Types of Economies-UnderDeveloping,Developing,Developed Economy & Open Economy,Closed Economy etc

Lesson 5 of 7 • 27 upvotes • 11:26mins

Vikas Kumar Singh Tomar

Developed countries have infrastructure in place - such as roads, bridges, water pipes, fuel lines, electrical wiring, fiber optic wiring, and septic/sewage and runoff drainage or treatment systems, to name a few - and the technical capacity to take care of all their citizens with such infrastructure services as mechanical repair or maintenance facilities, doctors and medical facilities, etc. In short, a developed country has three things: It has stuff, it has people to take care of that stuff (and of other people), and it has people who make money and give up part of that money to pay for stuff. Almost all of these economies are fairly stable, and least emerging. A good example of a developed country is Germany. Developing country is largely similar, but the existing infrastructure is usually either old or poorly maintained (or both), and the people have less money to spend on stuff and so there are either fewer experts or the quality of the products that they make or the services they provide is lower than in a developed country. These countries are mildly infected with corruption and are trying to come out of the political and economical crises. Most of these economies are rapidly emerging ones. A good example is India. Underdeveloped country has a lot of people, but lacks some (or all!) basic infrastructures for some or all of its citizens, and so the people have no stuff and must make money which they are then expected to give to their government, who will then give them stuff. This doesn't often happen, however, because governments in these kinds of countries are invariably so corrupt that calling them 'governments' at all is ridiculous. A good example is Chad.