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114 Developing Countries Essay Topic Ideas & Examples

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Title: 114 Developing Countries Essay Topic Ideas & Examples

Introduction:

When it comes to writing essays on developing countries, there is an abundance of topics to choose from. Exploring the social, economic, political, and environmental aspects of these nations provides an opportunity to understand the challenges they face as well as the potential for growth and progress. In this article, we present 114 essay topic ideas and examples that will help you delve into the complex issues surrounding developing countries.

Social Issues:

  • Gender inequality and its impact on development in developing countries.
  • The role of education in reducing poverty and promoting social mobility.
  • Child labor: Causes, consequences, and possible solutions.
  • The influence of cultural traditions on the status of women in developing countries.
  • Healthcare challenges and solutions in developing nations.
  • Exploring the correlation between population growth and poverty rates.
  • The impact of migration on both the sending and receiving countries.
  • Access to clean water and sanitation: Addressing the global water crisis.
  • The role of NGOs in addressing social inequalities in developing countries.
  • Analyzing the impact of urbanization on social structures in developing nations.

Economic Issues:

  • The effects of foreign aid on economic development in developing countries.
  • The role of microfinance in empowering individuals and communities.
  • The impact of corruption on economic growth in developing nations.
  • Strategies for promoting sustainable economic development in rural areas.
  • Trade liberalization and its implications for developing countries.
  • The role of multinational corporations in developing countries.
  • The challenges and opportunities of entrepreneurship in developing nations.
  • The impact of foreign direct investment on economic development.
  • The role of agriculture in the economic development of developing countries.
  • Economic inequality and its consequences for social stability.

Political Issues:

  • Democracy and its challenges in developing countries.
  • The impact of political instability on development efforts.
  • The role of international organizations in promoting democracy in developing nations.
  • The political economy of natural resource extraction in developing countries.
  • The influence of colonialism on current political systems in developing nations.
  • The challenges of implementing effective governance structures in developing countries.
  • The role of civil society organizations in promoting political participation.
  • The impact of climate change on political stability in developing nations.
  • The role of international aid in shaping political systems in developing countries.
  • The relationship between political ideology and development strategies.

Environmental Issues:

  • Climate change and its effects on developing countries.
  • Deforestation: Causes, consequences, and possible solutions.
  • The impact of pollution on public health in developing nations.
  • Sustainable energy solutions for developing countries.
  • Water scarcity and its implications for agricultural productivity.
  • Environmental conservation and economic development: A delicate balance.
  • The role of indigenous communities in environmental protection.
  • The challenges of waste management in urban areas of developing countries.
  • The impact of overfishing on coastal communities in developing nations.
  • The role of international agreements in addressing environmental challenges.

Examples of Developing Countries:

  • The economic development of China and its impact on global trade.
  • The challenges of poverty reduction in India.
  • The role of South Africa in regional stability and economic development.
  • The impact of tourism on the economy of Thailand.
  • The agricultural revolution in Brazil and its effects on food security.
  • Cuba's healthcare system: Achievements and challenges.
  • The economic transformation of Rwanda after the genocide.
  • The role of Bangladesh in the garment industry and its social implications.
  • The challenges of sustainable development in Nigeria.
  • The impact of remittances on the economy of the Philippines.

Conclusion:

Writing essays on developing countries provides an opportunity to understand the complexities and challenges faced by these nations, as well as their potential for growth and progress. The topics and examples provided in this article should inspire you to explore various aspects of social, economic, political, and environmental issues related to developing countries. By delving into these topics, you will gain a deeper understanding of the global dynamics and the importance of addressing the needs of these nations for a more sustainable and equitable world.

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80 Developing Countries Essay Topics

🏆 best essay topics on developing countries, ✍️ developing countries essay topics for college, 🎓 most interesting developing countries research titles, 💡 simple developing countries essay ideas.

