The world is a mix of different nations/countries that has a unique culture and diversification based on different parameters and multiple observations. There are approximately a total of 195 countries in the world, all these are divided into three categories as First world country, second world country, and third world country.
There are 195 nations in the world and out of which, a total of 193 countries that belongs to the member states of the united nations. 2 other countries are called Non-Member observer states. There are few parameters to denote or recognize the countries as developed or developing.
The parameters are:
- Freedom of press or media
- Rights of every human being in the nation
- World of peace
- Index of Happiness and The economy of the nation
Developing nations are usually separated and labelled as countries that have lower per-person income levels.
Using these statistics, they are further classified into moderate and less developed countries. In general, less developed countries have very less income per person.
Developing vs Least Developed Countries
The main difference between Developing countries and Least Developed countries is the per capita income of the people. Developing countries survive marginally with their per capita income ranging between average to below-average while that of the least developed countries have very poor per capita income.
Comparison Table Between Developing and Least Developed Countries (in Tabular Form)
| Parameter of Comparison | Developing Countries | Least Developed Countries |
|---|---|---|
| Per capita Income | Per capita income is between medium to less measurably in these countries | Per Capita income is less to poor in these countries |
| Rate of Population | The population growth rate in these countries is high | The population growth rate in these countries is moderate to high |
| Agricultural dependency | Dependency on the sector of agriculture is high however techniques are backward. | Dependency on the sector of agriculture is low and lagging. |
| Rate of Unemployment | The unemployed factor is at its maximum | The unemployed factor is at the highest level compared to developing countries. |
| Capital Markets | They are in the process of developing. | They have the least developed financial systems |
What are Developing Countries?
The Developing country is defined as the nation with a lower economy rate and the per capita income.
There are multiple sources of the economic process in these countries such as Natural Factors, Human capital factors, Physical capital, and technological factors, and Institutional factors.
Developing country’s economic stability is used determined by the factors mentioned below:
- Higher incomes
- Improved economic indicators of welfare
- Higher government revenues
- Creation of difference
- Negative externalization and lack of property
Common characteristics of developing countries are:
- Very Low commonplace of living, low incomes, inequality, poor health, and inadequate education.
- Low levels of productivity
- High rates of growth and dependency burdens (child and adulthood ratios)
- High and rising levels of state and underemployment
- Substantial dependence on agricultural production and first market exports
- Prevalence of imperfect markets and restricted info
- Dominance, dependence, and vulnerability in negotiation
Diversity among developing nations can be obtained by working on these factors such as:
- Resource endowment
- Historical background
- Location and structure of the population factors
- Ethnic and non-secular breakdown
- The structure of trade
- Per capita financial gain levels
- Political structure
What are Least Developed Countries?
Least developed countries (LDCs) are poor countries which have a lot of obstacles in development. Least developed countries have low human value aspects and also very futile in handling economic and natural calamities.
The committee of development validates the state of least developed countries every three years. The recent statistics prove that there are 47 countries in this category, currently.
LDCs have exclusive access to certain international support measures particularly in the areas of development help and trade.
They lie at the bottom of the human development index.
Criteria for Classification:
- Low-income criteria: A country must have GNI per capita less than $1025 to be included on the LDC list.
- Education and health value of the nation
- Stability of farming and production through agriculture.
Categories that fall under Economic vulnerability Index are Population size, remoteness, merchandise export, the share of agriculture in GDP, homelessness due to natural disasters and instability of agricultural production.
If the above-said factors fail then it will show a great impact on EVI that indirectly affects the LDC and it acts as a barrier for the growth.
Conclusion
Developing countries have reached the level of sustaining in industrial production whereas least developed countries have begun such activities in their countries. The developing nations are venturing such activities for the first time in their history.
Least developed countries have been devoid of manpower and innovation in using the resources for industrial development. The manpower development is good when compared to the least developed nations.
Establishing itself in all fronts and making itself sovereign by its efforts while the last thing just mentioned is still struggling to gain with an effort the first phase of the first thing just mentioned.
References
- https://www.econstor.eu/bitstream/10419/63616/1/537368140.pdf
- https://www.iatp.org/sites/default/files/Interests_and_Options_of_Developing_and_Least-.pdf