Why some countries are classified as developed and others are not

What is a developed country?

Though there may not be a standard, set definition, a developed country is a country with a relatively high economic growth and security. Some of the most common criteria for evaluating a country’s degree of development are per capita income or gross domestic product (GDP), level of industrialization, general standard of living and the amount of widespread infrastructure. Increasingly other non-economic factors are included in evaluating an economy or country’s degree of development, such as the Human Development Index (HDI) which reflects relative degrees of education, literacy and health. The outcome of the development ultimately should be the desirability or how appealing it is to live in a particular country.

Characteristics of developed and developing economies

Developed economies Less developed economies
Population low birth rate

higher life expectancy

low death rate due to better medical facilities

ageing population

 

Developing countries have higher rate of natural increase. Death rates have fallen faster than birth rates; birth rates are significantly higher than in developed countries, whereas death rates are only somewhat higher than in developed countries. Tradition, lack of contraception, poverty and lack of education are the main causes of high population growth rate.
Education High level of literary, Highly trained workforce. Workers are paid high rates of wages. Low level of literacy with low skill levels of the workforce results in low wages of the workforce. Government is the main provider of education services and have low percentage of public expenditure allocated for education.
Economic structure These economies usually have a larger tertiary sector and most of the workforce is engaged in service industries. The country produces and exports high technology products or high value added goods. Primary sector is the major contributor to the GDP of the country. Low GDP per capita is there. Usually exports agricultural goods or natural resources and imports value added goods from developed countries.

Next topic: Absolute and relative poverty

Developed and developing economies

This is the 7th Unit in Cambridge O Level Economics. In this unit, we will try to understand the characteristics of developed and developing countries. Poverty, how to alleviate poverty, growth and population are also important topics to learn in this Unit.

  1. Why some countries are classified as developed and others are not
  2. Absolute and relative poverty
  3. Policies to alleviate poverty
  4. Factors affecting population growth
  5. Consequences of population changes at different stages of development
  6. The effects of changing size and structure of population on an economy
  7. Comparing developed and developing countries and regions within a country

Unit 3 of O Level Tutorials Complete!

updates
Unit 3: The individual as producer, consumer and borrower

The topics covered under this unit:

  1. Money and exchange
  2. Functions of central banks, stock exchanges, commercial banks
  3. Factors affecting an individual’s choice of occupation
  4. Changes in an individual’s earnings
  5. Differences in earnings
  6. Trade Unions
  7. Specialisation
  8. Spending, saving and borrowing
  9. Expenditure patterns

I hope you find the tutorials useful.

The individual as producer, consumer and borrower

This is the 3rd Unit in Cambridge O Level Economics Syllabus.

Since we already know that individuals are concerned about satisfying their wants. Let us see the example of Ahmed who works as a farmer.
He works at the farm, grows crops and sells the produce in the market – He is doing production, therefore he is a producer.
He gets money by selling his produce and he uses that money to buy things needed for his family at home – He is a consumer, because he is using up goods and services.
He borrows money to expand his farm. He also may borrow money if he needed to buy a few extra things for his family, and if the money he has is not sufficient. Therefore, he is also a borrower.

From this we can see that an individual is a producer, a consumer and at the same time a borrower.

In this unit, the following topics are required. Click on the topics to see the tutorials.

  1. Money and exchange
  2. Functions of central banks, stock exchanges, commercial banks
  3. Factors affecting an individual’s choice of occupation
  4. Changes in an individual’s earnings
  5. Differences in earnings
  6. Trade Unions
  7. Specialisation
  8. Spending, saving and borrowing
  9. Expenditure patterns

Next Unit: The private firm as producer and employer