘children of the street’ may still have links with their families and some ‘children on the street’ often sleep on the street (UNICEF, 2001).

1.5       CAUSES OF STREET CHILDREN’S

There are two main causes of the phenomenon of street children. The first is the economic stress and poor conditions that families face due to industrialization and urbanization. The second cause is changes in the traditional family structure, especially when women became the main contributor to households’ economies (Patel, 1990; Roux and Smith, 1998; Lugalla and Mbwambo, 1999). Nevertheless, poverty cannot stand alone as the only reason behind the phenomenon of street children, as a comparative research conducted on street children and working children in Brazil shows that the per capital household income of families of street children is higher than that of working children’s families (Rizzini et al., 1994).

1.6       WHO ARE CONSIDERED STREET CHILDREN? 

Article 27 of the Convention on the Rights of the Child (CRC) asserts that “States Parties recognize the right of every child to a standard of living adequate for the child's physical, mental, spiritual, moral and social development.” Homelessness denies each one of those rights. According to an Inter-NGO Program on street children and youth, a street child is “any girl or boy who has not reached adulthood, for whom the street (in the widest sense of the word, including unoccupied dwellings, wasteland, etc.) has become his or her habitual abode and/or source of livelihood, and who is inadequately protected, directed, and supervised by responsible adults.”

US AID has divided Street Children into Four Categories:

·         A ‘Child of the Streets': Children who have no home but the streets, and no family support. They move from place to place, living in shelters and abandoned buildings.

·         A ‘Child on the street': Children who visit their families regularly and might even return every night to sleep at home, but spends most days and some nights on the street because of poverty, overcrowding, sexual or physical abuse at home.

·         Part of a Street Family: These children live on sidewalks or city squares with the rest of their families. They may be displaced due to poverty, wars, or natural disasters. The families often live a nomadic life, carrying their possessions with them. Children in this case often work on the streets with other members of their families.

·         In Institutionalized Care: Children in this situation come from a situation of homelessness and are at risk of returning to a life on the street.

Pakistan: A Developing Country...?

Introduction:

The total major countries of the world are 182 out of which only 34 are developed and remaining 148 are under developed. Developing Country (DC) is a nation which, compare to developed nations, lacks industrialization, infrastructure, developed agriculture developed natural resources, and suffers from a low per capita income as a result. Developing countries and developed countries are differentiating on the bases of self-esteem, freedom of choice and influence of externals. A country where the average income of the people is much lower than that of developed countries, the economy depends upon a few export crops and where farming is conducted by primary methods is called developing country. Rapid population growth is causing the shortage of food in many developing countries.

Developing Country:

Developing countries are also called under-developed nations (UDN) or the South. Most of them are in Africa, Asia and Latin America.

According to Prof. R. Nurkse:

“Under developed countries are those which when compared with the advanced countries, are under-equipped with capital in relation to their population and natural resources.”

Developed Country:

      A group of industrialized nations including Australia, Austria, Canada, France, Germany, Italy, Japan, the UK and the United States. In some contexts such countries are collectively called the North.

According to Kofi Annan, former Secretary General of the UN:

"A developed country is one that allows all its citizens to enjoy a free and healthy life in a safe environment."

Definitions of Developing Nations:

·         According to United Nations Experts:

“A developing country is that in which per capita income is low when compared to the per capita incomes of U.S.A., Canada, Australia and Western Europe.”

·         According to Prof. R. Nurkse:

“Under developed countries are those which when compared with the advanced countries, are under-equipped with capital in relation to their population and natural resources.”

·         According to Michal P. Tadaro:

“The under developed country, is that which has low levels of living (absolute poverty, poor health, poor education and other social services), low self esteem (low respect, honour, dignity) and limited freedom (freedom from external influence and dominance, freedom of choice etc.).”

Criteria to an Under-developed Nation:

Ø      Potential to become economically developed.

Ø      Low or no rising trend of per capita income.

Ø      Countries very poor in resources.

