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Developing country

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developing economies according to the IMF
developing economies out of scope of the IMF
graduated to developed economy
A developing country, also called a less-developed country, is a nation with a lower living
standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to
other countries.
[1]
On the other hand, since the late 1990s developing countries tended to
demonstrate higher growth rates than the developed ones.
[2]
There is no universal, agreed-upon
criterion for what makes a country developing versus developed and which countries fit these two
categories,
[3]
although there are general reference points such as a nation's GDP per
capita compared to other nations. Also, the general term less-developed country should not be
confused with the specific least developed country.
There is criticism of the use of the term developing country. The term implies inferiority of
a developing countryor undeveloped country compared to a developed country, which many
countries dislike. It assumes a desire to develop along the traditional Western model of economic
development which a few countries, such as Cubaand Bhutan, choose not to follow.
[4]
An
alternative measurement that has been suggested is that of gross national happiness, measuring
the actual satisfaction of people as opposed to how industrialised a country is.
Countries with more advanced economies than other developing nations but that have not yet
demonstrated signs of a developed country, are often categorized under the term newly
industrialized countries.
[5][6][7][8]

According to authors such as Walt Whitman Rostow, developing countries are in transition from
traditional lifestyles towards the modern lifestyle which began in the Industrial Revolution in the
18th and 19th centuries.
Contents
[hide]
1 Definition
2 Measure and concept of development
3 Typology of countries
4 Criticism of the term 'developing country'
5 List of developing economies
6 List of graduated developing economies
7 See also
8 References
9 External links
Definition[edit]

World map by quartiles of Human Development Index in 2014.
Very High
High
Medium
Low
Data unavailable
Various terms are used for whatever is not a developed country. Terms used include less
developed country (LDC) or less economically developed country (LEDC), and for the more
extreme, least developed country (LDC) or least economically developed country (LEDC).
Criteria for what is not a developed country can be obtained by inverting the factors that define a
developed country:
people have lower life expectancy
people have less education
people have less money (income)
Kofi Annan, former Secretary General of the United Nations, defined a developed country as
"one that allows all its citizens to enjoy a free and healthy life in a safe environment."
[9]
But
according to the United Nations Statistics Division,
There is no established convention for the designation of "developed" and "developing"
countries or areas in the United Nations system.
[3]

The designations "developed" and "developing" are intended for statistical convenience
and do not necessarily express a judgment about the stage reached by a particular
country or area in the development process.
[10]

The UN also notes,
In common practice, Japan in Asia, Canada and the United States in northern
America, Australia and New Zealand in Oceania, and western Europe are considered
"developed" regions or areas. In international trade statistics, the Southern African
Customs Union is also treated as a developed region and Israel as a developed country;
countries emerging from the former Yugoslavia are treated as developing countries; and
countries of Central Europe and of the Commonwealth of Independent States (code 172)
in Europe are not included under either developed or developing regions.
[3]

On the other hand, according to the classification from International Monetary
Fund (IMF) before April 2004, all countries of Central and Eastern Europe (including
Central European countries that still belongs to the "Eastern Europe Group" in the
UN institutions) as well as the former Soviet Union (USSR) countries in Central Asia
(Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan) and Mongolia,
were not included under either developed or developing regions, but rather were
referred to as "countries in transition"; however they are now widely regarded (in the
international reports) as "developing countries".
The IMF uses a flexible classification system that considers "(1) per capita income
level, (2) export diversificationso oil exporters that have high per capita GDP
would not make the advanced classification because around 70% of its exports are
oil, and (3) degree of integration into the global financial system."
[11]

The World Bank classifies countries into four income groups. These are set each
year on July 1. Economies were divided according to 2011 GNI per capita using the
following ranges of income:
[12]

