Modern economic science involves the division of countries into levels depending on what stage of development their economy is at. Some states have long remained at the same level, while others take a step forward - or backward, dropping to a lower level. These processes of the global economy, difficult for the perception of an individual, have a strong impact on the quality of life in a particular country. At the same time, residents of underdeveloped and developing countries in some cases can count on the support of more powerful brothers. The economy asks questions about overcoming the backwardness of underdeveloped countries, a number of other significant problems, but to this day there have been no answers to them, as well as a uniform, applicable for all recipe for well-being.
Earlier and now
As long as the USSR existed, the world could be divided into two parts - countries where capitalism was established, and states with the dominance of socialism. Many countries belonged to the capitalist, mainly these were underdeveloped states. This order of division into groups presupposed rivalry, based on idealistic ideas about the social system. It was typical for the situation in the world to represent socialism as a stage of the future, a necessary attribute of a developed society. Moreover, there was an opinion that socialism is achievable if feudalism and capitalism are overcome.
There is currently no such division scheme. For the classification of states, it is customary to single out the level of social and economic development, for which a whole complex of interrelated factors is subject to assessment. To understand which countries are the most underdeveloped, where the situation is better and where to live very well, they assess the level of income of the population, the provision of different groups of products, education and access to education. Be sure to pay attention to how long on average the citizens of this country live. The main numerical indicator is GDP.
Three groups
It is customary to distinguish three main groups. All countries are divided into these classes, evaluating the social situation in society and the level of economic development of the state. The highest level is inherent in countries where GDP is $ 9,000 per inhabitant or more. The list of these countries includes the bulk of Western Europe, Japan, and the states of North America.
Here are countries with a high level of development. This is the "Big Seven", the world leader in economic development. In all these countries, high-level labor productivity, scientific and technological progress are priorities. Up to 80% of the production of highly developed countries is the Big Seven. These include France, Italy, England, Germany and the above Asian and American powers. Recently, South Korea, the UAE, Kuwait and Israel are trying to move into this category.
Second level
The states of this category are characterized by an average level of development of the economy and society. GDP here varies between 750-8500 dollars per person. This group includes our country, as well as several other states where socialism previously reigned - the Czech Republic, Poland, Slovakia. In addition, the average level is inherent in some European powers (Greece), a number of countries in South America.
Third level
The list of underdeveloped countries of the world is the most extensive, there are most of all members. GDP per person is less than $ 750. Currently, more than six dozen countries are ranked in this category. These are many Asian powers - the DPRK, the PRC, and also the countries of Africa. The list of underdeveloped countries includes Pakistan, Ecuador, India. There is a division into subgroups - there are countries with a low level, and there are states that are characterized by the lowest level of development. A monocultural economy or a very narrow area of specialization is characteristic of such powers. Most of the underdeveloped countries of the world are heavily dependent on external financing.
There are several criteria that make it possible to rank the state in this particular group of countries. In addition to calculating GDP, it is customary for each person to take into account the average age of the population at the time of death, as well as the price of products that pass through the state’s industry in a year. The economy of underdeveloped countries is characterized by a GDP level of $ 350 or less, and industry processes only 10% of GDP. Mostly in such states, only 20% of the population or less are trained to read as adults. Such countries with a very low level of development are mainly located in Asia and Africa. These include Somalia, Bangladesh and Chad. The list of underdeveloped countries replenish Mozambique and Ethiopia.
Division: is everything so obvious?
From the point of view of some experts, the division into developed, developing and underdeveloped countries is incorrect, only two groups are enough. At the same time, the former should include powers where market forms dominate economic activity. Also, such countries should be included here, where the GDP per person is not less than 6,000 American dollars in 12 months.
The states that are assigned to this category are heterogeneous, therefore, it is necessary to introduce an additional subdivision into two groups inside. The Big Seven belongs to one circle, and the second includes all the others. According to a number of economists, one can also single out a third subgroup where countries can be added that have only recently received the title of developed.
The development of the world economy after the Second World War
The period when the world was recovering after the Second World War proved to be extremely important for the development of the economy, then the foundations of the current situation were laid. In many countries, business has been reorganized: entrepreneurs decided to raise the national industry from the method of obtaining money for themselves. Thanks to this, a number of states that immediately after the war were on the list of underdeveloped countries now enjoy all the benefits of a developing or developed power. The most striking example is Japan, currently one of the leaders in terms of living standards and economic development on the planet. A similar situation has developed in South Korea.
When the war ended, Japan was a classic representative of underdeveloped countries. Many economists agreed that in the near future there would be no positive future for this power, especially given the unofficial occupation by American forces. Nevertheless, the high level of national pride and the desire to raise the standard of living in society played a role - today this country is among the leaders. According to experts, the phenomenon of Japan is due to the peculiarity of the national spirit inherent in the inhabitants of this country only. Nevertheless, the world economy can operate on this fact as a clear evidence of the possibility of moving from group to group in a fairly short period of time.
