Distinguish between advanced, developing and emerging economies

Let’s cut to the chase here.

Advanced economies: wealthy, industrialised nations. These countries have left agricultural-based production behind a long time ago. They have even moved past a focus on manufacturing and now have economies focused on services and high-tech industries. They typically have low and slow birth and population growth rates. In fact, they may rely on migration for labour force growth.

Developing economies: relatively poor, agricultural-based economies. Tend to rely on foreign aid. Their political institutions, such as governments, tend to have issues (such as corruption) which can reduce people’s living standards. Very high birth rates and population growth — especially compared with advanced economies. They have not industrialised and their labour force is generally not very productive.

Emerging economies: rapid growing economies like China and India. They’re industrialising rapidly and leaving agricultural production behind. Typically, their focus is on manufacturing (very true of China). Their citizens having rising incomes but inequality is also on the rise. Emerging economies are also seeing rapid increases in foreign investment as people around the world want to benefit from their growth and development.