Low income countries had GNI per capita of US$1,026 or less.
Lower middle income countries had GNI per capita between US$1,026 and
US$4,036.
Upper middle income countries had GNI per capita between US$4,036 and
US$12,476.
High income countries had GNI above US$12,476.
The World Bank classifies all low- and middle-income countries as developing but
notes, "The use of the term is convenient; it is not intended to imply that all
economies in the group are experiencing similar development or that other
economies have reached a preferred or final stage of development. Classification by
income does not necessarily reflect development status."
[12]

Along with the current level of development, countries may be classified by how
much this has changed over some amount of time.
[13]
This may be by absolute
numbers or country ranking.
countries that were more less-developed, and are less less-developed (also
developing country)
countries that were less-developed, and are about the same (developing
country)
countries that were less less-developed, and are more less-developed
(developing country)
Measure and concept of development[edit]
The development of a country is measured with statistical indexes such as
income per capita (per person) (gross domestic product), life expectancy, the rate of
literacy (ignoring reading addiction), et cetera. The UN has developed the Human
Development Index (HDI), a compound indicator of the above statistics, to gauge the
level of human development for countries where data is available. The UN sets
Millennium Development Goals (MDGs) from a blueprint developed by all of the
world's countries and leading development institutions, in order to evaluate growth.
[14]

Developing countries are, in general, countries that have not achieved a significant
degree of industrialization relative to their populations, and have, in most cases, a
medium to lowstandard of living. There is a strong association between low income
and high population growth.
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 Third World nations, and "non-industrialized nations".
Conversely, developed countries, most economically developed
countries (MEDCs), First World nations and "industrialized nations" are the opposite
end of the spectrum.
To moderate the euphemistic aspect of the word developing, international
organizations have started to use the term less economically developed
country (LEDCs) for the poorest nationswhich can, in no sense, be regarded as
developing. That is, LEDCs are the poorest subset of LDCs. This may moderate
against a belief that the standard of living across the entire developing world is the
same.
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.
Another important indicator is the sectoral changes that have occurred since the
stage of development of the country. On an average, countries with a 50%
contribution from the Secondary sector of Manufacturing have grown substantially.
Similarly countries with a tertiary Sector stronghold also see greater rate
of Economic Development.
Some researchers in development economics, such as Theodore Schultz who won
a Nobel Prize in 1979, have found that literate farmers in developing countries are
more productive than illiterate farmers. They therefore recommend investing
in human capital (education, health, etc.) as an effective tool for economic
development. Others, such asMohammed Tamim, believe that economic
development is measurable in educational level from primary school to the university.
They noticed that wherever the educational level is raised, the level of development
is also raised. They conclude that the percentage of the schooled population is
proportional to the economic growth rate and inversely proportional in the
demographic growth rate. The Take-Off of Walt Whitman Rostow can start in a
country if its population is completely schooled. It is therefore necessary for the
organization of a worldwide education program, itself conditioned by another
worldwide program of birth control and the establishment of a worldwide
organization for the implementation of this development strategy.
[15]

Typology of countries[edit]
Countries are often loosely placed into five categories of development. Each
category includes the countries listed in their respective article. The term "developing
nation" is not a label to assign a specific, similar type of problem.
1. Developed countries, and their dependencies.
2. Newly industrialized countries or NICs, nations with economies more
advanced and developed than those in the developing world, but not yet
with the full signs of a developed country.
[5][6][7][8]
NIC is a category between
developed and developing countries, and it includes South
Africa, Mexico, China, Indonesia, Malaysia, Brazil, India, the
Philippines, Thailand, and Turkey.
3. Countries with an economy consistently and fairly strongly developing over
a longer period: Some parts of Pakistan, Iran, much of South America,
the Caribbean (except Jamaica belongs to category 2) several of
the Persian Gulf States, the countries of the former Warsaw Pact and others.
(See Emerging markets.)
4. Countries with an inconsistent record of development: most countries
in Africa including (North Africa), Central America, Southeast Asia
(Examples: Laos or Cambodia), South Asia (Example: Bangladesh) and
Central Asia (Example: Tajikistan); and some countries of the Middle East.
76% of the world's countries fall under this category.
5. Countries with long-term civil war or large-scale breakdown of rule of law or
non-development-oriented dictatorship ("failed states")
(e.g. Afghanistan, Haiti, Somalia,Myanmar, Iraq, North Korea); they
sometimes also have low resources.
Criticism of the term 'developing country'[edit]

