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Revision as of 19:50, 10 July 2007 editBrendelSignature (talk | contribs)19,495 edits →See also: {{Global economic classifications}}← Previous edit Revision as of 21:37, 10 July 2007 edit undoBrendelSignature (talk | contribs)19,495 edits →Human Development Index: removed statement pertaining to the World Bank high income list, as that list has been moved to the High income country article.Next edit →
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{{main|Human Development Index}} {{main|Human Development Index}}
{{main|List of countries by Human Development Index}} {{main|List of countries by Human Development Index}}
The UN ] is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and 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''." A few examples are Italy and the United States. Despite a relatively large difference in GDP per capita, both countries rank roughly equal in term of overall human development<ref name="UN. (2006). Human Development Report.">{{cite web|url=http://hdr.undp.org/hdr2006/statistics/flash/statistics_hdi.cfm|title=UN. (2006). Human Development Report.|accessdate=2007-07-07}}</ref>. Since 1980, ] (2001-present), ] (1991 & 1993), ] (1985, 1992, 1994-2000) and ], (1980) have had the highest HDI score. Countries with a score of over 0.800 are considered to have a "high" standard of human development. The top 30 countries have scores ranging from 0.885 in the ] to 0.965 in ]. All countries included in the UN study on the IMF list had a high HDI. On the CIA list of "developed countries" Turkey (0.75) and ] (0.658) did not have a high HDI score. The World Bank list of high income countries includes several countries, such as ] and ], that did not have a high HDI score in the 2003 UN study<ref name="NationMaster. (2003). Human Development Index by Country.">{{cite web|url=http://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-development-index|title=NationMaster. (2003). Human Development Index by Country.|accessdate=2007-07-07}}</ref>. Several small countries, such as ], ] and ] were on one or more of the three lists but were not reviewed by the United Nations. Thus, these countries have not received an official HDI score<ref name="UN. (2006). Human Development Report: Summary.">{{cite web|url=http://hdr.undp.org/hdr2006/pdfs/summaries/HDR2006_English_Summary.pdf|title=UN. (2006). Human Development Report: Summary.|accessdate=2007-07-07}}</ref>. The UN ] is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and 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''." A few examples are Italy and the United States. Despite a relatively large difference in GDP per capita, both countries rank roughly equal in term of overall human development<ref name="UN. (2006). Human Development Report.">{{cite web|url=http://hdr.undp.org/hdr2006/statistics/flash/statistics_hdi.cfm|title=UN. (2006). Human Development Report.|accessdate=2007-07-07}}</ref>. Since 1980, ] (2001-present), ] (1991 & 1993), ] (1985, 1992, 1994-2000) and ], (1980) have had the highest HDI score. Countries with a score of over 0.800 are considered to have a "high" standard of human development. The top 30 countries have scores ranging from 0.885 in the ] to 0.965 in ]. All countries included in the UN study on the IMF list had a high HDI. On the CIA list of "developed countries" Turkey (0.75) and ] (0.658) did not have a high HDI score. Several small countries, such as ], ] and ] were not reviewed by the United Nations. Thus, these countries have not received an official HDI score<ref name="UN. (2006). Human Development Report: Summary.">{{cite web|url=http://hdr.undp.org/hdr2006/pdfs/summaries/HDR2006_English_Summary.pdf|title=UN. (2006). Human Development Report: Summary.|accessdate=2007-07-07}}</ref>.


