Developing and developed countries

By Alexandru Ionescu (918)

While there is no one, set definition of a developed economy it typically refers to a country with a relatively high level of economic growth and security. Some of the most common criteria for evaluating a country's degree of development are per capita income or gross domestic product (GDP), level of industrialization, general standard of living and the amount of widespread infrastructure. Increasingly other non-economic factors are included in evaluating an economy or country's degree of development, such as the Human Development Index (HDI) which reflects relative degrees of education, literacy and health.The Federal Republic of Germany, or Germany, has the largest economy in the European Union, and one of the largest populations at 82.2 million, as well as its bustling capital and economic center of Berlin. Chancellor Angela Merkel is the head of a government with a people of very high education standards, with a nearly 100% attendance rate and 99% literacy rate. Germany thrives in industry and manufacturing and is a major exporter of electrical and engineering products, such as cars (Volkswagen anyone?), and are renowned globally for their skilled work force. The GDP is $3.5 trillion and GDP per capita is $40,631, and poverty rates are low, although the unemployment rate is about 7%. Germany also, like Sweden, is a prime tourist destination for its historic beauty, and the wonderful people (aside from Adolf and the Nazis back in the 1930-40s) have a life expectancy of 79.4 years.The United States of America came a long way from its beginnings in 1776, beating the British in the American Revolution (with a lot of help from the French) and declaring its independence, and now, after removing the Native Americans, fighting a Civil War, dealing with the Great Depression, and engaging in two World Wars, the US has emerged as the most powerful country in the world, with a GDP of $15 trillion (the largest in the world) and a GDP per capita of $48,147. The US is a representative democracy (republic) and a manufacturing giant and a major importer and exporter of goods and a trading partner with every major country. The US is one of the most ethnically diverse countries in the world (the state I live in, California, has a 50% Asian, Latin American, and African American population, out of almost 40 million people.) However, all this aside, the US loses points because, out of a population of nearly 315 million, there is a 15% poverty rate, 9% unemployment average (and in some states up to 14%), and international critics argue that American education standards fall behind the rest of the world. Also, the US loses points in health because, while life expectancy is relatively high at 79 years, obesity rates are skyrocketing, with up to 33% of adults at obese levels, and similar rates for children. On top of all this, America is spiraling through massive debt and dragging other countries down through the decrease of trade caused by the global recession. The first in the top, crushing the runner up by almost double the rating is Norway, or the Kingdom of Norway. This country of almost 5 million is a parliamentary constitutional monarchy with extremely high education standards and a very low poverty and unemployment rate, with a life expectancy of 80.2 years. Norway was a pivotal founding member of NATO but rejected joining the EU, but continues to have good relations with neighboring European countries. Norway is also a founding member and now huge donator to the United Nations as well as helping found the Council of Europe, and is an active member of WTO and OECD. Norway has one of the largest reserves of petroleum, natural gas, minerals, lumber, seafood, freshwater, and hydro-power in the world and is a major exporter of oil. Norway is internationally recognized for its universal health care, advanced schooling systems, and a distinguished social security system. For all these reasons, the Kingdom of Norway ranks number one on the United Nations Human Development Index.Terms such as "emerging countries," "third world 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 United Nations Conference on Trade and Development (UNCTAD) points out that the least developed of the developing 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."Argentinais afederal republiclocated in southeasternSouth America. With a mainland area of 2,780,400km2, Argentina is theeighth-largest countryin the world, the second-largest inLatin America, and the largestSpanish-speakingone. Argentina claims sovereignty overpart of Antarctica, theFalkland Islands,South Georgia and the South Sandwich Islands. Thedeclarationandfight for independence(18101818) was followed by anextended civil warthat lasted until 1861, culminating in the country's reorganization as afederationofprovinceswithBuenos Airesas its