A developed country (or industrialized country, high-income country,more economically developed country (MEDC), advanced country [3] [4] ) is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. [5] Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the International Monetary Fund and the World Bank; moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita. Another commonly used measure of a developed country is the threshold of GDP (PPP) per capita of at least USD$22,000. In 2022, 36 countries fit all four criteria, while an additional 17 countries fit three out of four.
Developed countries have generally more advanced post-industrial economies, meaning the service sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialisation or are pre-industrial and almost entirely agrarian, some of which might fall into the category of Least Developed Countries. As of 2015, advanced economies comprise 60.8% of global GDP based on nominal values and 42.9% of global GDP based on purchasing-power parity (PPP) according to the IMF. [6]
Economic criteria have tended to dominate discussions. One such criterion is the income per capita; countries with the high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialisation; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently, another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with a very high (HDI) rating. The index, however, does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking of some of the most advanced countries, such as the G7 members and others. [7] [8]
According to the United Nations Statistics Division:
There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system. [9]
And it notes that:
The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. [10]
Nevertheless, the United Nations Conference on Trade and Development considers that this categorization can continue to be applied:
The developed economies broadly comprise Northern America and Europe, Israel, Japan and the Republic of Korea, as well as Australia and New Zealand. [11]
Terms linked to the concept developed country include "advanced country", "industrialized country", "'more developed country" (MDC), "more economically developed country" (MEDC), "Global North country", "first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialisation is an ongoing process that is hard to define. The first industrialized country was the United Kingdom, followed by Belgium. Later it spread further to Germany, United States, France and other Western European countries. According to some economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century. [12]
Mathis Wackernagel calls the binary labeling of countries as "neither descriptive nor explanatory. It is merely a thoughtless and destructive endorsement of GDP fetish. In reality, there are not two types of countries, but over 200 countries, all faced with the same laws of nature, yet each with unique features." [13]
A 2021 analysis proposes the term emerged to describe markets, economies, or countries that have graduated from emerging market status, but have not yet reached the level equivalent to developed countries. [14] Multinational corporations from these emerging markets present unique patterns of overseas expansion and knowledge acquisition from foreign countries.
The UN HDI is a statistical measure that gauges an economy's level of human development. While there is a strong correlation between having a high HDI score and being a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development."
Since 1990, Norway (2001–2006, 2009–2019), Japan (1990–1991 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–2008) have had the highest HDI score.
The following countries ranked from 1 to 66 in the year 2021 are considered to be of "very high human development": [15]
Rank | Nation | HDI | ||
---|---|---|---|---|
