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 was a time when people of the rich nations of the world regarded poverty as a "natural condition" for those living in the poor nations of the world. ... Today we have largely been stripped of this pseudo-innocence. We know that the poor are so poor because the rich are so rich, that the causes of poverty can be traced to deliberate decisions and deliberate economic and political policies designed to benefit the rich and powerful. We know that poverty and unemployment are not just accidents of history but deliberate, even indispensable, components of capitalism as an economic system.
- Allan Boesak, Comfort and Protest (1987), p. 67
- Low wages in developing countries are among the many sins allegedly committed by global capitalism, but few of those making the charge really stop to think about why wages are so low in some developing countries.
- Art Carden, Why Are Wages Low in Developing Countries?, Mises Institute, 1 December 2008
- As with all so-called humanitarian crises, it is essential to remember that the social conditions found across most of the countries of the South are the direct product of how these states are inserted into the hierarchies of the world market. Historically, this included a long encounter with Western colonialism, which has continued, into contemporary times, with the subordination of poorer countries to the interests of the world’s wealthiest states and largest transnational corporations. Since the mid-1980s, repeated bouts of structural adjustment — often accompanied by Western military action, debilitating sanctions regimes, or support for authoritarian rulers — have systematically destroyed the social and economic capacities of poorer states, leaving them ill-equipped to deal with major crises such as COVID-19.
- Adam Hanieh, This is a Global Pandemic – Let’s Treat it as Such, 27 March 2020, Verso Books
- The imminent public health crisis facing poorer countries as a consequence of COVID-19 will be further deepened by an associated global economic downturn that is almost certain to exceed the scale of 2008. It is too early to predict the depth of this slump, but many leading financial institutions are expecting this to be the worst recession in living memory. [...] Closely connected to this are the measures put in place by governments and central banks since 2008, most notably the policies of quantitative easing and repeated interest-rate cuts. These policies aimed at propping up share prices through massively increasing the supply of ultra-cheap money to financial markets. They meant a very significant growth in all forms of debt — corporate, government, and household. [...] We are entering an alarming situation where many poorer countries will face increasingly burdensome debt repayments while simultaneously attempting to manage an unprecedented public health crisis – all in the context of a very deep global recession.
- Adam Hanieh, This is a Global Pandemic – Let’s Treat it as Such, 27 March 2020, Verso Books
- All of the countries named as “underdeveloped” in the world are exploited by others; and the underdevelopment with which the world is now preoccupied is a product of capitalist, imperialist, and colonialist exploitation. African and Asian societies were developing independently until they were taken over directly or indirectly by the capitalist powers. When that happened, exploitation increased and the export of surplus ensued, depriving the societies of the benefit of their natural resources and labor. That is an integral part of underdevelopment in the contemporary sense.
- It has been noted with irony that the principal “industry” of many underdeveloped countries is administration. Not long ago, 60 per cent of the internal revenue of Dahomey went into paying salaries of civil servants and government leaders. The salaries given to the elected politicians are higher than those given to a British Member of Parliament, and the number of parliamentarians in the underdeveloped African countries is also relatively high. In Gabon, there is one parliamentary representative for every six thousand inhabitants, compared to one French parliamentary representative for every hundred thousand Frenchmen. Many more figures of that sort indicate that in describing a typical underdeveloped economy it is essential to point out the high disproportion of the locally distributed wealth that goes into the pockets of a privileged few.
- Members of the privileged groups inside Africa always defend themselves by saying that they pay the taxes which keep the government going. At face value this statement sounds reasonable, but on close examination it is really the most absurd argument and shows total ignorance of how the economy functions. Taxes do not produce national wealth and development. Wealth has to be produced out of nature—from tilling the land or mining metals or felling trees or turning raw materials into finished products for human consumption. These things are done by the vast majority of the population who are peasants and workers. There would be no incomes to tax if the laboring population did not work. The incomes given to civil servants, professionals, merchants, come from the store of wealth produced by the community. Quite apart from the injustices in the distribution of wealth, one has to dismiss the argument that “the taxpayers’” money is what develops a country. In pursuing the goal of development, one must start with the producers and move on from there to see whether the products of their labor are being rationally utilized to bring greater independence and well-being to the nation.
