Issue of China’s Developing country status – UPSC Prelims

The World Bank assigns the world’s economies to four income groups: low, lower-middle, upper-middle, and high-income countries.

The classifications are updated each year on July 1 and are based on GNI (Gross National Income) per capita (in current $) of the previous year.

A member describing itself as a developing country can make use of the advantageous provisions available to such countries.

All WTO agreements contain special provisions for developing countries, including longer periods to implement agreements and commitments, handle disputes and implement technical standards.

Owing to the lack of proper definitions, WTO members themselves declare whether they are “developed” or “developing” countries. (Members can challenge each other’s declared status)

China has declared itself as a developing country.

It is being opposed by India, Brazil, Indonesia and the European Union.

The concept of developing countries is relative to developed countries, and international organisations do not have a unified definition of developing countries.

Though its economic and social development has made great progress after decades of reforms, the problem of unbalanced and inadequate development remains.