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==FTSE Global Equity Index==
==FTSE developed markets==


The [[FTSE Group]] classifies countries into four categories, the process by which [[stock markets]] are classified as either Developed or Emerging markets within the FTSE Global Equity Index Series. The categories are Developed, Advanced Emerging, Secondary Emerging, and Frontier. FTSE classification, as of September 2008:<ref>See [http://ftse.com/Indices/Country_Classification/Downloads/FTSE_Country_Classification_Sept_08_update.pdf FTSE Country Classification, September 2008]</ref>
The [[FTSE Group]] classifies countries into four categories, the process by which [[stock markets]] are classified as either Developed or Emerging markets within the FTSE Global Equity Index Series. The categories are Developed, Advanced Emerging, Secondary Emerging, and Frontier. FTSE classification, as of September 2008:<ref>See [http://ftse.com/Indices/Country_Classification/Downloads/FTSE_Country_Classification_Sept_08_update.pdf FTSE Country Classification, September 2008]</ref>

Revision as of 04:55, 26 December 2008

The term developed country, or advanced country, is used to categorize countries with developed economies in which the tertiary and quaternary sectors of industry dominate. Countries not fitting this definition may be referred to as developing countries.

This level of economic development usually translates into a high income per capita and a high Human Development Index (HDI). Countries with high gross domestic product (GDP) per capita often fit the above description of a developed economy. However, anomalies exist when determining "developed" status by the factor GDP per capita alone.

Synonyms

Modern terms synonymous with the term developed country or advanced country include industrialized country, more developed country (MDC), more economically developed country (MEDC), Global North country, first world country, and post-industrial country. The term industrialized country may be somewhat ambiguous, as industrialization is an ongoing process that is hard to define. The term MEDC is one used by modern geographers to specifically describe the status of the countries referred to: more economically developed. The first industrialised country was England, followed by Germany, France, the remainder of the United Kingdom and other Western European countries. According to economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century.[1]

Definition

Currently, the IMF, World Bank and CIA unanimously classify the following 30 countries and territories as developed countries.[2] The list is based on the IMF advanced economy list, the World Bank high-income economies and the CIA advanced economy list, which are recognized by each organization as developed countries.

20 countries in Europe:

•  Austria •  France •  Italy •  San Marino
•  Belgium •  Germany •  Luxembourg •  Spain
•  Canada •  Greece •  Netherlands •  Sweden
•  Denmark •  Iceland •  Norway •   Switzerland
•  Finland •  Ireland •  Portugal •  United Kingdom

6 countries and territories in Asia:

•  Hong Kong •  Japan •  South Korea
•  Israel •  Singapore •  Taiwan

2 countries in North America:

•  Canada
•  United States

2 countries in Oceania:

•  Australia
•  New Zealand

Exclusions

Human Development Index

World map showing the Human Development Index as presented by the United Nations in 2007.
Main article: Human Development Index
Main article: List of countries by Human Development Index

The UN HDI is a statistical measure that gauges a country's level of human development. While there is a strong correlation between having a high HDI score and a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development." A few examples are Italy and the United States. Despite a relatively large difference in GDP per capita, both countries rank roughly equal in term of overall human development.[3] Since 1980, Norway (2001-2005), Japan (1991 and 1993), Canada (1985, 1992 and 1994-2000), Iceland (2006-2008) and Switzerland (1980) have had the highest HDI score. Countries with a score of over 0.800 are considered to have a "high" standard of human development. The top 30 countries have scores ranging from 0.912 in Cyprus to 0.968 in Iceland. All countries included in the UN study on the IMF list had a high HDI. Several small countries, such as Andorra, Liechtenstein and Macau were not reviewed by the United Nations. Thus, these countries have not received an official HDI score.[4]

All countries listed by IMF or[5] CIA as "advanced" (as of 2007) - possess an HDI over 0.9 (as of 2004). All countries[6] possessing an HDI of 0.9 and over (as of 2004) - are also listed by IMF or CIA as "advanced" (as of 2007). Thus, all "advanced economies" (as of 2007) are characterized by an HDI score of 0.9 or higher (as of 2004).

