In 1978, the World Bank, for the first time, constructed an analytical country classification system. The occasion was the launch of the World Development Report. Annexed to the report was a set of World Development Indicators (WDI), which provided the statistical underpinning for the analysis. The first economic classification in the 1978 WDI divided countries into three categories: (1) developing countries, (2) industrialized countries, and (3) capital-surplus oil-exporting countries. Developing countries were categorized as low- income (with GNI/n of US$250 or less) and middle-income (with GNI/n above US$250).
Major Characteristics of Developing Countries are:-
- Lower per-capita income
- Low levels of human capital
- High levels of poverty and under-nutrition
- Higher population growth rates
- Predominance of agriculture and low levels of industrialization
- Low level of urbanization but rapid rural-to-urban migration
- Dominance of informal sector
- Underdeveloped labor, financial, and other markets.
Major Characteristics of Emerging Countries are:-
- the small size of the economy,
- GNP/Capita much lower than in developed countries,
- a reduced opening for accepting foreign investors,
- a high volatility of the exchange rate which implies greater risk in trading.
Major Characteristics of Developed Countries are:-
- Average income per capita of the population is generally high.
- Education level of high average population.
- Life expectancy of the population average height.
- Population growth rate per year is relatively small.
- The death rate per year is relatively small population.
- Life-style market economy.
- His wide and varied field.
- Economic activity in most industry sectors, as well as export commodities.
- The majority of the population lives in cities.
- Relatively high level of population health.