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Criteria for Classification

Which criteria are used for classifying countries as developing (or developed)?

The material below presents the broad contours of how different organizations and treaties define which countries are considered developed or developing (or equivalent label)

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International Organizations (includes UN programs):

In black: original criteria

In gray: adopts criteria from another IO/treaty or does not adopt any criteria

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  • Food and Agriculture Organization (FAO)

  • Group of 77 (G77)

  • International ​Civil Aviation Organization (ICAO)

  • International ​Labour Organization (ILO)

  • International Maritime Organization (IMO)

  • International Monetary Fund (IMF)

  • International Telecommunications Union (ITU)

  • Organization for Economic Co-operation and Development (OECD)

  • OECD's Development Assistance Committee, Official Development Assistance (DAC-ODA)

  • United Nations Children's Fund (UNICEF)

  • United Nations Department of Statistical Division (UN-DESA)

  • United Nations Development Program (UNDP)

  • United Nations Educational, Scientific and Cultural Organization (UNESCO)

  • United Nations Environmental Programme (UNEP)

  • United Nations Human Settlements Programme (UN-Habitat)

  • United Nations Standard Country or Area Codes for Statistical Use list (a.k.a. M49) (UN M49)

  • United Nations Framework Convention on Climate Change (UNFCCC)

  • United Nations Industrial Development Organization (UNIDO)

  • World Bank (WB

  • World Food Programme (WFP)

  • World Health Organization (WHO)

  • World Intellectual Property Organization (WIPO)

  • World Trade Organization (WTO)

  • World Meteorological Organization (WMO)

  • World Tourism Organization (UNWTO)
     

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Treaties

  • Convention on Biological Diversity (CBD)

  • Convention On The Regulation Of Antarctic Mineral Resource Activities

  • Convention to Combat Desertification in Those Countries Experiencing Serious Drought And/Or Desertification, Particularly in Africa

  • Cartagena Protocol on Biosafety to the Convention on Biological Diversity 

  • Minamata Convention on Mercury

  • Montreal Protocol on Substances that Deplete the Ozone Layer

  • Nagoya Protocol on Access and Benefit Sharing 

  • United Nations Convention On The Law Of The Sea (UNCLOS)

Image by Timo Wielink

International Organizations

Treaties

Generalized
Systems of 
Preference

Food and Agriculture Organization (FAO)

(division not relevant for organization)

.

No explicit criteria. Membership in the organization is equivalent to self-identifying as a developing country.

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International ​Civil Aviation Organization (ICAO)

Follows UN-DESA 

Note: information obtained from Secretariat

International Labour Organization (ILO)

(division not relevant for organization)

Note: The ILO's Governing Body structure has a unique category of permanent members, called "countries of chief industrial importance", currently occupied by: Brazil, China, France, Germany, India, Italy, Japan, Russia, UK, and the US

International Maritime Organization (IMO)

(division not relevant for organization)

.

“The main criteria used by the WEO to classify the world into advanced economies and emerging market and developing economies are (1) per capita income level, (2) export diversification—so oil exporters that have high per capita GDP would not make the advanced classification because around 70% of its exports are oil, and (3) degree of integration into the global financial system. In the first criteria, we look at an average over a number of years given that volatility (due to say oil production) can have a marked year-to-year effect. For the first criterion, the data source is the WEO database; for the second criterion, it is the UN COMTRADE database; and for the last criterion, it is the IMF’s Balance of Payments Statistics Database. Note, however, that these are not the only factors considered in deciding the classification of countries. As it says in the WEO Statistical Appendix, "This classification is not based on strict criteria, economic or otherwise, and it has evolved over time. The objective is to facilitate analysis by providing a reasonably meaningful method of organizing data." Reclassification only happens when something marked changes or the case for change in terms of the three criteria above becomes overwhelming.”

.

Organization for Economic Co-operation and Development (OECD)

The OECD does not (officially) present itself as being an organization representing ‘developed’ countries, nor is membership tied to particular 'development'-related measures (ex: GDP, GDP per capita). 

Note: the OECD's founding document notes in the Preamble that “economically more advanced nations should co-operate in assisting to the best of their ability the countries in process of economic development”

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See: OECD DAC-ODA

Eligibility to receive ODA can serve as a proxy for "developing countries": “all low- and middle- income countries based on gross national income per capita as published by the World Bank, except for G8 members, EU members, and countries with a firm date for entry into the EU. Membership of the OECD or the DAC does not affect eligibility to receive ODA. Several OECD members have been on the DAC List for many years and continue to receive ODA. Currently, no DAC members are on the list, but the DAC has made clear that leaving the list is not a requirement for DAC membership. Likewise, the provision of statistics to the DAC Secretariat has no bearing on a country's eligibility to receive ODA.”