The latest index was released on December 18, 2008. This so-called "statistical update" covers the period up to 2006 and was published without an accompanying report on human development. The update is relevant due to newly released estimates of purchasing power parities (PPP), implying substantial adjustments for many countries, resulting in changes in HDI values and, in many cases, HDI ranks.[7]

Lists of prosperous economies

While there is no official guideline for which country may or may not be considered developed, different institutions have created certain categories for the economically most prosperous countries. The IMF identifies 32 "advanced economies",[8] while the CIA identifies 34 "developed countries" and 35 "advanced economies".[9] The World Bank identifies 66 "high income countries", which are classified either as developed or developing by the UN. The criteria used to create these lists differ across these organizations as does the placement of certain countries.

CIA advanced economy list

The official classification of "advanced economies" was originally made by the IMF. The CIA intends to follow the IMF but also to add non-IMF members. Thus, until March 2001, the CIA list was more comprehensive than the IMF list. Since 2001, however, Cyprus, and more recently Slovenia and Malta, were added to the IMF list but not to the CIA advanced economy list. Below is the current CIA advanced economy list, consisting of 35 countries:[9]

•  Andorra •  Faroe Islands •  Iceland •  Monaco •  South Korea
•  Australia •  Finland •  Ireland •  Netherlands •  Spain
•  Austria •  France •  Israel •  New Zealand •  Sweden
•  Belgium •  Germany •  Italy •  Norway •   Switzerland
•  Bermuda •  Greece •  Japan •  Portugal •  Taiwan
•  Canada •  Holy See •  Liechtenstein •  San Marino •  United Kingdom
•  Denmark •  Hong Kong •  Luxembourg •  Singapore •  United States

CIA developed country list

  Map of Developed Countries (DCs) as described by the CIA

The CIA World Factbook classifies 34 economic entities as "developed countries (DCs):"[9]

the top group in the hierarchy of developed countries (DCs), former USSR/Eastern Europe (former USSR/EE), and less developed countries (LDCs); includes the market-oriented economies of the mainly democratic nations in the Organization for Economic Cooperation and Development (OECD), Bermuda, Israel, South Africa, and the European ministates; also known as the First World, high-income countries, the North, industrial countries; generally have a per capita GDP in excess of $10,000 although four OECD countries and South Africa have figures well under $10,000 and two of the excluded OPEC countries have figures of more than $10,000; the 34 DCs are: Andorra, Australia, Austria, Belgium, Bermuda, Canada, Denmark, Faroe Islands, Finland, France, Germany, Greece, Holy See, Iceland, Ireland, Israel, Italy, Japan, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, NZ, Norway, Portugal, San Marino, South Africa, Spain, Sweden, Switzerland, Turkey, UK, US; note - similar to the new International Monetary Fund (IMF) term "advanced economies" that adds Hong Kong, South Korea, Singapore, and Taiwan but drops Malta, Mexico [sic],[10] South Africa, and Turkey.

•  Andorra •  Faroe Islands •  Ireland •  Monaco •  Spain
•  Australia •  Finland •  Israel •  Netherlands •  Sweden
•  Austria •  France •  Italy •  New Zealand •   Switzerland
•  Belgium •  Germany •  Japan •  Norway •  Turkey
•  Bermuda •  Greece •  Liechtenstein •  Portugal •  United Kingdom
•  Canada •  Holy See •  Luxembourg •  San Marino •  United States
•  Denmark •  Iceland •  Malta •  South Africa

IMF advanced economy list

  Countries described as Advanced Economies by the IMF
.

According to the International Monetary Fund the following 32 countries are classified as "advanced economies:"[8]

•  Australia •  Germany •  Luxembourg •  Slovenia
•  Austria •  Greece •  Malta •  South Korea
•  Belgium •  Hong Kong •  Netherlands •  Spain
•  Canada •  Iceland •  New Zealand •  Sweden
•  Cyprus •  Ireland •  Norway •   Switzerland
•  Denmark •  Israel •  Portugal •  Taiwan
•  Finland •  Italy •  San Marino[11] •  United Kingdom
•  France •  Japan •  Singapore •  United States

