A developed country, industrialized country, or "more developed country" , is a sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are gross domestic product (GDP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. Which criteria are to be used and which countries can be classified as being developed are subjects of debate.
Developed countries have post-industrial economies, meaning the service sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialization, or undeveloped countries, which are pre-industrial and almost entirely agrarian. According to the International Monetary Fund, advanced economies comprise 65.8% of global nominal GDP and 52.1% of global GDP in 2010. In 2011, the nine largest advanced economies by either nominal GDP or GDP are the United States, the United Kingdom, Germany, France, Japan, Italy, Canada, Spain and South Korea.
Terms similar to developed country include "advanced country", "industrialized country", "'more developed country" , "more economically developed country" (MEDC), "Global North country", "first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialization is an ongoing process that is hard to define. The term MEDC is one used by modern geographers to specifically describe the status of the countries referred to: more economically developed. The 1st industrialized country was the United Kingdom, followed by Belgium. Later it spread further to Germany, United States, France and other Western European countries. According to some economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century.
The UN HDI is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development."
Since 1990, Norway , Japan (1990–91 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–08) have had the highest HDI score. The top 47 countries have scores ranging from 0.793 in Barbados to 0.955 in Norway.
Many countries listed by IMF or CIA as "advanced" , possess an HDI over 0.788 (as of 2010). Many countries possessing an HDI of 0.788 and over (as of 2010), are also listed by IMF or CIA as "advanced" . Thus, many "advanced economies" are characterized by an HDI score of 0.9 or higher (as of 2007).
The latest index was released on 14 March 2013 and covers the period up to 2012. The following are the 47 countries in the top quartile - having an HDI above 0.8, and classified as possessing a "Very high human development".
Note: The green arrows , and blue dashes () represent changes in rank when compared to the 2011 data – published in the 2011 report.
As a non-UN member, the government of Taiwan calculates its own HDI, which had a value of 0.882 in 2011. Additionally, while the HDI for the Chinese special administrative region of Hong Kong is calculated by the UN, it isn't for Macau. The Macanese government calculated the territory's HDI to be 0.868 in 2011. These values place both Taiwan and Macau well within the list of countries with "Very high human development". Furthermore, in 2009 a United Nations project calculated the HDI for all of its members, as well as Taiwan, Macau, and many dependent territories. The HDI values for the countries of San Marino and Monaco, which have not been included in official annual HDI reports, were found to be at 0.961 and 0.956 respectively. This places both countries firmly within the category of countries with "Very high human development" as well. The dependent territories with HDI values equivalent to "Very high human development" were: Jersey, Cayman Islands, Bermuda, Guernsey, Gibraltar, Norfolk Island, Faroe Islands, Isle of Man, British Virgin Islands, Falkland Islands, Aruba, Puerto Rico, Martinique, and Guam. Of note, the HDI values in the 2009 report were calculated using the old HDI formula, while HDI values after the year 2010 are calculated with a different formula.
While GDP per capita is often used to measure how developed a country is, it includes components that don't contribute to a citizen's standard of living. GDP per capita may increase while real incomes for the majority decline. However, measuring only wages and salaries gives a more accurate picture of a country's standard of living. Unlike the gross wage, which can be a misleading indicator of the well-being of a citizen since it does not represent the full amount of money the worker will be left to consume on goods or services, the disposable wage excludes compulsory deductions such as income tax, municipal tax, provincial/state income tax, social security and compulsory insurance. The list below has compulsory deductions applied with rates obtained from the OECD Tax Database, which assumes that the citizen is single with no children, with an income level 100% of the average wage. All monetary values are based on the OECD's purchasing power parity exchange rates. Note that the OECD does not publish data for some countries and hence they aren't listed.
Only three institutions have produced lists of "developed countries". The three institutions and their lists are the UN list , the CIA list and the FTSE Group's list, whose list isn't included because its association of developed countries with countries with both high incomes and developed markets isn't deemed as directly relevant here. However many institutions have created lists which are sometimes referred to when people are discussing developed countries. The International Monetary Fund (IMF) identifies 35 "advanced economies", The OECD, also widely known as the "developed countries club" has 34 members. The World Bank identifies 66 "high income countries". The EIU's Quality-of-life survey and a list of countries with welfare states are also included here. The criteria for using all these lists and for countries' inclusion on these lists are often not properly spelt out, and several of these lists are based on old data.
Joined the DAC in 1961, withdrew in 1974 and re-joined in 1991.
According to the World Bank there are 76 "high-income economies".