similarities of developed and developing countries

Industry makes up 39%, with the remainder being agriculture. Mitchell, B. R. (1998b). 9 and 10, while a listing of all countries and their respective regions is provided in Supplementary Information 1. 4.2, the paper explains the possible application of the method to setting development goals in Sect. Yet the typical Irish person ($100,172 in 2021) is nearly eight times richer than their Chinese counterpart ($12,556 in 2021), despite the fact that their country is so much smaller. Data sources for benchmark countries: 18001954: United Nations Demographic Yearbook, various editions, League of Nations Statistical Yearbook, various editions, Allen (2000), Broadberry et al. http://www.lifetable.de. Some of the indicators used to define a state as either developed or developing include the World Bank Income Classification, Human Development Index, and fall in Extreme Poverty among others. Families do not feel the need to have large numbers of children due to the expectation that some will not survive. World development indicators [Data file]. Disposal of both solid and liquid waste has become a global issue, which is affecting all the countries around the world. The examples presented above highlight the daunting task to improve well-being in the least developed countries. United Nations. Subramanian, A. "The 2016 Edition of World Development Indicators Is Out: Three Features You Won't Want to Miss. The results of the comparison between present-day developing countries split by SDG regions and the average for benchmark countries at the time when they were at equal level of economic development, is presented in Fig. World Development, 37, 1125. (2016). 4), e.g. Wider use of SDGs is not possible, as few of the goals are quantified and measurable (McArthur and Rasmussen 2019) and long data series for the whole world are available for even fewer goals. Definition: Infant survival rate is calculated from the infant mortality rate, which is the number of infants dying before reaching one year of age, per 1000 live births in a given year (World Bank 2019). She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area. Milanovic, B. Gross domestic product is the monetary value of all finished goods and services made within a country during a specific period. One is Beta convergence, which proposes that poorer countries (or regions of countries) growth faster than richer ones and therefore catch-up on them (Barro and Sala-i-Martin 1992; Monfort 2008). Brexit Trade Deal Gets a Final OK From E.U. Maddison, A. The complete time lag dataset and graphs from the study are available on figshare (https://doi.org/10.6084/m9.figshare.9436514). The problem with the convergence concepts is that they were created in context of economic development and income growth. A wealthy nation isn't synonymous with a developed one. Also, the global result in population-weighted terms is mostly influenced by progress in China, which can be estimated to be responsible for more than 90% of positive contribution to the reduction of the indicator-averaged time lag in the 1990s and almost 70% in both 2000s and 2010s. https://www.fertilitydata.org/cgi-bin/index.php. European Automobile Manufacturers Association. Since 1920, the lag in infant survival increased except in Southern Africa, though the gains in that subregion where concentrated in the first half of the century. Several divisions of the world are referred to here: Sustainable Development Goals (SDG) regions, United Nations subregions, United Nations development regions (More, Less and Least developed, Land-Locked Developing Countries, Small Island Developing States), geographical continents and World Bank income groups (Low, Lower-middle, Upper-middle and High income). (2008). Retrieved July 31, 2019. World Bank Blogs. The nation is known for delivering world-class quality products, including machinery, motor vehicles, electronics, and pharmaceuticals. London: Palgrave Macmillan. Eurostat. Definition: the number of active fixed-line and mobile cellular telephone subscriptions per 1000 persons (World Bank 2019). In practice, the exact definition varies between countries. coefficient of variation or Gini, Theil and Atkinson indices (Monfort 2008). (2013), Maddison (2001), Mitchell (1993, 1998a, b), Nixon (1938), Schn and Krantz (2015) and national statistical institutes; 19552018: Eurostat (2019) and OECD (2019); 20192100: extrapolated using average annual change in employment share in the group of benchmark countries (20082017). The offers that appear in this table are from partnerships from which Investopedia receives compensation. fact that while comparing the descriptive statistics of developed and developing countries in table 3, it can be seen that there is a major difference in the description of data employed for