DEVELOPED COUNTRIES: CHARACTERISTICS AND EXAMPLES IN AMERICA, EUROPE AND ASIA - ECONOMY - 2025

Developed countries are sovereign states that have a developed economy, technological infrastructure, and human rights compared to other countries. These countries have high levels of industrialization, GDP (gross domestic product), GNP (gross national product), per capita income and good standards of quality of life.

There are also other aspects to take into account when defining a developed country; stable political situation, government by democracy, low levels of corruption and absence of armed conflicts and violence, among other components.

Norway is considered the most developed country in the world in 2019. Source: pixabay.com

On the other hand, the social context is evaluated according to classic statistics, such as life expectancy at birth, quality of life, social equity, gender equality, percentage of the population living in poverty or the average number of years of schooling. Of the inhabitants.

The main developed countries include the Netherlands, the United States, Norway, Switzerland, Germany, Canada, Australia, Germany, France, the United Kingdom, and New Zealand, among others.

The United Nations Organization, through its development program, publishes the HDI (Human Development Index) annually. This value considers not only the economic environment of the countries, but also access to health and education, and other determining factors to measure the quality of life of the inhabitants of a country.

From the HDI it is possible to determine which countries can be categorized as developed and which are in the process of becoming so. According to 2019 data, the country that tops the list of the most developed in the world is Norway, which has an HDI of 0.944.

Main characteristics of a developed country

The United Kingdom is an example of a developed country

Industrial development

Those countries that depend almost entirely on agriculture (mostly in an artisanal way) are not considered developed. In contrast, a country with a high level of development has a large and stable industrial structure that allows it to have abundant resources.

The more industrialized a country is, the more likely it is to be competitive in foreign trade. If a nation manages to have a balanced and favorable dynamic in terms of trade, it will be able to obtain healthy dividends.

The trade balance represents the difference between imports and exports of each country. It gives us information about the commercial flows of each one. A country will be more developed to the extent that it has a balanced or profitable trade balance.

This will happen when the level of exports is equal to or higher (surplus) than the level of imports. Otherwise there will be a deficit, that is, more is imported than is exported. On the other hand, it will be necessary to observe the commercial and financial agreements in which each country is a member.

Economic development

One of the data that allows to know the economic development of a country is the per capita income. This data is obtained from the division of gross domestic product (GDP) by the number of inhabitants of a given country.

A developed country is considered one whose inhabitants have a per capital income of at least $ 22,000.

Little corruption

A corrupt scenario implies the management of a social crisis, which sooner rather than later can generate social outbreaks that generate instability in the country. Therefore, a system with little corruption is essential for the construction of optimal trading conditions.

In addition, having a solid legal structure and an anti-corruption approach implies more possibilities for social and economic development for the country's inhabitants alike, who are capable of having confidence in the institutions. The more corruption, the less democratization and less stability.

Political stability

A slightly corrupt country is a stable nation, and a scenario of political stability is essential so that the industrial and economic spheres can develop fully.

There are several factors that are related to the stability of a country, and there is an index that covers a large part of these elements. It is the WGI (World Governance Indicator, or World Governance Indicator).

Among the elements considered by the WGI are the absence of violence, the quality of the comptroller's structures, respect for the laws, the control of corruption and the efficiency of the governmental apparatus.

Access to basic services

In developed countries there must be an efficient and constant supply of water, electricity, gas, telephone and internet service, cleaning services and access to housing.

If these conditions are not met, the inhabitants of a country will not be able to concentrate their efforts on developing culturally, economically and educationally.

Access to education

In general, developed countries invest heavily in education. In some countries it is fully subsidized, and in many others there are scholarship programs and other facilities that allow the entire community to be academically trained.

Given that the educational field is widely developed, developed countries tend to be scenarios of world novelties in the areas of technology, computing, art and knowledge in general, which allows them to project themselves as vanguard nations.

Human development Index

Since 1990 the United Nations Development Program (PDNU) has developed the human development index (HDI). This renowned report takes into account 3 dimensions of human life -health, education and income- on which it elaborates an index that concentrates developed countries in their first positions.

Social equity, gender equality and low levels of poverty

For some years now, the HDI has considered other values ​​to understand human development in an integral way. The level of equity between the different social classes and between both sexes is measured.

The percentage of empowered women in society is also investigated and the extent of poverty among the inhabitants is analyzed, taking into account its multiple dimensions.

Environmental care

Developed countries have been leaders at an economic and industrial level, but also in terms of environmental pollution. Although the most advanced economies are the ones that pollute the most, in recent decades agreements in the international community and pressure from different groups of activists have changed the situation.

Developed countries of Europe

Norway

Norway is located in Northern Europe and in 2019 it is considered the most developed country in the world. The average per capita salary in Norway is $ 65,000, the highest on the planet.

This country is an oil exporter and its economic dynamics is divided between private investment and a strong monetary injection by the State.

Furthermore, corruption in Norway has reached very close to 0%. There is broad respect among political parties and towards government institutions, and the state guarantees both basic services and education.

Denmark

In Denmark one of the strengths is agriculture because it is highly industrialized. This has allowed it to be very efficient in production and exports the large surplus it generates.

