A developing country, less developed country, less economically developed country is a country with a less developed industrial base and a low Human Development Index relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreement on which countries fit this category. A nation's GDP per capita compared with other nations can also be a reference point. In general, the United Nations accepts any country's claim of itself being "developing".
There are controversies over the use of this term which some feel it is perpetuating an outdated concept of "us" and "them". In 2015, the World Bank declared that the "developing / developed world categorization" is becoming less relevant and that they will phase out the use of that descriptor. Instead, their reports with present data aggregations for regions, and for income groups.
The term "developing" describes a currently observed situation and not a changing dynamic or expected direction of progress. Since the late 1990s, developing countries tended to demonstrate higher growth rates than developed countries. Developing countries include, in decreasing order of economic growth or size of the capital market: newly industrialized countries, emerging markets, frontier markets, Least Developed Countries. Therefore, the least developed countries are the poorest of the developing countries.
Developing countries tend to have some characteristics in common. For example, with regards to health risks, they commonly have: low levels of access to safe drinking water, sanitation and hygiene; energy poverty; high levels of pollution ; high proportion of people with tropical and infectious diseases ; high number of road traffic accidents; and generally poor infrastructure. Often, there is also widespread poverty, low education levels, inadequate access to family planning services, corruption at all government levels and a lack of so-called good governance. Effects of global warming are expected to impact developing countries more than wealthier countries, as most of them have a high "climate vulnerability".
The Sustainable Development Goals by the United Nations were set up to help overcome many of these problems. Development aid or development cooperation is financial aid given by governments and other agencies to support the economic, environmental, social and political development of developing countries.
DefinitionsThe UN acknowledges that it has "no established convention for the designation of "developed" and "developing" countries or areas". According to its so-called M49 standards, published in 1999:
The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.
The UN implies that developing countries are those not on a tightly defined list of developed countries:
However, under other criteria, some countries are at an intermediate stage of development, or, as the International Monetary Fund put it, following the fall of the Soviet Union, "countries in transition": all those of Central and Eastern Europe ; the former Soviet Union countries in Central Asia ; and Mongolia. By 2009, the IMF's World Economic Outlook classified countries as advanced, emerging, or developing, depending on " per capita income level, export diversification—so oil exporters that have high per capita GDP would not make the advanced classification because around 70% of its exports are oil, and degree of integration into the global financial system"
Along with the current level of development, countries can also be classified by how much their level of development has changed over a specific period of time.
In the 2016 edition of its World Development Indicators, the World Bank made a decision to no longer distinguish between "developed" and "developing" countries in the presentation of its data, considering the two-category distinction outdated. Instead, the World Bank classifies countries into four groups, based on Gross National Income per capita, re-set each year on July 1. In 2019, the four categories in US dollars were:
- Low income countries: $1,035 or less.
- Lower middle income countries: $1,036 to $4,045.
- Upper middle income countries: $4,046 to $12,535.
- High income countries: $12,535 or more
Measure and concept of development
Development can be measured by economic or human factors. 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 low standard of living. There is an association between low income and high population growth. The development of a country is measured with statistical indexes such as income per capita, gross domestic product per capita, life expectancy, the rate of literacy, freedom index and others. The UN has developed the Human Development Index, a compound indicator of some of the above statistics, to gauge the level of human development for countries where data is available. The UN had set Millennium Development Goals from a blueprint developed by all of the world's countries and leading development institutions, in order to evaluate growth. These goals ended in 2015, to be superseded by the Sustainable Development Goals.
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, modernization, social change 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 have grown substantially. Similarly countries with a tertiary sector stronghold also see a greater rate of economic development.
Terms used to classify levels of developmentThere are several terms used to classify countries into rough levels of development. Classification of any given country differs across sources, and sometimes these classifications or the specific terminology used is considered disparaging. Use of the term "market" instead of "country" usually indicates specific focus on the characteristics of the countries' capital markets as opposed to the overall economy.
