What is a developing country?

Definition and Examples of Developing Countries

Developing countries are those with a low gross domestic product per capita. These countries rely on agriculture as their main industry. They have not yet reached economic maturity.

How Developing Countries Operate

In the 1960s, classifying countries became common as a way to understand the conditions of countries in each group. Classifying countries allows for easier political discussions about transferring resources to countries with affected populations.

Organizations use various metrics to determine how to classify countries. One of these groupings is Brazil, Russia, India, China, and South Africa (BRICS), which is often seen as a group of fast-developing countries.

Another group is the Newly Industrialized Countries (NICs), which are countries experiencing rapid economic growth based on exports. China, Brazil, India, and South Africa are widely considered NICs. Indonesia, Malaysia, Mexico, the Philippines, Thailand, and Turkey are also often regarded as NICs.

The main reason some countries are considered developing is not just their current economic status, but extends to their colonial history and aftermath. For example, many countries in Africa are considered “developing.” Some historians have noted that colonialism disrupted the development of those countries and contributed to the economic problems they face today.

Developing Country vs. Emerging Market

Developing Country Emerging Market

Lower industry becomes more connected to global markets

Often agricultural transitioning to a modern industrial economy

Lower per capita income higher living standards

An emerging market is a developing country that is investing in its productive capacity.

The main difference between these countries is the increasing presence of industry. Unlike countries that rely on agriculture as their main industry, emerging markets are making advancements in technology, infrastructure, and manufacturing, leading to increased income and growth.

Key Takeaways

Developing countries have economies with low gross domestic product per capita and rely on agriculture as their main industry. There is no single definition for a developing country. The terms “developed” and “developing” are controversial. These labels can give the impression that there is a hierarchy of countries where some are “good” and others “bad.” Emerging markets are those making strong advancements in technology and manufacturing.

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Sources:

– United Nations Conference on Trade and Development. “Classifications.” Accessed Dec. 14, 2021.

– World Economic Situation and Prospects. “Country Classification,” Page 144. Accessed Dec. 14, 2021.

– International Monetary Fund. “World Economic Outlook (WEO) – Q. How Does the WEO Categorize Advanced Versus Emerging Market and Developing Economies?” Accessed Dec. 14, 2021.

– International Monetary Fund. “Classifications of Countries Based on Their Level of Development: How It Is Done and How It Could Be Done,” Pages 16–18. Accessed Dec. 14, 2021.

– International Monetary Fund. “Classifications of Countries Based on Their Level of Development: How It Is Done and How It Could Be Done,” Pages 5–7. Accessed Dec. 14, 2021.

– United Nations. “List of Least Developed Countries.” Accessed Dec. 14, 2021.

– VoxEU CEPR. “Colonialism and Development in Africa.” Accessed Dec. 14. 2021.

– United Nations. “Standard Country or Area Codes for Statistical Use (M49),” Select “Developing Regions.” Accessed Dec. 14, 2021.

Source: https://www.thebalancemoney.com/what-is-a-developing-country-1978982