Developed country explained

A developed country, or advanced country,^{[1] [2]} is a country that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are the gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living.^[3] Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the United Nations Department of Economic and Social Affairs, the World Bank, the Development Assistance Committee, the International Monetary Fund, the Paris Club, moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita.

Developed countries have generally more advanced post-industrial economies, meaning the service sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialisation or are pre-industrial and almost entirely agrarian, some of which might fall into the category of Least Developed Countries., advanced economies constitute 57.3% of global GDP based on nominal values and 41.1% of global GDP based on purchasing-power parity (PPP) according to the IMF.^[4]

Definition and criteria

Economic criteria have tended to dominate discussions. One such criterion is the income per capita; countries with the high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialisation; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently, another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with a very high (HDI) rating. The index, however, does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking of some of the most advanced countries, such as the G7 members and others.^{[5] [6]}

According to the United Nations Statistics Division:

There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system.^[7]

And it notes that:

The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.^[8]

Nevertheless, the UN Trade and Development considers that this categorization can continue to be applied:

The developed economies broadly comprise Northern America and Europe, Israel, Japan, the Republic of Korea, Australia, and New Zealand.^[9]

Similar terms

See also: Global North and Global South. Terms linked to the concept developed country include "advanced country", "industrialized country", "more developed country" (MDC), "more economically developed country" (MEDC), "Global North country", "first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialisation is an ongoing process that is hard to define. The first industrialized country was the United Kingdom, followed by Belgium. Later it spread further to Germany, United States, France and other Western European countries. According to some economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century.^[10]

Mathis Wackernagel calls the binary labeling of countries as "neither descriptive nor explanatory. It is merely a thoughtless and destructive endorsement of GDP fetish. In reality, there are not two types of countries, but over 200 countries, all faced with the same laws of nature, yet each with unique features."^[11]

A 2021 analysis proposes the term emerged to describe markets, economies, or countries that have graduated from emerging market status, but have not yet reached the level equivalent to developed countries.^[12] Multinational corporations from these emerging markets present unique patterns of overseas expansion and knowledge acquisition from foreign countries.

Economy lists by various criteria

Human Development Index (HDI)

See main article: Human Development Index and List of countries by Human Development Index. The UN HDI is a statistical measure that gauges an economy's level of human development. While there is a strong correlation between having a high HDI score and being a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development."

Since 1990, Norway (2001–2006, 2009–2019), Japan (1990–1991 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–2008) have had the highest HDI score.

The following countries in the year 2023 are considered to be of "very high human development":^[13]

scope=col	Rank	scope=col data-sort-type="number"		scope=col style="width:17em;"	Country or territory	scope=col	HDI value	scope=col data-sort-type="number"	% annual growth (2010–2023)
1		scope=row Iceland	0.972
2		scope=row Norway	0.970
		scope=row Switzerland
4		scope=row Denmark	0.962
5		scope=row Germany	0.959
		scope=row Sweden
7		scope=row Australia	0.958
8		scope=row Netherlands	0.955
		scope=row Hong Kong
10		scope=row Belgium	0.951
11		scope=row Ireland	0.949
12		scope=row Finland	0.948
13		scope=row Singapore	0.946
		scope=row United Kingdom
15		scope=row United Arab Emirates	0.940
16		scope=row Canada	0.939
17		scope=row Liechtenstein	0.938
		scope=row New Zealand
		scope=row United States
20		scope=row	0.937
21		scope=row Slovenia	0.931
22		scope=row Austria	0.930
23		scope=row Japan	0.925
24		scope=row Malta	0.924
25		scope=row Luxembourg	0.922
26		scope=row France	0.920
27		scope=row Israel	0.919
28		scope=row Spain	0.918
29		scope=row Czech Republic	0.915
		scope=row Italy
		scope=row San Marino
32		scope=row Cyprus	0.913
		scope=row Andorra
34		scope=row Greece	0.908
35		scope=row Poland	0.906
36		scope=row Estonia	0.905
37		scope=row Saudi Arabia	0.900
38		scope=row Bahrain	0.899
39		scope=row Lithuania	0.895
40		scope=row Portugal	0.890
41		scope=row Latvia	0.889
		scope=row Croatia
43		scope=row Qatar	0.886
44		scope=row Slovakia	0.880
45		scope=row Chile	0.878
46		scope=row Hungary	0.870
47		scope=row Argentina	0.865
48		scope=row Montenegro	0.862
		scope=row Uruguay
50		scope=row Oman	0.858
51		scope=row Turkey	0.853
52		scope=row Kuwait	0.852
53		scope=row Antigua and Barbuda	0.851
54		scope=row Seychelles	0.848
55		scope=row Bulgaria	0.845
		scope=row Romania
57		scope=row Georgia	0.844
58		scope=row Saint Kitts and Nevis	0.840
59		scope=row Panama	0.839
60		scope=row	0.837
		scope=row Kazakhstan
62		scope=row Costa Rica	0.833
		scope=row Serbia
64		scope=row	0.832
65		scope=row Belarus	0.824
66		scope=row Bahamas	0.820
67		scope=row Malaysia	0.819
68		scope=row	0.815
69		scope=row Barbados	0.811
		scope=row Armenia
71		scope=row Albania	0.810
72		scope=row Trinidad and Tobago	0.807
73		scope=row Mauritius	0.806
74		scope=row Bosnia and Herzegovina	0.804