- By paying attention to the wealth created by human labor out of nature, one can immediately appreciate that very few underdeveloped countries are lacking in the natural resources which could go into making a better life, and in those cases it is usually possible for two or three territories to combine together for their mutual benefit. In fact, it can be shown that the underdeveloped countries are the ones with the greatest wealth of natural resources and yet the poorest in terms of goods and services presently provided by and for their citizens.
- In a way, underdevelopment is a paradox. Many parts of the world that are naturally rich are actually poor and parts that are not so well off in wealth of soil and sub-soil are enjoying the highest standards of living. When the capitalists from the developed parts of the world try to explain this paradox, they often make it sound as though there is something “God given” about the situation.
- The interpretation that underdevelopment is somehow ordained by God is emphasized because of the racist trend in European scholarship. It is in line with racist prejudice to say openly or to imply that their countries are more developed because their people are innately superior, and that the responsibility for the economic backwardness of Africa lies in the generic backwardness of the race of black Africans. An even bigger problem is that the people of Africa and other parts of the colonized world have gone through a cultural and psychological crisis and have accepted, at least partially, the European version of things. That means that the African himself has doubts about his capacity to transform and develop his natural environment. With such doubts, he even challenges those of his brothers who say that Africa can and will develop through the efforts of its own people. If we can determine when underdevelopment came about, it would dismiss the lingering suspicion that it is racially or otherwise predetermined and that we can do little about it.
- When the “experts” from capitalist countries do not give a racist explanation, they nevertheless confuse the issue by giving as causes of underdevelopment the things which really are consequences. For example, they would argue that Africa is in a state of backwardness as a result of lacking skilled personnel to develop. It is true that because of lack of engineers Africa cannot on its own build more roads, bridges, and hydroelectric stations. But that is not a cause of underdevelopment, except in the sense that causes and effects come together and reinforce each other. The fact of the matter is that the most profound reasons for the economic backwardness of a given African nation are not to be found inside that nation. All that we can find inside are the symptoms of underdevelopment and the secondary factors that make for poverty. Mistaken interpretations of the causes of underdevelopment usually stem either from prejudiced thinking or from the error of believing that one can learn the answers by looking inside the underdeveloped economy. The true explanation lies in seeking out the relationship between Africa and certain developed countries and in recognizing that it is a relationship of exploitation.
- During the colonial period, the forms of political subordination in Africa were obvious. There were governors, colonial officials, and police. In politically independent African states, the metropolitan capitalists have to insure favorable political decisions by remote control. So they set up their political puppets in many parts of Africa, who shamelessly agree to compromise with the vicious apartheid regime of South Africa when their masters tell them to do so. [...] The presence of a group of African sell-outs is part of the definition of development. Any diagnosis of underdevelopment in Africa will reveal not just low per capita income and protein deficiencies, but also the gentlemen who dance in Abidjan, Accra, and Kinshasa when music is played in Paris, London, and New York.
- The question as to who, and what, is responsible for African underdevelopment can be answered at two levels. First, the answer is that the operation of the imperialist system bears major responsibility for African economic retardation by draining African wealth and by making it impossible to develop more rapidly the resources of the continent. Second, one has to deal with those who manipulate the system and those who are either agents or unwitting accomplices of the said system. The capitalists of Western Europe were the ones who actively extended their exploitation from inside Europe to cover the whole of Africa. In recent times, they were joined, and to some extent replaced, by capitalists from the United States; and for many years now even the workers of those metropolitan countries have benefited from the exploitation and underdevelopment of Africa. None of these remarks are intended to remove the ultimate responsibility for development from the shoulders of Africans. Not only are there African accomplices inside the imperialist system, but every African has a responsibility to understand the system and work for its overthrow.
- Development and underdevelopment are not only comparative terms, but that they also have a dialectical relationship one to the other: that is to say, the two help produce each other by interaction. Western Europe and Africa had a relationship which insured the transfer of wealth from Africa to Europe. The transfer was possible only after trade became truly international; and that takes one back to the late fifteenth century when Africa and Europe were drawn into common relations for the first time—along with Asia and the Americas. The developed and underdeveloped parts of the present capitalist section of the world have been in continuous contact for four and a half centuries. The contention here is that over that period Africa helped to develop Western Europe in the same proportion as Western Europe helped to underdevelop Africa.
- Encyclopedic article on Developing country on Wikipedia