Developed vs. Developing Countries

There are several criteria differentiating developed and developing countries. The most popular are per capita income level, export diversification, life expectancy, literacy level and degree of economic integration into the global financial system.

Developed countries, according to the World Bank, are high income economies. These economies report Gross National Income per capita of $12,736 or more (in 2014). In developed country the primary school enrollment reaches 100% and general level of education of the whole population is high.

People live longer and death rate is relatively law as the result of better health care. The most of industry sectors report dynamic economic activity with highly diversified export. The national budget has many income sources and does not depend on one good.

Developing countries, according to the World Bank, are low-income or middle -income economies. The first are those with a Gross National Income (GNI) per capita, of $1,045 or less in 2014, while the second are those with a GNI per capita of more than $1,045 but less than $12,736.

Developing countries are characterized with low export diversification, where export income (and national budget) depends from one, dominating natural resource (i.e. oil, coal). People in developing countries live shorter than citizens of developed economies, mainly as the result of poor health system and health education.

Because of the lower level of school enrollment the illiteracy is higher, usually among women and people from rural areas. Economic integration of developing economy with global financial system, what result in limited access to capital and lower level of foreign investments.

So, in summary:

The main factor differentiating the developed and developing country is the income level. The income level determines the living standards of citizens in both countries. The social, economic and environmental indicators are generally lower for developing than for developed countries.