WESP developed economies

According to the United Nations Department of Economic and Social Affairs' World Economic Situation and Prospects report, the following 37 countries are classified as "developed economies" as of January 2025:^[14]

31 countries in Europe:

two countries in North America:

four countries in Asia and the Pacific:

World Bank high-income economies

According to the World Bank, the following sovereign states and territories across are classified as high-income economies, having a nominal GNI per capita in excess of $13,935. as of the 2025 fiscal year:^[15]

Non-sovereign Territories are denoted by an asterisk (*).

Development Assistance Committee members

See also: Development Assistance Committee.

There are 32 OECD member countries and the European Union—in the Development Assistance Committee (DAC),^[16] a group of the world's major donor countries that discusses issues surrounding development aid and poverty reduction in developing countries.^[17] The following OECD member countries are DAC members:

26 countries in Europe:

two countries in the Americas:

two countries in Asia:

two countries in Oceania:

IMF advanced economies

According to the International Monetary Fund, 41 countries and territories are officially listed as "advanced economies",^[18] with the addition of 7 microstates and dependencies modified by the CIA which were omitted from the IMF version:^[19]

29 countries and dependencies in Europe classified by the IMF, 6 others given by the CIA:

seven countries and territories in Asia:

three countries and territories in the Americas classified by the IMF, one territory given by the CIA :

two countries in Oceania:

^d The CIA has modified an older version of the IMF's list of 38 Advanced Economies, noting that the IMF's Advanced Economies list "would presumably also cover the following nine smaller countries of Andorra, Bermuda, Faroe Islands, Guernsey, Holy See, Jersey, Liechtenstein, Monaco, and San Marino[...]". San Marino (2012) and Andorra (2021) were later included in the IMF's list.

Paris Club members

There are 22 permanent members in the Paris Club (fr|Club de Paris), a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

15 countries in Europe:

three countries in the Americas:

three countries in Asia:

one country in Oceania:

Comparative table (2025)

Comparative table of countries with a "very high" human development (0.800 or higher), according to UNDP; "developed" economies, according to the World Economic Situation and Prospects report by UNDESA; "high-income" economies, according to the World Bank; DAC members; "advanced" economies, according to the IMF; Paris Club members. In bracket year of joining.

