There is a common question about developing and developed countries, how one can say that any country is developed or underdeveloped? The answer is that are some Indicators that indicate a country is developing or developed?
Indicators are as below:
- Gross Domestic Product (GDP).
- Gross national income (per capita).
- Level of industrialization.
- General standard living.
- Poverty line.
- Technological infrastructure.
These are the indicators that determine the country’s economic status. So, most of the developed countries of today’s era had worked a lot and improved these indicators. Hence, those countries who took these indicators light, are developing countries nowadays. So, take the example of Argentina and South Korea. Argentina’s journey is from number 7th to 34th and South Korea was that country for that, most of the United States people would believe that South Korea will no longer be. Also, South Korea’s products are easily acceptable in the whole world. Like: SAMSUNG, L.G, S.K Group, HYUNDAI and LOTTE are living examples.
Difference between developing and developed country
|Developed Country||Developing Country|
|High Gross Domestic Product||Low Gross Domestic Product|
|High Per capita Income||Low per capita income|
|Good Living Standard||Poor Living Standard|
|Few people below the poverty line||More people below the poverty line|
|Good Infrastructure||Poor Infrastructure|
|Up-to-date Technology||Out-Dated / Old Technology|
So, the World Bank has designed the formula in 2019 that in any country, per capita is less than $1035 the country will be considered as developing.
According to the Economic forum report of 2019, the gross domestic product of the United States is $21,433.23 billion and the Gross Domestic Product of China is $14,433.23 billion. Also, China was considered the world’s richest developing country while the United States was considered the world’s richest developed country.
GDP per capita
GDP per capita is the most valuable source for considering any country regarding its economic status. If any country has Gross Domestic Product in billions of dollars and other’s Gross Domestic Product is less than previous, no one can consider its status. Merely GDP is not enough, a population must be considered to know the country’s status. Gross Domestic Product per capita is calculated by dividing a country’s GDP by its total population.
Human Development Index
Human Development Index is another tool to measure the country’s economic status. It shows the expected average life, educational percentage, and income. Standardize between 0 to 1. In the more developed country, the human development index is nearer to 1 and vice versa. But most developed countries have HDIs of 0.8 or higher. According to the report of 2019, the top standard of Norway is 0.957 which was the highest in the world.
About 10 decades ago, Argentina was in the world’s top ten economies and now it is about 34th number. About 71 years ago, Ghana’s economy was more powerful than South Korea. Nowadays South Korea is eleven times more powerful than Ghana.