  • Impacts of Globalization on the Developing Countries
  • Globalization’s Role for Developing Countries: Zambia
  • Is Globalization a Threat or an Opportunity to Developing Countries?
  • Homelessness and Poverty in Developed and Developing Countries
  • Environmental Issues in the Third World Countries
  • Developing Countries Foreign Aid
  • Can Developing Countries Catch Up to Developed Countries
  • Urbanization and Developing Countries Urbanization takes a wide scope because of its effects on the economic, social, political systems’ organization of a nation, more especially on urban centers.
  • Companies Outsourcing in Developing Countries The purpose of this paper is to analyze the factors that motivate or stop companies from outsourcing their production in developing countries.
  • Stealing Africa: How Rich Companies Benefit from the Developing Countries The Stealing Africa movie’s thesis is that multinational companies like Glencore are stealing from African countries and damaging countries’ economics and the environment.
  • Personalism and Patrimonialism in Developing Countries Personalism implies the presence of a charismatic leader, who can enhance the authority of the ruling power or the whole state. Patrimonialism is another form of autocratic power.
  • Issue for Farmers in Developing Countries Agriculture is a very important sector in the whole world economy since it makes available, food to every living person.
  • Problems of Democratic Consolidation in Developing Countries The paper argues developing countries pursuing economic and political heights should strive to consolidate democratic forces.
  • Causes of Corruption in Africa’s Developing Countries The major goal of this research project is to contribute to the solution of the problem of bribes and kickbacks in corporations that create a significant corruption challenge.
  • Governance and Corruption in Developing Countries This research paper examines the problem of corruption in developing countries and the role of governance in countering corruption.
  • Globalization Challenges in Developing Countries and Japan The participation of nations in global trade has several benefits, even though various problems impede countries from accessing global markets.
  • Developing Countries’ Transformation Factors It would hardly be an exaggeration to say that many citizens of developing countries await their transformation into universalistic welfare states.
  • Impacts of Political Risks and Institutional Environment on FDI Levels in Developing Countries This study aims at establishing which of the factors has the most significant impact on FDI flows in developing countries.
  • Medical Research in Developing Countries This critique will consider three articles on the subject of medical research in developing countries and examine the concerns raised by the authors on participant safety.
  • Improving Hand Hygiene in Developing Countries The completed review and assessment of the research article indicate that the study presentation lacks details and explanations.
  • Poverty and Covid-19 in Developing Countries In response to the pandemic, countries recommended and enforced policies on social distancing and shelter-in-place.
  • Improving Disease Surveillance in Developing Countries The Kenya Medical Research Institute and the WHO argue that malaria kills about 50,000 annually. Children and expectant women are at the greatest risks of malaria infections
  • Modern Energy Technologies Introduction to Developing Countries The ultimate goal of this marketing strategy would be to make new sources of energy affordable and attractive, not only to people but also to the government and local investors.
  • Countering Workplace Abuse in Developing Countries Social reforms are part of the strategy of improvement for developing countries, which must make investments in safety nets for unemployed workers.
  • Measures to Counter Workplace Abuse in Developing Countries This paper discusses the main measures to counter workplace abuse in developing countries such as laws and regulations, social reforms, and the role of western countries in this issue.
  • Ethical Issues in Marketing Infant Formulas in Developing Countries Particular ethical issues that should be considered in this case include heath issues and the cost of the products.
  • Should Aid to Developing Countries Be Stopped? The tragedy in aid business is when the very purpose of aid is construed in a way that does not only cause economic instability but environmental degradation as well.
  • Corruption in Developing Countries – a Cultural Phenomenon This paper analyzes the way corruption has penetrated societies in developing countries, the factors and how they have combined to influence corruption in developing countries.
  • Globalization Effect on Developing Countries’ Business The objective of this study is to show how globalization can benefit a particular nation. This objective is implemented by considering a developing economy that is Nigeria.
  • Healthcare Programs in the Developing Countries The paper studies healthcare programs solving the health crises in the developing countries: their cost-effectiveness, financially sustainability and challenges.
  • Achieving Sustainable Development Within Developing Countries
  • Implementing Policy Reforms in Developing Countries
  • Adapting the WTO Trade Policy Reviews to the Needs of Developing Countries
  • Can Denmark’s Flexicurity System Be Replicated in Developing Countries?
  • Behavior, Environment, and Health in Developing Countries: Evaluation and Valuation
  • Adjustment, Investment, and the Real Exchange Rate in Developing Countries
  • Demand for Telecommunication Services in Developing Countries
  • Beyond Poverty Escapes: Social Mobility in Developing Countries
  • Manufacturing and Economic Growth in Developing Countries, 1950-2005
  • Capital Controls and Monetary Policy in Developing Countries
  • Openness, Economic Reforms, and Poverty: Globalization in Developing Countries
  • Affordable, Quality Education for Developing Countries
  • Bilateral Relationship Between Technological Changes and Income Inequality in Developing Countries
  • Economic and Welfare Impacts of Climate Change on Developing Countries
  • Aid, Agriculture, and Poverty in Developing Countries
  • Factors Affecting Energy Demand in Developing Countries
  • Child Labor and Human Capital in Developing Countries
  • Biofuels: The Best Response of Developing Countries to High Energy Prices?
  • Another Day, Another Dollar: Enterprise Resilience Under Terrorism in Developing Countries
  • Health and Nutrition: Emerging and Reemerging Issues in Developing Countries
  • Between the State and Market: Electricity Sector Reform in Developing Countries
  • Import Competition From Developed and Developing Countries
  • Automotive Industry Trends and Prospects for Investment in Developing Countries
  • Climate Change, Agriculture, and Developing Countries: Does Adaptation Matter?
  • Business Under Fire: Entrepreneurship and Violent Conflict in Developing Countries
  • Adjustment Policies and Investment Performance in Developing Countries
  • Catch Up: Developing Countries in the World Economy
  • Bank Efficiency and Macro-economic Factors: The Case of Developing Countries
  • Labor Mobility and Labor Utilization in Developing Countries
  • Aggregate Agricultural Inputs and Outputs in Developing Countries
  • Democracy, Elections, and Allocation of Public Expenditure in Developing Countries
  • Catalyzing Investment for Renewable Energy in Developing Countries
  • Aid and Public Sector Behavior in Developing Countries
  • Economic Growth and Infant Mortality in Developing Countries
  • Challenges and Policy Lessons for the Growth-Employment-Poverty Nexus in Developing Countries
  • Beyond the ABCs: Higher Education and Developing Countries
  • Alternative Pollution Control Policies in Developing Countries
  • Family Ties, Institutions, and Financing Constraints in Developing Countries
  • Bioenergy and Rural Development in Developing Countries
  • Measuring and Explaining Government Efficiency in Developing Countries
  • Child Mortality, Poverty and Environment in Developing Countries
  • Biotechnology and Poverty Reduction in Developing Countries
  • Oil and Energy Demand in Developing Countries in 1990
  • Argentina: Lessons for the Developing Countries
  • Educational Quality and Labor Market Performance in Developing Countries
  • Beliefs, Economic Volatility, and Redistributive Preferences Across Developing Countries
  • Global Brands and Labor in Developing Countries
  • Assets and Child Well-Being in Developing Countries
  • Microfinance: Improving the Standard of Living in Developing Countries
  • Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers

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StudyCorgi. (2022, August 27). 80 Developing Countries Essay Topics. https://studycorgi.com/ideas/developing-countries-essay-topics/

"80 Developing Countries Essay Topics." StudyCorgi , 27 Aug. 2022, studycorgi.com/ideas/developing-countries-essay-topics/.

StudyCorgi . (2022) '80 Developing Countries Essay Topics'. 27 August.

1. StudyCorgi . "80 Developing Countries Essay Topics." August 27, 2022. https://studycorgi.com/ideas/developing-countries-essay-topics/.

Bibliography

StudyCorgi . "80 Developing Countries Essay Topics." August 27, 2022. https://studycorgi.com/ideas/developing-countries-essay-topics/.

StudyCorgi . 2022. "80 Developing Countries Essay Topics." August 27, 2022. https://studycorgi.com/ideas/developing-countries-essay-topics/.

These essay examples and topics on Developing Countries were carefully selected by the StudyCorgi editorial team. They meet our highest standards in terms of grammar, punctuation, style, and fact accuracy. Please ensure you properly reference the materials if you’re using them to write your assignment.

This essay topic collection was updated on December 27, 2023 .

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Developing Countries Essay Topics

essay developing countries

  • Water Quality Issues as a Critical Environmental Determinant of Health for Populations in Developing Countries
  • How Urbanization Provides Potential for Towns and Cities in Developing Countries to Become the Centers of the Social and Economic Progress
  • Analysis of Economic Aspects Influencing the Lifespan of People with Dementia in Developing and Developed Countries
  • Dualistic Employment Market in Developing Nations
  • The Effects of Multinational Companies (MNC) Involvement in Developing Nations
  • The Commonplace Practice of Providing Financial Assistance to Third World Countries
  • The Political Environment, Civil Conflict, and Horizontal Inequalities: Evidence from 55 Developing Countries
  • Influence of Free Trade on Developing Nations
  • Ghana’s Top Three Issues as a Developing Nation
  • Contribution of Tourism to the Development of Developing Nations
  • Developmental Inequality: Relationships between Developed and Developing Countries
  • Globalization’s Impacts on Developed and Developing Nations
  • Indices of Poverty in Developing Countries
  • Tourism as a Sector that Can Engage People and Promote Good Relations in Developing Countries
  • Making Environmental Policies in Developing Nations
  • Future Economic Sustainability in Developing Nations
  • Why Migration Patterns Vary in Developing Nations
  • The Negative Effects of Globalization on Developed and Developing Countries
  • Judicial Corruption as a Persistent Culture of Impunity in African Leadership in Developing Countries
  • Project Management Methodologies and Guidelines in Developing Nations
  • Globalization’s Effects on Developed and Developing Countries
  • Obesity in Children in Developing Nations: A Global Health Concern
  • Why the Global Economy Sees Developing Countries’ Interests as Constrained.
  • Restriction of Social Media Sites in Third World Countries
  • The Effects of Internationalization on Developing Nations
  • How Does Urban Poverty Develop in Developing Nations Due to Migration and Urbanization?
  • Wage Disparity and Transparency in Developing Nations
  • Third World Nations and Modernization Principle
  • Developing Economies and the European Union
  • Significance of Property Taxes in Developing Nations
  • The Developing Nation of Mali
  • Effects of Technology Solutions on Developing Nations
  • The Theoretical Framework and Debate of Developing Countries
  • An Analysis of the Nike Company in Developing Nations
  • India: Is it Still a Third World country?
  • Sustainable Democracies in Underdeveloped Nations