World Bank high-income economies

Main article: High income economy

"High income economies" are defined by the World Bank as countries with a Gross National Income per capita of $11,456 or more.[12] According to the United Nations definition some high income countries may also be developing countries. Thus, a high income country may be classified as either developed or developing.[13]

According to the World Bank the following 66 countries and territories are classified as "high-income economies":[14][12]

High-income economy not classified by World Bank:

Quality-of-life index

Main article: Quality-of-life index

Research about standards of living and quality of life by the Economist Intelligence Unit resulted in a quality-of-life index. As of 2005, the 30 countries with the highest index are:[15]

FTSE developed markets

The FTSE Group classifies countries into four categories, the process by which stock markets are classified as either Developed or Emerging markets within the FTSE Global Equity Index Series. The categories are Developed, Advanced Emerging, Secondary Emerging, and Frontier. FTSE classification, as of September 2008:[16]

Developed:  Australia,  Austria,  Belgium,  Canada,  Denmark,  Finland,  France,  Germany,  Greece[17],  Hong Kong,  Ireland,  Israel,  Italy,  Japan,  Luxembourg,  Netherlands,  New Zealand,  Norway,  Portugal,  Singapore,  South Korea[18],  Spain,  Sweden,   Switzerland,  United Kingdom,  United States.

References

  1. ^ Sachs, Jeffrey (2005). The End of Poverty. The Penguin Press. ISBN 1-59420-045-9. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help); Unknown parameter |tlocation= ignored (help)
  2. ^ See Lists of prosperous economies in this article.
  3. ^ "UN. (2006). Human Development Report". Retrieved 2007-07-07.
  4. ^ "UN. (2008). Human Development Index: A Statistical Update". Retrieved 2008-12-22.
  5. ^ The official classification of "advanced countries" is originally made by the International Monetary Fund (IMF). The IMF list doesn't deal with non-IMF memebrs. The CIA intends to follow IMF list but adds few countries which aren't dealt with by IMF due to their not being IMF members. By May 2001, the advanced country list of the CIA was more comprehensive than the original IMF list. However, since May 2001, three additional countries (Cyprus, Malta and Slovenia) have been added to the original IMF list, thus leaving the CIA list not updated.
  6. ^ Namely sovereign states, i.e. excluding Macau: In 2003 the government of Macau calculated its HDI as being 0.909 (the UN does not calculate Macau's HDI); In January 2007, the People's Daily reported (from China Modernization Report 2007): "In 2004...Macau...had reached the level of developed countries". However, Macau is not recognized by any international organisation as a developed/advanced territory, while the UNCTAD organisaion (of the UN), as well as the CIA, classify Macao as a "developing" territory. The World Bank classifies Macau as a high income economy (along with developed economies as well as with few developing economies).
  7. ^ [1]
  8. ^ a b IMF Advanced Economies List. World Economic Outlook, Database—WEO Groups and Aggregates Information, October 2008.
  9. ^ a b c CIA (2008). "Appendix B. International Organizations and Groups. [[World Factbook]]". Retrieved 2008-04-10. {{cite web}}: URL–wikilink conflict (help)
  10. ^ Mexico actually appears in neither list. Many authorities have classified Mexico as a newly industrialized country (see e.g., p. 164, Globalization and the Transformation of Foreign Economic Policy, Paweł Bożyk, Ashgate Publishing, Ltd., 2006, ISBN 0-75-464638-6, or p. 126, The Limits of Convergence, Mauro F. Guillén, Princeton University Press, 2001, ISBN 0691057052.)
  11. ^ World Economic Outlook, International Monetary Fund, October 2008, second paragraph, line 9-10.
  12. ^ a b "World Bank, Country Classification". Retrieved 2008-10-12.
  13. ^ "UN. (2005). UNCTAD Handbook of Statistics" (PDF). Retrieved 2007-07-09.
  14. ^ World Bank - Country Groups. Accessed on October 12, 2008.
  15. ^ The world in 2005: The Economist Intelligence Unit's quality-of-life index, The Economist. Accessed on line January 8, 2007.
  16. ^ See FTSE Country Classification, September 2008
  17. ^ Possible change to Advanced Emerging.
  18. ^ From September 2009.

Template:Lists of countries

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