The world is a mix of different nations/countries with unique cultures and diversities based on various parameters and multiple observations.
There are approximately a total of 195 countries in the world, all of which are divided into three categories: First world countries, second-world countries, and third-world countries.
There are 195 nations in the world, out of which a total of 193 countries belong to the member states of the united nations. 2 other countries are called Non-Member observer states.
Few parameters denote or recognize the countries as developed or developing.
The parameters are:
- Freedom of the 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 separated and labelled countries with lower per-person income levels.
Using these statistics, they are further classified into moderate and less developed countries. In general, less developed countries have significantly less income per person.
- Developing countries have lower economic development, industrialization, and human development; least developed countries (LDCs) are the most economically and socially vulnerable nations.
- Developing countries may have moderate levels of income and infrastructure; LDCs face extreme poverty, weak infrastructure, and low human development indicators.
- Developing countries often experience rapid growth and industrialization; LDCs require significant international support and investment to overcome their challenges.
Developing vs Least Developed Countries
The 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 the least developed countries have very poor per capita income.
|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 for the 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 a nation with a lower economic 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, technological factors, and Institutional factors.
A 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:
- Meagre living commonplace, 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?
The least developed countries (LDCs) are poor countries with many obstacles to development. At least developed countries have low human value aspects and are also very futile in handling economic and natural calamities.
The development committee validates the least developed countries’ states every three years. Recent statistics prove that there are 47 countries in this category currently.
LDCs have exclusive access to specific international support measures, particularly in 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 the Economic vulnerability Index are Population size, remoteness, merchandise export, the GDP share in agriculture, homelessness due to natural disasters and instability of agricultural production.
If the above factors fail, it will show a significant impact on EVI that indirectly affects the LDC and acts as a barrier to growth.
Main Differences Between Developing and Least Developed Countries
- The main difference between Developing Countries and Least Developed Countries is that the Developing Countries have a better per capita income and GDP than the Least Developed Countries.
- The literacy rate is moderate in Developing Countries, but the illiteracy rate in the least Developed Countries is very high.
- Developing Countries have comparatively better infrastructure and a better environment regarding health and safety, which are absent in the least developed countries.
- Revenue of Developing countries is mainly from the sectors of services. Conversely, Least Developed Countries generate revenue from exporting or trading natural resources.
- In Developing countries, people’s standard of living is comparatively better, which is in bad condition in the least developed countries.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.