Developed Countries and Underdeveloped Countries

We explain what a developed country and an underdeveloped country are, and what their characteristics and differences are.

underdeveloped country
Underdeveloped countries tend to have lower levels of industrialization.

What are developed and underdeveloped countries?

Developed countries are those that have achieved a high level of industrialization, advanced technology, a high level of education and a high per capita income.according to Development Theory.

On the other hand, according to this theory, the Underdeveloped countries are those that have low levels of industrialization, poor access to basic services such as education and health.high levels of poverty and a predominantly agricultural or extractive economy.

Currently, the Theory of Development and the classification into developed and underdeveloped countries is deeply discussed. It is criticized, among other things, for not considering inequalities within each country and for the indicators to measure development not being adequate.

Development measurement

The main indicators used to measure the level of development of countries are:

  • The gross domestic product (GDP) per capita. This indicator arises from dividing the GDP of a country by its number of inhabitants. A country with a high per capita income is considered to be more developed than those with a low per capita income.
  • The Human Development Index (HDI). This indicator combines indicators of health, education and standard of living to provide a more complete picture of human development in a country.
  • Access to basic services. The most developed countries are considered to be those in which the majority of their population has access to basic services such as drinking water, natural gas, sanitation and electricity.
  • Industrialization and technology indices. The presence of a strong industrial sector and advanced technology is considered an indicator of development. Countries with a diversified and technologically advanced economy are usually considered more developed.

Causes of underdevelopment

There are various ideas, theories and hypotheses that try to explain the causes of underdevelopment. These may vary depending on the disciplinary focus and ideological perspective. Some of the most widespread are:

  • The dependency model. This theory maintains that underdeveloped countries are in a position of economic dependence on developed countries. It argues that their economies are integrated into a world system dominated by colonial powers and transnational companies, which perpetuates their situation of underdevelopment.
  • The theory of historical underdevelopment. This theory is based on the idea that underdevelopment is the result of historical conditions such as colonization, the plundering of natural resources, and slavery. It argues that the economic and social structures imposed during colonization continue to negatively affect underdeveloped countries today.
  • The theory of modernization. This theory proposes that underdevelopment is the result of an incomplete and unequal modernization process. It argues that underdeveloped countries can achieve development by following the same path of modernization that developed countries took through industrialization, urbanization, and the consolidation of democratic institutions.
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Economic differences

developed country
Developed countries have solid and stable economies.

Developed countries are characterized by having solid and stable economies.with a strong currency and a high GDP per capita.

Regarding production, they are capable of exporting large volumes of manufactured materials with high added value. These products have a value much higher than the raw materials that required their manufacture. Furthermore, in general, the raw materials that supply the industry of developed countries are extracted and obtained from underdeveloped countries.

On the contrary, Underdeveloped countries always trade in conditions of disadvantage and dependence. In many cases they offer raw materials and then buy manufactured products at a higher price. Their economies are unstable and vulnerable to international economic crises, and they tend to have high levels of debt.

Political differences

Developed countries usually have institutional capacity and resources to develop and implement public policies in areas such as education, health, infrastructure and social protection. In underdeveloped countries, public policies are often less effective mainly due to lack of economic resources.

Besides, Developed countries tend to have greater weight on the international stage and play an important role in the design of global policies. In contrast, underdeveloped countries have less influence in international decision-making and depend to a greater extent on external aid and international cooperation.

Likewise, public policies in more developed countries are usually oriented towards innovation, technology and sustainability, while underdeveloped countries generally must focus on overcoming more immediate challenges such as extreme poverty, social inequality and lack of access to basic services.

Social differences

underdeveloped country
Inequalities occur in access to basic goods and services.

The main social differences between developed and underdeveloped countries can be observed in:

  • income levels. In developed countries, there is usually a lower proportion of the population living in conditions of extreme poverty compared to underdeveloped countries. The majority of its citizens have broader access to economic, educational and employment opportunities, which contributes to a better overall quality of life.
  • Access to basic services. Developed countries tend to offer better basic services such as health, education, clean water, sanitation and electricity compared to underdeveloped countries. Their infrastructure and healthcare and education systems are often more advanced, contributing to human well-being and development.
  • Inequality of rights. While inequalities and human rights issues exist globally, developed countries often have more advanced policies and laws to address these issues. Gender equality, minority rights and human rights are generally more assured in developed countries compared to underdeveloped countries. In any case, there are exceptions: some highly developed countries, such as Saudi Arabia or Qatar, still maintain legislation that is very unfavorable for women and minorities.
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Technological differences

developed country
Underdeveloped countries are generally importers of technology.