the . Though the method used provides a quantification of the uncertainty, it might not capture trends that occurred in a particular country, especially if the lack of data was a result of major disruptions in a country, such as war or revolution. Gross domestic product [Data file]. The remaining 177 countries were divided into benchmark (developed) and developing countries. Boden, T.A., G. Marland, & Andres, R. J. The countries with the highest GDP per capita are often those with an unusual concentration of wealth. This date was chosen due to the data availability, which is reduced substantially in earlier years. Countries with less than $1,035 GNI per capita are classified as low-income countries, those with between $1,036 and $4,085 as lower middle income countries, those with between $4,086 and. This is likely the primary reason why there are so many varied definitions of "developed" versus "developing," as each organization has different qualifications for what should constitute the latter in order to receive their assistance. The Republic of India is considered both a newly industrialized nation and one of the fastest developing countries on Earth; however, the country continues to struggle with issues like widespread poverty, poor water and sanitation, and overpopulation. The World Bank. This paper reviews relevant literature to construct the case for international cooperation, and in particular, developed-developing country partnerships. European Review of Economic History, 4(1), 125. As of 2021, the country's infant mortality rate was four per 1,000 live births, while the life expectancy rate was 77 years since birth (as of 2020 data). However, it was argued that countries in fact converge towards different steady-states (Quah 1993), hence poor countries will not necessarily catch-up with richer ones. Soc Indic Res 153, 193225 (2021). Data sources for developing countries: 19202018: United Nations Statistical Yearbook, various editions, League of Nations Statistical Yearbook, Mitchell (1993, 1998a, b), Eurostat (2019), United Nations Economic Commission for Europe (2019), Oak Ridge National Laboratory (2019), European Automobile Manufacturers Association (2019), International Organization of Motor Vehicle Manufacturers (2017) and national statistical institutes, divided by total population (see Sect. This is also why even the terminology is inconsistent, as this binary is often insufficient for categorizing large, complex territories. 6, while lags per indicator and SDG region are shown in Fig. Scandinavian Journal of Economics, 95, 427443. However, this is very close to the historical record of benchmark countries, which have grown, on average, 1.6% per annum in the 15years after reaching the 2015 level of GDP per capita of the least developed countries. The Center examined the most recent nationwide election results for 50 countries, mostly with highly developed economies and solid democratic traditions. Firstly, random variables \(X_{t}\), \(X_{t - 1}\) and \(X_{t + 1}\) are derived from the nine indicators involved, using a dataset combining the data for the benchmark and developing countries, the latter without interpolations. By contrast, the data on the 156 developing countries were collected specifically for this study, using compilations of data by international organizations as the main resource, supplemented by databases of historical statistics produced by researchers. According to the UN, in 2023, 36 countries were considered "developed." All developed countries were located in either North America, Europe, or "Developed Asia and Pacific." 6. https://doi.org/10.1007/s11205-014-0588-8. 2.2), \(L_{d,t} = 73.0\). Decancq, K., Decoster, A., & Schokkaert, E. (2009). The findings are largely the same for population-weighted and median time lags. "How Does Excessive Debt Hurt an Economy?". Comparison of indicator-averaged time lags between different years (inverted scales). ", Water.org. https://datacatalog.worldbank.org/dataset/world-development-indicators. Characteristics of developed countries include: Relatively few people experiencing poverty. Several countries, mostly in Eastern Asia and Eastern Europe have closed the gap despite less favorable starting conditions. Historical statistics of the world economy: 12008 AD [Data file]. The remaining 187 countries were split according to whether they are independent (according to information contained in ISO 3166) or not. Strong economic growth.. Its high birth rate, at 13 births per 1,000 people in 2020, is also a common characteristic of a developing country. The technology cycle and inequality. s \right|X_{b,s} \le X_{d,t} } \right\} + 1$$, $$L_{d,t} = t - \left( {\frac{1}{B}\mathop \sum \limits_{b = 1}^{B} \bar{s}_{b} } \right)$$, $$\bar{s}_{b} = \mathop {\text{arg max}}\limits_{s \in S} \left\{ {\left. In contrast to