How are economies classified on the basis of the level of development?

On the basis of development World Bank, IMF and other international institutions have classified countries into two groups on the basis of development or GNI (gross national income)

A. Developed economy:

High National income, high literacy rate, high per capita income.

Trained human resources with proper skills and proper civic facilities

Low infant mortality rate and death rate

Developed social, economical and industrial structure with its citizen having a High standard of living.

B. Developing Countries:

They are

Also known as underdeveloped, backward or poor countries.

Per capita income in these countries is low. They have backward agricultural and industrial sectors with low savings, investment and capital formation.

Low standard of living with poor health and high infant mortality, high birth and death rates and poor infrastructure.