All countries listed by IMF or<ref>The official classification of "advanced countries" is originally made by the ] (IMF). The IMF list doesn't deal with non-IMF memebrs. The ] (CIA) intends to follow IMF list but adds few countries which aren't dealt with by IMF due to their not being IMF members. By May 2001, was more comprehensive than the original IMF list; However, since May 2001 - two additional countries (Cyprus and Slovenia) have been added to the original IMF list, thus leaving the CIA list not updated.</ref> CIA as "advanced" (as of 2007) - possess an HDI over '''0.9''' (as of 2004). All countries<ref>Namely sovereign states, i.e. excluding Macau (being under China's sovereignty): In 2003 the government of Macau calculated its HDI as being 0.909 (the UN does not calculate Macau's HDI); In January 2007, the reported (from ''China Modernization Report 2007''): "In 2004...Macau...had reached the level of developed countries". However, Macau is not recognized by any international organisation as a developed/advanced territory, while the organisaion (of the ]), as well as the , classify Macao as a "developing" territory. Anyway, The classifies Macau as a high income economy (along with developed economies as well as with few developing economies).</ref> possessing an HDI of '''0.9''' and over (as of 2004) - are also listed by IMF or CIA as "advanced" (as of 2007). Thus, all "advanced economies" (as of 2007) are characterized by an HDI score of '''0.9''' or higher (as of 2004). All countries listed by IMF or<ref>The official classification of "advanced countries" is originally made by the ] (IMF). The IMF list doesn't deal with non-IMF memebrs. The ] (CIA) intends to follow IMF list but adds few countries which aren't dealt with by IMF due to their not being IMF members. By May 2001, was more comprehensive than the original IMF list; However, since May 2001 - two additional countries (Cyprus and Slovenia) have been added to the original IMF list, thus leaving the CIA list not updated.</ref> CIA as "advanced" (as of 2007) - possess an HDI over '''0.9''' (as of 2004). All countries<ref>Namely sovereign states, i.e. excluding Macau (being under China's sovereignty): In 2003 the government of Macau calculated its HDI as being 0.909 (the UN does not calculate Macau's HDI); In January 2007, the reported (from ''China Modernization Report 2007''): "In 2004...Macau...had reached the level of developed countries". However, Macau is not recognized by any international organisation as a developed/advanced territory, while the organisaion (of the ]), as well as the , classify Macao as a "developing" territory. Anyway, The classifies Macau as a high income economy (along with developed economies as well as with few developing economies).</ref> possessing an HDI of '''0.9''' and over (as of 2004) - are also listed by IMF or CIA as "advanced" (as of 2007). Thus, all "advanced economies" (as of 2007) are characterized by an HDI score of '''0.9''' or higher (as of 2004).

Revision as of 21:37, 10 July 2007

World map indicating Human Development Index (as of 2004). Countries colored darker shades of green exhibit higher human development and are generally recognised as developed countries.
Map of countries by GDP (PPP) per capita for the year 2006. Source: IMF (April 2007)

The term developed country, or advanced country, is used to categorize countries with developed economies in which the tertiary and quaternary sectors of industry dominate.

This level of economic development usually translates into a high income per capita and a high Human Development Index (HDI). Countries with high gross domestic product (GDP) per capita often fit the above description of a developed economy. However, anomalies exist when determining "developed" status by the factor GDP per capita alone.

Synonyms

Modern terms synonymous with the term developed/advanced country include industrialized countries, more developed countries (MDC) and more economically developed countries (MEDC). The term industrialized country may be ambiguous, as industrialization is an ongoing process that is hard to define. The term MEDC is one used by modern geographers to specifically describe the status of the countries referred to: more economically developed. The first industrialised country was England, followed by Germany, France, the remainder of the United Kingdom and other Western European countires. According to economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20 century, noting that until the post World War II era most persons in all soceities were impoverished.

Definition

According to the United Nations definition, "There is no established convention for the designation of "developed" and "developing" countries or areas. In common practice, Japan in Asia, Canada and the United States in North America, Australia and New Zealand in Oceania, and Western Europe are considered "developed" regions or areas. In international trade statistics, the Southern African Customs Union is also treated as a developed region and Israel as a developed country; and countries of eastern Europe and the former Soviet Union (U.S.S.R.) countries in Europe are not included under either developed or developing regions." Nowadays the more comprehensive group of "developed countries" also covers the East Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan). Hong Kong has long been considered developed by the IMF which grants the formal classification of developed countries. Although Hong Kong was handed over to the People's Republic of China (PRC), which is a developing country, it is still considered internationally as separate economic entities (as it has its own currencies - the Hong Kong Dollar) and a separate political system according to the Basic Law of Hong Kong. Due to the difference between its economy and that of mainland China, its territory retain its own border and custom controls.

