Difference Between Developed Countries And Developing Countries

Based on economics, the world has been divided into two types of countries, which are developed countries and developing countries. The two categories are based mainly on per capita income, which is the average income per person. The per capita income is calculated by taking the total national income for a country and dividing it by the number of people that live in the country. For example, if a small country has a total national income of $800,000 and a population of 20 people, then the per capita income is $40,000.

Developed Countries refers to the sovereign state, whose economy has highly progressed and possesses great technological infrastructure, as compared to other nations. The countries with low industrialization and low human development index are termed as developing countries.

Definition of Developed Countries –

A developed country, industrialized country, or “more economically developed country” (MEDC), is a sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations. The Developed countries are also known as ‘Advanced countries’ or the first world countries, as they are self-sufficient nations.

Human Development Index (HDI) statistics rank the countries on the basis of their development. The country which is having a high standard of living, high GDP, high child welfare, health care, excellent medical, transportation, communication and educational facilities, better housing, and living conditions, industrial, infrastructural and technological advancement, higher per capita income, increase in life expectancy, etc. are known as Developed Country. These countries generate more revenue from the industrial sector as compared to the service sector as they are having a post-industrial economy.

As of 2010, the list of developed nations included the United States, Canada, Japan, Republic of Korea, Australia, New Zealand, France, Germany, Italy, Scandinavia, Singapore, Japan, Taiwan, Israel, countries of Western Europe, and some Arab states. In 2012, the combined populations of these countries accounted for around 1.3 billion people. The populations of developed countries are generally more stable, and it is estimated that they will grow at a steady rate of around 7% over the next 40 years.

In addition to having high per capita income and stable population growth rates, developed nations are also characterized by their use of resources. In developed countries, people consume large amounts of natural resources per person and are estimated to consume almost 88% of the world’s resources.

Definition of Developing Countries –

A developing country also called a less developed country or an underdeveloped country is a nation with a less developed industrial base, and a low Human Development Index (HDI) relative to other countries. On the other hand, since the late 1990s, developing countries tended to demonstrate higher growth rates than the developed ones. There is no universal, agreed-upon criterion for what makes a country developing versus developed and which countries fit these two categories, although there are general reference points such as a nation’s GDP per capita compared to other nations.

Moderately developed countries have an approximate per capita income of between $1,000 and $12,000. The average per capita income for moderately developed countries is around $4,000. As of 2012, the list of moderately developed nations is very long and accounts for around 4.9 billion people. Some of the most recognizable countries that are considered moderately developed include Mexico, China, Indonesia, Jordan, Thailand, Fiji, and Ecuador. In addition to these specific countries, many others from Central America, South America, northern and southern Africa, southeastern Asia, Eastern Europe, the former U.S.S.R., and many Arab states, are all considered moderately developed countries.

Less developed countries are the second type of developing nations. They are characterized by having the lowest income, with a general per capita income of approximately less than $1,000. In many of these countries, the average per capita income is even lower, at around $500. The following are the names of some developing countries: Colombia, India, Kenya, Pakistan, Sri Lanka, Thailand, Turkey, and other countries in southern Asia. In 2012, there were around 0.8 billion people who lived in these countries and survived on very little income.

Key Differences Between Developed and Developing Countries –

The following are the major differences between developed countries and developing countries

  • The countries which are independent and prosperous are known as Developed Countries. The countries which are facing the beginning of industrialization are called Developing Countries.
  • Developed Countries have a high per capita income and GDP as compared to Developing Countries.
  • In Developed Countries the literacy rate is high, but in Developing Countries illiteracy rate is high.
  • Developed Countries have good infrastructure and a better environment in terms of health and safety, which are absent in Developing Countries.
  • Developed Countries generate revenue from the industrial sector. Conversely, Developing Countries generate revenue from the service sector.
  • In developed countries, the standard of living of people is high, which is moderate in developing countries.
  • Resources are effectively and efficiently utilized in developed countries. On the other hand, proper utilization of resources is not done in developing countries.
  • In developed countries, the birth rate and death rate are low, whereas in developing countries both the rates are high.

Some people say the world is like a corporate company. Example:

  • Developed country is like a top executive of the corporate company. To reach that level, the top executive had gone through many stages of progress and finally, he is now in that exalted position.
  • Developing country is like a junior manager in the same company. He has worked from the entry-level to reach the management level but has to progress through more stages yet to reach the top management level.

There is a big difference between Developed Countries and Developing Countries as the developed countries are self-contained flourished while the developing countries are emerging as a developed country. Developing Countries are the one which experiences the phase of development for the first time. Developed countries are post-industrial economies and due to this reason, the maximum part of their revenue comes from the service sector. Developed Countries have a high Human Development Index as compared to Developing Countries. The former has established itself in all fronts and made itself sovereign by its efforts while the latter is still struggling to achieve the same.


Information Sources:

  1. keydifferences.com
  2. study.com
  3. quora.com