30 Least Developed Countries and Their Characteristics
In this article, we take a look at the 30 least developed countries and their characteristics. If you would like to skip our detailed analysis of the world’s least-developed countries, you can directly go to the 5 Least Developed Countries and Their Characteristics.
LDCs and Their Characteristics
The concept of ‘least developed countries’ originated in the 1960s in the United Nations. The term is used for developing countries that demonstrate the lowest performances on the socioeconomic indicators frequently evaluated by the UN. According to the UN database, these countries lack the economic structures required for sustainable development, which makes them severely vulnerable to sudden economic shocks. While the countries in this category showcase a broad range of significant issues, there are some characteristics that research has found to be prevalent among all of them.
According to a 2022 report by the International Labor Organization, least developed countries have an annual population growth rate of 2.3%, which is the fastest in the world. The combined population of these few countries is projected to reach 1.3 billion by 2030 and double between the time period of 2019 to 2050. The UN estimates that LDCs currently house 13% of the world’s population, but their share in global trade is less than 1%. You can also check out the 24 Least Developed Countries in Europe in 2024.
The increasing working demographic and low share in the global economy means that all of these countries are tasked with the immense responsibility of creating a high number of jobs each year in order to accommodate the growing population. The ILO projects that for African LDCs, the required number of new jobs is 8 to 11 million annually. If these countries fail to rise to the challenge, they face the risk of overwhelming poverty, which the ILO has noted in them as well. The UN states that the least developed countries currently host 40% of the world’s poor while they make up for only 1.3% of the global GDP.
The ILO has also reported education issues and gender disparity to be a significant concern for the LDCs. 50% of the world’s out-of-school children live in the LDCs, a disproportionately high number of whom are girls. This is why LDCs also tend to have lower literacy rates. The World Bank estimates that in Sub-Saharan Africa, as much as 90% of the women are illiterate. Furthermore, women in LDCs are more likely to be associated with low-income and informal employment, such as agricultural services and domestic care. 92% of the women are employed in the informal sector of the economy, which includes vulnerable segments like domestic workers. Women in LDCs are also three times more likely to be contributing family members as compared to men.
Conditions of the Labor Industry
Out of the 50 countries with the highest share in the agriculture industry, 34% are LDCs. Within these LDCs, 55% of the employed individuals work for the agriculture sector, which is becoming highly endangered as climate change rises. This means that even though these countries were only marginally responsible for greenhouse emissions, they will be the ones facing disproportionally high consequences. Not only is the labor market being disrupted within the LDCs, but they are also unequipped with the adequate mitigation strategies required to combat this concern. Between 2008 and 2015, climate-related disasters contributed to a loss of 376 working years per 100,000 working-age individuals across the African LDCs.
Within the economic markets of the LDCs, there is also a vivid dichotomy in the size of the enterprises. 78% of the employed population works in organizations with less than five workers. This is why these countries tend to have most of their employment in the informal sector, with only a few large-sized enterprises and a gaping hole in place of middle-sized companies. However, even though the overall market characteristics within the LDCs are quite grim, certain angles are looking up for the continent of Africa, which houses most of these countries.
According to a McKinsey report, around 345 companies in Africa have an annual revenue higher than $1 billion, 40% of which have their headquarters in South Africa. McKinsey also predicts that with the right strategies, the collective income of these companies could exceed $550 billion by 2030. Around 250 more African citizens will join the consumer class by 2030, potentially unlocking consumer spending of around $3 trillion. Although this growth would require efforts on other factors, such as poverty eradication, the potential is present.
MTN Group Limited (JSE:MTN) is one of the biggest telecommunication services companies in the African continent. MTN Group Limited (JSE:MTN) has 232 million mobile subscribers and 20 million money subscribers, a considerable portion of whom are located in low-developed countries like Afghanistan, Syria, Rwanda, South Sudan, and others. In 2021, MTN Group Limited (JSE:MTN) was included on the Fortune Change the World list for its contribution to aiding social problems in Africa. During the 2019 pandemic, the company worked to make its services more accessible, providing better access to marginalized communities in Africa. You can also look at the 24 Least Developed Countries in Asia in 2024.
Sibanye Stillwater Limited (JSE:SSW) is another company creating significant economic growth within Africa. In 2022, the company had 84,481 contractors around the globe, paying $1.3 billion in salaries. Most of Sibanye Stillwater Limited’s (JSE:SSW) workers are in South Africa. The company is providing a chance at a better wage in a country where the World Bank reports a 55% poverty ratio. In 2022, Sibanye Stillwater Limited (JSE:SSW) invested $141 million in Corporate Social Investment programs, showcasing a 120% increase from 2013. In 2021, the company initiated a food security program based on sustainable agricultural practices, benefiting 1,000 homes across nine separate communities. Over the past decade, the company has paid $3 billion in taxes, contributing massively to the local economy.
