developing country


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Less Developed Country

A country with lower GDP relative to other countries. Less developed countries are characterized by little industry and sometimes a comparatively high dependence on foreign aid. Less developed countries often undertake programs of development, with greater or lesser interventions on the part of the national governments. They are major borrowers from organizations such as the World Bank. While no strict definition of which countries are less developed exists, most countries that do not belong to the OECD are considered less developed. See also: International development.

developing country

or

less developed country

or

underdeveloped country

or

emerging country

or

Third World

country a country characterized by low levels of GROSS NATIONAL PRODUCT and INCOME PER HEAD. See Fig. 51 . Such countries are typically dominated by a large PRIMARY SECTOR thatproduces a limited range of agricultural and mineral products and in which the majority of the POPULATION exists at or near subsistence levels, producing barely enough for their immediate needs, thus being unable to release the resources required to support a large urbanized industrial population. The term ‘developing’ indicates that, as seen by most such countries, the way to improve their economic fortunes is to diversify the industrial base of the economy by, in particular, establishing new manufacturing industries and by adopting the PRICE SYSTEM. To facilitate an increase in urban population necessary for INDUSTRIALIZATION, a nation may either IMPORT the necessary commodities from abroad with the FOREIGN EXCHANGE earned from the EXPORT of the (predominantly) primary goods, or it can attempt to improve its own agriculture. With appropriate ECONOMIC AID from industrialized countries and the ability and willingness on the part of a developing country, the transition into a NEWLY INDUSTRIALIZED COUNTRY could be made.

Certain problems do exist, however. For instance, increases in real income that are achieved need to be maintained, which means keeping population numbers in check. Illiteracy and social customs for large families tend to work against governmental efforts to increase the STANDARD OF LIVING of its citizens. Also, most of the foreign exchange earned by such countries is by exporting, mainly commodities (see INTERNATIONAL TRADE). See ECONOMIC DEVELOPMENT, STRUCTURE OF INDUSTRY, DEMOGRAPHIC TRANSITION, POPULATION TRAP, INTERNATIONAL COMMODITY AGREEMENTS, UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT, INTERNATIONAL DEBT.

References in periodicals archive ?
Everything else being equal, it is preferable if a developing country regulates its own economy by itself, rather than for a developed country to do so in its stead.
This concerns both the extent to which the developing country itself is affected and the total degree of internationality.
Where conflicts exist, supplanting antitrust appears problematic, unless the institutions of the developed country are willing to adopt the policies of the developing country by applying its law.
The developing country may have a genuine interest in such supplanting--especially if the cartel is too powerful or too complex for the country's own authorities.
It is also in the interest of the developing country if enough of the previously discussed conditions are met.
It seems inconsistent to lecture a developing country on the benefits of free competition, and then to do nothing against one's own corporations violating these principles domestically.
Notably, the interest of developed and developing country alike is that the cartel be regulated at all, not necessarily that it be regulated by a particular country.
As long as the developing country does not request enforcement, however, developed countries cannot use their own institutions to regulate the foreign market.
It may be hard for them to adjust their framework to a very different economy in a developing country.
To some extent, including experts from (and on) the developing country in the decisionmaking may remedy this problem.
In one way, such a recognition mechanism presents an advantage over the idea of supplanting, because it retains the sovereign discretion of the institutions in the developing country and thus leaves much to their expertise.
The proposals set forth by Secretary Brady provide an opportunity for reinvigorating developing country debt strategy.

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