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World map indicating the categories of Human Development Index by country (based on 2015 and 2016 data, published on 21 March 2017)
  Very high   High   Medium   Low   Data unavailable

A developed country, industrialized country, more developed country, or "more economically developed country" (MEDC), is a sovereign state that has a developed economy and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. Which criteria are to be used and which countries can be classified as being developed are subjects of debate.

Developed countries have generally post-industrial economies, meaning the service sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialization or pre-industrial and almost entirely agrarian, some of which might fall into the category of least developed countries. As of 2015, advanced economies comprise 60.8% of global GDP based on nominal values and 42.9% of global GDP based on purchasing-power parity (PPP) according to the International Monetary Fund. In 2017, the ten largest advanced economies by GDP in both nominal and PPP terms were Australia, Canada, France, Germany, Italy, Japan, South Korea, Spain, the United Kingdom, and the United States.

Similar terms

See also: North–South divide

Terms similar to developed country include "advanced country", "industrialized country", "'more developed country" (MDC), "more economically developed country" (MEDC), "Global North country", "first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialization is an ongoing process that is hard to define. The first industrialized country was the United Kingdom, followed by Belgium. Later it spread further to Germany, United States, France and other Western European countries. According to some economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century.

Definition and criteria

Economic criteria have tended to dominate discussions. One such criterion is income per capita; countries with high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialization; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with a very high (HDI) rating.

According to the United Nations Statistics Division:

There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system.

And it notes that:

The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.

Human Development Index (HDI)

Main articles: Human Development Index and List of countries by Human Development Index

The UN HDI is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development."

Since 1990, Norway (2001–2006, 2009–2013), Japan (1990–1991 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–2008) have had the highest HDI score. The top 47 countries have scores ranging from 0.793 in Barbados to 0.955 in Norway.

Many countries listed by IMF or CIA as "advanced" (as of 2009), possess an HDI over 0.788 (as of 2010). Many countries possessing an HDI of 0.788 and over (as of 2010) are also listed by IMF or CIA as "advanced" (as of 2009). Thus, many "advanced economies" (as of 2009) are characterized by an HDI score of 0.9 or higher (as of 2007). Since April 2016, the IMF classifies Macau as an advanced economy.

The latest report was launched on 21 March 2017.


Very high human development

  • Increase = increase.
  • Steady = steady.
  • Decrease = decrease.
Rank Country HDI
2016 estimates for 2015
 Change in rank from previous year 2016 estimates for 2015
 Change from previous year
1 Steady  Norway 0.949 Increase 0.001
2 Increase (1)  Australia 0.939 Increase 0.002
2 Steady   Switzerland 0.939 Increase 0.001
4 Steady  Germany 0.926 Increase 0.002
5 Increase (1)  Denmark 0.925 Increase 0.002
5 Decrease (1)  Singapore 0.925 Increase 0.001
7 Decrease (1)  Netherlands 0.924 Increase 0.001
8 Steady  Ireland 0.923 Increase 0.003
9 Steady  Iceland 0.921 Increase 0.002
10 Decrease (1)  Canada 0.920 Increase 0.001
10 Increase (1)  United States 0.920 Increase 0.002
12 Steady  Hong Kong 0.917 Increase 0.001
13 Steady  New Zealand 0.915 Increase 0.002
14 Increase (1)  Sweden 0.913 Increase 0.004
15 Decrease (1)  Liechtenstein 0.912 Increase 0.001
16 Steady  United Kingdom 0.909 Increase 0.001
17 Steady  Japan 0.903 Increase 0.001
18 Steady  South Korea 0.901 Increase 0.002
19 Steady  Israel 0.899 Increase 0.001
20 Steady  Luxembourg 0.898 Increase 0.002
21 Increase (1)  France 0.897 Increase 0.003
22 Decrease (1)  Belgium 0.896 Increase 0.001
23 Steady  Finland 0.895 Increase 0.002
24 Steady  Austria 0.893 Increase 0.001
25 Steady  Slovenia 0.890 Increase 0.002
Rank Country HDI
2016 estimates for 2015
 Change in rank from previous year 2016 estimates for 2015
 Change from previous year
26 Increase (1)  Italy 0.887 Increase 0.006
27 Decrease (1)  Spain 0.884 Increase 0.002
28 Steady  Czech Republic 0.878 Increase 0.003
29 Steady  Greece 0.866 Increase 0.001
30 Steady  Brunei 0.865 Increase 0.001
30 Increase (1)  Estonia 0.865 Increase 0.002
32 Steady  Andorra 0.858 Increase 0.001
33 Increase (1)  Cyprus 0.856 Increase 0.002
33 Increase (2)  Malta 0.856 Increase 0.003
33 Steady  Qatar 0.856 Increase 0.001
36 Steady  Poland 0.855 Increase 0.003
37 Steady  Lithuania 0.848 Increase 0.002
38 Steady  Chile 0.847 Increase 0.002
38 Steady  Saudi Arabia 0.847 Increase 0.002
40 Steady  Slovakia 0.845 Increase 0.003
41 Steady  Portugal 0.843 Increase 0.002
42 Steady  United Arab Emirates 0.840 Increase 0.004
43 Steady  Hungary 0.836 Increase 0.002
44 Steady  Latvia 0.830 Increase 0.002
45 Steady  Argentina 0.827 Increase 0.001
45 Increase (1)  Croatia 0.827 Increase 0.004
47 Decrease (1)  Bahrain 0.824 Increase 0.001
48 Decrease (1)  Montenegro 0.807 Increase 0.003
49 Decrease (1)  Russia 0.804 Decrease 0.001
50 Increase (1)  Romania 0.802 Increase 0.004
51 Decrease (1)  Kuwait 0.800 Increase 0.001

