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HDI 2021

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Underdeveloped Countries 2024

An underdeveloped country is a country characterized by widespread chronic poverty and less economic development than other nations. "Underdeveloped country" is an unofficial term, but countries that would qualify as underdeveloped are generally classified as developing countries or least-developed countries (LDCs) by the United Nations, which lists 46 nations as least-developed as of 2021 (full list below). Underdeveloped countries are alternately called low-income countries (a term growing in popularity) by World Bank and called emerging markets, newly industrialized countries, or members of the "Global South" by various other organizations.

Underdeveloped countries and the Human Development Index (HDI)

One common method used to categorize the development of a country is the United Nations' Human Development Index (HDI). The Human Development Index evaluates each country's human development by tracking indicators such as life expectancy, education, and per capita income. Human Development Index ranks countries on a scale from 0-1, from least developed to most developed. There are four tiers: low human development (0-.55), medium human development (.55-.70), high human development (.70-80), and very high human development (.80-1.0).

Top 10 Most Underdeveloped Countries in the World (United Nations HDI 2021/22)

Country
HDI 2021
South Sudan0.385
Chad0.394
Niger0.400
Central African Republic0.404
Burundi0.426
Mali0.428
Mozambique0.446
Burkina Faso0.449
Yemen0.455
Guinea0.465

Useful as HDI is as a predictor, it is worth noting that a low HDI does not guarantee that a country will appear on the list of least-developed countries, and a relatively high HDI does not guarantee a country will not be classified as an LDC. The least-developed list is based upon a similar, but different set of criteria than HDI, so some variances exist between the two lists. For example, Nigeria does not make the list despite its HDI of 0.535, but Bangladesh is on the LDC list with an HDI of 0.632. In the case of Nigeria, its income may not be the most efficient, but it is large enough to not be at risk, so the country is not considered least-developed.

Characteristics of underdeveloped countries

Underdeveloped countries have very low per capita income, with many residents living in very poor conditions with little access to education or health care. Additionally, underdeveloped countries tend to rely upon obsolete methods of production and social organization. These nations often experience high birth rates and population growth, which strains their infrastructure and supply chains, further contributing to their widespread poverty. In fact, these seven common economic traits appear in most every underdeveloped country:

  1. Low income per capita and widespread poverty—The citizens of underdeveloped countries tend to make very little money. For example, the United States per capita GNP in 2006 was $44,970 (US$). The average for low-income countries was $650 (US), less than 1.4% that of the U.S.
  2. Lack of capital, both public and private—Not only do very few citizens of underdeveloped countries own lumber yards, factories, and other businesses, the government is nearly as impoverished and lacks funds to properly build and support roads, railways, schools, hospitals, and so on.
  3. Population explosion—In most underdeveloped countries, the birth rate far exceeds the death rate, leading to excessive population growth. If the growth happens too quickly, systems such as infrastructure, food supplies, and social services may fail to keep pace.
  4. Excessive unemployment—One of the most impactful results of disproportionate population growth is skyrocketing unemployment, caused by a slow-growing job market matched with a quickly expanding population.
  5. Predominance of Agriculture—Agriculture still makes up 40-50% of national income in most underdeveloped economies, as opposed to 2-8% in developed economies.
  6. Small and unproductive investments—Both the citizens and the governments in underdeveloped countries have little extra income to save or invest, and the little they do have is often invested in ways that do not lead to national growth (physical treasures rather than business investments, for example).
  7. Diminished productivity—In underdeveloped countries, the land, labor, and capital all tend to produce less than in developed countries. Labor (workers) are undereducated, underfed, and have poor medical care. Existing resources tend to be managed less well or with less-technological solutions.

United Nations and World Bank efforts to assist underdeveloped countries:

The United Nations (UN) holds a conference approximately every ten years on the subject of the world's underdeveloped countries. During the meeting in 2011, the UN set a goal to graduate 50% of the current underdeveloped countries to a higher economic status by 2022. The World Trade Organization (WTO) has created an Integrated Framework of Action to integrate these countries into the global economy by assisting with trade and market access with the hopes of encouraging economic growth and development. The hope is that these countries can grow and become developed countries with well-developed economies and a high level of technological advancement. In fact, multiple countries have "graduated" from the United Nations' LDC list over the years, and five more are scheduled to join them soon.