2021 data (2022 report) [15] | Change since 2015 [16] | 2021 data (2022 report) [15] | Average annual growth (2010–2021) [16] | |
1 | ![]() | ![]() | 0.962 | ![]() |
2 | ![]() | ![]() | 0.961 | ![]() |
3 | ![]() | ![]() | 0.959 | ![]() |
4 | ![]() | ![]() | 0.952 | ![]() |
5 | ![]() | ![]() | 0.951 | ![]() |
6 | ![]() | ![]() | 0.948 | ![]() |
7 | ![]() | ![]() | 0.947 | ![]() |
8 | ![]() | ![]() | 0.945 | ![]() |
9 | ![]() | ![]() | 0.942 | ![]() |
10 | ![]() | ![]() | 0.941 | ![]() |
11 | ![]() | ![]() | 0.940 | ![]() |
12 | ![]() | ![]() | 0.939 | ![]() |
13 | ![]() | ![]() | 0.937 | ![]() |
![]() | ![]() | ![]() | ||
15 | ![]() | ![]() | 0.936 | ![]() |
16 | ![]() | ![]() | 0.935 | ![]() |
17 | ![]() | ![]() | 0.930 | ![]() |
18 | ![]() | ![]() | 0.929 | ![]() |
19 | ![]() | ![]() | 0.925 | ![]() |
![]() | ![]() | ![]() | ||
21 | ![]() | ![]() | 0.921 | ![]() |
22 | ![]() | ![]() | 0.919 | ![]() |
23 | ![]() | ![]() | 0.918 | ![]() |
![]() | ![]() | ![]() | ||
25 | ![]() | ![]() | 0.916 | ![]() |
26 | ![]() | ![]() | 0.911 | ![]() |
27 | ![]() | ![]() | 0.905 | ![]() |
28 | ![]() | ![]() | 0.903 | ![]() |
29 | ![]() | ![]() | 0.896 | ![]() |
30 | ![]() | ![]() | 0.895 | ![]() |
31 | ![]() | ![]() | 0.890 | ![]() |
32 | ![]() | ![]() | 0.889 | ![]() |
33 | ![]() | ![]() | 0.887 | ![]() |
34 | ![]() | ![]() | 0.876 | ![]() |
35 | ![]() | ![]() | 0.875 | ![]() |
![]() | ![]() | ![]() | ||
![]() | ![]() | ![]() | ||
38 | ![]() | ![]() | 0.866 | ![]() |
39 | ![]() | ![]() | 0.863 | ![]() |
40 | ![]() | ![]() | 0.858 | ![]() |
![]() | ![]() | ![]() | ||
42 | ![]() | ![]() | 0.855 | ![]() |
![]() | ![]() | ![]() | ||
44 | NA [Note 1] | ![]() | 0.853 | NA [Note 1] |
45 | ![]() | ![]() | 0.848 | ![]() |
46 | ![]() | ![]() | 0.846 | ![]() |
47 | ![]() | ![]() | 0.842 | ![]() |
48 | ![]() | ![]() | 0.838 | ![]() |
49 | ![]() | ![]() | 0.832 | ![]() |
50 | ![]() | ![]() | 0.831 | ![]() |
51 | ![]() | ![]() | 0.829 | ![]() |
52 | ![]() | ![]() | 0.822 | ![]() |
53 | ![]() | ![]() | 0.821 | ![]() |
54 | ![]() | ![]() | 0.816 | ![]() |
55 | ![]() | ![]() | 0.812 | ![]() |
56 | ![]() | ![]() | 0.811 | ![]() |
57 | ![]() | ![]() | 0.810 | ![]() |
58 | ![]() | ![]() | 0.809 | ![]() |
![]() | ![]() | ![]() | ||
60 | ![]() | ![]() | 0.808 | ![]() |
61 | ![]() | ![]() | 0.805 | ![]() |
62 | ![]() | ![]() | 0.803 | ![]() |
63 | ![]() | ![]() | 0.802 | ![]() |
![]() | ![]() | ![]() | ||
![]() | ![]() | ![]() | ||
66 | ![]() | ![]() | 0.800 | ![]() |
Some institutions have produced lists of developed countries: the UN (list shown above), the CIA, [17] and some providers of stock market indices (the FTSE Group, MSCI, S&P, Dow Jones, STOXX, etc.). The latter is not included here because its association of developed countries with countries with both high incomes and developed markets is not deemed as directly relevant.[ why? ] [Note 2]
However, many other institutions have created more general lists referred to when discussing developed countries. For example, the International Monetary Fund (IMF) identifies 39 "advanced economies". [18] [19] The OECD's 37 members are known as the "developed countries club". [20] [21] [22] The World Bank identifies 81 "high income countries". [23] Other standards, such as the 30-50 Club (GDP per capita over $30,000 and population over 50 million) have been developed to categorize highly developed and influential countries.
According to the World Bank the following 80 countries and territories are classified as "high-income economies". As of the 2022 fiscal year, high-income economies are those that had a GNI per capita of $12,696 or more in 2020. [23]
36 countries and territories in Europe:
20 countries and territories in the Americas:
15 countries and territories in Asia:
eight countries and territories in Oceania:
one country in Africa:
nine former high-income economies: [24]
*Between 1994 and 2009, as a part of the Netherlands Antilles.
