DEVELOPED COUNTRIES ARE ESSENTIAL FOR THE GROWTH
OF DEVELOPING COUNTRIES
The word development according to the dictionary means the act or process of development, growth, advancement process.
Ater the Second World War, developed countries have become the center of the capitalist economic universe and started selling technology, capital goods and capital to peripheral countries
(developing countries where TNCs were installed). These have to export, increasingly, for the core countries to try to repay the mounting debt, while also export industrial products to more peripheral countries, still no significant industrialization.
Developed countries, known as first world countries or rich countries have a hight industrialization index, with access to key resources such as food, drinking water, sanitation, clothing, good schools, transportation, hospitals in good condition, plus a house in good condition too. As an example, developed countries are
United States, Canada, Australia, Switzerland and Finland.
Developing countries, known as third world countries or poor countries, don`t have a high index of industrialization and has difficulty or suffering shortages of key resources for survival as mentioned in the previous paragraph. As an example, developing countries are Kenya, Malawi and Ghana.
According to Debapriya Bhattacharya (2011), a special advisor to the Secretary-General of the United Nations, within the
United Nations system there are criteria for the division between developed and least developed countries. Currently there are three main criteria.
1- “Income - A low-income criterion, based on a three-year average estimate of the gross national income (GNI) per capita. 2- Human assets - A human capital status criterion, based on indicators of Nutrition: The percentage of population undernourished; health. The mortality rate: for children aged five years or under; Education: The gross secondary school enrollment ratio; and the adult literacy rate;
3- Vulnerability - An economic vulnerability criterion, based on indicators of population size; remoteness; merchandise export concentration; share of agriculture, forestry and fisheries in gross domestic product; homelessness owing to natural disasters; instability of agricultural production; and instability of exports of goods and services.”
This is done to distinguish the countries that need international help to resources for their development and human development. The United Nations created a few years ago, The
Millennium Development Goals, divided into eight principal goals related to the development of third world countries. The United
Nations aims to achieve these goals by 2015 they are: Eradicate extreme poverty and hunger, achieve universal primary education, promote gender equality and empower women, reduce child mortality, improve maternal health, combat HIV/AIDS, malaria and other diseases and ensure environmental sustainability.
According with World Investment Report (2013), “Developing economies outflows reached $426 billion, a record 31 per cent of the world total. The BRICS countries (Brazil, the Russian
Federation, India, China and South Africa) continued to be the leading sources of FDI among emerging investor countries. Flows from these five economies rose from $7 billion in 2000 to $145 billion in 2012, accounting for 10 per cent of the world total.
Outflows from developed economies, which had led the recovery of FDI over 2010–2011, fell by 23 per cent to $909 billion – close to the trough of 2009. Both Europe and North America saw large declines in their outflows, although Japan bucked the trend, keeping its position as the second largest investor country in the world. “
According to The Human Development Reports (2013) high rate of developing countries had a significant impact on human development. In recent…