Definition of 'Developed Economy'
There are a number of factors that contribute to a country's development, including its natural resources, its economic policies, and its social institutions. Natural resources such as oil, gas, and minerals can provide a country with a source of wealth that can be used to fund development. Economic policies such as free trade and low taxes can encourage investment and economic growth. Social institutions such as a strong education system and a well-functioning legal system can help to create a skilled workforce and a stable environment for businesses.
Developed economies are often divided into two categories: high-income economies and upper-middle-income economies. High-income economies are those with a per capita income of $12,535 or more, while upper-middle-income economies are those with a per capita income of $4,036 to $12,535.
The World Bank classifies countries into four categories based on their level of development: low-income, lower-middle-income, upper-middle-income, and high-income. Low-income countries are those with a per capita income of $1,035 or less, lower-middle-income countries are those with a per capita income of $1,036 to $4,035, upper-middle-income countries are those with a per capita income of $4,036 to $12,535, and high-income countries are those with a per capita income of $12,536 or more.
As of 2023, there are 38 high-income economies, 51 upper-middle-income economies, 50 lower-middle-income economies, and 33 low-income economies. The United States, Canada, Japan, Germany, and the United Kingdom are among the world's most developed economies.
The development of an economy is a complex process that can take many years or even decades. However, there are a number of factors that can help to promote development, including foreign investment, trade, and economic reform. By working together, countries can improve their standard of living and create a better future for their citizens.
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