Daily Junction.mobi portalWorld · November 28, 2024 · Liam Chen · 5 min
A developing country is one with a lower level of economic development and living standards relative to wealthier nations. Here is how the term is defined, measured and debated.
We hear the phrase constantly — in news reports, charity appeals, trade talks and climate summits. Some countries are "developed", others "developing". It sounds like a tidy, official division of the world. In reality, the term developing country is surprisingly slippery: there is no single definition, the labels keep changing, and the countries it describes are wildly diverse.
Here is what a developing country actually is, how the idea is measured, and why even experts argue about the term.
A developing country is, broadly, a nation with a relatively low level of economic development and living standards compared with the world's wealthy, advanced economies. That typically means lower average incomes, less industrialisation, and weaker provision in areas such as healthcare, education and infrastructure.
The crucial word is relatively. "Developing" is always a comparison with "developed" or "advanced" economies — the high-income, heavily industrialised nations such as those of Western Europe, North America, Japan and Australia. There is no fixed point at which a country crosses a finishing line; development is a spectrum, and where you draw the line is partly a judgement call.
It is also important to stress at the outset that "developing" covers an enormous range. It stretches from large, fast-growing economies to small, low-income nations, and treating them as a single bloc can be deeply misleading.
Because there is no universal definition, different organisations use different yardsticks. Most lean on one or both of two approaches.
Income per person. The most common single measure is GDP per capita — a country's total economic output divided by its population, giving a rough sense of average income. (For a fuller explanation of the underlying figure, see our guide to GDP.) The World Bank, for instance, sorts countries into income groups — low, lower-middle, upper-middle and high income — based on national income per person. This is precise and easy to apply, but income alone does not capture how people actually live.
Broader human development. To address that, the United Nations Development Programme created the Human Development Index (HDI), which combines three things:
By blending these, the HDI tries to reflect wellbeing rather than just wealth. A country can have moderate income but still rank higher or lower depending on how long and how educated its people's lives are.
Other indicators often considered include:
No single number tells the whole story, which is why analysts usually look at several together.
The vocabulary for all this has shifted repeatedly, and each label has fallen in and out of favour for a reason.
The lack of a settled vocabulary is itself revealing: it reflects genuine disagreement about how to think about global inequality.
Beyond wording, the very concept of a "developing country" draws criticism, for several reasons.
It lumps together the dissimilar. A category that spans hundreds of very different nations can obscure more than it reveals. Their economies, histories and challenges vary enormously.
It implies a single path. The word "developing" suggests every country is moving, or should move, toward the model of today's rich nations. Critics argue this is both inaccurate and value-laden.
It can be patronising or static. The label can cast nations as perpetually "behind", even as many grow rapidly and lead in particular fields. Some lower-income countries have, for example, leapfrogged straight to mobile banking and digital services.
The reality is dynamic. Countries move between categories over time. Several once routinely called "developing" are now major economic players, deeply woven into international trade and global finance. A snapshot label struggles to capture that movement.
None of this means the underlying issue — vast and persistent gaps in income, health and opportunity between nations — is not real. It plainly is. The debate is about how best to describe and measure it without distorting it.
A developing country is, in broad terms, one with lower income, industrialisation and living standards than the world's advanced economies. But there is no single official definition: bodies such as the World Bank classify by income, while the UN's Human Development Index blends income with health and education to capture wellbeing more fully.
The terms we use — from "Third World" to "developing" to "Global South" — keep shifting, reflecting genuine unease about labelling such varied and changing nations. The smart approach is to treat any single label with caution, remember the diversity it hides, and look to the underlying measures of how people actually live.
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