A simple walk through any city reveals the difference in living standards from one individual to another, the difference in cars, house sizes and hobby activities. This difference is called economic inequality, which is the main distinguishing factor between a developed and a developing country, alongside health, literacy, crime rate, GDP per capita, average birth rate and mortality, infrastructure, unemployment rate and technological progress. A developing country can be classified as a country with a lower percentage of industrialization and lower per capita income. These types of countries can be further divided into two categories of moderately developed countries and developing countries. Moderately developed countries generally have a GDP per capita between US$1,000 and US$12,000, with the average per capita income of these countries being US$4,000. These types of countries represent 4.9 billion people. The list of moderately developed countries is growing considerably, including Mexico, China, Thailand, Uruguay and Ecuador. Developed countries are generally more industrialized and have a GDP per capita above US$12,000. The average GDP per capita in developed countries is 38,000 US dollars. As of 2010, the list of developed countries includes the United States of America, some Western European countries and Spain. These types of countries administer 1.3 billion people. In general, the population of this type of country is more stable and has a projected growth rate of 7% over the next 40 years (Michie.J). This essay will talk about the different factors that make Spain a developed country and Uruguay a developing country. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay The main factor studied in this essay is the GDP of the two countries, GDP (gross domestic product), the monetary measure of sum of prices in relation to all final goods produced by the country. It is widely accepted as a measure of an economy's output or output. GDP is usually calculated annually, quarterly or monthly. Most often, it is calculated by fiscal year, a period used by the government for accounting and budgeting purposes. Another major factor in assessing a country's economy is inflation, it is the true differentiator between nominal gross domestic product and real gross domestic product, the true measure of a nation's progress. Inflation is the average increase in the price of all goods in a country over a period of time, resulting in a substantial increase in the cost of living for people in the country. The higher a country's inflation rate, the lower the value of the currency. It has been observed that developed countries have always had a low inflation rate compared to underdeveloped countries or developing countries. Developed countries have low inflation because in case of high inflation, the average price of goods would increase, which would subsequently decrease the country's exports, leading to a decrease in gross domestic product per capita. In the event of extremely high inflation, the country would face unemployment. of which Zimbabwe is a perfect example. Uruguay's exports include beef, soybeans, cellulose, rice, wheat, timber, dairy products, wool which were valued at US$9.812 billion in 2012, while exports from Spain consist of vehicles, machinery and engines, oil, equipmentelectronics, pharmaceuticals, plastics, fruits and iron, immediately noticeable as being the opposite of what Uruguay as a country specializes in. These products vary considerably in price compared to the value of Uruguay's products. Spain has a colossal export value of US$215.7 billion in 2009. As for imports, we see that the monetary value of Spanish imports fell from US$415.5 billion in 2008 to 293.2 billion US dollars in 2009, still maintaining a high level, an extremely notable difference from the maximum value of Uruguay's monetary imports. Uruguay's imports totaled US$10.97 billion and included goods such as electrical equipment, data processing machines, crude oil, automobiles, pharmaceuticals and chemical fertilizers. Vital imports for Spain, on the other hand, include electrical and mechanical machinery as well as iron and steel, with the advantage of having the European Union as a valuable export/import partner. Uruguay follows a presidential democratic republic, the president is the head of state and government. at the same time. The nation is a multi-party system where the president has executive powers. The Uruguayan economy is still trying to stabilize after the 2002 financial crisis which significantly shook the banking system, affecting its fiscal solvency and subsequently causing currency disruption and cataclysm. on himself. This was also linked to the collapse of the Argentine currency. Uruguay currently faces many difficulties on the path to stable growth. The political system managed the crisis remarkably and avoided any violations in the face of the crisis. Those in power negotiated debt swaps with its bondholders. This gave a good impression to the government which managed the crisis with precision, responsibility and diplomacy. The main reason why the banking crisis in Uruguay surfaced was due to the huge rush to the banks by depositors, the majority of whom were from Argentina, which led the government to freeze banking operations. This is due to the notable contractions of the Uruguayan currency and its excessive dependence on Argentina (tourism, construction boom). 33% of the country's deposits have been withdrawn from the financial system. The Spanish government is transforming itself into a system of growing surpluses from internal investment and consumption. economy based on economics. The weight of exports increased to 34.1% in the fourth quarter of 2013, compared to 23.9% in 2009. Spain went from a deficit of 10% of projected gross domestic product to a considerable surplus in 2013. L The cyclical adjustment of the current account gives way to a structural system. . This process is mainly supported by the change in the structure of the private sector. The productivity and cost gaps that developed in the early years of EMU have declined rapidly and currently do not require a high growth rate to create jobs in the private sector. Non-financial corporate debt decreased to 129.0% of gross domestic product in the fourth quarter of 2013, from 143.8% of gross domestic product in 2010, while the household sector also saw a healthy decline in debt, from 87.4% of gross domestic product in 2010 to 77.1% of gross domestic product in the 2013 quarter 4. The recovery of all tradable goods and services is gaining popularity, construction and other non-tradable sectors continue to weigh on creationof jobs and general growth. Spain's approach to contributing to gross domestic product growth was to seek external investment for which Spain found excess land to sell, resulting in Spain's Golden Mile. The numerous investments from other countries would be large enough to create a notable increase in gross domestic product. The Spanish currency, the euro, has maintained great stability in the foreign exchange market with great tenacity since its entry into the European Union system in June. 1989. This is a respectable testimony to the remarkable dedication shown by the authorities as the economy integrated and converged with other economies. Previously, monetary value was dominated by overvaluation. This happened after monetary policy aimed at curbing inflation deprived the country of capital for a short period. There have been 4 devaluations in the last 15 years, with a 7% depreciation in value in September 1992, when the United Kingdom separated from the European Union system, and a further 6% depreciation on following month.the same year, after an 8% devaluation in May 1993 and a 7% depreciation in March 1997. The Human Development Index (HDI) is a tool used by many economists around the world to measure the overall achievements in its social and economic dimensions and this mainly revolves around the standards of a country's medical sector, literacy rate and standard of living of the country's population. Why is the Human Development Index important? The main objective of the Human Development Index is to calculate the HDI in order to observe the current standard of living in a country and deduce methods to increase it. The Human Development Index is calculated using 3 factors, namely income, education and health. The Human Development Index score is one of the key factors that tells us about the level of development of the country and shows us how numerically it also tells us about the areas in which a country lacks structure for effective development. Many countries with considerable and significantly high military assets are surprisingly not as developed because they have a lower human development index. A perfect example of this system would be India, which ranks 4th in top military power and 3rd in gross domestic product in the world, but it is still considered a developing country due to its human development index comparatively lower by 0.69. Keep in mind. : This is just a sample.Get a custom paper from our expert writers now.Get a custom essayAs mentioned earlier, a developed country has a better healthcare system than an average developing country, it is measured in HDI (Human Development Index). Spain's GDP per capita, in 2016, was $34,526. Its infant mortality rate and life expectancy are excellent; fewer than four infants die per 1,000 live births, and the average Spaniard lives to be 82 years old. Spain scored a human development index of 0.87 and the average literacy rate and health system are significantly better than those of most developed countries. Uruguay's Human Development Index is comparatively lower than that of Spain and many other developed countries. Even the gross domestic product per capita differs, touching the mark of 9-12 thousand US dollars, which shows its remarkable growth rate so far. Although Uruguay is not considered a developed country in 2018, it reached the rank of developed countries and the