Essay Topics on Developing Countries

  • Economic Fundamentals for Developing Nations
  • Government Identification Cards in Developing Nations
  • The Ethical Challenges Facing Nestlé in Developing Nations
  • Effects of Global Marketing on Developing Countries
  • Handling of Solid Waste in Developing Nations
  • Constraints to E-Commerce in Developing Nations
  • Eradication of Energy Poverty in Developing Countries
  • Neonatal Nutrition in Developing Nations
  • Migration to a Green Economy for Underdeveloped Countries
  • Land Reform and Economic Progress in Developing Nations
  • Rights of the Poor in Developing Nations
  • Standard Features of Developing Economies
  • Transnational Risks in Underdeveloped Countries
  • Microfinance for Sustainability in Developing Countries
  • Adverse Effects of Economic Growth on Developing Nations
  • Small and Medium Sized Businesses in Developing Nations
  • Mexico’s Consumer Behavior as A Developing Nation
  • The Windows of Opportunity in Tourism in Developing Nations
  • The AIDS Epidemic and the Healthcare Sector in Developing Countries
  • Globalization, Liberalism, and Gender Equality Among Women in Developing Countries
  • An Analysis of Microlending Services in Several Developing Nations
  • Trends in Developing Countries’ Foreign Trade Patterns
  • Economically Developed and Developing Nations
  • India: A Developing Country for Business
  • Geographical Information Systems and Remote Sensing for Developing Nations.
  • Is Poverty in Developing Countries Just an Imagination?
  • Cost of AIDS Medications Offered to Developing Countries
  • Markets for Pneumococcal Vaccines in Developing Nations
  • An Analogy of Developing Countries: Africa, Asia, and South America
  • Links between Poverty and War in Developing Countries
  • Access to the WTO Dispute Settlement as a Concern for Developing Countries
  • The Impact of Clean Water on People’s Lives in Developing Nations
  • Besley and Persson’s “Why Do Developing Countries Tax So Little?”
  • Entrepreneurial Aspiration in Developing Countries
  • How Might Developing Nations’ Situations Be Made Better by Debt Relief?
  • Progression and Communication in Third World Nations

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Impact of Globalisation (Revision Essay Plan)

Last updated 11 Jan 2022

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Here is a suggested answer to a question on the impact of globalisation on developed and developing countries.

Introductory Context

An estimated 9 percent of the global population still lives below the international poverty line of US$1.90 PPP a day.Success in reducing poverty in East Asia is clear with 7 percent of the population in the region living below the US$3.20 PPP line and 25 percent living below the US$5.50 PPP poverty line in 2018. However, almost 70 percent of Sub-Saharan Africa’s population lives on less than US$3.20 per day. Progress in cutting extreme poverty has been halted by the pandemic. The World Bank estimated that the pandemic pushed between 119 and 124 million people into extreme poverty around the globe in 2020. Many developing countries have limited resilience to the impact of economic shocks and threats from climate change.”.

Source: Adapted from the World Bank Poverty Report, 2021

To what extent have the economic benefits of globalisation favoured developed over developing countries? (25 marks)

KAA Point 1

Globalisation involves deeper integration between countries through networks of trade, capital flows, ideas, technologies and movement of people. One argument that globalisation has favoured high-income countries lies in the growing dominance of TNCs from advanced nations. TNCs base their manufacturing, assembly, research and retail operations across several countries, and many have become synonymous with globalisation namely Nike, Apple, Amazon, Google (Alphabet) and Samsung. Some have annual revenues many times higher than the GDP of smaller low-income countries and there has been fierce criticism of numerous TNCs for following tax avoidance strategies such as transfer pricing. This has reduced tax revenues for governments in developing nations which then hampers their ability to use fiscal policy to fund public services such as education and basic health care. The effect is to limit progress in reducing extreme poverty and improving human development outcomes.

Evaluation Point 1

A counter argument is that globalisation is associated with a steady reduction in import tariffs around the world which has then improved access to high-income markets for businesses from emerging countries. Many nations in east Asia have achieved reductions in extreme poverty driven by export-led growth. The extract says that only 7 percent of this region’s population now live below the US$3.20 PPP poverty line and continued high growth – as economies recover from the effects of the pandemic - will lead to improvements in per capita incomes and living standards. Indeed, sixty percent of the value of world GDP now comes from emerging market and developing economies and several countries have their own TNCs operating on a global scale. The recent success of countries such as South Korea, India and Vietnam is testimony to the opportunities that globalisation has offered developing nations who have developed competitive advantage across a range of industries.

KAA Point 2

A second argument supporting the question is that nations succeeding in a globalizing world have diversified economies, a workforce with flexible skills and governments with fiscal resources to overcome external shocks such as the pandemic. In contrast, poorer low-income countries rely heavily on the production and export of primary commodities or incomes from tourism, both of which have been hit by the global recession in 2020-21. Many poorer nations also haveinadequate infrastructure which increases the costs of trade and their direct tax revenues as a share of GDP are low because of sizeable informal economies and persistently low per capita incomes. This means that national governments rely heavily on external debt, and many have low currency reserves. They are therefore more exposed to economic, financial and public health shocks. This is evidenced by the differences in vaccination rates between rich and low-income countries. As of January 2022, only 9% of people in low-income countries have received at least one dose and per capita incomes may take years to reach pre-2020 levels.

Evaluation Point 2

In evaluation, the globalisation process has been a catalyst for economic reforms in low and middle-income countries. Consider the example of Vietnam which has transitioned to a socialist oriented market economy and successfully attracted inward FDI from companies such as LG and Samsung. FDIhas flowed in helped by low unit labour costs costs, improving infrastructure and human capital and a deregulated business environment whilst the Vietnamesegovernment has moved to a managed floating exchange rateto help reduce some of the risks from regional and global economic shocks. Vietnam is a good example of a country that has successfully progressed from a low income to a low-middle income nation over the last two decades. The valueof their external trade accounts for roughly 180% of national output, more than any other country at its level of per-person GDP. And their educational scores on standardized tests are on a par with Germany and Austria.