When using GDP/cap to define "developed" status, one must take into account how some countries have achieved a (usually temporarily) high GDP/cap through natural resource exploitation (e.g., Nauru through phosphate extraction and Equatorial Guinea) without developing the diverse industrial and service-based economy necessary for "developed" status — similarly, the Bahamas, Barbados, Antigua and Barbuda, and Saint Kitts and Nevis depend overwhelmingly on the tourist industry.

Despite their high per capita GDP, the GCC countries in the Middle East, Brunei and Trinidad and Tobago are generally not considered developed countries because their economies depend overwhelmingly on oil production and export; in many cases (notably Saudi Arabia), per capita GDP is also skewed by an unequal distribution of wealth. Some of these countries, especially Bahrain, and Trinidad and Tobago have begun to diversify their economies.

Quality-of-life Survey

Another relative research about standard of living by Economist Intelligence Unit or EIU Quality-of-life Survey refers the top thirty countries with the best quality of life (in ranking order): Ireland, Switzerland, Norway, Luxembourg, Sweden, Australia, Iceland, Italy, Denmark, Spain, Singapore, Finland, United States, Canada, New Zealand, Netherlands, Japan, Hong Kong, Portugal, Austria, Taiwan, Greece, Cyprus, Belgium, France, Germany, Slovenia, Malta, United Kingdom and South Korea.

Human Development Index

Main article: Human Development Index Main article: List of countries by Human Development Index

The UN HDI is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and 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." A few examples are Italy and the United States. Despite a relatively large difference in GDP per capita, both countries rank roughly equal in term of overall human development. Since 1980, Norway (2001-present), Japan (1991 & 1993), Canada (1985, 1992, 1994-2000) and Switzerland, (1980) have had the highest HDI score. Countries with a score of over 0.800 are considered to have a "high" standard of human development. The top 30 countries have scores ranging from 0.885 in the Czech Republic to 0.965 in Norway. All countries included in the UN study on the IMF list had a high HDI. On the CIA list of "developed countries" Turkey (0.75) and South Africa (0.658) did not have a high HDI score. Several small countries, such as Andorra, Liechtenstein and Macau were not reviewed by the United Nations. Thus, these countries have not received an official HDI score.

All countries listed by IMF or CIA as "advanced" (as of 2007) - possess an HDI over 0.9 (as of 2004). All countries possessing an HDI of 0.9 and over (as of 2004) - are also listed by IMF or CIA as "advanced" (as of 2007). Thus, all "advanced economies" (as of 2007) are characterized by an HDI score of 0.9 or higher (as of 2004).

Lists of prosperous economies

While there is no official guideline for which country may or may not be considered developed, different institutions have created certain categories for the economically most prosperous countries. The Central Intelligence Agency (CIA) has identifies 34 "developed countries," while the International Monetary Fund (IMF) identifies 31 "advanced economies." TheWorld Bank identifies 60 "high income countries," which are classified either as developed or developing by the UN. The criteria used to create these lists differ across these organizations as does the placement of certain countries.

CIA developed country list

The CIA classifies 34 economic entities as "developed countries (DCs):"

the top group in the hierarchy of developed countries (DCs), former USSR/Eastern Europe (former USSR/EE), and less developed countries (LDCs); includes the market-oriented economies of the mainly democratic nations in the Organization for Economic Cooperation and Development (OECD), Bermuda, Israel, South Africa, and the European ministates; also known as the First World, high-income countries, the North, industrial countries - CIA, 2007

•  Andorra •  Finland •  Italy •  Norway •  United States
•  Australia •  France •  Japan •  Portugal •  United Kingdom
•  Austria •  Germany •  Liechtenstein •  San Marino
•  Belgium •  Greece •  Luxembourg •  South Africa
•  Bermuda •  Holy See •  Malta •  Spain
•  Canada •  Iceland •  Monaco •  Sweden
•  Denmark •  Ireland •  Netherlands •   Switzerland
•  Faroe Islands •  Israel •  New Zealand •  Turkey

IMF advanced economy list

  Countries described as advanced economies by the IMF

According to the International Monetary Fund the following 31 countries are classified as "advanced economies:"

•  Australia •  Iceland •  San Marino
•  Austria •  Ireland •  Singapore
•  Belgium •  Israel •  Slovenia
•  Canada •  Italy •  South Korea
•  Cyprus •  Japan •  Spain
•  Denmark •  Luxembourg •  Sweden
•  Finland •  Netherlands •   Switzerland
•  France •  New Zealand •  Taiwan
•  Germany •  Norway •  United Kingdom
•  Greece •  Portugal •  United States
•  Hong Kong

High income countries

Main article: High income country
High Income countries according to the World Bank.