- Developed countries and developed markets
- Developing countries include in decreasing order of economic growth or size of the capital market:
- * Newly industrialized countries
- * Emerging markets
- * Frontier markets
- * Least developed countries
- Heavily indebted poor countries, a definition by a program of the IMF and World Bank
- Transition economy, moving from a centrally planned to market-driven economy
- Multi-dimensional clustering system: with the understanding that different countries have different development priorities and levels of access to resources and institutional capacities and to offer a more nuanced understanding of developing countries and their characteristics, scholars have categorised them into five distinct groups based on factors such as levels of poverty and inequality, productivity and innovation, political constraints and dependence on external flows.
Criticisms and other terms
One of the early criticism that questioned the use of the terms "developing" and "underdeveloped" countries, was voiced in 1973 by prominent historian and academic Walter Rodney who compared the economic, social and political parameters between the United States and countries in Africa and Asia.
There is "no established convention" for defining "developing country". According to economist and sustainable development expert Jeffrey Sachs, the current divide between the developed and developing world is largely a phenomenon of the 20th century. The late global health expert Hans Rosling has argued against the terms, calling the concept "outdated".
To moderate the euphemistic aspect of the word "developing", international organizations have started to use the term less economically developed country for the poorest nations—which can, in no sense, be regarded as developing. This highlights that the standard of living across the entire developing world varies greatly. Other terms sometimes used are less developed countries, underdeveloped nations, low and middle income countries and non-industrialized nations. Conversely, developed countries, most economically developed countries, industrialized nations are the opposite end of the spectrum.
At the development level, anthropologist and researcher Jason Hickel has challenged the narrative that the rich countries of the OECD help the poor countries develop their economies and eradicate poverty. Hickel states that the rich countries "aren’t developing poor countries; poor countries are developing rich ones."
In 2015, the World Bank declared that the "developing / developed world categorization" is becoming less relevant, due to worldwide improvements in indices such as child mortality rates, fertility rates and extreme poverty rates. Accordingly, World Bank is phasing out use of that descriptor. Instead, the reports by Worldbank now include data aggregations for the whole world, for regions, and for income groups - but not for the “developing world”.
Third WorldOver the past few decades since the fall of the Soviet Union and the end of the Cold War, the term Third World has been used interchangeably with developing countries, but the concept has become outdated in recent years as it no longer represents the current political or economic state of the world. The three-world model arose during the Cold War to define countries aligned with NATO, the Communist Bloc, or neither. Strictly speaking, "Third World" was a political, rather than an economic, grouping.colonialism, neo-imperialism, and differential economic and social change through which large inequalities in living standards, life expectancy, and access to resources are maintained".
Common challengesMost developing countries have these criteria in common:
- High levels of poverty – measured based on GNI per capita averaged over three years. For example, if the GNI per capita is less than US $1,025 the country is regarded as a least developed country.
- Human resource weakness.
- Economic vulnerability.
The UN-Habitat reports that 43% of urban population in developing countries and 78% of those in the least developed countries are slum dwellers.
Slums form and grow in different parts of the world for many different reasons. Causes include rapid rural-to-urban migration, economic stagnation and depression, high unemployment, poverty, informal economy, forced or manipulated ghettoization, poor planning, politics, natural disasters and social conflicts. For example, as populations expand in poorer countries, rural people are moving to cities in an extensive urban migration that is resulting in the creation of slums.
In some cities, especially in countries in Southern Asia and Sub-Saharan Africa, slums are not just marginalized neighborhoods holding a small population; slums are widespread, and are home to a large part of urban population. These are sometimes called "slum cities".
Violence against womenSeveral forms of violence against women are more prevalent in developing countries than in other parts of the world. For example, dowry violence and bride burning is associated with Bangladesh, and Nepal. Acid throwing is also associated with these countries, as well as in Southeast Asia, including Cambodia. Honor killing is associated with the Middle East and South Asia. Marriage by abduction is found in Ethiopia, Central Asia and the Caucasus. Abuse related to payment of bride price is linked to parts of Sub-Saharan Africa and Oceania.
Female genital mutilation is another form of violence against women which is still occurring in many developing countries. It is found mostly in Africa, and to a lesser extent in the Middle East and some other parts of Asia. Developing countries with the highest rate of women who have been cut are Somalia, Guinea, Djibouti, Egypt, Eritrea, Mali, Sierra Leone, Sudan, Gambia, Burkina Faso, and Ethiopia. Due to globalization and immigration, FGM is spreading beyond the borders of Africa and Middle East, to countries such as Australia, Belgium, Canada, France, New Zealand, the U.S., and UK.
