When we observe this title we think here we may start thinking about comparing our country with the United Nation. In a real sense, developed economy and developing economy might be the right way to distinguish the UN with other countries.
When we classify nations based on economic status such as GDP, GNP, per capita income, industrialization, the standard of living, etc.
Developed Countries refers to the leaders or rulers of the world, whose economy had progressed and possesses great technological infrastructure and service sector as compared to other nations.
Developing countries commonly used to refer to countries that do not enjoy the same level of economic security, industrialization, and growth as developed countries.
How to classify Developed and Developing nation?
Here we have to consider both economic and non-economic factors.
- Nations with relatively high levels of economic growth and security are considered to have developed economies.
- Common criteria for evaluation include income per capita and gross domestic product.
- Non-economic factors were also used as criteria, such as the Human Development Index (HDI).
- Countries like Qatar with high per capita GDP may be deemed developing. As factors such as lacking infrastructure and educational opportunities.
- The countries with low industrialization and low human development index are termed as developing countries.
- Developed Countries provides a free health and secured atmosphere to live. Whereas developing countries lack these things.
Key issues of Developed and Developing nation
|Meaning||Developed Countries are the countries which are developed in terms of economy and industrialization.||The countries who are going through the initial levels of industrial development along with low per capita income are known as Developing Countries.|
|Per capita GDP|| High|
USA : $ 62869 Australia :$ 49,144 Canada : $ 46290 Germany : $ 47,268
India : $ 2010 Brazil : $ 8,727. Chile : $13,576. China : $ 8,123.
|Growth||GDP is on steady growth, industries and service sectors competitive in nature.||GDP fluctuation in more. They are dependent on primary sectors and lack expertise in any sector.|
|Health||An excellent medical facility, Infant mortality rate, death rate and the birth rate is low while the life expectancy rate is high.||High infant mortality rate, death rate and birth rate, along with low life expectancy rate. Medical facilities are not up to mark.|
|Standard of living||Good||Medium to low|
|Income distribution||Almost equal||Unequal|
|Factors of production||Efficient utilization||Underutilization|
|Examples||Australia, Canada, France, Germany, Italy, Japan, Norway, Sweden, Switzerland, United States.||Colombia, India, Kenya, Pakistan, Sri Lanka, Thailand, Turkey.|
Solution: Ways to match with developed countries.
Developing countries have a growing economy and consuming population. This the key hope successful step forward.
Developing nations and emerging markets are expected to continue growing relatively fast, given their increasing labour force and expanding markets potential, versus the advanced economies, which are mostly replacement markets.
The government should allocate some standard amount of share for non-economic aspects. So that labour force can work and contribute effectively and efficiently.
It must not only grow but grow faster than the developed country. While It is possible for such accelerated growth to occur through rapid industrialization, but there are many country-specific factors that directly affect a developing country’s ability to catch up to developed countries. https://www.brookings.edu/blog/future-development/2019/02/20/4-lessons-for-developing-countries-from-advanced-economies-past/
They range from growth of productivity, labour force participation rate, the standard of living, infrastructure, political environment etc.