According to data from the Danish Ministry of Foreign Affairs, more than 73% of Danes work in the service area of ​​this country; 3.7% is dedicated to fishing and agriculture, and 23% to the areas of construction and industry.

There is efficient trade between Denmark and other countries: imports correspond to 37% of gross domestic product, while exports correspond to 43%.

Holland

More than 18 million inhabitants live in the Netherlands and the per capita income of the Dutch is close to 45,000 euros. It is ranked number 36 out of a total of 190 countries on the list of nations with the most facilities to conduct business.

Regarding corruption, the Netherlands is one of the countries with the lowest levels in the world; This is indicated by the Corruption Perception Index related to the public sphere of the Netherlands that was published in 2019.

Germany

Almost 84 million people live in Germany, which has an area of ​​almost 360,000 square kilometers.

The GDP per capita of the Germans is around 40,000 euros and this nation is considered the country with the lowest level of unemployment in the world (just 3.1%). It has low levels of corruption and presents favorable scenarios for doing business.

Switzerland

Switzerland is a country with high levels of exports. Among the main elements that it trades with other countries are pharmaceutical and chemical products, machinery and electronic products, and watches. Most of Switzerland's foreign trade is generated within the European Union.

Small and medium-sized companies are very important for Swiss economic development and have a high-level workforce. On the other hand, taxes are very low and recycling processes make it possible to use up to 95% of its resources.

Developed countries of America

Canada

It is the second largest country in the world and is also a major exporter. The main export products include oil, forest products, metals and minerals. The United States is the country with which Canada has the largest trade.

According to the International Monetary Fund, Canada's gross domestic product will continue to rise in 2019: it is estimated to increase by 2%.

In 2018 Canada had the lowest unemployment rate in its history (5.6%); in 2019 it increased to 6.1%. Relative to per capita gross domestic product, Canadians receive on average about $ 49,000.

U.S

About 330 million people live in the United States. It is the most populated nation and also the most indebted in the world, since it has a debt that corresponds to 104% of the gross domestic product. However, it has a high GDP level, which makes it one of the most prosperous economies in the world.

Among the most important production sectors in the United States are agriculture, the production of machinery and cars, the food market and the real estate field. Internally, the main economic sector in this country is services.

Developed countries of Asia

Hong Kong

It is among the smallest nations in the world (1,110 square kilometers) and has almost 8 million inhabitants.

Hong Kong people are the least indebted on the planet and perceive low levels of corruption. The country presents favorable scenarios for conducting business and the per capita income is around 41,000 euros.

It is in the 10th position on the list of countries considered commercial powers and many scholars consider it the model of economic liberalism par excellence.

Singapore

It is a country highly dependent on international trade and with favorable scenarios for business. According to the International Monetary Fund, inflation in 2019 is expected to be around 1.4%.

The stability of the Singaporean government has to do with the high confidence towards the ruling party and the little opposition that exists. Among the development measures offered to its inhabitants are the creation of scholarships for academic training and bonuses for taxes related to goods and services.

Developed countries of Africa

Seychelles

These islands are inhabited by about 98,000 people. Its main economic source is tourism, which corresponds to 70% of the gross domestic product.

The second economic activity in the Seychelles is fishing. It is very abundant, it is industrially executed and has made the country one of the leaders in this field. Thanks to this, it is the largest exporter of shrimp and tuna in the region.

Regarding imports, the Seychelles import most of the food they consume, as well as petroleum derivatives.

Mauricio

It is home to a little more than 1,200,000 inhabitants and its main export product is textiles. His regular customers are the United Kingdom, the United States and France.

In 2017, Mauritius had a per capita income of $ 22,000, one of the highest in Africa. It obtained its independence in 1968 and since then it has experienced constant growth.

Differences with underdeveloped countries

Quality of life

As we have already seen, developed countries are characterized by offering high levels of quality of life to their inhabitants.

In contrast, underdeveloped countries are those whose living conditions are not considered of high quality, especially in terms of security and access to basic goods and services.

Dependence on agriculture

Despite the fact that in many developed countries the agricultural sector is quite worked, they do not depend only on it; thanks to this they can expand their activities and generate income from other sectors that provide greater stability.

On the other hand, underdeveloped countries tend to depend clearly on the agricultural sectors, especially in a very traditional way, which prevents their development from covering areas that provide greater profitability.

Per capita income

Both per capita income and the HDI that we have explained above are high in developed countries. This translates into better economic conditions for its inhabitants.

In underdeveloped countries these values ​​are usually low or very low. Due to this, the majority of the country's inhabitants find it difficult to develop under these precarious conditions; This results in greater poverty and less development for the region.

Industrialization

In developed countries, the industry sector is constantly growing and in many cases represents one of the pillars of the national economy.

The nature of these industries can be very varied, and can also include agriculture, livestock or fishing, among others. These are very well structured systems that allow to increase the effectiveness of production.

In contrast, developed countries tend to have little or no industrial development. In many cases the production is rather artisanal and cannot compete in international trade. Furthermore, these countries tend to be more importers than exporters, which is why national production is very low.

Life expectancy

Highly developed countries have higher life expectancies than those of underdeveloped countries.

This factor is influenced by various elements, such as individual security, timely access to the health system, the quality conditions of said health system, infant mortality rates and the economic and health situation related to the elderly, among other conditions.

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