Final Reasoned Comment

Overall, it is hard to reach a firm view on this question because globalisation as a process is uneven and not inevitable. Before and during the pandemic, there was evidence of a switch towards “regionalisation” rather than full-throttled globalisation. For example, most sub-Saharan African countries have joined the African Continental Free Trade Area which seeks to boost intra-regional trade and investment and encourage economies of scale among African businesses so that they can better compete against the dominance of Western TNCs. Developing nations often struggle to compete with developed countries, therefore it is argued free trade benefits high-income economies more. Gains from globalisation will never be equitably distributed.And this sense of deepening inequality and opportunity risks a further shift to tariff and non-tariff barriers to trade and moves towards economic nationalism.

  • Globalisation
  • Deglobalisation
  • Hyper-globalisation
  • Transnational Businesses
  • Developing countries

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  • Key Differences

Know the Differences & Comparisons

Difference Between Developed Countries and Developing Countries

Developed and Developing Countries

The countries with low industrialization and low human development index are termed as developing countries .

After a thorough research on the two, we have compiled the difference between developed countries and developing countries considering various parameters, in tabular form.

Content: Developed Countries Vs Developing Countries

Comparison chart, definition of developed countries.

Developed Countries are the countries which are developed in terms of economy and industrialization. The Developed countries are also known as Advanced countries or the first world countries, as they are self-sufficient nations.

Human Development Index (HDI) statistics rank the countries on the basis of their development. The country which is having a high standard of living, high GDP, high child welfare, health care, excellent medical, transportation, communication and educational facilities, better housing and living conditions, industrial, infrastructural and technological advancement, higher per capita income, increase in life expectancy etc. are known as Developed Country. These countries generate more revenue from the industrial sector as compared to service sector as they are having a post-industrial economy.

The following are the names of some developed countries: Australia, Canada, France, Germany, Italy, Japan, Norway, Sweden, Switzerland, United States.

Definition of Developing Countries

The countries which are going through the initial levels of industrial development along with low per capita income are known as Developing Countries. These countries come under the category of third world countries. They are also known as lower developed countries.

Developing Countries depend upon the Developed Countries, to support them in establishing industries across the country. The country has a low Human Development Index (HDI) i.e. the country have low Gross Domestic Product, high illiteracy rate, educational, transportation, communication and medical facilities are not very good, unsustainable government debt, unequal distribution of income, high death rate and birth rate, malnutrition both to mother and infant which case high infant mortality rate, high level of unemployment and poverty.

The following are the names of some developing countries: Colombia, India, Kenya, Pakistan, Sri Lanka, Thailand, Turkey.

Key Differences Between Developed and Developing Countries

The following are the major differences between developed countries and developing countries

  • The countries which are independent and prosperous are known as Developed Countries. The countries which are facing the beginning of industrialization are called Developing Countries.
  • Developed Countries have a high per capita income and GDP as compared to Developing Countries.
  • In Developed Countries the literacy rate is high, but in Developing Countries illiteracy rate is high.
  • Developed Countries have good infrastructure and a better environment in terms of health and safety, which are absent in Developing Countries.
  • Developed Countries generate revenue from the industrial sector. Conversely, Developing Countries generate revenue from the service sector.
  • In developed countries, the standard of living of people is high, which is moderate in developing countries.
  • Resources are effectively and efficiently utilized in developed countries. On the other hand, proper utilization of resources is not done in developing countries.
  • In developed countries, the birth rate and death rate are low, whereas in developing countries both the rates are high.

There is a big difference between Developed Countries and Developing Countries as the developed countries are self-contained flourished while the developing countries are emerging as a developed country. Developing Countries are the one which experience the phase of development for the first time. If we talk about developed countries, they are post-industrial economies and due to this reason, the maximum part of their revenue comes from the service sector.

Developed Countries have a high Human Development Index as compared to Developing Countries. The former has established itself in all fronts and made itself sovereign by its efforts while the latter is still struggling to achieve the same.

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Economic Growth vs Economic Development

July 8, 2015 at 12:47 am

Although still correctly called a developing country, suprisingly, China has a High HDI.

NABIEU FAYIA says

February 28, 2023 at 7:11 am

I’m very happy to see this great opportunity thanks very much

anonymous says

December 17, 2015 at 4:00 pm

Even though China seems very developed, it is still considered a developing country. This is because there are still high rates of poverty and unemployment and people die at a young age.

kandeepan says

April 24, 2016 at 3:55 pm

you should change the third points that says both developed and developing countries literacy rate is high. it can not be same the literacy rate of both countries. developing literacy relate in most countries are very poor. we can get many good examples from African countries.

Surbhi S says

April 25, 2016 at 4:14 am

You should read the third point carefully, because it has been written there that the illiteracy rate is high in developing countries.

SISAY GEZAHEGN says

August 18, 2019 at 7:36 pm

Good correction

Lekhraj Prasad says

August 13, 2016 at 3:07 pm

It helped me a lot.

Urooj karim says

September 19, 2016 at 5:25 pm

This was very helpful.

Kabir MUghal says

September 20, 2016 at 8:26 pm

Noah Kim says

September 21, 2016 at 6:08 am

This article helped me, thanks

Arevik says

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Developing countries are key to climate action

Subscribe to the sustainable development bulletin, amar bhattacharya , amar bhattacharya senior fellow - global economy and development , center for sustainable development homi kharas , and homi kharas senior fellow - global economy and development , center for sustainable development john w. mcarthur john w. mcarthur director - center for sustainable development , senior fellow - global economy and development @mcarthur.

March 3, 2023

Developing countries will be the most severely affected by accelerating climate change and, even excluding China from the calculation, are likely to emit more than half the annual global total of greenhouse gas (GHG) emissions as early as 2030. But the international community has not focused sufficiently on the range of development, adaptation, and resilience priorities and constraints these countries face in tackling the world’s interwoven emissions mitigation imperative.

In an effort to help shift the global policy frame toward the crucial perspectives of developing countries themselves, we recently published an edited volume, Keys to climate action: How developing countries could drive global success and local prosperity . Within the volume, a wide range of distinguished contributors present both country case studies (on Bangladesh , Egypt , India , Indonesia , Nigeria , and South Africa ) and wider geography-focused assessments (on East Africa , Africa as a whole, Latin America and the Caribbean , and the V20 group of vulnerable countries ), in addition to an assessment of the overarching financing challenges .

As a collection, these studies describe how climate change is hindering local development efforts while also providing new opportunities. They draw attention to the vital importance of elevating developing country perspectives in driving global climate action. They also offer central insights on the diverse and evolving issues that need to be front-of-mind when considering the relevant challenges.

Range of circumstances

Developing countries should not be considered as a monolithic group. They have different though overlapping interests, given their circumstances. Small islands, for example, have temporarily responded to natural disasters by borrowing to rebuild and protect the livelihoods of their citizens, but as the scale and intensity of climate change accelerates, their fiscal flexibility is fast eroding.

