The countries of the world are divided into two categories, namely, developed and developing countries basing on certain features like per capita income, standard of
living etc. Generally all developed countries are also referred as high income countries advanced and industrialised countries.
e.g. : USA,'UK, France, Germany, Canada.

Characteristic features of Developed Countries:

1. High per capita Income : An important feature of developed countries/Economies is high per capita Income. As per the World'Development Report 2013, the per capita GM of USA at $ 50,120 (at official exchange rate) and $ 50,610 (purchasing power parity) was 33 times higher and 13 times higher than that of per capita ON] of india of $ 1,530 in the year 2012.

2. Importance (predominance) of Non-Agricultural 'sectors : Another important feature for developed Economies/Countries is dominance of Non-agricultura] sectors. (i.e., Industrial and Service Sectors). In these Economies, the contribution of these non-agricultural sectors to GDP and employment generation is high when compared to agricultural sector. Being more developed the productivity of Nonagricultural sectors is higher than that of agricultural sector. As per the World Bank, World development indicators of 2014, the proportion (percentage) of people engaged in agricultural sector is 1.6 and contribution of agricultural sector to GDP is 1.3 per cent in USA while these percentages for a developing country like India are 51.1% and 18% respectively.

3. Abundance of Capital and Technology : As all deveIOped countries are high incOme countries the rates of savings and capital formation in such countries are high than those of developing countries. With such abundant capital, they use modern and sophisticated technology. In such countries, the banking and financial system is well developed and mobilise savings efficiently.

4. Low level of Unemployment : There is a basic difference in the nature and magnitude of unemployment between developed and developing countries. The unemployment in developed countries is low and is basically in the form of cyclical and frictional in nature. Such unemployment arises due to deficiency of effective demand. However, in developing countries like in India, there is open and disguised unemployment which arises due to deficiency of capital. The rate of unemployment in developed Economies is marginal (very low) and skills, productivity and mobility of labour are higher in developed countries.

5. Better quality of life : The quality of life of people in developed countries is better. They are assured of effective social security system, and better facilities like safe drinking water, better compliance of pollution standards well organised health care system and sanitation etc.

As per the data of 2011-'12, the public expenditure on education and research in USAis more than 6% of its GDP,while in developing countries it is around 3% of GDP. As per the data of 2013, in terms of Human Development Norway, Australia and Switzerland occupied lst, 2nd and 3rd ranks while lndia stands 135 out of 181