Concept of Developing, Emerging and Developed countries.

 

In 1978, the World Bank, for the first time, constructed an analytical country classification system. The occasion was the launch of the World Development Report. Annexed to the report was a set of World Development Indicators (WDI), which provided the statistical underpinning for the analysis. The first economic classification in the 1978 WDI divided countries into three categories: (1) developing countries, (2) industrialized countries, and (3) capital-surplus oil-exporting countries. Developing countries were categorized as low- income (with GNI/n of US$250 or less) and middle-income (with GNI/n above US$250).

Major Characteristics of Developing Countries are:-

  1.  Lower per-capita income
  2.  Low levels of human capital
  3. High levels of poverty and under-nutrition
  4. Higher population growth rates
  5. Predominance of agriculture and low levels of industrialization
  6. Low level of urbanization but rapid rural-to-urban migration
  7. Dominance of informal sector
  8. Underdeveloped labor, financial, and other markets.

Major Characteristics of Emerging Countries are:-

  1. the small size of the economy,
  2. GNP/Capita much lower than in developed countries,
  3. a reduced opening for accepting foreign investors,
  4. a high volatility of the exchange rate which implies greater risk in trading.

Major Characteristics of Developed Countries are:-

  1. Average income per capita of the population is generally high.
  2. Education level of high average population.
  3. Life expectancy of the population average height.
  4.  Population growth rate per year is relatively small.
  5. The death rate per year is relatively small population.
  6. Life-style market economy.
  7. His wide and varied field.
  8. Economic activity in most industry sectors, as well as export commodities.
  9. The majority of the population lives in cities.
  10. Relatively high level of population health.
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