# Dissolved on 10 October 2010, succeeded by Curaçao and Sint Maarten.
According to the World Bank, the following 34 members are classified as "OECD High-Income": [25] [26]
26 countries in Europe:
three countries in the Americas:
three countries in Asia:
two countries in Oceania:
There are 29 OECD member countries and the European Union—in the Development Assistance Committee (DAC), [27] a group of the world's major donor countries that discuss issues surrounding development aid and poverty reduction in developing countries. [28] The following OECD member countries are DAC members:
23 countries in Europe:
two countries in the Americas:
two countries in Asia:
two countries in Oceania:
According to the International Monetary Fund, 40 countries and territories are officially listed as "advanced economies", [1] [29] with the addition of 7 microstates and dependencies modified by the CIA which were omitted from the IMF version: [17]
28 countries and dependencies in Europe classified by the IMF, 6 others given by the CIA:
Plusd
seven countries and territories in Asia:
three countries and territories in the Americas classified by the IMF, one territory given by the CIA :
two countries in Oceania:
d The CIA has modified an older version of the IMF's list of 38 Advanced Economies, noting that the IMF's Advanced Economies list "would presumably also cover the following nine smaller countries of Andorra, Bermuda, Faroe Islands, Guernsey, Holy See, Jersey, Liechtenstein, Monaco, and San Marino[...]". San Marino (2012) and Andorra (2021) were later included in the IMF's list. [17]
There are 22 permanent members in the Paris Club (French : Club de Paris), a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.
15 countries in Europe:
three countries in the Americas:
three countries in Asia:
one country in Oceania:
Comparative table of countries with a "very high" human development (0.800 or higher), according to UNDP; "advanced" economies, according to the IMF; "high income" economies, according to the World Bank; and income per capita (purchasing power parity) higher than $25,000, according to the IMF.
Developed Countries | ||||
---|---|---|---|---|
Countries | HDI [30] | IMF [31] | WB [32] | Per capita PPP 2022 [33] |
2021 | ||||
![]() | Yes since 2021 | Yes since 2012 | Yes since 2000 | Yes before 2004 |
2020 | ||||
![]() | Yes since 2003 | Yes since 2020 | Yes since 1990 | Yes before 2010 |
2016 | ||||
![]() | Yes since 2005 | Yes since 2014 | Yes since 2012 | Yes since 2016 |
2015 | ||||
![]() | Yes since 2005 | Yes since 2015 | Yes since 2012 | Yes since 2013 |
2013 | ||||
![]() | Yes since 2001 | Yes since 1989 [34] | Yes since 1996 | Yes since 2013 |
2012 | ||||
![]() | Yes since 2003 | Yes since 2011 | Yes since 2006 | Yes since 2012 |
2011 | ||||
![]() | Yes since 2006 | Yes since 2009 | Yes since 2007 | Yes since 2011 |
2009 | ||||
![]() | Yes since 2001 | Yes since 2009 | Yes since 2006 | Yes since 2006 |
2008 | ||||
![]() | Yes since 2003 | Yes since 2008 | Yes since 2002 | Yes since 2007 |
2007 | ||||
![]() | Yes since 1998 | Yes since 2007 | Yes since 1997 | Yes since 2006 |
![]() | Yes since 2005 | Yes since 1989 [34] | Yes since 1994 | Yes since 2007 |
2006 | ||||
![]() | Yes since 1991 | Yes since 1997 [35] | Yes since 1987 | Yes since 2006 |
![]() | Yes since 1999 | Yes since 1997 [36] | Yes since 2001 | Yes since 2006 |
2003 | ||||
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 2003 |
2002 | ||||
![]() | Yes since 2001 | Yes since 2001 | Yes since 1988 | Yes since 2002 |
2001 | ||||
![]() | Yes since 1995 | Yes since 1945 | Yes since 1987 | Yes since 2001 |
1999 | ||||
![]() | Yes before 1999 | Yes since 1997 [36] | Yes since 1987 | Yes since 1991 |
![]() | Yes since 1994 | Yes since 1945 | Yes since 1987 | Yes since 1999 |
![]() | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1999 |
1998 | ||||