Countries that have graduated from the United Nations' Least Developed Countries (LDCs) list:

Countries scheduled to graduate from the United Nations' Least Developed Countries (LDCs) list:

Download Table Data

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Country
UN LDC
HDI 2021
HDI 2020
WTO LDC
World Bank Classification
Switzerland0.9620.956
Norway0.9610.959
Iceland0.9590.957
Hong Kong0.9520.949
Australia0.9510.947
Denmark0.9480.947
Sweden0.9470.942
Ireland0.9450.943
Germany0.9420.944
Netherlands0.9410.939
Finland0.9400.938
Singapore0.9390.939
Belgium0.9370.928
New Zealand0.9370.936
Canada0.9360.931
Liechtenstein0.9350.933
Luxembourg0.9300.924
United Kingdom0.9290.924
Japan0.9250.923
South Korea0.9250.922
United States0.9210.920
Israel0.9190.917
Malta0.9180.911
Slovenia0.9180.913
Austria0.9160.913
United Arab Emirates0.9110.912
Spain0.9050.899
France0.9030.898
Cyprus0.8960.894
Italy0.8950.889
Estonia0.8900.892
Czech Republic0.8890.892
Greece0.8870.886
Poland0.8760.876
Bahrain0.8750.877
Lithuania0.8750.879
Saudi Arabia0.8750.870
Portugal0.8660.863
Latvia0.8630.871
Andorra0.8580.848
Croatia0.8580.855
Chile0.8550.852
Qatar0.8550.854
San Marino0.8530.845
Slovakia0.8480.857
Hungary0.8460.849
Argentina0.8420.840
Turkey0.8380.833
Montenegro0.8320.826
Kuwait0.8310.822
Brunei0.8290.830
Russia0.8290.830
Romania0.8210.824
Oman0.8160.827
Bahamas0.8120.815
Kazakhstan0.8110.814
Trinidad and Tobago0.8100.818
Costa Rica0.8090.816
Uruguay0.8090.821
Belarus0.8080.807
Panama0.8050.801
Malaysia0.8030.806
Georgia0.8020.802
Mauritius0.8020.804
Serbia0.8020.804
Thailand0.8000.802
Albania0.7960.794Upper-Middle Income
Bulgaria0.7950.802Upper-Middle Income
Grenada0.7950.792Upper-Middle Income
Barbados0.7900.788High-Income
Antigua and Barbuda0.7880.788High-Income
Seychelles0.7850.793High-Income
Sri Lanka0.7820.780NoLower-Middle Income
Bosnia and Herzegovina0.7800.781Upper-Middle Income
Saint Kitts and Nevis0.7770.779High-Income
Iran0.7740.777NoLower-Middle Income
Ukraine0.7730.775NoLower-Middle Income
North Macedonia0.7700.774Upper-Middle Income
China0.7680.764Upper-Middle Income
Dominican Republic0.7670.764Upper-Middle Income
Moldova0.7670.766Upper-Middle Income
Palau0.7670.773High-Income
Cuba0.7640.781Upper-Middle Income
Peru0.7620.762Upper-Middle Income
Armenia0.7590.757Upper-Middle Income
Mexico0.7580.756Upper-Middle Income
Brazil0.7540.758Upper-Middle Income
Colombia0.7520.756Upper-Middle Income
Maldives0.7470.734Upper-Middle Income
Algeria0.7450.736NoLower-Middle Income
Azerbaijan0.7450.730Upper-Middle Income
Tonga0.7450.745Upper-Middle Income
Turkmenistan0.7450.741Upper-Middle Income
Ecuador0.7400.731Upper-Middle Income
Mongolia0.7390.745NoLower-Middle Income
Egypt0.7310.734NoLower-Middle Income
Tunisia0.7310.737NoLower-Middle Income
Fiji0.7300.737Upper-Middle Income
Suriname0.7300.743Upper-Middle Income
Uzbekistan0.7270.721NoLower-Middle Income
Dominica0.7200.722
Jordan0.7200.723Upper-Middle Income
Libya0.7180.703Upper-Middle Income
Paraguay0.7170.730Upper-Middle Income
Palestine0.7150.716Nonot rated
Saint Lucia0.7150.723Upper-Middle Income
Guyana0.7140.721Upper-Middle Income
South Africa0.7130.727Upper-Middle Income
Jamaica0.7090.713Upper-Middle Income
Samoa0.7070.712NoLower-Middle Income
Gabon0.7060.710Upper-Middle Income
