Developing country

Coloured world map indicating Human Development Index (as of 2003). Countries coloured yellow/orange exhibit medium human development, and those coloured red exhibit low human development.

A developing country is a country with a relatively low standard of living, undeveloped industrial base, and moderate to low Human Development Index (HDI). The term has tended to edge out earlier ones, including the Cold War-defined "Third World".

Development entails a modern infrastructure (both physical and institutional), and a move away from low value added sectors such as agriculture and natural resource extraction. Developed countries usually have economic systems based on continuous, self-sustaining economic growth and high standards of living.

The application of the term 'developing country' to all of the world's least developed countries could be considered inappropriate: a number of poor countries are not improving their economic situation (as the term implies), but have experienced prolonged periods of economic decline.

Measure of Development

The term "developing country" often refers mainly to countries with low levels of economic development, but this is usually closely associated with social development, in terms of education, healthcare, life expectancy, etc.

The development of a country is measured with statistical indexes such as income per capita (GDP), life expectancy, the rate of literacy, et cetera. The UN has developed the HDI, a compound indicator of the above statistics, to gauge the level of human development for countries where data is available.

Developing countries are in general countries which have not achieved a significant degree of industrialization relative to their populations, and which have a low standard of living. There is a strong correlation between low income and high population growth, both within and between countries.

Nature of Development

Even though a lot of the world seems to aspire to development, the term itself is criticized by those who think it is too centered on Western countries. The term implies a direction and a movement that the countries must follow; it implies an inferiority of the developing countries.

The terms utilized when discussing developing countries refer to the intent and to the constructs of those who utilize these terms. Other terms sometimes used are less developed countries (LDCs), least economically developed countries (LEDCs), "underdeveloped nations" or "undeveloped nations", Third World nations, the South and "non-industrialized nations". Conversely, the opposite end of the spectrum is termed developed countries, most economically developed countries (MEDCs), First World nations and "industrialized nations".

The United Nations allows each nation to decide for itself whether it will be designated as "undeveloped" or "developing" (though many economists and other observers ignore the UN rule about self-designation).

To moderate the euphemistic aspect of the word developing, international organisations have started to use the term least developed countries (LLDCs) for the poorest nations which can in no sense be regarded as developing. That is, LLDCs are the poorest subset of LDCs. This also moderates the naïve tendency to believe that the standard of living in Somalia or Ethiopia is comparable to that in Chile or Mexico.

The concept of the developing nation is found, under one term or another, in numerous theoretical systems having diverse orientations — for example, theories of decolonization, liberation theology, marxism, anti-imperialism, and political economy.

Sources of (under)development

According to different theories, sources of underdevelopment include:

• Low saving which may lead to low investment according to Harrod-Domar model but large amount of saving and investment still does not imply strong development

• Intrinsic attitudes and aptitudes, real or used as justification
  • attitudes and culture of the people;
  • aptitudes and behavior of the elites and leaders;

• High rates of fertility

• Legal structures and institutions
  • a breakdown in the rule of law
  • high corruption

• Extrinsic factors, real or used as justification
  • geopolitical or commercial interest that it creates compared to other countries;
  • place of the country in a historical and cultural system;
  • inadequate reforms imposed in counterpart with financing of last resort, by multilateral organizations (like the International Monetary Fund and the World Bank) to get out of situations of deficit and indebtedness in which the country is placed (see Developing countries' debt).
  • lack of interest in and comprehension for the specific dynamics of a nation, by multinational companies.

Typology and names of countries

Developing countries

Countries are often loosely placed into four categories of development:

1. Developed countries, and their dependencies (For a list of countries, see developed country.)
2. Countries with an economy consistently and fairly strongly developing over a longer period (People's Republic of China, Mexico, India, Brazil, South Africa, Turkey, the Philippines, Egypt, much of South America, several of the Persian Gulf Arab States, Malaysia, Thailand, Possibly the former Warsaw Pact, etc.). See Emerging markets.
3. Countries with a patchy record of development (most countries in Africa, Central America, and the Caribbean excepting Jamaica (category 2); much of the Arab world falls in this category); also much of Southeast Asia, falls under this category excepting Singapore (category 1), Philippines, Brunei, Malaysia and Thailand (category 2). 76% of the world's countries fall under this category.
4. Countries with long-term civil war or large-scale breakdown of rule of law or non-development-oriented dictatorship ("failed states") (e.g. Haiti, Somalia, Sudan, Burma, perhaps North Korea)

The term "developing nation" is not a label to assign a specific, similar type of problem. Designation of these nations depends on the angle at which one approaches them, and according to the solutions envisioned to solve their problems. Each one of these terms has meanings beyond its first appearance:

• Third World

The term was used for the first time by demographer Alfred Sauvy and refers to the Third Estate. The Third World does not include the nations of the liberal West ("First World") nor of the Soviet bloc ("Second World"), and to some extent were disdained because they could not throw strong support behind either. Many "Third World" countries became independent from colonial rule amid fears that, if they were not independent, the Soviet Union would subvert them against their colonizers; both Cold War antagonists tried to control many of these countries by backing leaders and factions therein. A Cold War era term which is increasingly deprecated.

• Countries of The South and The North

These terms originate from the fact that most developing countries (including many of the poorest) are to the south of most of the developed countries. However, the geographic distinction is not perfect — for example, Australia and New Zealand, both developed, are south of most less developed countries, but not included in "the South". "North" and "South" are essentially euphemisms for "developed country" and "developing country", but are alternatives which are often preferred by people from the South because they avoid the loaded reference to "development". This is shown in the Brandt report.

• Rich and poor countries

These terms suggest a greater focus on income per capita. It should be noted that this statistic only reflects the statistical average wealth of a country's citizens; when income is distributed very unequally (as measured for example by the Gini coefficient) this figure may be misleading (see also kleptocracy).

• Industrialized and non-industrialized countries

Most countries that are currently being industrialized or are in advanced phases of industrialization, also have characteristics of a post-industrial economy.

See also

• Developed country
• Developing 8 Countries
• Development criticism
• Newly industrialized country
• Decolonisation
• Economic development
• Sustainable development
• Industrialisation
• G8
• World Bank

External links

• List of developing countries according to the World Bank
• GlobalGiving