MEANING AND CHARACTERISTICS OF A DEVELOPED COUNTRY

A developed economy is a high-income economy characterized by a high level of economic activity.

It is an economy which is characterized by an improvement in the standard of living of citizens, and an increase in the efficiency of labour 

Developed nations typically have high per capita incomes, extensive infrastructure, cutting-edge technology, and low unemployment rates.

Developed economies also have developed means of transportation and communication, improved standard of living of citizens, Industrial development, and growth of banks and other financial institutions.

The United States of America, the United Kingdom, Japan, Switzerland, and Germany are a few of the more well-known developed countries

Characteristics of Developed Economy

1. High per capita Income: This is a common characteristic of developed countries.

Due to the high level of economic activity, the national income of developed countries is usually very high, resulting in high per Capital income.

2. Reduced poverty level: Compared to underdeveloped countries, the poverty level of most developed countries is low.

The high level of economic activity means that more national income can be earned and poverty can be overcome to a great extent.

3. Use of High Production Techniques and Skills: The use of effective and efficient skills and technology has become a crucial part of the production process of developed countries.

To advance production technology, developed countries tend to continually invest in scientific research 

Developed nations are able to create goods and services of a higher quality and relatively lower cost than underdeveloped nations thanks to continuous scientific and technological innovation.

Indeed, despite having few natural resources, countries such as Japan, and Germany are able to develop their economies rapidly because of their use of the latest skills and production techniques.

4. Reduced unemployment rate: The economy is generally expanding in developed countries, and almost everyone can find employment.

As a result, the unemployment rate is typically low in wealthy nations.

5. Net exporter: Developing countries are typically net exporters, which means they export more than they import.

For example, in 2020, Switzerland's exports were CHF 400 CHF 442 billion, while total imports amounted to CHF 377 billion.

This can be explained by the fact that developed nations produce more than they consumed

6. High rate of capital formation: Capital formation is simply an increase in the real capital stocks of a country.

The developed country generally invests and saves more than they consume. Hence, Developed countries have a higher rate of capital formation than underdeveloped countries.

7. Infrastructural development: A country's level of infrastructure, both in terms of quality and quantity, is an important determinant of its economic growth and development.

In developed countries, the quality of infrastructural development is superior and of high quality.

For example, in developed countries, we have seen expanded rail networks, Enhanced road networks, and uncongested seaports, among other things.

Indeed, the infrastructural development In most developed countries such as USA and Switzerland is so massive that the headquarters of international organizations such as the world bank, the united nation etc. are usually domiciled in these countries.

8. Dependence on industrial sectors: Unlike underdeveloped nations, where agriculture is a major source of income, developed economies rely heavily on the industrial and service sectors.

Most developed economies have prioritized the development of the industrial sector and they are now reaping the benefits.

Industrialization has increased the rate of economic growth and development in many developed economies and given jobs to their populations.

Indeed, unlike underdeveloped countries which get a large portion of their income from agriculture, developed countries get w large portion of their income from the non-agricultural sector.

9. Better quality of life: People in developed nations enjoy a higher standard of living and a higher quality of life.

This is so because developed countries have conveniently available health and educational services.

Moreover, the increased per capita Income of developed economies also help to fight the vicious circle of poverty, which is one of the impediment to an improved standard of living.

10. High minimum wages: This refers to the minimum amount of money that an employer is legally required to pay its employee. 

The minimum wage in developed countries is usually far higher than that of an underdeveloped country.

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