[19970807]97-759_Comparing Countries'Levels o f Development.pdf

97-759 F August 7, 1997 Comparing Countries Levels of Development Jonathan E. Sanford Analyst in International Political Economy Foreign Affairs and Nationai Defense Division Summary Comparing Levels of Development In many respects, every country is truly unique in its overall characteristics. Nevertheless, there are many occasions where analysts and policy makers need to compare them in order to assess their relative levels of development. For example, developed countries traditionally accord very poor countries certain benefits in the areas of international aid and trade that they might not be willing to give to more advanced developing countries. These include access to low-cost concessional aid from international financial institutions and tariff exemptions under the World Trade Organizations General Schedule of Preferences (GSP). Analysts often wish to group countries according to their levels of development in order to study their economic and social situations and to determine whether different policies or approaches might be appropriate for countries in different developmental situations. This paper discusses some of the factors analysts usually consider when they assess di