Beta convergence, Sigma convergence can be inspected with a variety of methods, e.g. Yet, time lag reduction in health indicators stopped in the 1970s; it is currently increasing. By modelling the bivariate distributions of an indicator at those two timesteps it is possible to predict, with uncertainty bounds, the change of the indicator from any given timestep to the next one. 3). Volatility and slow technology diffusion. UN Inter-agency Group for Child Mortality Estimation. Some countries of the region were regarded as developed early in the century, but have consistently been falling behind the benchmark, especially Argentina, Paraguay and Uruguay. ", Xe. Where possible, historical series using the number of devices (mostly from Mitchell) have been adjusted to match later series with the number of subscriptions (mostly from World Development Indicators). Section3 presents the results firstly by giving a global overview and then providing more details on major parts of the developing world. Thanks to improved data availability from new research datasets, it was possible to add two indicators (compared with Paprotny 2016). Out of 161 countries (including 9 aggregate countries) for which data are available, GDP per capita in year 2017 was within the 80% confidence interval in 77 cases (48%) and within the 95% confidence interval in 124 cases (77%). However, emissions per unit of gross domestic product (GDP) rise at first when countries industrializepeak emissions relative to the size of the economy were achieved in the benchmark countries between 1880s (United Kingdom) and 1980s (Australia), according to the data collected here (see Appendix 2). Additionally, Swedish citizens have free access to healthcare and higher education. 2.3) decreases when countries achieve higher level of development. Productivity growth, convergence and welfare: What the long-run data show. ", International Trade Administration. Explorations in Economic History, 50(1), 1627. Social Indicators Research, 64(1), 2950. All independent states were assumed to have sufficient data, while non-independent territories were assessed individually. Low supply of jobs has become an international issue in both developed and developing countries. "Extra-Euro Area Trade in Goods," Click "Main Partners for Extra-Euro Area Trade. The country is primarily a services country, with the sector making up 60% of GDP. The issue of terrorism has become a global concern with multiple attacks happening in developed European countries, the United States of America, and some African countries like Kenya, Somalia, and Nigeria. World economic outlook database [Data file]. Developed nations. Sweden is one of the most highly developed post-industrial societies in the world. The social, political, cultural, and. ", The World Bank. OECD.Stat [Data file]. Total population, benchmark countries: 18001949: Maddison (2010) and national statistical institutes; 19502019: World Prospects: the 2019 revision, except for United States, which is from the US Census Bureau; 20202100: projections from the World Population Prospects: the 2019 revision. Raw values of development indicators. A median upper-middle income country is still further behind the developed world than a median high-income country. Max Planck Institute for Demographic Research. For infant mortality rate, the number of predicted values for 2017 within the 80% and 95% intervals were 138 (84%) and 157 (95%) out of 165, respectively. The Second world included the Soviet Union, Eastern Europe, and China. Data sources for benchmark countries: 18952017: United Nations Statistical Yearbook, various editions, League of Nations Statistical Yearbook, Mitchell (1993, 1998a, b), Eurostat (2019) and national statistical institutes, divided by total population (see Sect. "Poverty & Equity Brief: Mexico," Page 1. Correspondence to "Polish Economy Returns to Growth Amidst Pandemic-Related Setbacks. Sala-i-Martin, X. Problems of accuracy aside, it should be noted that the GDP per capita indicator depends on the choice of the time point to which the different countries are compared to. ", 2023 Index of Economic Freedom. ", United Nations Development Programme, Human Development Reports. Data sources for benchmark countries: 18002018: United Nations Demographic Yearbook, League of Nations Statistical Yearbook, Human Life-Table Database, Human Mortality Database, World Population Prospects: the 2019 revision, Eurostat (2019), Mitchell (1998a, b), Rothenbacher (2013), UN Inter-agency Group for Child Mortality Estimation (2019) and national statistical institutes; 20192100: projections from the World Population Prospects: the 2019 revision. Electricity consumption depends on the climate and availability of energy production sources within the country (fossil fuels, hydropower). "Human Development Index (HDI).". 