capital city. The country thereafter enjoyed relative peace and stability, withmassive waves of European immigrationradically reshaping its cultural and demographic outlook. The almost-unparalleled increase in prosperity led to Argentina becoming the seventh wealthiest developed nation in the world by the early 20th century. After 1930 Argentina descended into political instability and periodic economic crisis that pushed it back into underdevelopment though it nevertheless remained among the fifteen richest countries until the mid-20th century. Argentina retains its historic status as amiddle power in international affairs, and is a prominentregional powerin the Southern Cone and Latin America.Benefiting from richnatural resources, a highly literate population, a diversified industrial base, and an export-oriented agricultural sector, the economy of Argentina is Latin America's third-largest. It has a"very high"rating on the Human Development Indexand a relativelyhigh GDP per capita (22, 582)with a considerableinternal marketsize and a growing share of the high-tech sector.Amiddle emerging economyand one of the world's top developing nations,Argentina is a member of theG-20 major economies. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution andin the recent decadesincreasing poverty. Early in the 20th century Argentina achieved development,and became the world's seventh richest country.Although managing to keep a place among the top fifteen economies until mid-century, it suffered a long and steady decline and now it's just an upper middle-income country. Highinflationa weakness of the Argentine economy for decadeshas become a trouble once again, with rates in 2013 between the official 10.2% and the privately estimated 25%, causing heated public debate over manipulated statistics. Income distribution, having improved since 2002, is classified as "medium", still considerably unequal.Argentina ranks 102nd out of 178 countries in theTransparency International's 2012Corruption Perceptions Index.While the country has settled most of its debts, it faces a technical debt crisis since 31 July 2014. A New York judge blocked Argentina's payments to 93% of its bonds unless it pays to "Vulture funds" the full value of the defaulted bonds they bought after its 2001 default. Argentina vowed not to capitulate to what it considered the ransom tactics of the funds.Egypt hasone of the longest historiesof any modern country, arising in the tenth millennium BCE as one of the world's firstnation states.Considered acradle of civilization,Ancient Egyptexperienced some of the earliest developments of writing, agriculture, urbanisation, organised religion and central government in history. Iconic monuments such as theGiza Necropolisand itsGreat Sphinx, as well the ruins ofMemphis,Thebes,Karnak, and theValley of the Kings, reflect this legacy and remain a significant focus of archaeological study and popular interest worldwide.The government has invested in communications and physical infrastructure. Egypt has receivedUnited States foreign aidsince 1979 (an average of $2.2 billion per year) and is the third-largest recipient of such funds from the United States following the Iraq war. Egypt's economy mainly relies on these sources of income: tourism, remittances from Egyptians working abroad and revenues from the Suez Canal. Egypt has a developed energy market based on coal, oil,natural gas, andhydro power. Substantial coal deposits in the northeast Sinai are mined at the rate of about 600,000tonnes(590,000long tons; 660,000short tons) per year. Oil and gas are produced in the western desert regions, theGulf of Suez, and the Nile Delta. Egypt has huge reserves of gas, estimated at 2,180 cubic kilometres (520cumi), andLNGup to 2012 exported to many countries. In 2013, the Egyptian General Petroleum Co (EGPC) said the country will cut exports of natural gas and tell major industries to slow output this summer to avoid an energy crisis and stave off political unrest, Reuters has reported. Egypt is counting on top liquid natural gas (LNG) exporter Qatar to obtain additional gas volumes in summer, while encouraging factories to plan their annual maintenance for those months of peak demand, said EGPC chairman, Tarek El Barkatawy. Egypt produces its own energy, but has been a net oil importer since 2008 and is rapidly becoming a net importer of natural gas. Economic conditions have started to improve considerably, after a period of stagnation, due to the adoption of more liberal economic policies by the government as well as increased revenues from tourism and a boomingstock market. In its annual report, theInternational Monetary Fund(IMF) has rated Egypt as one of the top countries in the world undertaking economic reforms.Some major economic reforms undertaken by the government since 2003 include a dramatic slashing of customs and tariffs. A newtaxation lawimplemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase intax revenueby the year 2006.Foreign direct investment(FDI) in Egypt increased considerably before the removal of Hosni Mubarak, exceeding $6 billion in 2006, due toeconomic liberalisationandprivatizationmeasures taken by minister of investment Mahmoud Mohieddin.Since the fall of Hosni Mubarak in 2011, Egypt has experienced a drastic fall in both foreign investment and tourism revenues, followed by a 60% drop in foreign exchange reserves, a 3% drop in growth, and a rapid devaluation of the Egyptian pound.Although one of the main obstacles still facing the Egyptian economy is the limited trickle down of wealth to the average population, many Egyptians criticise their government for higher prices of basic goods while theirstandards of livingor purchasing power remains relatively stagnant. Corruption is often cited by Egyptians as the main impediment to further economic growth.The government promised major reconstruction of the country's infrastructure, using money paid for the newly acquired third mobile license ($3 billion) byEtisalatin 2006. In theCorruption Perceptions Index2013, Egypt was ranked 114 out of 177. An estimated 2.7 million Egyptians abroad contribute actively to the development of their country throughremittances(US$7.8 billion in 2009), as well as circulation of human and social capital and investment. Remittances, money earned by Egyptians living abroad and sent home, reached a record US$21 billion in 2012, according to the World Bank. Egyptian society is moderately unequal in terms of income distribution, with an estimated 35 - 40% of Egypt's population earning less than the equivalent of $2 a day, while only around 23% may be considered wealthy. Also, Egypt`s GDP per capita for 2014 was 10, 877.Republic of Seychelles is anarchipelagoin theIndian Ocean. The 115-island country, whose capital isVictoria, lies 1,500 kilometres (932mi) east of mainlandSoutheast Africa. Other nearby island countries and territories includeZanzibarto the west andComoros,Mayotte,Madagascar,RunionandMauritiusto the south. Seychelles, with a population of 90,024, has thesmallest population of any African state.Seychelles is a member of the African Union.During the plantation era,cinnamon,vanillaandcoprawere the chief exports. In 1965, during a three-month visit to the islands, futuristDonald Prellprepared for the thencrown colonyGovernor General, an economic report containing a scenario for the future of the economy. Quoting from his report, in the 1960s, about 33% of the working population worked at plantations, and 20% worked in the public or government sector. The Indian Ocean Tracking Station on Mah was closed in August 1996 after the Seychelles government attempted to raise the rent to more than $10,000,000 per year.Since independence in 1976, per capita output has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labour force, compared to agriculture which today employs about 3% of the labour force. Despite the growth of tourism, farming and fishing continue to employ some people, as do industries that process coconuts and vanilla.The prime agricultural products currently produced in the Seychelles includesweet potatoes,vanilla,coconutsandcinnamon. These products provide much of the economic support of the locals. Frozen and canned fish, copra, cinnamon and vanilla are the main export commodities.Since theworldwide economic crises of 2008, the Seychelles government has prioritised a curbing of thebudget deficit, including the containment ofsocial welfarecosts and furtherprivatisationof public enterprises. The government has a pervasive presence in economic activity, with public enterprises active in petroleum product distribution, banking, imports of basic products, telecommunications and a wide range of other businesses. According to the 2013Index of Economic Freedom, which measures the degree of limited government, market openness, regulatory efficiency, rule of law, and other factors, economic freedom has been increasing each year since 2010. The national currency of the Seychelles is theSeychellois rupee. Initially tied to a basket of international currencies it was depegged and allowed to be devalued and float freely in 2008 on the presumed hopes of attracting further foreign investment in the Seychelles economy.The government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, small-scale manufacturing and most recently the offshore financial sector, through the establishment of theFinancial Services Authorityand the enactment of several pieces of legislation (such as the International Corporate Service Providers Act, the International Business Companies Act, the Securities Act, the Mutual Funds and Hedge Fund Act, amongst others). During March 2015, Seychelles allocated Assumption island to be developed by India. Their GDP per capita for 2014 was 25, 607.