Basic Differences Between Developed, Developing And Under-developed Countries

Income plays an important role in Man's Life today. The Ancient civilizations did not have to bother much about their income. In most places people had enough land for their cultivation and in the initial periods they did not know the concept of money. The money concept came in the later part of their life. Hence, they had a system very well known as the Barter systems. People used to exchange goods with each other. A simple striking example could make this concept a little interesting and easier for understanding. An important fact is that these kinds of transactions occur even today between people who understand each other well. Let us take a walk along the country side to look at some of the concepts of farming. There are two farmers who are friends from their childhood and have grown together. Both of them own a lot of land under them and earn a decent income for their living. One farmer owns a diary farm with twenty cows and other looks after his poultry which has hundred birds which include Turkey, ducks and hens. If these two people have a barter transaction with each other, then probably both the farmers assume a value in their mind and then exchange cows and birds with each other. This requires a huge amount of understanding between the farmers otherwise could lead to a quarrel.

Even though this concept was simple, this came up with sprouting problems when even one person did not have sufficient goods to exchange with each other. So one had to work for the other and this is how the labor concept began. Slowly, man came up with the money concept which became the mode of payment. Today we find a lot of financial institutions in place to help us organize our incomes very efficiently. Even if we look at the history of financial institutions, it started with the gold smiths where money was exchanged for gold. Based on this concept the financial institutions evolved and are playing a major role in the economy today. If we look at the different economies in the world, you will find categories like the under-developed countries, developing and the developed countries.

Let us look at some of the realities and differences between these three economies. The country is regarded as under-developed for a few reasons. The money value of the under-developed countries is low compared to the developing and the developed countries. A large portion of people are still below the poverty line, meaning people do not have sufficient income to make their living. The literacy rate in these countries is low, meaning, most people are not education. The transportation and infrastructure is also less compared to the other two economies.

The developing countries are far better than the under-developed countries. The country is in developing stage. There are a lot of strategies coming up to improve the infrastructure and transportation facilities. The gap between the rich and the poor is also decreasing. People below poverty line are also decreasing and education is becoming a priority for many of these countries today. Even if we look at the transportation and infrastructure facilities, some of the economies are almost crossing these developing stages.

The Developed countries are much above the other two. The population in most of these countries is very low and hence the literacy rate is high. These have very good infrastructure, transportation and technological developments. The money value in these countries is also high. However, today there are not much difference between the developing and the developed countries. I have seen programs featuring on my television which I got through my Dish Network Offers. If you are person who looks news channels today, you will be aware that even the developed countries like the United States experiences recession at some point of time. So for the countries which are not developed, for them it is even more a struggle to come into the developed category.