2009; Mazumdar 2003; McGillivray and Pillarisetti 2004; Milanovic 2005), with Pritchett (1997) declaring divergence, big time, and convergence (Knya and Guisan 2008; McGillivray and Markova 2010; Jord and Sarabia 2015; Jord and Nio-Zaraza 2017), with Sala-i-Martin (2006) declaring in dissent convergence, period! The lack of consensus in the findings is caused by the use of different developments indicators, sets of countries, time frames, and methodologies. In these countries, manufacturing may not be as developed, on average people earn dramatically less money annually, and things like infrastructure may be more rudimentary. Top Statutory Personal Income Tax Rates, Unemployment, Total (% of Total Labor Force) (National Estimate), Swedish Healthcare is Largely Tax-Funded. The aim of the paper is to carry out a broader analysis with longer time series and a more diverse set of indicators. Piketty, T. (2014). Human fertility collection [Data file]. Political regime type, developing countries: 2017: Combined Polity Score from Polity IV Project. Overall, the time lag for telephone usage in the developing world increased from 31years in 1920 to a maximum of 57years in 1983 and is projected to decline to 15years in 2020 (Fig. https://doi.org/10.4054/DemRes.2014.30.27. http://www.mortality.org. (2019). The Borgen Project. "The World Bank in Thailand. CID Faculty working paper no. The study finds that a majority of developing countries, and the population-weighted developing world as a whole, has reduced its lag in most indicators between 1920 and 2020. GDP long-term forecast (indicator) [Data file]. The same finding is true for a median developing country. https://doi.org/10.1111/j.1748-3131.2008.00090.x. ", United Nations World Food Programme. Due to the amount of territories involved, the use of country-specific sources was limited. Quarterly Journal of Economics, 70, 6594. In 1920, the developing world was lagging 70years or more in seven indicators (all but the adoption of much more novel inventions of cars and telephones), especially for GDP per capita, by 103years. (2012). Then, the extrapolation was done on the dataset of emissions per GDP unit directly, rather than on the converted index. As a result, the time series for the benchmark countries cover three . The Institut National dEtudes Dmographiques (INED). Low-income countries only managed to stop further increase of the lag in the late 2000s (Fig. (2019a). Driven by its highly skilled labor force, Germany is Europe's strongest economy, and it is the fourth-largest economy in the world. World Development, 123, 104608. https://doi.org/10.1016/j.worlddev.2019.06.031. "Health Insurance and the Healthcare System of Spain Explained. http://www.systemicpeace.org/inscrdata.html. Vehicles in use [Data file]. The time lags reveal how many years a country is behind the frontier in economic, social and technological development, and which indicator requires most effort as it has the highest number of years to catch-up. Comparing public administration between developing and developed countries has since been an essential aspect of comparative public administration (CPA). mean year of schooling in Bangladesh in 2017) can be compared with a set of observations \(\left\{ {X_{b,s} } \right\}\) for a developed (benchmark) country \(b\), indexed by \(s\) (e.g. The classical approach to convergence analysis. https://doi.org/10.1086/261816. Here's a closer look at both. Every country is obviously going to have a different population, which means that looking exclusively at GDP can distort the truth and/or be so obvious as to be meaningless. The present-day commercial banking industry had its beginning in Italy, and today the nation's largest financial services company, Intesa Sanpaolo is regularly ranked on the Fortune 500 list. Developed countries have a high level of literacy for both male and female, where . After briefly discussing the possible explanations of the results in Sect. Yet, if average income is assigned to individual citizens of countries, the Gini coefficient will show a decrease in inequality (convergence). Pritchett, L. (1997). Deaton, A. London: Palgrave Macmillan. inequality between them is decreasing) or diverging (increasing inequality). As of 2020, India had a life expectancy of 70 years since birth as well as an extremely high infant mortality rate of 26 deaths per 1,000 live births (based on 2021 data). Similar conclusions apply to the oil-importing less developed countries. . "Literacy Rate, Adult Total (% of People Ages 15 and Above) - Spain. Progress was unevenly distributed, with East Asian and European countries converging the most with the benchmark, while most African countries have diverged along with some American ones. Switzerland has a universal healthcare system while also preserving a private marketplace. For example, change