A developing country is a sovereign state with a less developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreement on which countries fit this category. The terms low and middle-income country (LMIC) and newly emerging economy (NEE) are often used interchangeably but refers only to the economy of the countries. The World Bank classifies the world's economies into four groups, based on gross national income per capita: high, upper-middle, lower-middle, and low income countries. Least developed countries, landlocked developing countries and small island developing states are all sub-groupings of developing countries. Countries on the other end of the spectrum are usually referred to as high-income countries or developed countries.
There are controversies over the term's use, as some feel that it perpetuates an outdated concept of "us" and "them". In 2015, the World Bank declared that the "developing/developed world categorization" had become less relevant and that they will phase out the use of that descriptor. Instead, their reports will present data aggregations for regions and income groups. The term "Global South" is used by some as an alternative term to developing countries.
Developing countries tend to have some characteristics in common often due to their histories or geographies. For example, they commonly have: lower levels of access to safe drinking water, sanitation and hygiene, energy poverty, higher levels of pollution (e.g. air pollution, littering, water pollution, open defecation), higher proportions of people with tropical and infectious diseases (neglected tropical diseases), more road traffic accidents, and generally poorer quality infrastructure.
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The primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, fishing, forestry and mining. The primary sector tends to make up a larger portion of the economy in developing countries than it does in developed countries. For example, in 2018, agriculture, forestry, and fishing comprised more than 15% of GDP in sub-Saharan Africa but less than 1% of GDP in North America.
In macroeconomics, the secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction. This sector generally takes the output of the primary sector (i.e. raw materials) and creates finished goods suitable for sale to domestic businesses or consumers and for export (via distribution through the tertiary sector).
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For example, a person's income in an economic sense may be different from their income as defined by law. An extremely important definition of income is Haig–Simons income, which defines income as Consumption + Change in net worth and is widely used in economics.
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2024
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