Other countries remain concerned that embarking on an energy transition will impede their overall economic growth and hard-won progress in tackling food security, education, health, and other elements of sustainable development. The political economy of transition to a low-carbon economy can be daunting. Vested interests in coal and fossil-fuel industries can be strong. Geographic imbalances between winners and losers complicate the politics of change.

Evolving perspectives

Nonetheless, the case studies suggest that attitudes and official positions are evolving. There is a new understanding that an integrated climate-and-development program can simultaneously speed up development and lower GHG emissions if implemented at scale. Investment and innovations in adaptation, resilience, nature, and emissions mitigation can be in each country’s national self-interest if they boost economic growth while providing cheaper and more inclusive access to modern energy. Such a strategy avoids the penalties of trade tariffs in a world with carbon border tax adjustments. It is creating excitement over new opportunities for developing countries to provide credits that can be sold in voluntary and compliance-based carbon markets in advanced economies. It could allow them to participate in new technologies such as green hydrogen.

Domestic policy challenges

Seizing these opportunities requires strong institutions and robust national policy systems. Governments at national and sub-national levels must manage here-and-now costs already hurting their people and economies while also organizing and delivering toward a comprehensive energy transition. This transition is remarkably complex. In addition to innovations in new technologies, transitions must be designed and viewed through a lens of justice—between countries, across geographies within countries, across workers, across generations, and across gender gaps.

The global financing challenge

The case studies also draw attention to the huge challenge of finance—which we dub a “broken thread” of the international system.

The case studies also draw attention to the huge challenge of finance—which we dub a “broken thread” of the international system. Most developing countries must rely on international finance to supplement their own resources, but there is far too little available. There is not enough concessional finance, which is critical for loss and damage, for meeting the costs of just transitions, and for adaptation where projects do not generate direct revenues. Nor is there enough non-concessional public finance. Private finance has a major role to play but can be too expensive and volatile for many of the needed investments.

Recent granular assessments of climate finance needs suggest that emerging markets and developing countries other than China will need to increase climate spending to around $2.4 trillion per year by 2030—more than four times the current level—of which $1 trillion would need to come from external sources. This is an order of magnitude greater than the initial commitment made by advanced economies in Copenhagen in 2009 to provide $100 billion in additional climate finance to developing countries by 2020, a pledge that has still not been met. Our volume’s bottom-up case studies corroborate the major gaps in the global financial architecture, and a gap in the process of coordinating finance from different sources.

All of this leads to a prominent role for multilateral development banks (MDBs) and development finance more broadly. The MDBs could help countries to set out and implement ambitious climate and sustainable development strategies, tackle policy and institutional gaps that impede the scaling-up of investments, mobilize more affordable private capital, ramp up their own financing for critical public investment needs, and assist countries in coordinating multiple stakeholders behind a coherent vision and strategy. To do all of this would make them into quite different organizations from what they are today.

Four key ingredients for progress

What can be done to trigger progress on such a large, crucial, and complex set of global challenges? In our overview chapter for the volume, we identify four key ingredients to help drive successful action and outcomes.  

  • Developing countries should help set the international agenda. Developing countries need to join forces on their international “asks,” not only for adaptation and resilience, on which they have been increasingly successful, but also on mitigation, for which differences in self-interest often still prevail. This is important for overcoming shortfalls in understanding within international climate and development negotiations of the major priorities faced by developing countries in articulating and implementing integrated climate-and-development strategies. For example, an advanced economy lens focused narrowly on mitigation is not helpful in creating ownership for climate action in developing countries, nor are processes that keep climate and development on separate negotiating tracks.
  • Country-by-country planning and consensus building is foundational. Developing countries need to undertake the detailed work of identifying long-term strategies and projects to tackle their own integrated climate and development challenge. They require processes for civic participation that could become a basis for creating broad popular endorsement of a new strategy. The “just energy transition partnerships” described in some of our volume’s case studies provide an understanding of how to map and navigate relevant political economy issues, even if they are still works in progress.
  • Financing is essential. Multiple types of finance need to be scaled up, with the mix varying by country and project type. Rich countries should double their climate finance commitment by 2025 and enhance its effectiveness, while the international community should pursue all avenues to scale up the availability of low-cost finance. Interest rates and maturities, uncertainties of terms, and ability of developing countries to access fragmented sources of finance all need to be addressed. The case studies put forward several targeted ideas on actions that could be taken. A reformed multilateral development bank system is a recurring urgent theme.
  • A focus on building trust. Developing countries can press advanced economies to take proactive steps to rebuild confidence in international cooperation. This is important both for fostering political collaboration and mitigating technical risks. Strategies for making faster progress on both climate and economic development challenges have two important features that cut across countries. They have greater risks in the short run from the added financial exposure, but they have greater benefits when everyone moves in the same direction. If everyone trusts others to do their part, the risks of being a “first mover” can be reduced. For their own part, developing countries can help rebuild the spirit of global solutions to global problems by refining their ambitions of what exactly they will take on in the presence of greater support from the international community.

Looking ahead

However helpful this edited volume turns out to be, Keys to Climate Action amounts to only one undertaking aiming to elevate developing country perspectives in advancing a new reference point for the world’s central climate and development challenges. Further efforts are needed to refine and advance the relevant issues in the lead-up to major events like the G-20 summits (hosted by India in 2023 and Brazil in 2024), the COP28 climate summit (hosted by United Arab Emirates in 2023), and around the growing calls for reform of the World Bank and related institutions. With a sustained push of collective energy and attention, emergent insights and institutional innovations can help drive a new era of widespread prosperity for all.

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Essay Example on Developing Countries

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  • December 4, 2022

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Global Trade Liberalization and The Developing Countries

Essay on Developing Countries Introduction

In today’s world, with the emergence of the internet and computer technologies, companies and countries have global market access in terms of brand recognition, customer segments, and bilateral trade relations (Gnangnon, 2018). More specifically, a company or country can reach billions of customers across the world, and trade has never been easier. Technological developments, improvements in infrastructure and logistics, and the collective and constructive approach to liberalization, especially after the 2nd World War, created a suitable environment of global prosperity, wealth, and multilateral benefits (Haas & Hird, 2017; Gnangnon, 2018). Arguably, in this direction, the world has become rapidly global and liberal within the last decade. In other words, under-developed, developing, and developed countries started to work together in a collective and competitive manner, and world trade has overcome traditional barriers and prejudices. In this assignment, global trade liberalization and developing countries have been meticulously examined. The paper presents insights, information, and comments into the integration into the world economy, resulting in integration with the world economy, the progress of integration, results of the integration, policies on trade liberalization, evidence, potential gains and benefits, and further liberalization recommendations for reaping the benefits. After all, one can highlight that although developing countries have benefited from liberalization and open economy, there are still certain barriers by the EU and the U.S., especially in the textile and agricultural industries.