in life expectancy in Sweden during 18001846 is used to extrapolate values of this indicator for Norway, where available data series start in 1846. This creates both opportunities and risks to future convergence with the developed countries. https://www.imf.org/external/datamapper/datasets/DEBT/1. The same two groups are the only ones with higher share of old-age population, though they still have a higher share of working-age population, like all regions except Sub-Saharan Africa. This means that at each timestep a single sample is drawn from the posterior distribution of \(v\) given \(u\), and that sample becomes the conditionalizing value of \(u\) margin. , Samsa Latif, No Comment, March 20, 2023 Due to geopolitical changes in the past century, nine aggregate countries had to be created, representing countries that have split into smaller states, but historical data is available mostly for those defunct states rather than their successors. Indias GDP mis-estimation: Likelihood, magnitudes, mechanisms, and implications. (2019). Similarly, GDP per capita figures for some benchmark countries before 1820 were interpolated using estimates for year 1700 from Maddison (2010). However, due to the large number of developing countries, the method is not practical and further doesnt provide information on the uncertainty of the extrapolation. This region does not exist in the original SDG regions. Australians also enjoy a higher quality of life than some other countries; according to the Organization for Economic Cooperation and Development (OECD), citizens on average graded their life satisfaction as 7.5 out of 10, which is reasonably better than the 6.7 global average. Therefore, Eq. (2006). The Land Down Under has widespread industrialization and provides quality healthcare for the majority of its citizens. As of 2020, Germany had a life expectancy of 81 years since birth as well as an infant mortality rate of only three deaths per 1,000 live births (based on 2021 data). 2019). , Syed Hasan (2020). Additionally, emissions per unit of GDP vary substantially between countries due to the different structures of the economy or availability of alternative energy sources such as hydropower. Global, regional, and national fossil-fuel CO2 emissions, carbon dioxide information analysis center [data file]. Emissions after the year of the peak are divided by the baseline emission. The indicator-averaged lag has changed little over the course of the century, as the lag amounted to 76years in 1920, the same value in 1970 or 1980 and is projected to be 74years in 2020. Demographic data, developing countries: 2017: World Population Prospects: the 2019 revision. International Historical Statistics by Mitchell (1993, 1998a, b), CLIO Infra (2019) database and almost a century of yearbooks by the League of Nations and United Nations. The purpose of this article is to highlight the development status of the 25 largest countries on Earth by GDP. The dataset for the benchmark countries was amended as in Paprotny (2016). This paper examined the time lags of nine development indicators for most countries of the world compared with a set of 21 developed (benchmark) countries. The concentration of the world's population in urban areas is growing at an . Following several decades of rapid economic growth and global integration, the Republic of Korea has become a high-technology and industrialized nation, with its most important sectors being electronics, telecommunications, automobile production, chemicals, shipbuilding, and steel. They use a disproportionate amount of the world's resources. Preston, S. H. (2007). 2023 Springer Nature Switzerland AG. This is an unsatisfactory result in context of the need to reduce greenhouse gas emissions to prevent catastrophic climate change, which threatens global convergence in well-being as well (Baarsch et al. https://www.ekh.lu.se/en/research/economic-history-data/shna. (1) is slightly modified as follows: while Eq. The country benefits from a diverse economy, including tourism, manufacturing, and pharmaceuticals. Knya, L., & Guisan, M. C. (2008). OECD. They have higher levels of debt. Time lags allow to set a single goal (reducing the lag by a given number of years to the benchmark), which will require a different rate of progress for different countries, but will lead to convergence between the developing countries and the benchmark. Even though the French government has partially or fully privatized many prominent companies, it still has a strong presence in its power, public transport, and defense sectors. Data for almost all European countries (except for Albania) did not need adjustment. "Table I.7. The paper draws conclusions in Sect. London: Penguin. However, this would not affect the trends in the time lag for this indicator. As a starting point of country