"High income countries" are defined as countries with a Gross National Income per capita of $10,726 of more. According to the United Nations some high income countries may also be developing countries. Saudi Arabia and Singapore, for example, are classified as developing high income countries. Thus, a high income country may be classified as either developed or developing.

Other parts of the world

Main articles: Emerging markets, Newly industrialized country, and Developing country

Countries considered likely to join the ranks of developed nations in the future must pass further major hurdles (e.g., debt, diversification, democratisation, crackdown on crime and corruption, lowering unemployment, education reform, development of a middle class) to attain full-fledged developed status; however, they have sufficient wealth to currently enjoy some benefits of "developed" status.

Eurasia

  • Russia Russia was also considered developed by some organizations and belongs to the G8. This was mainly due to the fact it was once one of the world's leading superpowers during 1960's - 1980's, but it has recently faced many problems such as rampant corruption, outdated technology, ill management of public infrastructure, power, and communications, poor banking system and the lack of corporate governance, transparency and poor business ethics. Modernization and intergradation to Europe are still in process and its GDP per capita - PPP ($12,096) and HDI (0.797 - medium) clearly place Russia among the developing countries and should not be considered developed.

References

  1. Sachs, Jeffrey (2005). The End of Poverty. New York, New York: The Penguin Press. 1-59420-045-9. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  2. "UN. (2006). Human Development Report". Retrieved 2007-07-07.
  3. "UN. (2006). Human Development Report: Summary" (PDF). Retrieved 2007-07-07.
  4. The official classification of "advanced countries" is originally made by the International Monetary Fund (IMF). The IMF list doesn't deal with non-IMF memebrs. The Central Intelligence Agency (CIA) intends to follow IMF list but adds few countries which aren't dealt with by IMF due to their not being IMF members. By May 2001, the advanced country list of the CIA was more comprehensive than the original IMF list; However, since May 2001 - two additional countries (Cyprus and Slovenia) have been added to the original IMF list, thus leaving the CIA list not updated.
  5. Namely sovereign states, i.e. excluding Macau (being under China's sovereignty): In 2003 the government of Macau calculated its HDI as being 0.909 (the UN does not calculate Macau's HDI); In January 2007, the People's Daily reported (from China Modernization Report 2007): "In 2004...Macau...had reached the level of developed countries". However, Macau is not recognized by any international organisation as a developed/advanced territory, while the UNCTAD organisaion (of the UN), as well as the CIA, classify Macao as a "developing" territory. Anyway, The World Bank classifies Macau as a high income economy (along with developed economies as well as with few developing economies).
  6. "CIA. (19 June, 2007). International Organizations and Groups. World Factbook". Retrieved 2007-07-07.
  7. "IMF. (April 2007). World Economic Outlook". Retrieved 2007-07-06.
  8. ^ "World Bank. (2007). Data & Statistics: Country Groups". Retrieved 2007-06-20.
  9. "UN. (2005). UNCTAD Handbook of Statistics" (PDF). Retrieved 2007-07-09.
  10. See Corruption Perceptions Index
  11. See Russia Infrastructure
  12. See Improving business standards in Russia, 23rd Apr, 2007
  13. See The Modernization Challenge Facing President Putin
  14. See 50 Years of the European Integration and Russia

External links

See also

Economic classification of countries
Three/Four-World Model
Gross domestic product (GDP)
Nominal
Purchasing
power parity (PPP)
Gross national income (GNI)
Wages
Wealth
Other national accounts
Human development
Digital divide
Net international
investment position (NIIP)

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