Prof. Harvey Leibenstein, in his “Economic Backwardness and Economic Growth” divides these characteristics into four categories:

A.      ECONOMIC CHARACTERISTICS

Following are the economic characteristics of UDC’s:

1- General Poverty and Low Living Standard

Poverty cannot be described, it can only be felt. The most of the less developed countries (LDC) are facing the major problem of general as well as absolute poverty and low standard of living. Most of the people in developing nations are ill-fed, ill-housed, ill-clothed and ill-literate. In LDCs almost 1/3 population is much poor. But in Pakistan, 21.0 % population is living below poverty.

2- Burden of Internal and External Debts

            Under developed countries (UDC) are loans and grants receiving nations. Most of the developing countries of the world are depending on foreign economic loans. An amount of foreign loans is increasing as the years pass. Their foreign trade and political structure is also dependent on the guidance of foreigners. The outstanding total public debts are Rs. 10020 billion (55.5 % of GDP) and the value of external debts and liabilities is $ 59.5 billion and its services charges are $ 7.8 billion in 2010-11 in Pakistan.

3- Low Per Capita Income

            Due to low national income and huge population growth rate, per capita income in developing countries is very low. At constant prices (Base Year 1959-60) per capita income of Pakistan was Rs. 985 and according to the Economic Survey of Pakistan 2010-11 per capita income of Pakistan is $ 1254.

4- Over Dependence on Agriculture

            61% Population of Pakistan is living in more than 50,000 villages. Backward agriculture is the major occupation of the population. Agriculture sector is backward due to old and traditional methods of cultivation, in-efficient farmers, lack of credit facilities; un-organized agriculture market etc. 66.7% population is directly or indirectly depending on agriculture sector in Pakistan. It contributes to GDP 20.9 % while in advanced nations it is less than 10 %. It employed 45.0 % of labour force while it is less than 5 % in developed countries.

5- Backward Industrial Sector

            Backward industrial sector is an additional feature of under developed countries. Industrial sector of Pakistani economy is backward since independence. Pakistan got only 34 (3.7 % of total industrial units) industrial units out of 921 units in sub-continent in 1947. Small and backward industrial sector is based on low level of capital formation, technology, training and education and over dependence on agriculture sector. 13.2 % labour force is attached with industrial sector in Pakistan. Its share to GDP is 25.8 % and to exports is about 60 %.

6- Unemployment

            An outstanding problem of developing countries is their high rate of un-employment, under-employment and disguised-unemployment. More than 3.05 million people are unemployed in Pakistan. There is 16 % underemployed and 20 % disguised unemployed of total labour force. Unemployment rate is 5.6 %; it is mainly due to high population growth rate, which is 2.1 %.

7- Low level of Productivity

            The productivity level is very low in under developed countries as compared to developed countries. Low level of productivity is due to economic backwardness of people, lack of skill, illiteracy and ill-training. Value of annual productivity of labour is about $ 100 while it is more than $ 2500 in advanced nations in Pakistan.

8- Deficit Balance of Payment

            Third world countries have to import some finished and capital goods to make economic development, on the other hand they have no products to export but raw material. During July-March, its exports were $ 24 billion and imports were $ 32.3 billion In case of Pakistan. So, its deficit balance of payment was $ 8.3 billion in 2010-11.

9- Dualistic Economy

            Dualistic economy refers to the existence of advanced & modern sectors with traditional & backward sectors. Pakistani economy is also a dualistic economy as other developing countries on the following grounds: Co-existence of modern and traditional methods of production in urban and rural areas, Co-existence of wealthy, highly educated class with a large number of illiterate poor classes and Co-existence of very high living standard with very low living standard.

10- Deficiency of Capital

            Shortage of capital is another serious problem of poor nations. Lack of capital leads to low per capita income, less saving and short investment. Domestic saving is 9.5% of GDP and total investment is 13.4% of GDP in Pakistan. Rate of capital accumulation is very low as 5%. On the other hand, capital output ratio (COR) is very high which is not desirable for economic development.

