Almost all states, with the exception of the countries of the former USSR, are divided into two types: developed and developing countries. What is the difference between them? As the names implies, developed countries are those states that have achieved a high level of development of industry, agriculture, and science. Citizens of these countries have a high standard of living. This concept includes not only the level of per capita income, but also the availability of medical and social services. Developing countries include states that have not yet reached such a level, but are striving to achieve it.
Ethnic issues
The problem is that most of them are states that have emerged relatively recently. They are former colonial provinces. The borders of these territories are not historically determined, but artificial, carried out by European states. Therefore, the development of the countries of Asia, Africa and Latin America depends on how much these peoples managed to get along. Often ethnic conflicts occur in these regions, reaching genocide and revolution, and political instability is noted.
In such states, there is no tradition of treating the territory and compatriots as their own people. Hence the high level of corruption and the flight of capital abroad.
The impact of competition
Another problem is the inaccessibility of new technologies that developed countries possess, but which they are reluctant to share. The problem of overcoming the backwardness of developing countries is that it is not easy for them to compete with developed countries. However, despite the difficulties, they continue to develop, and sometimes very successfully. Vivid examples are China or Singapore.
On their territory you have to build all the infrastructure from scratch. The population of these countries is traditionally engaged in agriculture or mining, which are processed in other countries. The construction of refineries requires tremendous funds, which developing countries simply do not have.
High public debt
To ensure accelerated economic growth, developing country governments are forced to take loans abroad on bondage terms. The IMF requires countries to which loans are issued to comply with certain conditions that not many developing countries can fulfill without worsening the social conditions of their citizens.
What is dangerous public debt? Having received a public debt, the state can no longer independently conduct economic policy. The government is not able to act in the interests of its people. It falls into economic dependence. The main requirement for obtaining a loan is the transfer of domestic prices to world prices, which in many states leads to the fact that citizens' incomes fall and prices rise. Jobs in the social sphere are reduced. An already weak economy is losing ground even more. Non-payment of debt automatically means default, loss of confidence of the international community and loss of a significant part of state assets.
Demographic issues
One of the most significant problems in overcoming the backwardness of developing countries is the negative demographic situation. In developing countries, there is a high birth rate and at the same time a high mortality rate, including infant mortality. Despite this, the population is growing, and this cannot but affect the state of the economy. In such countries there is a high percentage of unemployment, and, accordingly, crime.
Since in developing countries the population is not fully provided with jobs, the unemployment rate is between 30% and higher. Labor costs are significantly lower than in developed countries. Therefore, developed countries are increasingly moving production that does not require high qualifications to these states. This has its pros and cons.
The positive side is that there is an influx of investments in these states, new technologies are being mastered, and jobs are appearing. The disadvantage of such a system is that the environmental condition of these countries is deteriorating, all resources are spent on supporting the work of foreign enterprises (“sweatshops”), and there are not enough of them for own developments. At the same time, per capita incomes are not growing, despite the influx of capital. As a result, miserable shacks of workers are located next to skyscrapers intended for officials, foreign investors and tourists. This does not solve the problems of overcoming the backwardness of developing countries.
GDP level and its significance
Typically, countries are developed or developing in terms of GDP. Since the level of industry and agriculture in such countries is low, labor productivity is low. This is reflected in the level of GDP (gross domestic product). This is the volume of products manufactured by all enterprises in the country. Expresses GDP in US dollars. The higher this per capita indicator, the higher the level of development of the country and the welfare of citizens.
In developing countries, annual per capita GDP is less than 2 thousand US dollars, and in some countries in Africa this figure is less than $ 100. This means that many products are not available to the general public, even at low prices.
Which countries does the Russian Federation belong to?
The Russian Federation does not apply to developing countries. The Russian Federation (despite criticism) has a highly developed industry, machine building and machine tool building. The infrastructure necessary for ensuring normal life is working in the country: transport, electricity, water supply systems. There are medical and social institutions. There are higher and secondary educational institutions, research centers and academies. Literacy of the population is at least 99%. More than half of the population lives in cities.
However, if we compare countries by GDP per capita, it is difficult to attribute Russia to developed or developing countries. This feature has all the states that were part of the USSR before its collapse. They occupy a transitional state and in terms of development are closer to developed countries than to developing ones.
Poorest developing countries
Not all states can develop successfully. Some of them cannot cope with economic, political and social difficulties. Therefore, they are considered the poorest and most backward. The least developed countries in the world include:
· Equatorial Guinea.
Guyana
· Vietnam.
· Republic of the Congo.
· Maldives.
· Cape Verde.
Samoa
As you can see from the list, many of these countries have an advantageous geographical position, they are rich in natural resources, but conflicts between tribes living in this territory constantly flare up here.
They are completely dependent on the price of raw materials, while they cannot control these prices. This leads to even greater deterioration of the economy. Inept monetary policy in these states is the main cause of hyperinflation. Some countries, such as El Salvador, abandoned the national currency and switched to the dollar.
