High Income Countries (HICs) - these are the most developed countries in
In the past (1960’s) there was the first world, second world and third
world. The first worlds were rich countries with lots of manufacturing
and services. They included the USA, Western Europe, Australia and
Japan. The second world countries were communist countries with lots
of manufacturing. They included Eastern Europe countries, Russia and
China. All the other countries were classified as third world countries.
However some people felt that ranking countries like this was
disrespectful to the countries labelled the ‘Third World’.
From the 1980s countries have been classified into two categories
based on how economically developed they are.
Richer countries are classed as High Income Countries (HICs) and
poorer countries are classed as Low Income Countries (LICs).
HICs are generally found in the north. They include the USA, European
countries, Australia and New Zealand.
LEDCs are generally found in the south. They include India, China,
Mexico, Brazil and all the African countries.
In the 1980s the Brandt report was published. It discussed the divide of
rich countries to the north and poor countries to the south. The line
used to show the divide is called the Brandt line.
However this simple classification cannot tell you which countries are
developing quickly and which ones are not really developing at all. Also
the classifications are based on wealth, which doesn’t always match the
development level- for example literacy can be high even if GDP is low.
the word. For example the UK, Norway, USA, Canada and France.
Now there are lots of other categories too.
Newly Industrialising Countries (NICs)
- these are rapidly getting richer as
their economy is moving from being
based on primary industry
(agriculture) to secondary industry
(manufacturing). For example China,
India, Brazil, Mexico and South
Africa.
Middle income countries (MICs) - these countries
Least income countries (LICs) - these are the are not really poor but they are not really rich
world’s poorest countries with the lowest quality either (they are kind of in the middle). They are
of life. For example Ethiopia, Chad and Angola. developing quickly but not as quickly as NICs are.
For example Albania, Bulgaria and Poland.
NICs- The first countries to become newly industrialised were South Korea, Taiwan, Hong Kong and Singapore. These were referred to
as the ‘four Asian tigers’. A tiger economy is one that grows rapidly. The reasons for the success of these countries were; a good level
of infrastructure, a skilled but relatively low cost workforce, cultural conditions that revere education and achievement, governments
welcoming foreign direct investment from transnational companies, distinct advantages in terms of geographical location, and
governments encouraging banks to lend to companies at low interest rates. The success of these four countries provided a model for
others to follow.
The gap between countries exists for many economic, physical and demographic reasons.
Physical geography- Landlocked countries tend to develop slower than coastal ones. Small island countries also face disadvantages in
development. Tropical countries have also grown more slowly reflecting the cost of poor health and unproductive farming. On the
other hand some countries have had a wealth of natural resources that have boosted economic growth.
Economic policies- Economies that have welcomed and encouraged foreign investment have developed faster than closed
economies. Fast growing countries tend to have high rates of saving and low spending. Also good government, law and order and
lack of corruption generally result in a high growth rate.
Demography- As the population becomes healthier there is less need for families to have lots of children also women become more
careers minded this decreased the birth rate. Countries with lower birth rates experience higher rates of growth.
Questions:

1. How was the world divided in the 1960’s?

8. How did the Brandt report classify countries and what were the features of these classifications?

7. What are the flaws with classifying countries as just MEDCs and LEDCs?

6. What are the new catagories of development?- List them from least developed to most developed

5. How are LDCs, MICs, NICs and MDCs different from each other?

4. What countries were the first NICs?

3. Give 3 economic factors that allowed the four Asian tiger countries to rapidly grow.

2. Explain how the gap in development has grown between countries using physical, economic and
demographic factors.