As a non-UN member, the government of Taiwan calculates its own HDI, which had a value of 0.882 in 2011. Additionally, while the HDI for the Chinese special administrative region of Hong Kong is calculated by the UN, it is not for Macau. The Macanese government calculated the territory's HDI to be 0.868 in 2011. These values place both Taiwan and Macau well within the list of countries with "Very high human development". Furthermore, in 2009 a United Nations project calculated the HDI for all of its members, as well as Taiwan, Macau, and many dependent territories. The HDI values for the countries of San Marino and Monaco, which have not been included in official annual HDI reports, were found to be at 0.961 and 0.956 respectively. This places both countries firmly within the category of countries with "Very high human development" as well. The dependent territories with HDI values equivalent to "Very high human development" were: Jersey, Cayman Islands, Bermuda, Guernsey, Gibraltar, Norfolk Island, Faroe Islands, Isle of Man, British Virgin Islands, Falkland Islands, Aruba, Puerto Rico, Martinique, Greenland, and Guam. Of note, the HDI values in the 2009 report were calculated using the old HDI formula, while HDI values after the year 2010 are calculated with a different formula.

High-income economies

Some institutions have produced lists of developed countries: the UN (list shown above), the CIA, and some providers of stock market indices (the FTSE Group, MSCI, S&P, Dow Jones, STOXX, etc.). The latter is not included here because its association of developed countries with countries with both high incomes and developed markets is not deemed as directly relevant.

However many other institutions have created more general lists referred to when discussing developed countries. For example, the International Monetary Fund (IMF) identifies 39 "advanced economies". The OECD's 36 members are known as the "developed countries club" The World Bank identifies 81 "high income countries".

World Bank high-income economies

Main article: World Bank high-income economy
World Bank high-income economies in 2017

According to the World Bank the following 81 countries (including territories) are classified as "high-income economies". As of 2019, High-income economies are those that had a GNI per capita of $12,056 or more - in 2017.

High income UN members



High income non-UN members



Between 1994 and 2009, as part of the  Netherlands Antilles.

High-income OECD members

There are 34 members in the High-income OECD category, as determined by the World Bank. The High-income OECD membership is as follows:

26 countries in Europe:

3 countries in Asia:

2 countries in North America:

2 countries in Oceania:

1 country in South America:

Development Assistance Committee members
Member nations of the Development Assistance Committee

There are 29 OECD member countries and the European Union—in the Development Assistance Committee (DAC), a group of the world's major donor countries that discuss issues surrounding development aid and poverty reduction in developing countries. The following OECD member countries are DAC members:

23 countries wholly or partly in Europe:

2 countries in Asia:

2 countries in North America:

2 countries in Oceania:

IMF advanced economies

  Countries described as Advanced Economies by the IMF

According to the International Monetary Fund, the following 39 economies are classified as "advanced economies":

The CIA has modified an older version of the IMF's list of Advanced Economies, noting that the IMF's Advanced Economies list "would presumably also cover" some smaller countries. These include:


Paris Club members

Permanent members of the Paris Club

There are 22 permanent members in the Paris Club (Template:Lang-fr), a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

15 countries wholly or partly in Europe:

3 countries in Asia:

2 countries in North America:

1 country in Oceania:

1 country in South America:

