Developed, Developing and Least Developed Countries(LDC)

 

Developed and Developing Nation

July 1944- Bretton Woods Conference

World Bank and IMF two financial institutions were established to perform financial development tasks.

To provide better financial support to poorer countries, the World Bank classified countries as developed and developing countries.

This division clubbed middle income and low-income countries together as developing countries.

To cater to the different needs of middle income and low-income countries, the World Bank re-classified countries as

1. Low-income countries- Income below 1036 US dollars

2. Lower middle-income countries- Income Range 1,036 - 4,045 US dollars

3. Upper middle-income countries- Income Range 4,046 - 12,535 US dollars

4. High-income countries- Income above 12,535 US dollars

                             Image Source: WORLD BANK

Least Developed Countries(LDC)

Another international institution that classifies countries for better support is the Economic and Social Council(ECOSOC), UN.

Currently ECOSOC classified 46 countries as Least Developed Countries.

Dec 2023- Bhutan will be the 7th nation to graduate from the Least Developed Countries list(46-1).

Developed, Developing and Least Developed Countries(LDC)

This classification is mainly used by news media. The only international institution that uses this classification is WTO(1995). 

Least Developed Countries(LDC)- List of ECOSOC

Developing Countries- self declaration by country

Developed Countries- Countries other than Least Developed Countries and Developing Countries

Global North-South Divide

It is not a geographical division but socio-economic division of countries. 

The global North-South traces its origin to East-West classification of cold War era. 

East countries- America and its allies. 

West countries- Russia, China and other communist countries

In 1952, Alfred Sauvy used the term third world for those countries who were not aligned with US or Russia. 

In 1969, Carl Oglesby used the term Global South for developing and least developed countries. 

Brandt Line- A visual depiction of the north–south divide proposed by German scholar Willy Brandt in 1980s. 

Preston Curve- Relationship between life expectancy and per capita income in a country