Higher incomes are one of the indicators which show to risingliving standard, but however there are many more things which contribute torising standard of living of the people living in a place. One big reason ofliving standard is related to education because education is the key for highliving standard in a community.
With thehelp of education people in workforce will be more productive and it will also increasethe capability of the individuals to enjoy a better and luxurious life. Theother big reason of better living standard is jobs or working somewhere,getting a job and working somewhere will provide you hefty income and also youcan gain a lot of skills and development. These collectively working andgetting jobs and income increasing will seemingly contribute to the overallability of different people contributing to the better living standard systemof whole society. Only the rich people of the society have opportunity tocontribute because of their high income level and poor part of the society withtheir low income can’t contribute to the welfare of the society because theydon’t have enough income to buy quality goods and services.The developing countries are usually those countries which havewere poor and low living standard. The example of some developing countries inAsia is Afganistan, Bangladesh, India, and Pakistan, Srilanka etc, the peoplein these countries are living very poor living standard.
Developing countrieshave usually very low gross national product and gross national income percapita. These countries are in the slow process of achieving development andbasically these countries are dependent in agriculture sector and their economybackbone in agriculture contributing majority of share in their gross nationalincome. These countries have recently started industrialization sector fortheir boost up in their economy but it will take some decade before theyreaches to the stage of being or observed as developed nation or first worldcountries.
The World Bank categorizes the countries according to their grossdevelopment income. There are three groups of countries referred as 1stworld countries (developed countries), 2nd world countries(developing countries) and 3rd world countries as under developingcountries or these are categorized as low income, middle income and high incomecountries. Most countries in the world fall in low income group and are 3rdworld countries and middle income groups, only few countries fall in the highincome group.To know better about living standard of developing countries itis important to understand that in this modern era of technologies this planetis becoming more and more globalized day by day. With the help of thisglobalization all countries becoming more integrated with each other in termsof economic, cultural and social factors. This current system of globalizationconsists of free trade which means that countries can exchange their goods andservices from one place to other, export and imports of goods and services withoccur between many countries. So as aresult the People in different democratic countries with the help of electionstry to elect the leaders which have the abilities to make good effectivedecisions making in the office for the best interests of their people.
Due tothis free trade even with the passage of time low income countries can becomeself-sufficient. The developing countries will try their best to use mostefficient resources for the economy and all those countries which are involvedin free trade can gain maximum profit due to free trade. The best example offree trade is happening in European Union where all countries in this regionare doing free trade without any restriction and due to this free trade thegross national income of the countries increasing rapidly and the livingstandard of the people of these countries getting better and better with everynew day. As a result of free trade among these countries the pricebecomes very low because there are no any taxes burden in trade so due to lowprice the purchasing power of the people will increase as a result employmentwill increase and there will be an increase in the income of the employed whichleads to higher rates of economic growth for the countries who are mainlyinvolved in free trade that experience rising living standards.