See also

Notes

  1. The official classification of "advanced economies" is originally made by the International Monetary Fund (IMF). The IMF list doesn't deal with non-IMF members. The Central Intelligence Agency (CIA) intends to follow IMF list but adds few economies which aren't dealt with by IMF due to their not being IMF members. By May 2001, the advanced country list of the CIA Archived 2008-04-09 at the Wayback Machine was more comprehensive than the original IMF list. However, since May 2001, three additional countries (Cyprus, Malta and Slovenia) have been added to the original IMF list, thus leaving the CIA list not updated.
  2. Namely sovereign states, i.e., excluding Macau: In 2003, the government of Macau calculated its HDI as being 0.909 (the UN does not calculate Macau's HDI); In January 2007, the People's Daily Archived 2008-12-07 at the Wayback Machine reported (from China Modernization Report 2007): "In 2004... Macau... had reached the level of developed countries". The UNCTAD Archived 2007-07-10 at the Wayback Machine organisation (of the UN), as well as the CIA Archived 2008-04-09 at the Wayback Machine, classify Macau as a "developing" territory. The World Bank classifies Macau as a high income economy (along with developed economies as well as with few developing economies).
  3. The Developed Countries Glossary Archived 2014-12-20 at the Wayback Machine entry reads: "The following countries are classified by FTSE as developed countries: Australia, Austria, Belgium/Luxembourg, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong (People's Republic of China), Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, United Kingdom and the United States."

References

  1. Developed Economy Definition Archived 2016-03-22 at the Wayback Machine. Investopedia (2010-04-16). Retrieved 2013-07-12.
  2. IMF GDP data (October 2015) Archived 2016-03-04 at the Wayback Machine
  3. "All countries/Advanced economies". www.imf.org. Retrieved 29 June 2018.
  4. Sachs, Jeffrey (2005). The End of Poverty. New York, New York: The Penguin Press. ISBN 1-59420-045-9. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  5. "Millennium Development Indicators: World and regional groupings". United Nations Statistics Division. 2003. Note b. Archived from the original on 10 February 2005. Retrieved 13 May 2017. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  6. "Standard Country and Area Codes Classifications (M49): Developed Regions". United Nations Statistics Division. Archived from the original on 11 July 2017. Retrieved 13 May 2017. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  7. ^ IMF Advanced Economies List. World Economic Outlook, April 2016, p. 148 Archived 2016-04-21 at the Wayback Machine
  8. ^ "Human Development Report 2016 – 'Human Development for Everyone'" (PDF). HDRO (Human Development Report Office) United Nations Development Programme. Archived from the original (PDF) on 22 March 2017. Retrieved 11 April 2017. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  9. "2011中華民國人類發展指數 (HDI)" (PDF) (in Chinese). Directorate General of Budget, Accounting and Statistics, Executive Yuan, R.O.C. 2011. Archived from the original (PDF) on 26 December 2011. Retrieved 21 November 2011. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  10. Macau in Figures, 2013 Archived 2013-10-24 at the Wayback Machine
  11. Filling Gaps in the Human Development Index Archived 2016-03-05 at the Wayback Machine, United Nations ESCAP, February 2009
  12. ^ CIA (2008). "Appendix B. International Organizations and Groups". World Factbook. Archived from the original on 9 April 2008. Retrieved 10 April 2008. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  13. World Economic Outlook Archived 2016-04-21 at the Wayback Machine, International Monetary Fund, September 2011, p. 165.
  14. "Archived copy". Archived from the original on 21 February 2009. Retrieved 25 January 2009. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
  15. Indiana Express Archived 2010-01-27 at the Wayback Machine
  16. Minutes of Forum #26:Global Strategy Series 2 - Japan as It Should Be (Outline) | Economic and Social Research Institute, Cabinet Office, Government of Japan Archived 2007-10-30 at the Wayback Machine. Esri.go.jp. Retrieved 2013-07-12.
  17. ^ Country and Lending Groups. World Bank. Accessed on July 10, 2018.
  18. Country and Lending Groups | Data Archived 2011-03-18 at the Wayback Machine. Data.worldbank.org. Retrieved 2016-08-01.
  19. "Members and partners". OECD. Archived from the original on 29 July 2016. Retrieved 1 August 2016. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  20. Peer reviews of DAC members - Organisation for Economic Co-operation and Development Archived 2013-05-27 at the Wayback Machine. Oecd.org. Retrieved 2013-10-22.
  21. DAC website >> "The DAC in Dates" Archived 2010-02-15 at the Wayback Machine, On the DAC's self-description, see the introductory letter. On other events, refer to the relevant section by date.

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