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.
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.
10. Somalia
Life expectancy at birth (in years): 55.3
Gross national income per capita: $1,018
Somalia has seen more conflict than most, with decades of political fragmentation and civil war devastating the country and its economy. Nearly 70% of Somalians live in poverty, and with conflicts showing no signs of abating, the future doesn’t look very bright either.
9. Guinea-Bissau
Life expectancy at birth (in years): 59.7
Mean years of schooling: 3.6
Gross national income per capita: $1,908
Home to forests, fisheries, agricultural land and natural habitats, you would expect Guinea-Bissau to have a much more developed economy. On the positive side, the country is using digital technology to improve the lives of citizens.
8. Burundi
Life expectancy at birth (in years): 61.7
Mean years of schooling: 3.1
Gross national income per capita: $732
Burundi is home to a low income population where nearly all of the population is employed in agriculture, and the country is also one of the most densely populated countries in the world.
7. Niger
Life expectancy at birth (in years): 61.6
Mean years of schooling: 2.1
Gross national income per capita: $1,240
Niger’s economy is not very diversified with more than 40% of its GDP being derived from agriculture. Nearly 42% of the population or more than 10 million people live in extreme poverty in the country.
6. Guinea
Life expectancy at birth (in years): 58.9
Mean years of schooling: 2.2
Gross national income per capita: $2,481
While Guinea has large reserves of natural resources, arable land and energy opportunities, the country is still among the least developed countries in the world.
5. Mali
Life expectancy at birth (in years): 58.9
Mean years of schooling : 2.3
Gross national income per capita: $2,133
Poverty has significantly restricted Mali’s attempt to progress its economy. Only 2.3 mean years of schooling mean that illiteracy is quite high in the country while a slowly developing economy means that unemployment is rife as well. High population growth is another issue faced by Mali as its already meagre resources will be divided among a larger population which is why more jobs need to be created.
4. Burkina Faso
Life expectancy at birth (in years): 59.3
Mean years of schooling : 2.1
Gross national income per capita: $2,118
The Sahelian country has limited natural resources where the economy is based on agriculture, while more than 40% of the total population lives below the poverty line. In early 2022, a coup took place in Burkina Faso, which resulted in the African Union and Economic Community of West African States suspending the country from decision-making bodies. The nation has also struggled with terrorist attacks which have ensured that instability persists in the region.
3. Mozambique
Life expectancy at birth (in years): 59.3
Mean years of schooling: 3.2
Gross national income per capita: $1,198
21 out of our 25 least developed countries are based in Africa, showing that a lot of work needs to be done in the continent to improve the standards of living in most countries there. Mozambique suffered a devastating cyclone back in 2019 and the company has struggled to recover since. Mozambique has vast natural resources and farmland so it does have potential to recover and develop further.
2. Central African Republic
Life expectancy at birth (in years): 53.9
Mean years of schooling: 4.3
Gross national income per capita: $966
According to the World Bank, more than 70% of the population of Central African Republic lives well below the poverty line. In the rankings compiled by Human Development Index, Central African Republic ranked 188 out of 189 countries.
1. Chad
Life expectancy at birth (in years): 52.5
Mean years of schooling: 2.6
Gross national income per capita: $1,364
Topping the list of the 25 least developed countries in the world is Chad, which is also among the poorest countries in the world. The economy of the country as well as its social performance are largely to blame for the lack of development, which in turn are due to a lack of implementation of the law and fragility of institution.
