DEVELOPED, UNDEVELOPED AND DEVELOPING ECONOMIES || LIST, GDP, UNEMPLOYMENT

There are 195 countries in the world, some are developed countries, some are undeveloped, and some are underdeveloped or developing countries. The distinction between them is a different process but we can differentiate based on conditions like economic growth, GDP, employment rate, population, etc.

Let's understand how we can say whether the country is developed.

ADVANCE OR DEVELOPED ECONOMIES

An advanced or developed economy is one, which carries on production with a large amount of machinery and advanced techniques. An advanced economy employs its human and other resources to the maximum extent possible. 

The productive efficiency of a developed economy is of a very high order, and the per capita income is also high. Consequently, people in these countries enjoy high standards of living. 

England, the U.S.A, France, west Germany, etc, are advanced economies. These economies are inhabited by over one-fourth of the entire population of the world.

ADVANCED ECONOMY

Advanced Economies Criteria

The IMF uses three main criteria to classify countries as advanced economies.

• Gross domestic product(GDP) tallies up all the goods and services produced in a country in one year and divides this number by its population.

• Export diversification: Countries with high GDP are not considered advanced economies if their exports consist mostly of a few commodities.

• Integration into the global financial system: This includes both a country's volume of international trade and its adoption of and participation in international financial institutions.

UNDEVELOPED ECONOMY

In an undeveloped economy, production is carried on with a relatively small amount of capital and with primitive and old techniques.

The application of scientific and technological improvements to agriculture or industry is limited. In these countries, the level of real income and capital per head of population is extremely low and consequently, people have a low standard of living.

Most of the countries of Asia, with the exception of japan, the whole of Africa, South America with the possible exception of Argentina, and some countries of eastern and southern Europe could be considered undeveloped economies. These countries are inhabited by three-fourths of the entire population of the world. 

UNDEVELOPED COUNTRY

DEVELOPING COUNTRY

All underdeveloped countries are not in the same degree of economic development. Some are primitive but some have already taken steps towards rapid economic growth.

 The latter has commonly come to be known as developing economies. These economies are presently engaged in utilizing their resources to bring about rapid economic development. They are not primitive or backward; nor have they reached the stage of full economic development.

INDIA is a good example of a developing country.

DEVELOPING COUNTRY

Here you can see the list of countries based on GDP. GDP tells about countries' economic growth. The bigger the GDP bigger the growth.

Click on the link to know;👇

List of countries according to GDP

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Related pages;

Economic growth of countries

Need for the economics of world