The Istanbul Convention prohibits female genital mutilation. As of 2016, FGM has been legally banned in many African countries.
Public healthPeople in developing countries usually have a lower life expectancy than people in developed countries. The burden of infectious diseases, maternal mortality, child mortality and infant mortality are typically substantially higher.
Undernutrition is more common in developing countries. Certain groups have higher rates of undernutrition, including women—in particular while pregnant or breastfeeding—children under five years of age, and the elderly. Malnutrition in children and stunted growth of children is the cause for more than 200 million children under five years of age in developing countries not reaching their developmental potential. About 165 million children were estimated to have stunted growth from malnutrition in 2013. In some developing countries, overnutrition in the form of obesity is beginning to present within the same communities as undernutrition.
The following list shows the further significant environmentally-related causes or conditions, as well as certain diseases with a strong environmental component:
- Illness/disease : Illness imposes high and regressive cost burdens on families in developing countries.
- Tropical and infectious diseases
- Unsafe drinking water, poor sanitation and hygiene
- Indoor air pollution in developing nations
- Motor vehicle collisions
- Unintentional poisoning
- Non communicable diseases and weak healthcare systems
Water, sanitation, hygiene (WASH)
About 892 million people, or 12 per cent of the global population, practiced open defecation instead of using toilets in 2016. Seventy-six per cent of the 892 million people practicing open defecation in the world live in just seven countries. Countries with a high number of people openly defecating are India, followed by Nigeria, Indonesia, Ethiopia, Pakistan, Niger and Sudan.
Sustainable Development Goal 6 is one of 17 Sustainable Development Goals established by the UN in 2015. It calls for clean water and sanitation for all people. This is particularly relevant for people in developing countries.
EnergyIn 2009, about 1.4 billion of people in the world lived without electricity. 2.7 billion relied on wood, charcoal, and dung for home energy requirements. This lack of access to modern energy technology limits income generation, blunts efforts to escape poverty, affects people's health due to indoor air pollution, and contributes to global deforestation and climate change. Small-scale renewable energy technologies and distributed energy options, such as onsite solar power and improved cookstoves, offer rural households modern energy services.
Renewable energy can be particularly suitable for developing countries. In rural and remote areas, transmission and distribution of energy generated from fossil fuels can be difficult and expensive. Producing renewable energy locally can offer a viable alternative.
Renewable energy can directly contribute to poverty alleviation by providing the energy needed for creating businesses and employment. Renewable energy technologies can also make indirect contributions to alleviating poverty by providing energy for cooking, space heating, and lighting.
Kenya is the world leader in the number of solar power systems installed per capita.
Indoor air pollutionis a major health hazard. A major source of indoor air pollution in developing countries is the burning of biomass. Three billion people in developing countries across the globe rely on biomass in the form of wood, charcoal, dung, and crop residue, as their domestic cooking fuel. Because much of the cooking is carried out indoors in environments that lack proper ventilation, millions of people, primarily poor women and children face serious health risks.
Globally, 4.3 million deaths were attributed to exposure to IAP in developing countries in 2012, almost all in low and middle income countries. The South East Asian and Western Pacific regions bear most of the burden with 1.69 and 1.62 million deaths, respectively. Almost 600,000 deaths occur in Africa. An earlier estimate from 2000 but the death toll between 1.5 million and 2 million deaths.
Finding an affordable solution to address the many effects of indoor air pollution is complex. Strategies include improving combustion, reducing smoke exposure, improving safety and reducing labor, reducing fuel costs, and addressing sustainability.
Water pollutionis a major problem in many developing countries. It requires ongoing evaluation and revision of water resource policy at all levels. It has been suggested that water pollution is the leading worldwide cause of death and diseases, and that it accounts for the deaths of more than 14,000 people daily.
India and China are two countries with high levels of water pollution: An estimated 580 people in India die of water pollution related illness every day. About 90 percent of the water in the cities of China is polluted. As of 2007, half a billion Chinese had no access to safe drinking water.