selection, ISO 3166 standard (International Organization for Standardization 2019) was used to identify 249 countries and territories, with one additional territory (Kosovo) added from the databases of the World Bank (2019). "A Tale of Two Surplus Countries: China and Germany: Abstract. The results show that least developing countries have higher natural growth and younger demographic structure than an average benchmark country at the time when it had the same level of GDP per capita as the least developed countries. The nation's key exports include rubber, animal and vegetable fat, mineral fuels, machinery, electrical machinery, and mechanical appliance parts. A developed economy is one with sustained economic growth, security, high per capita income, and advanced technological infrastructure. Pradhan, P., Costa, L., Rybski, D., Lucht, W., & Kropp, J. P. (2017). The United States is a developed country. Though it has several characteristics of a developed nation, including the largest economy in South America or Central America, Brazil is still considered a developing country due to its lower GDP per capita, higher infant mortality rate, and other factors. 4), so that car usage is presently lagging by more than 60years (Fig. Solow, R. M. (1956). The infant mortality rate is three per 1,000 live births, as of 2021. Due to definitional discrepancies, countries such as Mexico, Greece, and Turkiye are considered developed by some organizations and developing by others. The concept of universal primary education spread slowly in the developed world, but was implemented at a faster pace in the developing world. Yugoslavia [Former]: Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, Serbia, Slovenia. Results aggregated to the three United Nations development categories (More, Less and Least developed) show very similar patterns as for income groups. "These Are the Top 10 Manufacturing Countries in the World.". Heady ( 2001) adds to this list China, South Korea, and Russia being in the "second tier" of the development process. Still, many developing countries have had lower economic growth than the Asian developed countries, hence the median time lag in GDP per capita for developing countries declined by only 23years (97 to 74years) compared to 38years for the population-weighted score for developing world (Fig. Includes emissions from gas, liquid and solid fossil fuels, cement production, and gas flaring. , No Comment, November 4, 2022 The primary source of data were national statistical institutes publications and databases of all 21 benchmark countries, with other sources being used mainly when national data were not obtainable directly or the use of international resources offered better comparability of the data. Earth System Science Data, 10, 21412194. ", 2023 Index of Economic Freedom. First, the median predictions of GDP per capita using the method highlighted above were used to fill gaps in economic data when computing emissions per unit of GDP. (2010). "Indonesia. No minimum requirement exists for developed status, but most developed countries have HDIs of 0.8 or higher. Princeton, NJ: Princeton University Press. As in the other aforementioned regions, passenger car usage is steadily falling behind the benchmark countries, while the consistent increase in the lag in telephone usage was only reversed by the introduction of mobile telephony. going back into the nineteenth century; 21 such countries have been identified: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Luxembourg (except indicator GDP per capita), the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, the United Kingdom and the United States. Data sources for developing countries: 19202017: as for benchmark countries. Technology usage lags. Data sources for developing countries: 19201949: United Nations Demographic Yearbook, League of Nations Statistical Yearbook, Human Life-Table Database, Rothenbacher (2013), UN Inter-agency Group for Child Mortality Estimation (2019) and national statistical institutes; 19502100: estimates and projections from the World Population Prospects: the 2019 revision. Retrieved July 31, 2019. Yet, almost all progress in catching-up with the developed world has been made before 1960, though with high uncertainty for the actual pre-1950 trajectory for male life expectancy and infant survival rate. (2018b). ", Economic History Association. "South Korea. Finally, the metric chosen to represent the standard of living is GNI (gross national income) per capita based on purchasing power parity (PPP). Maldives, Iran and Sri Lanka have reduced their lags more than other countries in the region, with no change in Pakistan and Nepal. Consequently, Bangladesh can be said to lag Iceland in terms of educational attainment of its population by 57years.
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