Country	HDI[20]	WESP	WB[21]	DAC	IMF[22]	Paris Club
	(2025)
	(2003)		(1990)		(2020)
	(2007)		(2012)
	(2006)
	(2025)
	(1990)	(19??)	(1987)	(1966)	(19??)	(????)
	(1992)	(19??)	(1987)	(1965)	(19??)	(????)
	(2016)		(1987)
	(2012)		(2001)
	(2016)		(2006)
	(2012)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(2025)
						(2017)
	(1999)		(1990)
	(2021)	(2007)	(2023)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(2007)		(2012)
	(2019)		(2024)
	(2007)	(2013)	(2017)		(2023)
	(2001)	(2004)	(1988)		(2001)
	(2001)	(2004)	(2006)	(2013)	(2009)
	(1991)	(19??)	(1987)	(1963)	(19??)	(????)
	(2003)	(2004)	(2006)	(2023)	(2011)
	(1994)	(19??)	(1987)	(1975)	(19??)	(????)
	(1993)	(19??)	(1987)	(1961)	(19??)	(????)
	(2019)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(2001)	(19??)	(1996)	(1999)	(1989)[23]
			(2022)
	(????)		(????)		(????)
	(2005)	(2004)	(2014)	(2016)
	(1990)	(19??)	(1987)	(2013)	(19??)
	(1996)	(19??)	(1987)	(1985)	(19??)	(????)
	(1991)		(1987)		(1997)[24]	(2014)
	(1995)	(19??)	(1987)	(1961)	(19??)	(????)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(2015)
	(2014)		(1987)
	(2005)	(2004)	(2012)	(2025)	(2014)
	(2000)		(1990)		(2008)
	(2005)	(2004)	(2012)	(2022)	(2015)
	(1992)	(19??)	(1987)	(1992)	(19??)
	(2016)
	(2003)	(19??)	(2002)		(2008)
	(2025)
	(1990)[25]		(1990)		(2008)
	(2013)
			(2019)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(1990)	(19??)	(1987)	(1973)	(19??)
	(2025)
	(1990)	(19??)	(1987)	(1962)	(19??)	(????)
	(2012)		(2007)
			(2023)
	(2019)		(2021)
	(2003)	(2004)	(2009)	(2013)
	(2005)	(19??)	(1994)	(1991)	(1989)
	(1996)		(1987)
	(2013)	(2007)	(2021)
	(2013)		(2023)			(????)
	(2011)		(2012)
	(2021)		(2000)		(2012)
	(2010)		(2004)
	(2019)
	(2022)		(2014)
	(1999)		(1987)		(1997)
	(2006)	(2004)	(2007)	(2013)	(2009)
	(1998)	(2004)	(1997)	(2013)	(2007)
	(1999)	(2024)	(2001)	(2009)	(1997)	(2016)
	(1995)	(19??)	(1987)	(1991)	(19??)	(????)
	(1990)	(19??)	(1987)	(1965)	(19??)	(????)
	(1990)	(19??)	(1987)	(1968)	(19??)	(????)
		(N/A)		(1987)		(1997)
	(2021)		(2006)
	(2015)
	(2004)		(1987)
	(1992)	(19??)	(1987)	(1961)	(19??)	(????)
	(1990)	(19??)	(1987)	(1961)	(19??)	(????)
	(2014)		(2012)

See also

• Developed market
• Developing country
• Digital divide
  • D-10 Strategy Forum First World privilege
• Globalization
• G7
• List of countries by wealth per adult
• World Bank high-income economy

External links

• • IMF (advanced economies)
• The World Factbook (developed countries)
• United Nations Statistics Division (definition)
• List of countries, United Nations Statistics Division (developed regions)
• World Bank (high-income economies)