Features of underdeveloped countries
Analysts, economists, sociologists have been talking about how to break the vicious circle of poverty for less than a decade - but no answer has been found. A high level of corruption is inherent in these countries, the press cannot enjoy the right to freedom of speech, and people live suffering from oppression. Many underdeveloped countries are characterized by a situation where dishonest citizens receive large plots of land or large sums of money for personal use from the authorities through fraud and do not account for it. Of course, this causes an even greater blow to the economies of underdeveloped countries, and the country as a whole loses quite a lot on the enrichment of a small group of citizens, including the possibility of improving its situation in the future.
According to experts, one of the urgent problems of underdeveloped countries is poverty. But this problem is not a simple understanding of the lack of money in one particular family. Poverty is rooted deeply in the social system and depends on the laws that govern relationships in society. Much depends on the moral level. It is impossible to conquer poverty at the state level, if it is not possible to instill in all citizens of the state sufficiently high moral principles that do not allow taking advantage of the opportunity to cash in at the expense of another, including at the expense of the country, it hardly arises.
Recent Trends
As can be seen from the processes characterizing the development of the economy at the international level in recent decades, the level of education plays an increasingly important role. This applies both to the level of individual people and the life of the people as a whole. At the same time, many experts say that the world is faced with a crisis in the educational system, primarily noticeable in underdeveloped countries. The matter is connected with a lack of educational opportunities, and with an insufficient level of quality.
In most cases, education is closed to the masses because of the high cost within this state. This suggests that the level of economic development can be partially identified by analyzing budget expenditures on the education system.
Problems: solutions needed
Economically underdeveloped countries are characterized by such classic problems as:
- voluminous, complex bureaucracy;
- low production activity;
- poorly developed infrastructure.
Mostly, such states have underdeveloped transport systems, which greatly affects the level of development of communications. At the same time, economically underdeveloped countries do not have a high level of quality of service in the health sector. At a low level and education. Many underdeveloped countries are directly dependent on a particular product or partner, on the interaction with which the power’s economy is built.
What does it look like?
The classic demonstration of dependence on a particular product or product is well illustrated by the Cuban and Colombian economies: the former export sugar, the latter sell coffee. The dependence of the budget of these countries on agriculture is almost absolute. As demand, supply, climate, productivity change, the nation as a whole suffers. It is not always possible to assess all the possible risks faced by the state, allowing itself such a primitive level of development. As soon as the price of the goods goes down, state revenue rapidly decreases. Political, economic transformations affect firms operating in the field of exports, which can change tariffs and other barriers, and as a result, a whole nation can be cut off from any important industrial product.
Present and future
The formation, formation, development of economically weak countries is a process that is influenced by a wide range of factors. If businessmen from abroad see that there are no real trends to improve the situation in the present time, they do not believe in the progressive future of the state, and therefore, are not ready to invest their money in this country. This greatly undermines the ability to plan long-term projects, which in theory could improve the situation in the state. The vicious circle obtained in the end is quite difficult to break in conditions when everyone is primarily concerned about himself and his welfare.
Underdeveloped countries can implement projects that require impressive money only with the attraction of foreign capital, and often this is assistance under a credit program, increasing government debt. The way in which these funds will be used cannot always be predicted, since the quality of distribution channels varies greatly in different countries. Often this task rests with small intermediaries, which ultimately leads to the loss of impressive funds.
Get out of the vicious circle!
As the famous statement goes, states remain poor because they are poor. The fact is that with a low income level the population has very low purchasing power, there are no savings. In such a country, no one invests in capital - not only physical, but also human. This entails a minimum level of labor productivity. With the growth of the GDP indicator, poverty remains an equally urgent problem, since this is associated with population growth - and the growth rate is often greater than the increase in GDP. This leads to the formation of a vicious circle, which is very difficult to break out of.
Economic development within a country with a low-level economy implies cardinal changes in the established economic structure of the state. This means that it is necessary to fundamentally transform the economy, only then can real success be achieved. A good example of the possibility of implementing such an approach is the previously mentioned Japan, a formerly closed country focused on agriculture, and today - a power importing its goods into all countries of the world, one of the leaders in the field of economics at the world level.
Past place in the past
As can be seen from the analysts, most of the underdeveloped countries live off of agriculture. Here industry is weak or not at all, and the population lives in villages and towns. Economic development in the framework of such a country involves the creation from scratch of an industry, work on the formation of a convenient, productive infrastructure. In addition, it is important to educate the population, since illiterate people live mainly in underdeveloped countries. With a low level of literacy, with a weak education system, one should not even count on improving the standard of living at the national level - for this there simply are no human resources that can translate what is needed from the projects of economists into reality. In addition, people do not just have to follow a pre-compiled program, but be aware of what they are working for, what benefits they will receive if they approach the task responsibly.
Currently, underdeveloped powers are not alone, international structures are created to help, specially created to help them and support weaker peoples. Specialized structures are ready to send impressive financial resources to help with the development of the economy and society, while specialists from these structures are also sent to the country to monitor the targeted use of the allocated amounts. But this approach causes a lot of disagreement, because, as you know, it will not be hungry not the one who was given the fish, but the one who was given the fishing rod and trained to use it.