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The term 'developing' is often taken as a short-cut for economic development, but also relates to social development, that is, other parameters that could be considered positive for society (education, health, life expectancy, etc.)
One measures the development of a country with statistical indexes such as income per inhabitant, the rate of illiteracy, and access to water. The UN then puts forth a ranking for these lists of statistics, to create, for example, a "social development indicator" of a country.
Developing nations are in general countries that have not achieved a significant degree of industrialization relative to their populations, and which have a low standard of living. There is a strong correlation between this status and high population growth.
Even though a good part of the world seems to aspire to development, the term itself is criticized by those who think it is too centered on Western countries. The term implies a direction and a movement that the countries must follow; it implies an inferiority of the developing countries.
The terms utilized when discussing 'developing nations' refer to the intent and to the constructs of those who utilize these terms. Other terms sometimes used are lesser developed countries or less [economically] developed countries (LDCs/LEDCs); underdeveloped nations or undeveloped nations; third world nations; the South; or non-industrialized nations. Conversely, the opposite end of the spectrum is termed developed nations, more economically developed countries (MEDCs), first world nations, or industrialized nations.
The United Nations allows each nation to decide for itself whether it will be designated as "undeveloped" or "developing" (though many economists and other observers ignore the UN rule about self-designation).
To moderate the euphemistic aspect of the word "developing", international organisations have started to use the term " least developed countries" (LLDCs) for the very poorest nations which can in no sense be regarded as developing. That is, LLDCs are the poorest subset of LDCs.
The concept of the developing nation is found, under one term or another, in numerous theoretical systems having diverse orientations -- for example, theories of decolonization, liberation theology, marxism, anti-imperialism, and political economy.
According different theories, sources of underdevelopment, or mal-development include: