According to their socio-economic level, countries are divided into two broad categories by the United Nations, which are developed countries and underdeveloped countries.
There are also emerging or developing countries, which are those that have a certain level of industrialization, but still have significant economic inequalities.
The ranking of countries is based on their Human Development Index (HDI), which measures both a country's wealth, education level and life expectancy.
A country with a high Human Development Index (HDI) is considered a developed country. These countries have great technological infrastructure and an advanced economy compared to other nations. Citizens of a developed country enjoy a free and healthy existence.
Countries with low industrialization and low HDI are called developing countries. They have a higher level of birth and death rates than developed countries, as well as their infant mortality rate.
| Developed countries | Underdeveloped countries | |
|---|---|---|
| Definition |
A developed country is one that has a high level of industrialization and per capita income. They have a high HDI, level of education and quality of life. |
An underdeveloped country is one that is little industrialized and has a low per capita income. Its HDI is low, and citizens have a moderate to low standard of living. |
| unemployment and poverty | Low. | High. |
| GDP | High. | Lower. |
| Infant Mortality, Birth and Death Rates | Low. | High. |
| Education | It has a high literacy rate. | It has a high illiteracy rate. |
| Revenue | Developed countries generate income through the industrial sector. | Through its agriculture and services sectors. |
| Life expectancy | High. | Low. |
| Life conditions | Good. | Moderate. |
| Economic growth | Developed countries have stable economic growth and are not dependent on others. | Developing countries depend on developed countries for their economic growth. |
| Income distribution | Equal. | Concentrated in the hands of a few. |
| Examples | Norway, Sweden, Switzerland, United States, France, Germany and Italy. | India, Kenya, Pakistan, Sri Lanka, Thailand and Turkey. |
Map of Developed and Underdeveloped Countries
Definition and characteristics of developed countries
A developed country is one that has a high level of industrial development, basing its economy on technology and manufacturing rather than agriculture.
Productive resources are fully utilized, resulting in an increase in production and consumption, which leads to a high level of per capita income and GDP.
In addition, developed countries have a higher standard of living in relation to education and also have a higher life expectancy. Infant mortality, death rate and birth rate are low.
All these characteristics make them have a high Human Development Index (HDI).
The term “developed country” is used interchangeably with industrialized country, first world country or post-industrial country. Some examples of developed countries are Australia, Canada, France, Germany, Italy, Japan, Norway, Sweden, Switzerland and the United States.
Definition and characteristics of underdeveloped countries
An underdeveloped country is one that has a low level of industrialization, a relatively modest standard of living, and a moderate to low Human Development Index (HDI).
Citizens of underdeveloped countries have a low to medium standard of living. Not all productive factors are used in their entirety and their technological capacity is breached. There is also an unequal distribution of income in underdeveloped countries and much of the wealth is concentrated in the hands of a few people.
Birth and death rates are higher than in developed countries. The infant mortality rate is also high due to poor nutrition, scarcity of medical services, infrastructure and poor health knowledge.
These countries generate their income through the agricultural sector or the service sectors, and they don't have a very stable economy. Therefore, they depend on developed countries to support them in establishing industries.
Some examples of underdeveloped countries are Colombia, India, Kenya, Pakistan, Sri Lanka, Thailand and Turkey.
See also the difference between:
- Microeconomics and Macroeconomics
- Import and Export
- City and Municipality