![]() | Yes since 1996 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
![]() | Yes since 1993 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
1997 | ||||
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
1996 | ||||
![]() | Yes since 1995 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
![]() | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
1995 | ||||
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1995 |
1994 | ||||
![]() | Yes since 1991 | Yes since 1945 | Yes since 1987 | Yes since 1994 |
1992 | ||||
![]() | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1986 |
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1992 |
1988 | ||||
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1988 |
1987 | ||||
![]() | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1986 |
In process | ||||
Countries | HDI [30] | IMF [31] | WB [32] | per capita PPP 2022 [33] |
![]() | Yes since 2014 | No | Yes since 2012 | Yes since 2022 |
![]() | Yes since 2007 | No | Yes since 2012 | Yes since 2021 |
![]() | Yes since 2021 | No | Yes since 2006 | Yes since 2006 |
![]() | Yes since 2013 | No | Yes since 2021 | Yes since 2017 |
![]() | Yes since 2019 | No | Yes since 2021 | Yes since 2015 |
![]() | Yes since 2007 | No | Yes since 2017 | Yes since 2016 |
![]() | Yes since 2016 | No | Yes since 1987 | Yes since 1999 |
![]() | Yes since 2005 | No | Yes since 2014 | Yes since 2014 |
![]() | Yes since 2014 | No | Yes since 1987 | Yes since 1992 |
![]() | Yes since 2003 | No | Yes since 2009 | Yes since 2014 |
![]() | Yes since 2012 | No | Yes since 2001 | Yes since 1983 |
![]() | Yes since 2012 | No | Yes since 2007 | Yes since 1990 |
![]() | Yes since 2010 | No | Yes since 2004 | Yes before 1980 |
![]() | Yes since 2004 | No | Yes since 1987 | Yes before 1980 |
![]() | No data [Note 4] | Yes since 1997 [36] | Yes since 1987 | Yes since 2002 |
![]() | Yes since 1999 | No | Yes since 1990 | Yes before 1985 |
![]() | Yes since 1996 | No | Yes since 1987 | Yes before 1980 |
Other recognitions | ||||
Countries | HDI [30] | IMF [31] | WB [32] | per capita PPP 2022 [33] |
![]() | Yes since 2019 | No | No | Yes since 2022 |
![]() | Yes since 2006 | No | No | Yes since 2022 |
![]() | Yes since 2013 | No | No | Yes since 2022 |
![]() | Yes since 2015 | No | No | Yes since 2021 |
![]() | Yes since 2015 | No | No | Yes since 2018 |
![]() | Yes since 2016 | No | No | Yes since 2017 |
![]() | No | No | Yes since 2012 | Yes since 2017 |
![]() | Yes since 2013 | No | No | Yes since 2017 |
![]() | No | No | Yes since 2014 | Yes since 2016 |
![]() | Yes since 2015 | No | No | Yes since 2015 |
![]() | Yes since 2011 | No | Yes since 2006 | No |
![]() | Yes since 2000 | No | Yes since 1994 | No |
![]() | Yes since 2021 | No | No | No |
![]() | No | No | No | Yes since 2021 |
![]() | No | No | No | Yes since 2021 |
![]() | Yes since 2019 | No | No | No |
![]() | Yes since 2019 | No | No | No |
![]() | Yes since 2019 | No | No | No |
![]() | No data | No | Yes since 2019 | No |
![]() | Yes since 2013 | No | No | No |
![]() | No | No | Yes since 2012 | No |
![]() | Yes since 2012 | No | No | No |
![]() | No data | No | Yes since 1994 | No |
The economy of Bhutan is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult. Bhutan is among the richest by gross domestic product (nominal) per capita in South Asia, at $3,491 as of 2022, but it still places 153rd, and among the poorest in the world. The total gross domestic product is only $2,653 million, and 178th according to IMF.
The economy of Burkina Faso is based primarily on subsistence farming and livestock raising. Burkina Faso has an average income purchasing-power-parity per capita of $1,900 and nominal per capita of $790 in 2014. More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Highly variable rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The export economy also remained subject to fluctuations in world prices.