Notes and References

1. Web site: Fiscal Policy and Inclusive Growth in Advanced Countries: Their Experience and Implications for Asia . adb.org . . December 2014 . 8 July 2021 . 26 July 2021 . https://web.archive.org/web/20210726220914/https://www.adb.org/sites/default/files/publication/150177/ewp-422.pdf . live .
2. Web site: Advanced Countries Will Benefit Most from Progress in Technology, with Lesser Benefits to Other Nations . rand.org . . 1 June 2006 . 8 July 2021 . 21 August 2021 . https://web.archive.org/web/20210821221948/https://www.rand.org/news/press/2006/06/01.html . live .
3. https://www.investopedia.com/terms/d/developed-economy.asp#axzz1legO8olO Developed Economy Definition
4. Web site: International Monetary Fund . World Economic Outlook Database, April 2023 . . 30 April 2023 . 13 April 2023 . https://web.archive.org/web/20230413194731/https://www.imf.org/en/Publications/WEO/weo-database/2023/April . live .
5. Book: The Courier. 1994. Commission of the European Communities. en. 20 January 2021. 15 March 2020. https://web.archive.org/web/20200315205542/https://books.google.com/books?id=R2D0AAAAMAAJ. live.
6. News: Human development index. Economics Help. 23 September 2018. en-GB. 17 December 2020. https://web.archive.org/web/20201217215047/https://www.economicshelp.org/blog/glossary/human-development-index/. live.
7. Web site: Millennium Development Indicators: World and regional groupings . . 2003 . Note b . 13 May 2017 . live . https://web.archive.org/web/20050210031555/http://unstats.un.org/unsd/mi/worldmillennium.htm . 10 February 2005 .
8. Web site: Standard Country and Area Codes Classifications (M49): Developed Regions . . 13 May 2017 . live . https://web.archive.org/web/20170711220015/https://unstats.un.org/unsd/methods/m49/m49.htm . 11 July 2017 .
9. Web site: UNCTADstat - Classifications . 30 September 2022 . 6 October 2022 . https://web.archive.org/web/20221006081729/http://unctadstat.unctad.org/en/classifications.html#:~:text=The%20developed%20economies%20broadly%20comprise,as%20Australia%20and%20New%20Zealand . live .
10. Book: Sachs, Jeffrey . The End of Poverty . The Penguin Press . 2005 . 1-59420-045-9 . New York, New York . registration.
11. Book: Wackernagel. Mathis. Ecological Footprint: Managing Our Biocapacity Budget. Beyers. Bert. New Society Publishers. 2019. 978-0-86571-911-8. Gabriola Island, BC, Canada. 132. Mathis Wackernagel. 20 January 2021. https://web.archive.org/web/20191230123431/https://www.newsociety.com/Books/E/Ecological-Footprint. 30 December 2019. live.
12. Lee. Eun Su. Liu. Wei. Yang. Jing Yu. 23 September 2021. Neither developed nor emerging: Dual paths for outward FDI and home country innovation in emerged market MNCs. International Business Review. 32 . 2 . en. 101925. 10.1016/j.ibusrev.2021.101925. 244268711. 0969-5931. subscription.
13. Book: Human Development Report 2025 - A matter of choice: People and possibilities in the age of AI . 6 May 2025 . United Nations Development Programme . 6 May 2025 . 6 May 2025 . https://web.archive.org/web/20250506064128/https://hdr.undp.org/content/human-development-report-2025 . 6 May 2025.
14. Web site: World Economic Situation and Prospects 2025. 143 . United Nations Department of Economic and Social Affairs . en.
15. Web site: World Bank Country and Lending Groups. World Bank. 1 July 2025.
16. http://www.oecd.org/dac/peer-reviews/peerreviewsofdacmembers.htm Peer reviews of DAC members – Organisation for Economic Co-operation and Development
17. http://www.oecd.org/dataoecd/3/38/1896808.pdf DAC website >> "The DAC in Dates"
18. Web site: World Economic and Financial Surveys World Economic Outlook Database—All countries/Advanced economies (40 countries) . International Monetary Fund . 13 October 2021 . 7 November 2021 . https://web.archive.org/web/20211107153545/https://www.imf.org/en/Publications/WEO/weo-database/2021/October/select-countries?grp=110&sg=All-countries/Advanced-economies . live .
19. Web site: Appendix B. International Organizations and Groups.. World Factbook.. CIA. 2008. 10 April 2008. https://web.archive.org/web/20080409033504/https://www.cia.gov/library/publications/the-world-factbook/appendix/appendix-b.html. 9 April 2008.
20. Web site: Human Development Index (HDI) Human Development Reports . live . https://web.archive.org/web/20250506063421/https://hdr.undp.org/data-center/human-development-index#/indicies/HDI . 6 May 2025 . 6 May 2025 . hdr.undp.org . United Nations Development Programme.
21. Web site: World Bank Country and Lending Groups – World Bank Data Help Desk. datahelpdesk.worldbank.org. 20 January 2021. 28 October 2019. https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups. live.
22. Web site: World Economic Outlook Database – Changes to the Database. International Monetary Fund. 7 February 2019. 29 December 2017. https://web.archive.org/web/20171229080726/http://www.imf.org/external/pubs/ft/weo/data/changes.htm. live.
23. Web site: World Economic Outlook, October 1989. International Monetary Fund. 12. 8 May 2020. 28 June 2020. https://web.archive.org/web/20200628212104/https://www.elibrary.imf.org/doc/IMF081/14573-9781451944433/14573-9781451944433/Other_formats/Source_PDF/14573-9781455235476.pdf. live.
24. Book: International Monetary Fund Annual Report 1997. Annual Report of the Executive Board . October 1997. 10.5089/9781451945102.011. 8 May 2020. International Monetary Fund. 978-1-4519-4510-2. 25 June 2020. https://web.archive.org/web/20200625192202/https://www.elibrary.imf.org/view/IMF011/00315-9781451945102/00315-9781451945102/ch01.xml?language=en. live.
25. Web site: Monaco Has The World's Highest Score on the U.N. Human Development Index . Monaco Estate . 29 November 2021 . 8 June 2023. https://web.archive.org/web/20230708062956/https://monacoestate.com/monaco-has-the-worlds-highest-score-on-the-u-n-human-development-index/ . 8 July 2023 .