This section needs additional citations
for verification. Please help improve this article by adding
citations to reliable sources. Unsourced material may be
challenged and removed. (March 2013)
There is some criticism of the use of the term developing country. The term implies
inferiority of a 'developing country' or 'undeveloped country' compared to
a developed country, which many countries dislike.
It assumes a desire to develop along the traditional 'Western' model of economic
development, which a few countries, such as Cuba and Bhutan, choose not to
follow.
[4]

The term 'developing' implies mobility and does not acknowledge that development
may be in decline or static in some countries, particularly in southern African states
worst affected by HIV/AIDS. In such cases, the term developing country may be
considered a euphemism. The term implies homogeneity between such countries,
which vary widely. The term also implies homogeneity within such countries when
wealth (and health) of the most and least affluent groups varies widely. Similarly, the
term 'developed country' incorrectly implies a lack of continuing economic
development/growth in more-developed countries.
In general, 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, in comparison, usually have
economic systems based on continuous, self-sustaining economic growth in
the tertiary sector of the economy andquaternary sector of the economy and high
material standards of living. However, there are notable exceptions, as some
countries considered developed have a significant component of primary
industries in their national economies, e.g., Norway, Canada, Australia. The USA
and Western Europe have a very important agricultural sector, and are major players
in international agricultural markets. Also, natural resource extraction can be a very
profitable industry (high value added), e.g., oil extraction.
An alternative measurement that has been suggested is that of gross national
happiness, measuring the actual satisfaction of people as opposed to how fiscally
wealthy a country is.
List of developing economies[edit]
The following are considered developing economies according to the International
Monetary Fund's World Economic Outlook Report, April 2014 and World Bank
data.
[16][17]

Afghanistan
Albania
Algeria
Angola
Antigua and Barbuda
Argentina
Armenia
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belize
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burma
Burundi
Cambodia
Cameroon
Cape Verde
Central African Republic
Chad
Chile
China
Colombia
Comoros
Democratic Republic of the Congo
Republic of the Congo
Costa Rica
Cte d'Ivoire
Croatia
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Ethiopia
Fiji
Gabon
The Gambia
Georgia
Ghana
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Jamaica
Jordan
Kazakhstan
Kenya
Kiribati
Kosovo
Kuwait
Kyrgyzstan
Laos
Lebanon
Lesotho
Liberia
Libya
Lithuania
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Marshall Islands
[18]

Mauritania
Mauritius
Mexico
Federated States of Micronesia
[18]

Moldova
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Nicaragua
Niger
Nigeria
Oman
Pakistan
Palau
[18]

Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Qatar
Romania
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
So Tom and Prncipe
Senegal
Serbia
Seychelles
Sierra Leone
Solomon Islands
Somalia
[19]

South Africa
South Sudan
Sri Lanka
Sudan
Suriname
Swaziland
Syria
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe
Developing countries not listed by IMF
Cuba
Nauru
North Korea
List of graduated developing economies[edit]
The following, including Four Asian Tigers and new Euro countries, were considered
developing countries until recently, and are now listed as advanced economies by
the IMF:
Hong Kong (before 1997)
[20]

Israel (before 1997)
Singapore (before 1997)
South Korea (before 1997)
Taiwan (before 1997)
Cyprus (before 2001)
[21]

Slovenia (before 2007)
[22]

Malta (before 2008)
[23]

Czech Republic (before 2009)
[24]

Slovakia (before 2009)
[24]

Estonia (before 2011)
[25]

San Marino (before 2012)
[26]

Latvia (before 2014)
[17]

See also[edit]
Developed country
Emerging market
Least developed country
NorthSouth divide
References[edit]
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