The main technological differences between developed and underdeveloped countries are found in:

  • The technological infrastructure. Developed countries tend to have a more advanced technological infrastructure, with extensive coverage of communication networks, such as high-speed Internet and mobile telephony. This infrastructure also allows them to support more efficient transportation and logistics systems.
  • Access to technology. In developed countries there is a greater availability of electronic devices, computers and Internet access, so that the percentage of the population that can have these services is greater than in underdeveloped countries.
  • Innovation and technological development. Developed countries tend to have greater investments in technological research and development, allowing them to be at the forefront of technological innovation in areas such as artificial intelligence, biotechnology, renewable energy and robotics.
  • Technology education. Educational systems in developed countries tend to emphasize the learning of technological and digital skills from an early age, while in underdeveloped countries the penetration of technology in education is much lower.
  • The adoption of technology in key sectors. In developed countries, technology is often more widely integrated into key sectors such as agriculture, manufacturing and financial services, improving the efficiency and profitability of production circuits.

Consequences of global inequality

developed underdeveloped country pollution
Developed countries are the most responsible for pollution.

Global development inequalities are manifested at different levels:

  • Environmental impacts. Developed countries tend to generate a greater environmental impact due to their excessive consumption of natural resources and higher greenhouse gas emissions. Thus, they contribute to climate change, air and water pollution, deforestation and the loss of biodiversity. In turn, underdeveloped countries, which contribute much less to climate change, tend to suffer more from the adverse effects of this phenomenon due to their lower capacity to adapt and limited resources to mitigate the impacts.
  • Military resources. Development inequalities are also reflected in the military sphere, where developed countries tend to have more powerful armed forces, more advanced military technology and larger defense budgets. This allows them to maintain a dominant position in the geopolitical sphere and participate in military interventions in other countries, while underdeveloped countries usually face foreign threats, internal conflicts and political instability with less defense capacity.
  • Economic and political inequalities. Economic inequalities are manifested in the unequal distribution of wealth and income at a global level. Developed countries have a greater participation in the world economy, dominate international financial markets and control major global economic institutions, such as the International Monetary Fund and the World Bank. This gives them advantages in terms of access to finance, international trade and technological development, while underdeveloped countries often face trade barriers, external debt and dependence on foreign aid.
  • Migrations. Development inequalities also influence global migration patterns. Developed countries often attract migrants in search of better economic, educational and living opportunities, which can generate social and political tensions related to immigration and integration. In turn, underdeveloped countries may experience mass emigration due to lack of economic opportunities, armed conflict, or political persecution.
  • Poverty and social inequalities. Despite progress in poverty reduction globally, development inequalities contribute to the persistence of extreme poverty in many countries, especially those with low incomes and limited resources. The lack of access to basic services such as health, education, drinking water and sanitation, together with social exclusion and discrimination, perpetuate the cycle of poverty in the most vulnerable communities.
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Developed and underdeveloped countries

According to the Human Development Index (HDI) prepared by the United Nations Development Program (UNDP), some of the most and least developed countries in the world are as follows.

  • more developed countries: Canada, United States, Spain, France, United Kingdom, Netherlands, Belgium, Norway, Sweden, Finland, Denmark, Iceland, Germany, Austria, Switzerland, Israel, United Arab Emirates, Japan, South Korea, Australia, New Zealand .
  • Less developed countries: Mali, Burkina Faso, Niger, Chad, Central African Republic, Democratic Republic of the Congo, South Sudan, Ethiopia, Eritrea, Somalia, Djibouti, Mozambique, Yemen, Afghanistan, Haiti.

References

  • Dos Santos, T. (2002). The dependency theory. Balance and perspectives. Plaza and Janes.
  • Latin American Institute of Graduate Studies. (2022). Developing countries, what are they? https://www.ilep.mx/
  • Moreno, P. (2021) What is the human development index and how is it measured? The World Order. https://elordenmundial.com/