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Development refers to the wealth of a country and the consequent improvement in people’s quality of life, usually as a result of economic growth and new technology. Development is a continuous process and, ideally, countries never stop developing. Countries are classified according to their wealth and standard of living of their inhabitants.
High-income countries (HICs)
Middle-income countries (MICs)
Low-income countries (LICs)
How are countries classified?
The World Bank classifies countries by average income per person, known as gross national income per capita (GNI per capita). This is made up of all the earnings of a country (including from investments abroad), divided by a country’s total population. In 2020, the World Bank classified countries as:
High-income countries (HICs) - GNI per capita of $12,376 or more
Middle-income countries (MICs) - GNI per capita between $1,026 and $12,375
Low-income countries (LICs) - GNI per capita below $1,026
Most HICs are in Europe, North America and Oceania, MICs in South America, Asia and Africa and LICs in Africa (Map C).
Does development stand still?
Countries never stand still. HICs, that were once the most developed, may be overtaken by other countries that are developing faster. A lot depends on economic growth. In 2020, the USA had the largest economy but other economies were growing faster. Some time before 2040, it is expected that China will overtake the USA as the world’s largest economy. India too, is a country that is developing quickly (graph D).
What are BRICs and MINTs?
Brazil and Russia are two more countries that have boasted fast-growing economies in recent years. The name BRICs (Brazil, Russia, India and China) was coined for these four countries. MINTs (Mexico, Indonesia, Nigeria and Turkey) is another name coined for four more countries whose economies are growing rapidly.
The UK is also likely to be overtaken by some of these fast-growing economies. It doesn’t mean that the UK will stop being a HIC or that it is no longer developing. If you look carefully at the table, you will notice tha the UK economy will be larger by 2050 than it was in 2020. It is just that the economies of other countries are likely to grow faster.
What was the impact of COVID-19 on economic development?
Global economic development has been severely interrupted by the COVID-19 pandemic. Countries likely to suffer the worst reversals of economic development are LICs, and this is likely to widen inequalities between countries.
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