International Trade and the World Economy

Economic growth, poverty reduction, and development have long been boosted by integration into the World Economy within the last decades (Haas & Hird, 2017). That is, the growth of world trade increased 6 percent per year, two times more than the average of the world output (IMF Staff, 2001). Nevertheless, one can readily infer that trade was already considered a predominant factor for obtaining growth (Haas & Hird, 2017; Gnangnon, 2018). Since the end of the 2nd World War, the global trading system made use of “eight rounds of multilateral trade liberalization, as well as from unilateral and regional liberalization” (IMF Staff, 2001). In this direction, the General Agreement on Tariffs and Trade (GATT) was approved by many countries, and the world of trade was enabled on a large scale. Moreover, the last one of these rounds, called “Uruguay Round,” which was completed in 1994, resulted in the foundation of the World Trade Organization (WTO) (IMF Staff, 2001). The organization provides a suitable and meticulous environment for organizing and arranging the increasing and gradual bodies of multilateral trade regulations and agreements.

Integration into the world economy refers to secure access to global open markets. This approach can be boosted by related regulations and policies that enable developing and emerging countries to take part in developed markets, or vice versa (Gnangnon, 2018). For instance, Turkey is a strong engine semi-parts manufacturer. That is, rather than wholly manufacturing a full functioning engine, the country is concentrated on manufacturing parts to support developed factories in industrial countries (Altuntaş et al., 2009). This collective approach benefits both developed countries and developing Turkey and creates a win-win trade environment. In this sense, Turkey is supported by some regulations, including customs agreements between the EU and Turkey.

The living standards across the world have been boosted as a result of the integration of the world. Most of the developing countries could improve in many fields, thanks to the global aspects of international trade. That is, they have had a suitable environment and tariffs for exporting and importing goods with many other developed and developing countries; and subsequently, the incomes of such countries have dramatically risen and brought prosperity to developing nations across the globe (Gnangnon, 2018). More specifically, while developing countries used to account for one-fourth of the overall world trade during the 60s and 70s, they now account for one-third of the world economy (IMF Staff, 2001). In this direction, many developing countries have drastically developed their infrastructure and manufacturing capabilities as a result of free access to global markets.

Similarly, the relations and trade between developing and developed countries increased in a rapid manner (Cornia, 2020; Gnangnon, 2018). In other words, 80 percent of the overall exports of developed countries are now going to developing countries (IMF Staff, 2001). In this sense, one can readily infer that the integration of the world economy has both benefited developing and developed countries in terms of trade access, income, manufacturing, and infrastructure, as well as international relations and politics implicitly.

Although the integration has long been considered as hugely beneficial to many countries across the globe, the developments in recent decades have shown us that the progress was sometimes uneven. While some Asian countries, including China and Japan, benefited a lot, Latin American countries, unfortunately, could not satisfyingly make use of the integration. The reasons behind the success of Asian countries stem from the fact that these countries were successful at implementing required internal regulations in order to take part in international trade by attracting foreign trade investments (FDI) to their countries. Especially India and China “embraced trade liberalization and other market-oriented reforms, and also of higher-income countries in Asia—like Korea and Singapore—that were themselves poor up to the 1970s” (IMF Staff, 2001). In this sense, one can conclude that the progress of integration has highly been dependent on the internal regulations and the pace of adaptation of developing countries. That is, although Asian countries were willing and successful in implementing and embracing new global regulations, especially Latin America and North African countries could not successfully adapt themselves, resulting in comparably fewer benefits in terms of income and wealth.

As mentioned earlier, although willing countries have benefited a lot from the integration, Latin America, Middle East, and African countries could not keep up with the new developments in world trade. That is, “the poorest countries have seen their share of world trade declined substantially, and without lowering their own barriers to trade, they risk further marginalization” (IMF Staff, 2001). Unlike successful countries, these countries faced structural problems with their economies, weak policies and regulations, and over-protection of trade in many aspects.

After all, although some countries failed to integrate into the world economy, many developing countries such as Indonesia, Turkey, Brazil, and India could make use of such an advantage. Between 2002 and 2010, after an almost whole integration into the European and American markets, the Turkish economy showed a sustainable growth rate, and they managed to get rid of extra zero in the national currency. The development was so rapid and beneficial that in 2008, 1 Turkish lira was worth 0.82 $US, and that rate was recorded in Turkish history (Altunbaş et al., 2009). As a developing country, Turkey integrated its internal and external assets into the world economy by freeing and opening its markets and took a great deal of FDI. Thus, international organizations could invest in Turkey because of its literate population and benefited both sides. As a result, while there are contrary examples, countries that managed to comply with the requirements of liberalization and free economy have long benefited from the globalization.

The Benefits of Trade Liberalization

Sustainable economic growth requires strong and decent policies aimed at international liberalization and trade. No need for evidence, this condition is clear. That is, not a single country was successful at improving their income, trade, and living standards without making their economy and country to open to other economies and international trade environment. For instance, the success of Asian economies are clear examples; they lowered their trade tariffs from %30 to %10 within the last decades. In this direction, one can highlight those nations should implement accessible and comprehensible regulations and policies that ease the process of international trade and globalization.

In the manufacturing of certain products, opening up economies creates many advantages to the global economy in order to boost the competitive advantage of nations. South Korea and North Korea can be given as explicit examples. While South Korea has been open to the world economy for many decades now, North Korea was extremely close to other nations, not only in terms of economy but culture as well. When considered the overall wealth of both countries, the advantages of the open economy are clear. Open economy enables a multinational, cultural, and bilateral advantage for many countries, and these eventually attract foreign direct investments, which bring wealth to the nation.

There are substantial evidence and statistics regarding oriented countries in terms of integration to world economies. “Countries that have opened their economies in recent years, including India, Uganda, and Vietnam, have experienced faster growth and more poverty reduction” (IMF Staff, 2001). In other words, those countries decreased their tariff rate during the 80s and experienced substantial economic growth in the following years.

Getting rid of trade barriers and integrating into the world economy creates many advantages. “Estimates of the gains from eliminating all barriers to merchandise trade range from US$250 billion to US$680 billion per year” (IMF Staff, 2001). Also, almost 70% percent of this income benefited developing countries directly or implicitly. Moreover, developed countries have more protective measures against trade, and one can highlight that developing countries tend to benefit more from an international open market.

Further Liberalization of International Trade

The information is given above clearly supports the idea of further liberalization. That is, the state of open market and protection are significant for both developing and developed countries because each nation may have a comparative advantage on a single product, while there still exists a need for other types of goods, and the concept of free trade and liberalization creates a mutual and bilateral advantage for both group of countries. In general, industrial (developed) countries tend to implement high protection and tariffs for agricultural products. In other words, according to the statistics, the average tariff in agriculture is almost nine times more than the manufacturing industry (IMF Staff, 2001). Moreover, agricultural manufacturing and subsidies in developing countries lead to pre-empting markets and a depressive market by undermining developing countries. As an example, “European Commission is spending 2.7 billion euro per year making sugar profitable for European farmers at the same time that it is shutting out low-cost imports of tropical sugar” (IMF Staff, 2001). In this direction, one can claim that protection over agricultural product and imports in developed countries result in a depressive agricultural sector for developing countries that aim to sell agricultural products for their GDP and economy.

