Yahoo Finance 25 Least Developed Countries in the World
In this article, we will be taking a look at the 25 least developed countries in the world. To skip our detailed analysis, you can go directly to see the 10 Least Developed Countries in the World.
The world has seen significant advancements in the last several decades, which have led to an overall improvement in infrastructure. Innovation and technological breakthroughs are at the forefront of this success, leading to greater efficiency and more value for money. While Western Europe and North America have been home to developed economies for quite some time now, great strides have been made in major countries in Asia, including China, Indonesia and Vietnam. The aforementioned technological breakthroughs and development led to higher economic growth in most countries globally from the 1990s to 2019, which helped alleviate poverty significantly. However, the pandemic did have a devastating impact, pushing more than 70 million people into extreme poverty in 2020, and hence, resulting in lower standards of living.
Most of the nations in the world are developing economies where there is vast inequality in distribution of wealth and resources. This is also generally true for developed countries, including the United States.
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Income inequality is one of the reasons why the least developed countries in the world are in such a dire situation. One of the reasons behind this inequality is of course, the lack of laws and regulations designed to ensure a more fair distribution of resources, not to mention corruption, which again, is more easily facilitated due to a lack of enforcement of regulations. Some of the major challenges faced by these countries include soaring debt, which has become even more of an issue in the past year as soaring inflation and the Fed response have seen the US Dollar skyrocket against other currencies. Most developing countries generally owe their debt in USD, and having seen their currency depreciate against USD, the debt can spiral out of control, as seen in the case of Sri Lanka, which defaulted on its external debt with its foreign reserves being drained. The crisis in the country continues.
The least developed countries in the world are also marginalized in global trade, with a miniscule share of global exports leaving them much more vulnerable to global crises. Many of these countries are also heavily dependent on commodity exports and are largely susceptible to fluctuations in commodity prices. Another challenge faced by these nations is a lack of electricity production as compared to requirements, which has a detrimental impact on industries. Further, while the countries contributing the most to climate change are developed nations, the brunt of the impact is being faced by the least developed countries, with almost 69% of climate disaster deaths taking place in these countries. For example, Pakistan faced unprecedented rains in 2022 as a direct impact of climate change, resulting in the deaths of more than 1,000 people.
To determine the least developed countries in the world, we consulted statistics compiled by the Human Development Report Office, taking into consideration life expectancy, mean years of schooling and gross national income per capita.
25. Eritrea
Life expectancy at birth (in years): 66.5
Mean years of schooling: 4.9
Gross national income per capita: $1,729
Eritrea's economy has been significantly dependent on a rain-fed agricultural sector which makes up about a third of the nation's economy, making it particularly vulnerable to climate change.
24. Rwanda
Life expectancy at birth (in years): 66.1
Mean years of schooling: 4.1
Gross national income per capita: $2,210
Even though Rwanda has recovered remarkably since the Rwandan Genocide in 1994, but the country still needs to do more to be considered a powerhouse in the continent.
23. Madagascar
Life expectancy at birth (in years): 64.5
Mean years of schooling: 5.1
Gross national income per capita: $1,484
Due to the relatively small population of the country and lack of development in the country, Madagascar has not been a very attractive proposition to foreign firms, which is one of the reasons why it has struggled to develop.
22. Ethiopia
Life expectancy at birth (in years): 65
Mean years of schooling: 3.2
Gross national income per capita: $2,361
The Tigray war, fought from 2020 to 2022, and primarily centered in Ethiopia, has led to tens of thousands of deaths while impacting the nation's infrastructure.
21. Lesotho
Life expectancy at birth (in years): 53.1
Mean years of schooling: 6
Gross national income per capita: $2,700
Political instability and the impact of the Covid-19 pandemic has hurt the country's development.
20. Democratic Republic of Congo
Life expectancy at birth (in years): 59.2
Mean years of schooling: 7.0
Gross national income per capita: $1,076
Political conflicts and instability, combined with high rates of various diseases and illnesses, have stunted the growth of DCR's economic stability.
19. Gambia
Life expectancy at birth (in years): 62.1
Mean years of schooling : 4.6
Gross national income per capita: $2,172
Gambia is very dependent on re-exports and tourism, which means that it has a very narrow economic base.
18. Togo
Life expectancy at birth (in years): 61.6
Mean years of schooling: 5.0
Gross national income per capita: $2,167
While urbanization has increased, the manufacturing sector has not developed proportionately, with the country also being impacted by Germany ending its development cooperation with Togo in 1993.
17. Benin
Life expectancy at birth (in years): 59.8
Mean years of schooling: 4.3
Gross national income per capita: $3,409
Cotton makes up 70% of Benin's exports, so the country's economy is highly dependent on commodity prices.
16. Malawi
Life expectancy at birth (in years): 62.9
Mean years of schooling: 4.5
Gross national income per capita: $1,466
Food insecurity, HIV/AIDS, limited arable land and a fast growing population have all impeded Malawi's growth.
15. Yemen
Life expectancy at birth (in years): 63.8
Mean years of schooling: 3.2
Gross national income per capita: $1,314
Yemen has been the battleground for a proxy war between Saudi Arabia and Iran. The proxy war has destroyed the political stability and infrastructure of Yemen in the past several years.
14. Liberia
Life expectancy at birth (in years): 60.7
Mean years of schooling: 5.1
Gross national income per capita: $1,289
With a GDP of just over $3 billion in 2019, Liberia's economy remains extremely undeveloped.
13. Afghanistan
Life expectancy at birth (in years): 62.0
Mean years of schooling: 3.0
Gross national income per capita: $1,824
Afghanistan has been a battleground for several decades. These wars have left the country suffering from deep economic and social problems which are expected to worsen in the coming years.
12. Sierra Leone
Life expectancy at birth (in years): 60.1
Mean years of schooling: 4.6
Gross national income per capita: $1,622
Sierra Leone was attempting to achieve middle-income status by 2035 and was performing well in this regard, but an Ebola outbreak in 2014 resulted in the progress being halted, not to mention the impact of the Covid-19 pandemic which resulted in the economy of the nation contracting by 2%.
11. South Sudan
Life expectancy at birth (in years): 55.0
Mean years of schooling: 5.7
Gross national income per capita: $768
South Sudan was created in 2011 and has faced a lack of stability since, resulting in the country struggling to get off the ground and improve its economy and the standard of living for its people.
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Disclosure: None. 25 least developed countries in the world is originally published at Insider Monkey.