2.2.5 Common characteristics of developing countries

Developing countries, also known as less developed countries (LDCs) or emerging economies, share several common characteristics that distinguish them from advanced industrialized nations. These characteristics are often used to classify countries based on their levels of economic development and are critical factors influencing their economic, social, and political challenges. Some common characteristics of developing countries include:

1. Low Income Levels: Developing countries typically have lower per capita income compared to advanced industrialized nations. Many people in these countries live in poverty, and there is a significant income gap between the rich and the poor.
2. High Population Growth Rates: Developing countries often experience higher population growth rates due to factors such as high birth rates, improved healthcare leading to lower mortality rates, and limited access to family planning services.
3. Limited Industrialization: Industrialization is generally at a lower level in developing countries compared to advanced economies. The economies of developing countries are often dominated by agriculture, informal sectors, and traditional industries.
4. Lack of Infrastructure: Infrastructure, including transportation networks, energy supply, and communication systems, may be inadequate or poorly developed in many developing countries, hindering economic growth and development.
5. Low Human Development Indicators: Developing countries tend to have lower human development indicators, such as education levels, healthcare access, and life expectancy, compared to advanced economies.
6. High Dependency on Primary Exports: Many developing countries heavily rely on the export of raw materials and agricultural products, making their economies vulnerable to fluctuations in global commodity prices.
7. Heavy Debt Burden: Developing countries may face high levels of external debt, which can limit their ability to invest in infrastructure, education, and social welfare programs.
8. Weak Institutional Capacity: Developing countries often struggle with weak institutions, including governance, rule of law, and corruption, which can hinder economic growth and create challenges for effective policymaking.
9. Vulnerability to External Shocks: Developing countries are often more vulnerable to external economic and environmental shocks, such as changes in global demand, commodity prices, and natural disasters.
10. Limited Access to Financial Services: Many people in developing countries lack access to formal financial services, such as banking and credit, which can hinder entrepreneurship and investment.
11. High Incidence of Poverty and Inequality: Poverty and income inequality are prevalent issues in developing countries, with a significant portion of the population living in poverty and lacking access to basic services.
12. High Informal Sector Employment: Informal sector employment, characterized by jobs without formal contracts or social security benefits, is widespread in developing countries.