The protection of manufacturing is not quite strict in developed countries. However, many labor-intensive products tend to be protected. For instance, “the U.S., which has an average import tariff of only 5 percent, has tariff peaks on almost 300 individual products, which are largely on textiles and clothing, which account for 90 percent of the $1 billion annually in U.S. imports from the poorest countries” (IMF Staff, 2001). Similarly, other types of labor-intensive products are subjected to tariff escalation and peaks. In this direction, developing and emerging countries find it hard to manufacture labor-intensive value-added products because of tariff peaks in those (developed) countries. Nevertheless, developing countries also implement high tariffs. Generally, their tariff on manufactured industrial products tend to be four times more than of developed countries, and they tend to show the same characteristics with industrial countries in terms of tariff policies on value-added products.

Because of tariff peaks and barriers, nontraditional measures have become common in global trade. That is, both developing and developed countries implement anti-dumping measures. Also, sanitary and technical standards of import can sometimes become overwhelmed. Moreover, there may be extra charges for exporters, especially to the European Union. For instance, “EU regulations on aflatoxins are costing Africa $1.3 billion in exports of cereals, dried fruits, and nuts per European life saved” (IMF Staff, 2001). In this sense, one can readily question the balance of costs and benefits in terms of exporter and customers with such regulations.

As global trade is proven to boost economic growth and wealth for both sides, further liberalization by developing and developed countries should be improved. More specifically, international communities and especially developed countries should realize the barriers to developing and poorer countries and come up with constructive policies to attract production and manufacturing across the globe. That is, especially for textile and agriculture, regulations in the EU and the U.S. should be reviewed because they are extremely strict and create disadvantages and comparative inferiority for poor countries. Similar to this, decreases on tariff escalation and peaks should be implemented to boost world trade. After all, enhanced market access for poor and developing countries will eventually result in a better income and decrease in poverty across the world.

Reaping the Benefits

Although the steps taken after the 2nd World War created a liberal trade environment, failures such as the WTO Conference in 1999 led to drawbacks and challenges for the international trade environment (Haas & Hird, 2017). These kind of agreements and multilateral initiatives are extremely significant because they provide many countries with visible benefits that eventually lead to economic growth, increased GDP, and enhance available markets across the world. In this sense, potential failures may include ineffective agreements and negotiations that merely benefit one group of countries. In other words, trade is a collective win-win outcome, and benefiting only one group will eventually result in failure.

In conclusion, in this assignment, global trade liberalization and developing countries have been meticulously examined. The paper presents insights, information, and comments into the integration into the world economy, resulting in integration with the world economy, the progress of integration, results of the integration, policies on trade liberalization, evidence, potential gains and benefits, and further liberalization recommendations for reaping the benefits. Economic growth, poverty reduction, and development have long been boosted by integration into the World Economy within the last decades. Integration into the world economy refers to easy access to global open markets. This approach can be boosted by related regulations and policies that enable developing and poor countries to take part in developed markets, or vice versa. Although the integration has long been considered as hugely beneficial to many countries across the globe, the developments in recent decades have shown us that the progress was sometimes uneven. While some Asian countries, including China and Japan, benefited a lot, Latin American countries, unfortunately, could not satisfyingly make use of the integration. International communities and especially developed countries should realize the barriers to developing and poorer countries and come up with constructive policies to attract production and manufacturing across the globe. After all, one can highlight that although developing countries have benefited from liberalization and open economy, there are still certain barriers by the EU and the U.S., especially in the textile and agricultural industries.

Altunbaş, Y., Kara, A., & Olgu, Ö. (2009). Overview of the Turkish economy. Turkish Banking, 7-39.

Cornia, G. A. (2020). Macroeconomic stabilization in developing countries. The Macroeconomics of Developing Countries, 309-327.

Gnangnon, S. K. (2018). Effect of multilateral trade liberalization on foreign direct investment outflows amid structural economic vulnerability in developing countries. Research in International Business and Finance, 45, 15-29.

Haas, P., & Hird, J. A. (2017). Trade liberalization and economic growth: Does trade liberalization contribute to economic prosperity? Controversies in Globalization: Contending Approaches to International Relations, 1-39.

IMF Staff. (2001). Global trade liberalization and the developing countries -- An IMF issues brief.

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Economic Growth & Developing Countries Essay

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Strengthening and modernizing intellectual property administration system related to patents, trademarks, copyright, etc., which includes patent information services, trademarks registration, and patent offices, and the enforcement of copyright law in developing countries and awareness/training programs in this respect will benefit the scientific and industrial communities in developing countries which in turn will increase the growth rate of the economy.

Sponsorship of trademarks will help the general public identifying the owner of goods in the market as also the availability of goods and services in the market and can protect people against false practices.

Government subsidies in basic science will help reduce the cost of research and the development of new products. This would encourage the budding entrepreneurs in the country to come up with innovative products and designs that can succeed in the marketplace. If the government actively monitors the business cycle of these home-grown industries by keeping barriers of entry and regulation of import these industries can survive better in the global marketplace and improve the GDP of the country. The development of infrastructures, science, and R&D is important for the economic growth of a country.

Government has to allow the flow of scientific datasets.

As noted by Reichman and Samuelson “basic science needs abundant, unrestricted flows of raw data at prices it can afford. The evidence suggests, indeed, that “efficient” use of data is a concept antithetical to basic science”. (Reichman and Samuelson 1997).

The business cycle or economic cycle refers to the fluctuations of economic activity about its long-term growth trend, and in other terms is the rise and fall of the economy, maintaining neutrality between supply and demand. The Government plays an important role and can influence expansions and contraction of the business cycle by alteration in the monetary and fiscal policy, by increasing the interest rates it can reduce the economic activity, and when the government wishes to stimulate economic activity, it can do so by reducing interest rates. A rise in the government budget deficit stimulates economic activity, whereas a decreasing deficit controls it.

The government could curb a recession by either increasing or decreasing taxes or by government spending. When the economy is stagnant or in recession the government can intervene by injecting funds into the market through any of the sectors. Thus government intervention in the business cycle can help economic growth in a developing country.

The savings ratio of a developing country has a direct impact on that country’s growth rate. An increase in savings will lead to an increase in investment and capital accumulation. Apart from taxations and insurance contributions and the like, savings are necessarily a voluntary action by individuals and companies. For savings to happen they should have the capacity to save. And if they have the capacity, they should also have the willingness to save. The capacity to save depends on how much a person earns (per capita income), what is the growth rate of that income, and how this income is consumed (distribution of income).

