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Home Developing Countries and Their Features Introduction to Developing Countries

 

Introduction to Developing/Underdeveloped/Less Developed/Third World Countries:

 

It was the Industrial Revolution which bifurcated the World into two distinctive parts. The Rich Countries and the Poor Countries. The rich countries are consisted of US, UK, France, Germany and Australia etc. Where the incomes, outputs, and employment levels rose sharply. Whereas the poor countries are consisted of Pakistan, India, Bangladesh and so many from Latin America and Africa. They have poor levels of income, employment and production. They have very poor standard of living. The literacy rates in the poor counties are very low. The basic needs like food, health and shelter are provided to the masses in very lower amounts. Accordingly, one comes across the heavy flow of diseases, miseries and troubles in case of poor countries commonly known as "Developing Countries, Underdeveloped Countries, Less-developed Countries and Third World Countries".

 

All the poor countries are not alike. Therefore, the economists and policy makers classify the developing countries. Despite certain dissimilarities, the Third World countries have a lot of common characteristics.

 

Definition and Explanation of Developing World:

 

In connection with defining the developing countries, a very common method is that of "Per Capita Income". So many international agencies like Organization of Economic Co-operation and Development ( OECD) and United Nations (UN) classify the countries on the basis of their economic position. But it is the World Bank (WB) which adopts its Atlas method to define the development level of a country.

 

The World Development Report (2002) where the WB included all of its members and all those countries whose population was more than 30,000, the classification of the economies was made on the basis of per capita gross national income (GNI) for the year 2000. It classified the economies amongst Low Income Countries (LIC), Lower-Middle Income Countries (LMC), Upper-Middle Income Countries (UMC), and High-Middle Income Countries (HMC), which are the countries with OECD and certain other countries.

 

The LICs are those countries whose per capita GNI in 2000 was $755 or its below.

 

The LMCs and those countries whose per capita GNI was in between $756 to $2995.

 

The UMCs are those countries whoso per capita GNI was $2996 to $9265.

 

The HMCs are those countries whose per capita GNI in 2004 was $9266 and above.

 

Sometimes a distinction is made between high income and middle income countries. As some of them have made remarkable progress in the field of manufacturing and they are given the name of Newly Industrialized Countries (NICs). Again, a classification is made regarding developing countries on the basis of International debts. According to WB, the classification of developing countries can be made on the basis of Severely Indebted, Moderately Indebted and Less Indebted countries. Whereas the United Nations Development Program  (UNDP) ranks the countries on the basis of Human Development Index which is constructed on the basis of education and health standards.

Relevant Articles:

Introduction to Developing/Underdeveloped/Less Developed/Third World Countries
Structure of Developing Countries
Common Characteristics of Developing/Third World Countries
Problems/Obstacles in the Way of Economic Growth
 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money
 

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