11- In-appropriate Use of Natural Resources

            Mostly there is shortage of natural resources in developing nations and this is also a cause of their economic backwardness. Natural resources are available in various poor countries but they remain un-utilized, under-utilized or mis-utilized due to capital shortage, less efficiency of labour, lack of skill and knowledge, backward state of technology, improper government actions and limited home market. Natural resources contribute to the GDP about 1%.

12- Market Imperfection

            Market is imperfect in accordance with market conditions, rules and regulations in the most of developing nations. There exist monopolies, mis-leading information, immobility of factors; hoarding and smuggling etc. that cause the market to remain imperfect.

13- Limited Foreign Trade

            Due to backwardness, developing countries have to export raw material because the quality of their products is not according to international standard ISO etc. Lower developing nations have to import finished and capital goods. Imports of Pakistan are $ 32.3 billion and exports are $ 24 billion that cause into unfavourable balance of payment.

14- Vicious Circle of Poverty

            According to vicious circle of poverty, less developed nations are trapped by their own poverty. Vicious circle of poverty is also applied in case of Pakistani economy. Due to poverty, national income of Pakistan is low which causes low saving and low investment. So, rate of capital formation is very low results in “a country is poor because she is poor”.

15- Inflation

            High rate of inflation causes economic backwardness in poor nations. Due to high level of price, purchasing power, value of money and saving of the consumers tend to decrease. Rate of inflation (CPI) is 14.1% in 2010-11 in Pakistan.

B.  DEMOGRAPHIC CHARACTERISTICS

Following are the demographic characteristics:

16- Backward Population Explosion

            Another common feature of lower developing nations is population pressure due to high growth rate and reduction in death rate. Population of the Pakistan is 177.1 million with the rapid growth rate of 2.1 % and death rate 0.73 % in 2010-11. Pakistan is at 6^th number in the list of the most populous nations. Basic needs like food, clothing, housing, education, sanitations and health facilities are not available for the huge portion of population in these countries.

17- Poor Health and Diseases

            M. P. Todaro in his “Economic Development” states, “Many people in developing countries fight a constant battle against malnutrition, diseases and ill health”. Average life expectancy in Pakistan is 66.04 year against 78 years in developed countries. One Doctor is for 1222 persons and one Nurse is for 2369 persons, number of hospitals is 972 and one hospital bed is available for 1701 persons. The total expenditure on health sector is just 0.23 % of the GDP.

18- Pollution

            There is too much pollution in poor countries. On the one side huge existing population is not provided basic facilities of life, like sanitation, clean water, infrastructure etc. but on the other side due to rapid population growth, industrialization and transportation air, water and earth pollution is increasing. Industries are causing pollution because of non-installation of treatment plants. Number of continuous air pollution monitoring stations is only 7 in Pakistan. Pakistan is at number 29^th at the chart of the most polluted nations and at number 6^th in Asian countries.

19- Brain Drain

            An outflow of the best, brightest and talented student from poor nations to rich nations is called brain drain. There is less reward for the talent, which causes an outflow of best brain in the backward countries. Reward is not paid in accordance with the capability, skill and efficiency in less developed countries.

20- Inadequate Infrastructure

            Adequate infrastructure is needed which is not available in poor economies to enhance the process of economic development. Roads, transport, telecommunications, sanitation, health and education facilities are not at their best level in these nations;. Government has reserved an amount of Rs. 133 billion to develop the infrastructure.

C.  CULTURAL AND POLITICAL CHARACTERISTICS

Following are the cultural and political characteristics of LDC’s:

21- High Degree of Illiteracy

            Illiteracy rate is very high in poor countries while it is almost zero in rich countries. There is lack of technical education and training centres, which is necessary for economic growth and development. Literacy rate in Pakistan is 57.7 % during 2010-11. Expenditure on education sector is just 1.8 % of GDP.