Lebanon0.7060.726Upper-Middle Income
Indonesia0.7050.709NoLower-Middle Income
Vietnam0.7030.710NoLower-Middle Income
Philippines0.6990.710NoLower-Middle Income
Botswana0.6930.713Upper-Middle Income
Bolivia0.6920.694NoLower-Middle Income
Kyrgyzstan0.6920.689NoLower-Middle Income
Venezuela0.6910.695not rated
Iraq0.6860.679Upper-Middle Income
Tajikistan0.6850.664Lower-Middle Income
Belize0.6830.690NoLower-Middle Income
Morocco0.6830.679NoLower-Middle Income
El Salvador0.6750.672NoLower-Middle Income
Nicaragua0.6670.654NoLower-Middle Income
Bhutan0.6660.668AppliedLower-Middle Income
Cape Verde0.6620.662NoLower-Middle Income
Bangladesh0.6610.655YesLower-Middle Income
Tuvalu0.6410.639NoUpper-Middle Income
Marshall Islands0.6390.639Upper-Middle Income
India0.6330.642NoLower-Middle Income
Ghana0.6320.632NoLower-Middle Income
Micronesia0.6280.629
Guatemala0.6270.635Upper-Middle Income
Kiribati0.6240.623NoLower-Middle Income
Honduras0.6210.621NoLower-Middle Income
Sao Tome and Principe0.6180.619AppliedLower-Middle Income
Namibia0.6150.633Upper-Middle Income
Laos0.6070.608YesLower-Middle Income
Vanuatu0.6070.608Lower-Middle Income
Nepal0.6020.604YesLower-Middle Income
Eswatini0.5970.610NoLower-Middle Income
Equatorial Guinea0.5960.599Upper-Middle Income
Cambodia0.5930.596YesLower-Middle Income
Zimbabwe0.5930.600NoLower-Middle Income
Angola0.5860.590YesLower-Middle Income
Myanmar0.5850.600YesLower-Middle Income
Syria0.5770.577NoLow-Income
Cameroon0.5760.578NoLower-Middle Income
Kenya0.5750.578NoLower-Middle Income
Republic of the Congo0.5710.574Lower-Middle Income
Zambia0.5650.570YesLower-Middle Income
Solomon Islands0.5640.565YesLower-Middle Income
Comoros0.5580.562AppliedLower-Middle Income
Papua New Guinea0.5580.560NoLower-Middle Income
Mauritania0.5560.556YesLower-Middle Income
Ivory Coast0.5500.551NoLower-Middle Income
Tanzania0.5490.548YesLower-Middle Income
Pakistan0.5440.543NoLower-Middle Income
Togo0.5390.535YesLow-Income
Haiti0.5350.540YesLower-Middle Income
Nigeria0.5350.535NoLower-Middle Income
Rwanda0.5340.532YesLow-Income
Benin0.5250.524YesLower-Middle Income
Uganda0.5250.524YesLow-Income
Lesotho0.5140.521YesLower-Middle Income
Malawi0.5120.516YesLow-Income
Senegal0.5110.513YesLower-Middle Income
Djibouti0.5090.510YesLower-Middle Income
Sudan0.5080.510AppliedLow-Income
Madagascar0.5010.501YesLow-Income
Gambia0.5000.501YesLow-Income
Ethiopia0.4980.498AppliedLow-Income
Eritrea0.4920.494NoLow-Income
Liberia0.4810.480YesLow-Income
DR Congo0.4790.479YesLow-Income
Afghanistan0.4780.483YesLow-Income
Sierra Leone0.4770.475YesLow-Income
Guinea0.4650.466YesLow-Income
Yemen0.4550.460YesLow-Income
Burkina Faso0.4490.449YesLow-Income
Mozambique0.4460.453YesLow-Income
Mali0.4280.427YesLow-Income
Burundi0.4260.426YesLow-Income
Central African Republic0.4040.407YesLow-Income
Niger0.4000.401Yes
Chad0.3940.397YesLow-Income
South Sudan0.3850.386AppliedLow-Income
Guinea BissauYesLow-Income
North KoreaNo
Saint Vincent and the GrenadinesUpper-Middle Income
SomaliaApplied
Timor LesteAppliedLower-Middle Income
Total0.7220.723
showing: 193 rows

What are the 5 least developed countries?

The countries that are currently considered to be the least developed are South Sudan, Chad, Niger, Central African Republic, and Burundi.

Frequently Asked Questions

Sources