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1 (August 7, 1997)

handle is hein.crs/crsuntaahzp0001 and id is 1 raw text is: 97-759 F August 7, 1997 Comparing Countries' Levels of Development Jonathan E. Sanford Analyst in International Political Economy Foreign Affairs and National Defense Division Summary Develoing~ countries differ In their levels of' incone, in thie structure of their national economies, and in their social conditions Some countries, such as China and India. have a relativel strong industrial sector even thoug m they also have low levels of per capita income and a large percentage of their population living in rural areas. Other countries, such as endonesa, have somewhat higher levels of per capita incompe but resmble manry low-income countriesi terms of their xes Of urbanlization, educational an-taiment, health conditions, and the life e.xpectancy of their population. A table of statistics, provides comparisons amror g fivve countries (Chira, India, Egypt, Mexico, and indonesia) in ters of their levels of per capita income; the structure of ther economies, and prevailing social conditions affeting their people. Comparing Levels of Development In many respects, every country is truly unique in its overall characteristics. Nevertheless, there are many occasions where analysts and policy makers need to compare them in order to assess their relative levels of development. For example, developed countries traditionally accord very poor countries certain benefits in the areas of international aid and trade that they might not be willing to give to more advanced developing countries. These include access to low-cost concessional aid from international financial institutions and tariff exemptions under the World Trade Organization's General Schedule of Preferences (GSP). Analysts often wish to group countries according to their levels of development in order to study their economic and social situations and to determine whether different policies or approaches might be appropriate for countries in different developmental situations. This paper discusses some of the factors analysts usually consider when they assess different countries' levels of development. The United Nations, the World Bank, the U. S, Agency for International Development (USAI[D), and other foreign assistance or international economic bodies often use different definitions for assessing countries' situations, depending on the particular issues they wish to emphasize. However, several factors -- per capita levels of income, the structure of the economy, and various social CiRS Reports are prepared fior Members and committees of Congress iln A

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