22- Low Level of Organization

            There is absence of developed minded leadership in economic activities in third world nations. Decision making power of entrepreneur is very low due to illiteracy, less training and backward techniques. Most of educational institutions are producing employees rather than employers.

23- Low Self-esteem

            There is less respect, honour and dignity of people in the lower developed countries. People are honoured due to their powers, relations and castes instead of capabilities. There is poverty, poor health, poor education and shortage of other social services. Government and population of poor countries are under the external influence.

24- Un-productive Expenditures

            Population mostly copies the styles of population of developed nations due to demonstration action in poor economies. Their consumption activities not only move around their income but also depend upon the relatives, friends and locality. They spend more on birth, death, marriages and various other ceremonies etc. which reduces their savings and investment.

25- Political Instability

            There is political instability in the most of the developing countries. There are a lot of clashes between government and the opposition that is a cause to reduction in domestic as well as foreign investment. Political instability keeps low the level of economic development.

26- Influence of Feudal Lords

            The poor class is under the influence of feudal lords and tribal heads in lower developed nations,. The feudal lords want to keep the people backward and do not appreciate the development of the poor. About 50.8% poor borrow from landlords and 57.4 % poor are working for feudal lords without wages in Pakistan.

27- Unproductive Use of Funds

            The unproductive expenditures are rising day by day in developing countries like Pakistan due to socio-economic and administrative reasons. During the year 2009-10, Rs. 343 billion were spent for defence. About 75 % of the budget is spent on defence, administration, repayments of loan and interest charges in Pakistan.

28- Govt. Control by Wealthy Persons

            Wealthy persons, landlords and elite class not only control the government but also they have full control over all the major sectors of the economy in poor countries. This rich class is not interested to solve the problems of the poor for their welfare but they make government policies for their own improvement.

29- Frequent Changes in Fiscal Policy

            Revenues and expenditures policy of government is not stable in developing countries. Government has to change the fiscal policy according to the will of its own people. Industrialists are the main controller of the government and they adjust the fiscal policy in accordance with their own benefits.

30- Violation of Law and Order

Law and order conditions are at their poor stage in Pakistan like other developing countries. A huge portion of saving of people is wasted in costly and lengthy legal process. As in case of Iftikhar Muhammad Chohdery (CJP), he himself has to wait for justices for a long period.

  

D.  TECHNOLOGICAL AND MISCELLANEOUS CHARACTERISTICS

Following are the technological and miscellaneous characteristics of developing countries:

31- Backward State of Technology

            Use of modern techniques of production is not adopted in developing countries. It may cause further unemployment. Use of advanced technology is impossible due to shortage of capital, lack of skill and training, high cost of production and lack of foreign exchange reserves. Backward state of technology is results in low production, high cost and wastage of time.

32- Social Aspects

            Under developed countries have also some factors such as joint family system, caste system, cultural and religious views, beliefs and values that badly affect their economic development.  32.17 % population is working population and remaining 67.83 % population is depending on them in Pakistan.

33- Un-fair Wealth and Income Distribution

            There are not only regional inequalities in developing countries but also wealth and income inequalities. There is unfair wealth and income distribution in less developed nation. 20 % extremely rich population has 50.02 % of national resources, while 20 % poorest population has just 6.37 % of national resources in Pakistan. The difference between rich and poor is increasing day by day.

34- Lack of Experts and Skilled Persons

            People have to move abroad for advanced study due to illiteracy and lack of training institutes. They adjust them in foreign countries due to low remuneration and less self-esteem. So, there is scarcity of experts, skilled and trained staff that causes the poor nation to remain backward. 

35- Dependence on External Resources

            The international trade, political activities and other economic activities are under the influence of other advanced countries in less developing countries. Their development plans are financed by the loan giving countries; these plans are made to serve the interests of foreign countries. So, poor nations are loans and grants receiving nations.

Conclusion:

            We conclude that all above characteristics are unfavourable for the developing economies. These features are obstacles in way of economic development. All these features are cause of low rate of capital formation, poverty and creation of vicious circle of poverty.