Q.
Discuss some differences/features of developed and developing
countries.
DEVELOPED COUNTRIES
• One of the most differentiating features of
developed countries is the Large size of their
Gross Domestic Product (GDP). 
 compared to the developed countries. This leads to
This leads to a greater accumulation of capital in
the economy. As the income level rises, more
income is allocated towards health and educational
expenditure which builds a healthy and educated
workforce (since detrimental factors like infant
mortality rate and population growth fall). This
leads to a shift in expenditure away from
healthcare and disease care and frees up income
for production of new ideas in the society utilising
the accumulates educational skill of the workforce.
Consequently, the productivity of capital is
enhanced which leads to further accumulation of
capital and this cycle keeps repeating itself.
• Developed countries also show higher rates of
literacy and level of education. In most developed
economies, on an average 95% of the population
aged 15 years and above is educated.
the population aged 15 years and above are literate.
• People in Developed countries have significantly
higher life expectancies and expect to live longer,
more fulfilling lives. On average, these people can
reasonably expect to live for 78 years at the time
of their birth.
years at the time of their birth.
• Developed countries have significantly lowered the
Infant Mortality Rate i.e. the number of deaths per
live births. This figure stands at 7 deaths per 1000
live births for the developed societies.
per 1000 live births.
• People living the developed countries have access
to quality healthcare facilities, clean water,
sanitation, good hygiene practices and
adequate nutrition.
DEVELOPING COUNTRIES
• Developing countries on the other hand have lower
Gross Domestic Product (GDP) levels when
the exact opposite of what developed countries
witness. Low GDP results in low income levels, low
accumulation of capital and a highly unequal society
in terms of resource distribution. The subsequent
lack of resource allocation for healthcare and
education does not lead to an improvement in the
quality of workforce. Poor health also perpetuates
poverty and poverty in turn leads to capability
deprivations for the poor causing further poverty.
This creates a downward spiral in the economy
which restricts economic growth and the economy
falls into vicious cycles of poverty.
• Developing countries on the other hand show high
rates of illiteracy and low levels of education. In
most such economies, on an average only 55% of
• People in developing countries have significantly
lower life expectancies than people in the
developed world and expect to live shorter lives. On
average, these people only expect to live for 58
• While some developing countries have made
significant progress in the Infant Mortality Rate,
however, it is still high and remains at 120 deaths
• People in the developing countries still lack access
to good healthcare facilities clean water and
adequate nutrition. The problem of open
defecation is wide spread in the developing world.
• Developed countries have, over the course of time • Developing countries are on the path to growth but
accumulated significantly greater human still have low levels of human capital formation
capital. This results in higher quality of work, better compared to their developed counterparts.

technology and a healthy work force which is able

to remain productive for more years.

• The advancements in technology and education • Since Developing countries have low levels of
that the developed countries have made has lead education, so most of the production taking place
to the generation of several new ideas which help in the developing world is low in value (such as only
them in producing newer, better goods and aids assembly of smartphones from sophisticated
them in better production of existing goods.
components which are imported) and does not lead
to transfer of knowledge from the developed to the
developing countries.

• Due to better healthcare which offers longevity of
human life and low infant mortality rates, developed
countries have low rates of population growth.
This figure is approximately 0.8% per annum and
results in higher living standards for the population
in the long run since the increase in resources from
• These countries have a high population growth
rate due to high birth rates. This figure is roughly
2.4% per annum currently. High population growth
rates put an enormous amount of pressure on the
ecology of these countries and lowers the per capita
distribution of resources.

economic growth of the country distributed

amongst people lead to more resources for
everyone.

• Lower infant mortality rates mean more healthy
children. This leads to a reduction in the Total
Fertility Rates in the developed world which stand
at 1.8. This enables a greater participation of the
females in the workforce (due to reduced
• Developing countries are also witnessing a high
Total fertility rate of around 3.7. More children keep
women engaged in their look after for longer time
periods and away from productive activities for
longer which reduces the size of the workforce.

obligations to look after children) and leads to an

increase in the size of the total available workforce
in the country.

• Developed countries have achieved great • The most recognisable feature of the developing
efficiencies in the workings of the social countries is the ineffective social institutions which

institutions. They have been able to build foster corruption and hinder economic activity
which, as a consequence hinders economic growth
progressive institutions which improve the
and lowers the total factor productivity of the
material conditions of life. These institutions
economy.
include,

‣ Markets

‣ Rural and Urban Networks

‣ People

‣ Kinship

‣ Government