How Does The World Bank Define A Developing Country: Insights And Criteria

The World Bank defines developing countries based on their income groups, which are categorized into low, lower-middle, and upper-middle income brackets determined by Gross National Income (GNI) per capita. However, it’s essential to approach this term with caution, recognizing the inherent limitations and biases associated with such categorization. The International Monetary Fund (IMF) also plays a role in this context, as it contributes to the assessment and classification of countries into these income groups. This classification system helps in understanding and addressing the economic disparities and challenges that nations around the world face.

The United Nations (UN) defines a developing country as a nation characterized by several key indicators. These include a relatively low standard of living, an underdeveloped industrial base, and a moderate to low Human Development Index (HDI). The HDI serves as a comprehensive yardstick for comparing nations globally, taking into account factors such as poverty levels, literacy rates, educational attainment, life expectancy, and other pertinent metrics. Developing countries, according to this definition, face challenges in various aspects of socio-economic development, making them a focus of international efforts to promote progress and well-being.