identify the criteria used to access a country`s development by an economist
Answers
Answer:
A developed country, industrialized country, more developed country, or more economically developed country (MEDC), is a sovereign state that has a 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.[1] Which criteria are to be used and which countries can be classified as being developed are subjects of debate.
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 International Monetary Fund.[2]
Answer:
A developed economy is typically characteristic of a developed country with a relatively high level of economic growth and security. Standard criteria for evaluating a country's level of development are income per capita or per capita gross domestic product, the level of industrialization, the general standard of living, and the amount of technological infrastructure.
Noneconomic factors, such as the human development index (HDI), which quantifies a country's levels of education, literacy, and health into a single figure, can also be used to evaluate an economy or the degree of development.
Developed Economy
GDP and Developed Economy Criteria
The most common metric used to determine if an economy is developed or developing is per capita gross domestic product (GDP), although no strict level exists for an economy to be considered either developing or developed. Some economists consider $12,000 to $15,000 per capita GDP to be sufficient for developed status while others do not consider a country developed unless its per capita GDP is above $25,000 or $30,000. As reported by The World Bank, the United States' per capita GDP in 2018 was $62,641.
For countries that are difficult to categorize, economists turn to other factors to determine development status. Standard-of-living measures, such as the infant mortality rate and life expectancy, are useful although there are no set boundaries for these measures either. However, most developed economies suffer fewer than 10 infant deaths per 1,000 live births, and their citizens live to be 75 or older on average.
A high per capita GDP alone does not confer developed economy status without other factors. For example, the United Nations still considers Qatar, with one of the world's highest per capita GDP in 2018 at $69,026, a developing economy because the nation has extreme income inequality, a lack of infrastructure, and limited educational opportunities for nonaffluent citizens.
The Human Development Index
The HDI looks at three standards of living criteria—literacy rates, access to education and access to health care—and quantifies this data into a standardized figure between 0 and 1. Most developed countries have HDI figures above 0.8. The United Nations Development Programme, Human Development Reports that in 2017, Norway had the world's highest HDI at 0.953 403. The United States ranked 13th at 0.924.
According to the U.N.'s Human Development Index, Norway ranked highest among all nations, while the U.S. came in at number 13.
Nondeveloped Economies
Terms such as "emerging countries," "least-developed countries" and "developing countries" are commonly used to refer to countries that do not enjoy the same level of economic security, industrialization, and growth as developed countries. The term "third-world country" to describe a state is today considered archaic and offensive.
KEY TAKEAWAYS
Countries with relatively high levels of economic growth and security are considered to have developed economies.
Common criteria for evaluation include income per capita or per capita gross domestic product.
Noneconomic factors, such as the human development index, may also be used as criteria.
Countries like Qatar—with high per capital GDP—may be deemed developing because of factors such as lacking infrastructure and educational opportunities.
Real World Example of a Developed Economy
The United Nations Conference on Trade and Development notes that the world's least-developed countries are "deemed highly disadvantaged in their development process—many of them for geographical reasons—and (face) more than other countries the risk of failing to come out of poverty." Examples of countries with developed economies include the United States, Canada and most of western Europe, including the United Kingdom and France.
Related Terms
Human Development Index (HDI) Definition
The Human Development Index (HDI) is a tool developed by the United Nations to measure and rank countries' levels of social and economic development. more
Four Asian Tigers Definition
The Four Asian Tigers define the high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan. more
Advanced Economies Definition
Advanced economy is a term used by the International Monetary Fund (IMF) to describe developed countries with significant industrialization. more
The meaning of the term Third World
Third World is a phrase commonly used to describe economically inferior nations. more
Standard of Living Definition
A standard of living refers to the degree of wealth, comfort, material goods, and necessities available to a given population. more
Emerging Market Economy Definition
An emerging market economy is one in which the country is becoming a developed nation and is determined through many socio-economic factors. more