The economy of Chad suffers from the landlocked country's geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including the herding of livestock. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Bank, and other sources is directed largely at the improvement of agriculture, especially livestock production. Because of lack of financing, the development of oil fields near Doba, originally due to finish in 2000, was delayed until 2003. It was finally developed and is now operated by ExxonMobil. In terms of gross domestic product, Chad ranks 143rd globally with $11.051 billion dollars as of 2018.
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, with an estimated annual per capita income of just $805 as measured by purchasing power parity in 2019.
The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation that maintains a high-income welfare state and the European social model. The Czech Republic participates in the European Single Market as a member of the European Union, and is therefore a part of the economy of the European Union. It uses its own currency, the Czech koruna, instead of the euro. It is a member of the Organisation for Economic Co-operation and Development (OECD). The Czech Republic ranks 12th in inequality-adjusted human development and 24th in World Bank Human Capital Index, ahead of countries such as the United States, the United Kingdom or France. It was described by The Guardian as "one of Europe’s most flourishing economies".
The economy of Latvia is an open economy in Europe and is part of the European Single Market. Latvia is a member of the World Trade Organization (WTO) since 1999, a member of the European Union since 2004, a member of the Eurozone since 2014 and a member of the OECD since 2016. Latvia is ranked the 14th in the world by the Ease of Doing Business Index prepared by the World Bank Group. According to the Human Development Report 2011, Latvia belongs to the group of very high human development countries. Due to its geographical location, transit services are highly developed, along with timber and wood processing, agriculture and food products, and manufacturing of machinery and electronic devices.
In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish, ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.
The Gross Domestic Product (GDP) of Niger was $13.68 billion US dollars in 2020, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of Senegal is driven by mining, construction, tourism, fishing and agriculture, which are the main sources of employment in rural areas, despite abundant natural resources in iron, zircon, gas, gold, phosphates, and numerous oil discoveries recently. Senegal's economy gains most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services. As one of the dominant parts of the economy, the agricultural sector of Senegal is highly vulnerable to environmental conditions, such as variations in rainfall and climate change, and changes in world commodity prices.
The economy of Slovakia is based upon Slovakia becoming an EU member state in 2004, and adopting the euro at the beginning of 2009. Its capital, Bratislava, is the largest financial centre in Slovakia. As of Q1 2018, the unemployment rate was 5.72%.
The economy of Slovenia is a developed economy, and the country enjoys a high level of prosperity and stability as well as above-average GDP per capita by purchasing power parity at 83% of the EU28 average in 2015. The nominal GDP in 2022 is 62.191 billion USD, nominal GDP per capita (GDP/pc) in 2022 is USD 29,469. The highest GDP/pc is in central Slovenia, where the capital city Ljubljana is located. It is part of the Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.
The economy of Tanzania is a lower-middle income economy that is overwhelmingly dependent on agriculture. Tanzania's economy has been transitioning from a command economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The economy of Guyana is one of the fastest growing in the world with a gross domestic product (GDP) growth of 19.9% in 2021. In 2022, Guyana had a per capita gross domestic product of $42,647 and an average GDP growth of 4.2% over the previous decade. Guyana's economy was transformed in 2015 with the discovery of an offshore oil field in the country’s waters about 120 miles from Georgetown. Crude oil production started in 2019.
The economy of Austria is a developed social market economy, with the country being one of the fourteen richest in the world in terms of GDP per capita. Until the 1980s, many of Austria's largest industry firms were nationalised. In recent years, privatisation has reduced state holdings to a level comparable to other European economies.
The economy of the Gambia is heavily reliant on agriculture. The Gambia has no significant mineral or other natural resources, and has a limited agricultural base. About 75% of the population depends on crops and livestock for its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and animal hides.
The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represent a subset of developing countries whose economic growth is much higher than other developing countries; and where the social consequences of industrialization, such as urbanization, are reorganizing society.
The following is a list of international rankings of Belarus.
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