First World vs Third World Countries - What's the Difference ? | Developing vs Developed Countries.

Summary

This video explores the distinctions between developed and developing countries, highlighting economic and non-economic factors like GDP per capita, Human Development Index (HDI), and industrialization. It explains the criteria used by organizations like the UN and IMF to classify nations. Examples of developed countries like Australia and Germany are contrasted with developing countries like Kenya, illustrating differences in income, life expectancy, and quality of life. The video also addresses the unique case of China, which, despite its economic growth, is still considered a developing country due to income inequality and uneven development.

Takeaways

• 🌐 Developed countries are often referred to as 'first world' and are self-sufficient with highly progressed economies and advanced technological infrastructure.
• 🌱 Developing countries, also known as 'third world' or 'lower developed' countries, are in early stages of economic development and often depend on developed countries.
• 📊 The United Nations, International Monetary Fund (IMF), and World Bank use different criteria to classify countries, including economic, transitional, and development stages.
• 📈 Key factors determining a country's development status include economic and non-economic indicators such as human resources, natural resources, political freedom, and technology.
• 💼 GDP per capita and the Human Development Index (HDI) are significant metrics for classifying countries, with developed countries generally having higher values.
• 🏙️ Developed countries exhibit characteristics like high HDI, stable birth and death rates, advanced infrastructure, low unemployment, and a strong industrial sector.
• 🌆 Developing countries face challenges such as low standard of living, high mortality rates, inadequate security, high unemployment, and reliance on imports.
• 🇦🇺 Australia is highlighted as an example of a developed country with a high GDP, high per capita income, and a high HDI, reflecting a high standard of living and quality of life.
• 🇩🇪 Germany is noted for its strong economy, high quality of life, universal healthcare, and advanced economy, classifying it as a developed country.
• 🇰🇪 Kenya is used as a developing country example, facing issues like poverty, inequality, and a lower HDI, indicating a lower standard of living and human development.
• 🇨🇳 China, despite its large GDP, is still considered a developing country due to high poverty and unemployment rates, low GDP per capita, and uneven development across regions.

Q & A

What are the two main categories countries are typically divided into?

Countries are typically divided into developed countries and developing countries.

What is another term for developed countries?

Developed countries are often referred to as first world countries.

According to the United Nations report in 2020, how many nations are considered developed?

According to the United Nations report in 2020, 35 nations are termed as developed.

What are some examples of developed countries mentioned in the script?

Some examples of developed countries mentioned are Australia, Canada, France, Germany, Italy, Japan, Norway, Sweden, Switzerland, and the United States.

What does the term 'third world countries' refer to?

Third world countries is a term used to classify developing countries or lower developed countries.

How does the International Monetary Fund (IMF) determine the status of a country?

The IMF considers several factors while determining the status of a country, although the script does not specify what these factors are.

What are the main factors that determine if a country is developed or developing according to economists?

Economists generally agree that both economic and non-economic factors, including human resources, natural resources, political freedom, and technology, are the main indicators that influence the economy and development of a country.

What is the difference between GDP and GDP per capita?

GDP (Gross Domestic Product) is the total market value of all finished goods and services produced within a country in a specific time, while GDP per capita is a measure of the GDP divided by the number of people in the country, indicating the average economic output per person.

What is the Human Development Index (HDI) and how is it used by the United Nations?

The Human Development Index (HDI) is a measuring tool used by the United Nations to assess the social and economic development levels of a country, based on life expectancy, educational attainment, and Gross National Income (GNI). It places a higher emphasis on human development than GDP and considers a country's quality of life as well as its production capacity.

What are some characteristics that developed countries typically share?

Developed countries typically share characteristics such as a high HDI, high per capita income and GDP, stable birth and death rates, better infrastructure, low unemployment rate, and a high standard of living with excellent communication and educational facilities.

Why is China still considered a developing country despite its large GDP?

China is still classified as a developing country due to high rates of poverty and unemployment, a low GDP per capita compared to developed countries, and uneven development across different regions, with a significant wealth gap between urban and rural areas.

What are some challenges that developing countries like Kenya face?

Developing countries like Kenya face challenges such as poverty, inequality, lack of transparency and accountability, climate change, weak private sector investment, and vulnerability to internal and external economic shocks.