Developed and developing economies, Lecture notes of Economics

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Developed and

Developing

Economies

What is Economy?

• An^ economy^ or^ economic^ system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location.
• It is an entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community.

Developed Economy

• A^ developed economy^ refers to a country with a relatively high level of economic growth and security. Some of the most common criteria for evaluating a country's degree of development are per capital income or Gross Domestic Product (GDP) , level of industrialization, general standard of living and the amount of widespread infrastructure. Increasingly other non-economic factors are included in evaluating an economy or country's degree of development, such as the Human Development Index (HDI) which reflects relative degrees of education, literacy and health.

Difference between Developed and

Developing economies

• DEVELOPED COUNTRY:
• low birth rate
• higher life expectancy
• low death rate due to better medical facilities
• High level of literary, Highly trained workforce. Workers are paid high rates of wages
• These economies usually have a larger tertiary sector and most of the workforce is engaged in service industries.

How will you classify UAE?

• The UAE is classified as one of the most^ developed countries^ in the world, with happy and contented citizens and other residents, as well as sustainable growth in many other fields, including the economy , trade, investment and communications, in addition to information, technology, tourism, infrastructure and human and social development. The UAE has one of the most open economies in the world. This tradition of welcoming business and trade goes back to early Gulf history. As it’s GDP having increased from Dh6. billion in 1971 to Dh1.54 trillion in the current year. This indicates the volume of development programmes carried out over the past 43 years in the areas of infrastructure and providing essential services for citizens and residents. The infrastructure of its ports and airports, as well as of its shipping fleet, now facilitates trading links throughout the world. The UAE has now become an important player in the global economy, providing the regional headquarters for more than 25 per cent of the world’s largest 500 corporations.