Further details of water pollution in several countries, including many developing countries:
Climate changeThe effects of global warming such as extreme weather events, droughts, floods, biodiversity loss, disease and sea level rise are dangerous for humans and the environment. Developing countries are the least able to adapt to climate change due to their relatively low levels of wealth, technology, education, infrastructure and access to resources. This applies to many countries in Sub-Saharan Africa or Small Island Developing States. Some of those island states are likely to face total inundation. Fragile states or failed states like Afghanistan, Haiti, Myanmar, Sierra Leone, and Somalia are among the worst affected.
Climate vulnerability has been quantified in the Climate Vulnerability Monitor reports of 2010 and 2012. Climate vulnerability in developing countries occurs in four impact areas: health, extreme weather, habitat loss, and economic stress. A report by the Climate Vulnerability Monitor in 2012 estimated that climate change causes 400,000 deaths on average each year, mainly due to hunger and communicable diseases in developing countries. These effects are most severe for the world's poorest countries.
A changing climate also results in economic burdens. The economies in Least Developed Countries have lost an average of 7% of their gross domestic product for the year 2010, mainly due to reduced labor productivity. Rising sea levels cost 1% of GDP to the least developed countries in 2010 – 4% in the Pacific – with 65 billion dollars annually lost from the world economy. Another example is the impact on fisheries: approximately 40 countries are acutely vulnerable to the impact of greenhouse gas emissions on fisheries. Developing countries with large fisheries sectors are particularly affected.
In many cases, developing countries produce only small quantities of greenhouse gas emissions per capita but are very vulnerable to the negative effects of global warming. Such countries include Comoros, The Gambia, Guinea-Bissau, São Tomé and Príncipe, Solomon Islands and Vanuatu - they have been called "forced riders" as opposed to the "free riders". Internationally there is recognition of this issue, which is known under the term "climate justice". It has been a key topic at the United Nations Climate Change Conferences.
During the Cancún COP16 in 2010, donor countries promised an annual $100 billion by 2020 through the Green Climate Fund for developing countries to adapt to climate change. However, concrete pledges by developed countries have not been forthcoming. Emmanuel Macron said at the 2017 United Nations Climate Change Conference in Bonn : "Climate change adds further injustice to an already unfair world".
Climate stress is likely to add to existing migration patterns in developing countries and beyond but is not expected to generate entirely new flows of people. A report by the World Bank in 2018 estimated that around 143 million people in three regions could be forced to move within their own countries to escape the slow-onset impacts of climate change. They will migrate from less viable areas with lower water availability and crop productivity and from areas affected by rising sea level and storm surges.
Economic development and climate are inextricably linked, particularly around poverty, gender equality, and energy. Tackling climate change will only be possible if the Sustainable Development Goals are met.
Population growthOver the last few decades, global population growth has largely been driven by developing countries, which often have higher birth rates than developed countries. According to the United Nations, family planning can help to slow population growth and decrease poverty in these countries.
The violent herder–farmer conflicts in Nigeria, the march 2019 attacks against Fulani herders in Mali, the Sudanese nomadic conflicts and other conflicts in the countries of the Sahel region have been exacerbated by climate change, land degradation, and population growth. Droughts and food shortages have been also linked to the Northern Mali conflict.
- Increased and intensified industrial and agricultural production and emission of toxic chemicals directly into the soil, air, and water.
- Unsustainable use of energy resources.
- High dependency on natural resources for livelihood, leading to unsustainable exploitation or depletion of those resources
- Child Marriage
- Political instability
- Political corruption
- Under performing civil service
- Food insecurity
- Human Capital
- Trade Policy: Countries with more restrictive policies have not grown as fast as countries with open and less distorted trade policies.
- Investment: Investment has a positive effect on growth.
Developing countries according to International Monetary FundThe following are considered developing economies according to the International Monetary Fund's World Economic Outlook Database,.
Countries not listed by IMF
Countries and regions that are graduated developed economiesThe following, including the Four Asian Tigers and new Eurozone European countries, were considered developing countries and regions until the '90s, and are now listed as advanced economies by the IMF. Time in brackets is the time to be listed as advanced economies.
Newly industrialized countries