Understanding the Developed and Developing Economies

In the present research work an attempt has been made to understand the concept of developed and developing economy and the present classification of countries by region, by continents, by international association i.e. SAARC, OPEC, G20 & BRICS according per capita GNI by World Bank atlas method. World Bank reveals the database of high, middle and low income countries on 1_st July 2016 by new threshold; this database is being used for the present classification. Large numbers of African countries have low per capita income. That is the reason those areas are known as “slum” of the earth. Some of the regions, economies are consistently underdeveloped; these regions have to follow effective methods.

The topic argued here is important to draw attention toward global disparity among the member countries of World Bank and among the member countries various international associations.

A part of paper has discussion on the methods using by IMF and UNDP for classification the countries between developed and the developing country and alternative method. Existing taxonomies suffer from lack of clarity with regard to how they distinguish among country groupings.