Difference Between Developed Countries and Developing Countries

Difference Between Developed Countries and Developing Countries

Countries are typically classified into two groups by the United Nations and global associations: developed countries and developing countries. This classification is based on their economic state, which includes factors such as average wealth per person (per capita income), national wealth (Gross Domestic Product/GDP), industrialization, birth rates, literacy rates, and extent of reliance on foreign trade. Developed countries have a better economic state than developing countries.

In this blog post, we shall be throwing light on what makes developed countries different from developing countries.

What are developed countries?

The term “developed country” refers to a sovereign (independent) nation/state whose economy has advanced significantly and which possesses superior technological infrastructure in comparison to other nations.

Developed countries have a mature and sophisticated economical state. Their residents usually have access to quality health care and higher education. Such countries are considered to be highly developed in terms of their economic growth. Some examples of developed countries are the United States of America, Canada, Germany, Italy, Australia, the United Kingdom, and France.

What are developing countries?

On the other hand, developing countries are those that are characterized by low industrialization and low human development index (HDI). HDI is a composite index to measure a country’s overall achievement in social and economic dimensions. 

When compared to developed nations, developing countries have a less developed economy and a lower quality of life for the general public.

They are those who are still making attempts to grow their industrial base as well as improve their overall economic situation. Hence, they mostly have a lower per capita income, a lower standard of living, a lower literacy rate, and a lack of access to modern technology. Some examples of developing countries can be the Philippines, India, China, Kenya, Bangladesh, and Jordan.

What is the difference between Developed Countries and Developing Countries?

The following points may help to distinguish between a developing country and a developed country.

1. Rate of industrialization and individual income

  • Developed countries have an effective rate of industrialization and a high level of individual income.
  • Comparatively, developing countries have a slow rate of industrialization and low per capita income.

2. A peaceful and healthy environment

  • Developed countries give a generally peaceful, educated, and healthy environment for people to live in, whereas developing countries usually lack these things.

3. Unemployment and poverty

  • The rate of unemployment and poverty is high in developing countries as compared to developed nations.

4. Rates

  • In developed nations, the infant mortality rate, death rate and birth rate are low while the life expectancy rate is high.
  • But developing countries have a high infant mortality rate, death rate and birth rate, along with a low life expectancy rate.

5. Revenue generation and growth

  • It is normally seen that developed countries have high industrial growth and they generate more of their revenue from industrial sectors. However, developing countries generate more revenue from service sectors as they mostly rely on developed nations for their growth.

6. Distribution of income

  • Income inequality is normally higher in developing and emerging economies than in developed nations.
  • In developing countries, income is unevenly distributed between different groups in society.

Key takeaways: Comparison Table differentiating the two

BasisDeveloped CountriesDeveloping Countries
Rate of industrialization and per capita incomeHighLow
Life expectancyHighLow
Infant mortality rate, death rate and birth rateLowHigh
Unemployment and povertyLowHigh
Living conditionsGoodModerate
Standard of livingHighLow
Distribution of incomeEqualUnequal
Factors of productionEffectively utilizedIneffectively utilized
Revenue generationIndustrial sectorService sector
GrowthHigh industrial growthDependency on developed countries
Education, healthcare, and infrastructural facilitiesGoodModerate

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