The willingness to save depends on the returns that a person can expect (rate of interest etc.), the access and availability of financial institutions, and range of investment opportunities, and the rate of inflation. Among the developing countries themselves, different patterns are emerging as far as per capita saving is concerned. In theory, however, countries with higher growth rates are expected to have higher personal savings ratios than countries with lower growth rates. The saving tendency in people gets into positive ratio only during their active, working life. In their youth and the retirement period, they are negative savings.

This means that the savings ratio will then tend to rise with the rate of growth of income. This is mainly because the higher the growth rate, the greater the gap between the target levels of consumption of the current generation of working households and the dis-saving of retired people from a less prosperous generation. To improve the savings level of individuals in developing countries a combination of all these factors has to happen.

The habit of saving has to be cultivated with a broad level of awareness. The income/expense ratio should increase so that they have some left for saving. The government could influence the consumption expenses by subsidizing the necessities. The poor also need to be informed and awareness has to be spread regarding the interest rates and the availability of various savings schemes.

  • Trademarks and Brands for Global Economic Activity
  • Trademarks, Copyrights, Patents, and Trade Secrets
  • Trademark Cases: Pointymint, Oxford, Desire Perfume, Rawntree Ltd.
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IvyPanda. (2021, October 31). Economic Growth & Developing Countries. https://ivypanda.com/essays/economic-growth-amp-developing-countries/

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IvyPanda . 2021. "Economic Growth & Developing Countries." October 31, 2021. https://ivypanda.com/essays/economic-growth-amp-developing-countries/.

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IvyPanda . "Economic Growth & Developing Countries." October 31, 2021. https://ivypanda.com/essays/economic-growth-amp-developing-countries/.

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Tipping the scales: AI's dual impact on developing nations

Christine zhenwei qiang.

Artificial Intelligence is revolutionizing development in emerging markets from education to healthcare

Artificial Intelligence (AI) is transforming our world, and its potential to reshape development, especially in emerging markets and developing economies, is nothing short of revolutionary. But this isn't just about getting AI to help with scheduling or recipe recommendations, it's about real change, real challenges, and monumental opportunities.

Let's consider the pace at which technology has permeated our lives. It took 75 years for fixed telephones to reach 100 million users globally. In contrast, mobile phones achieved this milestone in just 16 years, and the internet took only 7 years. The Apple store took 2 years and strikingly, ChatGPT reached this number in a mere two months. This unprecedented rate of adoption not only highlights the transformative potential of AI but also sets the stage for a major shift in global connectivity and economic systems.

Leapfrogging to the Future: The Potential of AI

Imagine a classroom where every child receives personal tutoring from an AI resource, a remote village accessing world-class healthcare thanks to AI diagnostics, or governments using AI to improve flood forecasting so countries can better prepare in advance. This isn't wishful thinking, it's the transformative power of this technology.

  • Education : With AI-powered tools, we can bridge critical gaps caused by teacher shortages—a staggering 58 million additional teachers are needed globally. In 2019, the average pupil-teacher ratio at the secondary school level in OECD countries was 13, but 22 in lower middle-income and low-income countries. Intelligent tutoring systems and personalized learning are necessary innovations for educational equity In Uganda , AI helps provide pro-bono legal education and services to citizens of rural communities who may not otherwise access legal redress, while in India, students using an AI-powered personalized learning tool scored higher in Hindi and math.
  • Healthcare : The World Health Organization recommends at least 45 doctors, nurses, and midwives for every 10,000 people. However, many low-income countries only have a quarter of that number. But technology can help address this challenge. For instance, in South Africa , AI tools can be used to support diagnosis and treatment recommendations, freeing up doctors to spend more time with patients and improve care. For regions and countries where medical professionals are scarce, AI isn't just helpful; it's a lifesaver.
  • Public Services and Financial Inclusion : From streamlining tax collections to social transfers and extending banking services to remote areas, AI can be the new backbone of efficient governance and financial empowerment. For example, in Togo , AI improved the targeting of a cash transfer program, helping to make sure funds were spent on those most in need.
  • Boosting Productivity : AI can boost productivity growth by automating tasks, optimizing processes, and helping with decision-making. A recent study reports that consultants using generative AI completed 12% more tasks on average and completed tasks 25% more quickly. In 2023, Erik Brynjolfsson and his team found that generative AI has increased call center agent productivity by 14%, especially benefiting entry-level, lower-skilled workers.

The Other Side of the AI Coin: Risks of Widening the Divide

Despite the benefits, the AI wave also brings a tide of challenges. AI productivity gains are mainly captured by wealthy nations and major tech firms, creating a few global superstar companies. This risks widening the income gap as leading countries reap most of the benefits, leaving developing nations behind. Furthermore, AI could erode the competitive edge of many developing economies reliant on cheap labor.

As AI-fueled automation advances, it may reduce economic incentives for trade and investment, undermining traditional economic bases and potentially halting progress towards narrowing the income gap. And today, many developing countries need to create enough quality jobs for growing young populations. AI is expected to automate many occupations, upending traditional growth models and development strategies, disrupting the link between wage growth and productivity, and increasing unemployment and inequality. These imminent threats require careful navigation. Our recent Digital Progress and Trends Report 2023 expands on this in more detail.

Crafting a New AI Playbook for Development

How does the World Bank harness this transformative force responsibly? It's about laying solid foundations:

  • Digital infrastructure : Robust broadband, data hosting capacity, and digital capabilities are essential to provide the foundations for growth in this digital era.
  • Local AI ecosystems: Developing homegrown ICT industry and AI firms, fostering partnerships with international tech companies, and accelerating AI adoption in government can boost efficiency, stimulate demand, and drive societal acceptance.
  • Skills development : From grassroots digital literacy to advanced AI research, upskilling and ensuring new skills are integrated into school curriculums and professional training is crucial.
  • Sectoral strategies : Countries can carve out new areas for comparative advantages like ICT-business process outsourcing, tourism, and tailored services that could be augmented by AI.
  • AI safeguards : The advent of big data and AI has raised significant privacy concerns, created new risks of algorithmic bias, magnified cybersecurity vulnerabilities, and turbocharged misinformation. Developing governance frameworks that ensure responsible use of AI through alignment with ethical standards and social values is vital.

Our commitment goes beyond advocacy; we're actively financing and facilitating the AI and digital transformation. Through funding, research, capacity building, and policy advice, we are paving the way for an inclusive AI-powered future. Collaboration with international partners and fostering global dialogue on responsible AI development are key to our agenda.

The AI revolution’s stakes are high, making cooperation across borders essential. No nation can tackle these complex challenges alone. With proactive policies and international support, developing countries can shape the trajectory of AI and maximize its benefits, but they must seize this transformative opportunity now.

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  • Financial Inclusion

Qimiao Fan

Director, Strategic and Corporate Initiatives, Office of the Senior Managing Director for Development Policy and Partnerships

Christine Zhenwei Qiang

Director, Digital Development Global Practice

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