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Developed and developing countries - differences and economic dependence

Developed and developing countries - differences and economic dependence

The main difference between developed and developing countries lies in the level of security of GDP per capita and the rate of its annual growth, largely due to the internal needs of the economies of these countries.

For example, the USA is an established economy with the highest achieved level of technological development, belongs to a developed country. A China, although significantly in recent years I have added in this regard, but the demographic situation (including), classifies it as a developing country.

Let's compare the economic dynamics of these two powers in recent years (from 1961 to 2022):

pace of economic development USA

pace of China's economic development

As you can see, the average pace of economic development in the United States for this period was 2.97%, and China's was 7.99%.

Based on this division and gradation of countries based on the level and pace of their economic development, it can be stated that in order to ensure the growth of their economies, developing countries are forced to borrow finance from developed countries for these purposes. This is the main dependence of some on others.

Therefore, sometimes you have to hear such a statement - that growth the exchange rate of the dollar in the world may lead to a deterioration in the economies of developing countries.

This is largely due to the fact that developing countries are simply credited to achieve their goals, and the main creditors are developed countries, the basis of whose finances is built precisely, so far, on the American dollar. Therefore, with the growth of dollar exchange rate, the economies of these countries are most susceptible to economic shocks, because to pay they need debts in the currency of the loan.

Developed and developing countries - differences and economic dependence - Something like that !

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