Note: List is revised every three years

United Nations Children's Fund (UNICEF)

(division not relevant for organization)

.

United Nations Department of Statistical Division (UN-DESA)

“For analytical purposes, the WESP [World Economic Situation and Prospects] developed classifies all countries of the world into one of three broad categories: developed economies, economies in transition and developing economies. The composition of these analytical groupings, specified in tables A, B and C, is intended to reflect basic economic country conditions, and are not strictly aligned with the regional classifications defined by the Statistics Division of UN DESA known as M49. ... Several countries (in particular the economies in transition) have characteristics that could place them in more than one category; however, for purposes of analysis, the groupings have been made mutually exclusive. Within each broad category, some subgroups are defined based either on geographical location or on ad hoc criteria, such as the subgroup of “major developed economies”, which is based on the membership of the Group of Seven.”​​

Note: this definition can be found in the World Economic Situation and Prospects 2021 report, published by UN DESA (see document's Annex)

United Nations Development Program (UNDP)

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.

United Nations Educational, Scientific and Cultural Organization (UNESCO)

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United Nations Environmental Programme (UNEP)

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United Nations Human Settlements Programme (UN-Habitat)

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"Designations such as “developed,” “developing", “industrialized”, “frontrunner”, “follower”, “latecomer” and “laggard” are intended for statistical  convenience and do not  necessarily express a judgment  about the state reached by a particular country or area in the development process."

"Industrialized economies include economies with adjusted manufacturing value added (MVA) per capita higher than $2,500 (international PPP) or a gross domestic product higher than $20,000. Emerging industrial economies include economies with adjusted MVA per capita ranging between $1,000 (international PPP) and $2,500 or whose share of the world MVA is higher than 0.5 percent. The list of least developed countries is based on decisions of the United Nations General Assembly. All remaining economies are included in the group “other developing economies.”

Note: See document's page iii and Annex C.1, p.195.

World Bank

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Note: 

World Food Programme (WFP)

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Note: 

World Health Organization (WHO)

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Note: 

World Intellectual Property Organization (WIPO)

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Note: 

Self-declaratory. “There are no WTO definitions of “developed” and “developing” countries. Members announce for themselves whether they are “developed” or “developing” countries. However, other members can challenge the decision of a member to make use of provisions available to developing countries”

Note: List is not publicly available

World Meteorological Organization (WMO)

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Note: 

World Tourism Organization (UNWTO)

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Note: 

Convention on Biological Diversity - CBD

No direct and specific criteria have been used for the purpose of the treaty. Instead, according to Art. 20, para. 2 of the Convention, the Conference of the Parties to the Convention was required to establish a list of developed country Parties and other Parties which voluntarily assume the obligations of the developed country Parties. At its 1st COP meeting it adopted a list of developed country Parties, which has been implemented since then. As and when any ambiguity arises in establishing a certain country as developing country or even as least developed country, the Secretariat uses the list from UN’s DESA.

Note: This information was obtained through direct correspondence with the CBD Secretariat (June 2021)

Convention  Desertification 

Adopts UN-DESA

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Cartagena Protocol

Identical to CBD

.

Convention On The Regulation Of Antarctic Mineral Resource Activities

Identical to CBD

.

The Montreal Protocol details which countries are developing based on its Art.5 Special situation of developing countries: “1. Any Party that is a developing country and whose annual calculated level of consumption of the controlled substances in Annex A is less than 0.3 kilograms per capita on the date of the entry into force of the Protocol for it, or any time thereafter until 1 January 1999, shall, in order to meet its basic domestic needs, be entitled to delay for ten years its compliance with the control measures set out in Articles 2A to 2E, provided that any further amendments to the adjustments or Amendment adopted at the Second Meeting of the Parties in London, 29 June 1990, shall apply to the Parties operating under this paragraph after the review provided for in paragraph 8 of this Article has taken place and shall be based on the conclusions of that review. (…)”

Important note: Decision IV/7 Definition of developing countries: “The Fourth Meeting of the Parties [1992] decided in Dec. IV/7 to note that the Open-ended Working Group recommended that no criteria for future classification as a developing country for the purpose of the Montreal Protocol be adopted by the Meeting of the Parties and that the Parties should consider individually applications by Parties for classification as developing countries as and when such applications are made”.

Minamata Convention

Adopts UN-DESA

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Nagoya Protocol

Identical to CBD

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United Nations Convention On The Law Of The Sea (UNCLOS)

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GSP - Canada

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GSP - Japan

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new

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IOs
Treaties
GSP
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