Sasol Limited (NYSE:SSL) is a South African petrochemical company operating coal mines. According to Sasol Limited (NYSE:SSL) itself, it is one of the largest taxpayers in the country and contributes to 4.7% of the GDP. Sasol Limited (NYSE:SSL) also runs initiatives to advance early childhood education and combat food insecurity. The company has trained more than 1,000 educators nationally in order to improve the quality of education. The company also runs mobile science labs to aid over 50 schools that do not have their own science facilities. The work of companies like Sasol Limited (NYSE:SSL) has not only aided economic growth in Africa but also contributed to mitigating the issues plaguing the region for far too long.
However, not all countries have been able to tackle most of their issues, which is why here are the 30 least developed countries and their characteristics. You can also look at the 35 Most Developed Countries in the World Heading into 2024 in order to see the other end of the spectrum and contrast these states.
30 Least Developed Countries and Their Characteristics
Our Methodology
For the purpose of developing this ranking of the 30 least developed countries in the world, we utilized our ranking from the 50 Least Developed Countries in the World in 2024 in which we calculated an average score based on the Human Development Index and GDP per capita. We provided more context by adding literacy rates from the World Bank and the percentage of the population in poverty values from the Multidimensional Poverty Index from the OPHI and UNDP, for the latest available years. The MPI calculates poverty based on several aspects of life, including education, health, living standards, and access to services.
As noted in our introduction, literacy rates tend to be lower for least developed countries, whereas poverty tends to be higher. Thus, these two metrics provide further information on why a country may be classified as ‘least developed.’ Data from the World Bank is also used to give more context. The countries are organized in ascending order, with the least developed country in the first spot. Based on this methodology, here is our list of the 30 Least Developed Countries and Their Characteristics:
30 Least Developed Countries and Their Characteristics
30. Myanmar
Human Development Index (2021): 0.585
GDP per Capita (2024): $1,450
Literacy Rate (2019): 89%
Population in Multidimensional Poverty (2015): 38.32%
The economy of Myanmar has shrunk severely due to the COVID-19 pandemic and the 2021 military coup. Between 2020 and 2023, GDP spending on education and health fell from 3.6% to 1.8%.
29. Zambia
Human Development Index (2021): 0.565
GDP per Capita (2024): $1,470
Literacy Rate (2020): 88%
Population in Multidimensional Poverty (2018): 47.91%
Bank of Zambia expects that due to rising energy costs and depreciating exchange rates, inflation will rise above the target band of 6-8% in the country. The country also faces a difficult challenge in the form of rural poverty, as rural regions house three-quarters of the population in poverty. This is why Zambia is one of the least developed countries in the world in 2024.
28. Nigeria
Human Development Index (2021): 0.535
GDP per Capita (2024): $1,730
Literacy Rate (2018): 62%
Population in Multidimensional Poverty (2021): 33.04%
In February 2024, poverty in Nigeria reached 31.7%, according to the World Bank, the country’s highest value in the past two decades. This became a significant driver behind pushing more people below the poverty line. Around 87 million Nigerians are expected to be living below the poverty line, which is one of the world’s largest values.
27. Comoros
Human Development Index (2021): 0.558
GDP per Capita (2024): $1,410
Literacy Rate (2022): 62%
Population in Multidimensional Poverty (2012): 37.26%
According to World Bank reports, Comoros had a 20.6% year-on-year rate of headline inflation, primarily due to high food prices. In order to help households through the rising inflation, the government adopted tax measures that decreased government revenue and widened the fiscal deficit from 2.7% in 2021 to 3.9% in 2022.
26. Senegal
Human Development Index (2021): 0.511
GDP per Capita (2024): $1,890
Literacy Rate (2022): 58%
Population in Multidimensional Poverty (2019): 50.83%
Senegal had a massive increase in inflation from 2021 to 2022, when average inflation rose from 2.2% to 9.6%, and the rise in food prices increased to 15% from 2.9%. The country had several oil and gas projects in the pipeline, which were postponed until 2035 due to the post-pandemic health crisis in the region.
25. Tanzania
Human Development Index (2021): 0.549
GDP per Capita (2024): $1,320
Literacy Rate (2022): 82%
Population in Multidimensional Poverty (2015): 57.07%
According to the World Bank, although the overall Tanzanian economy has grown, the growth has been concentrated in sectors mainly employing higher-income households. This is why the improving economy has not been able to have much impact on the poverty rate, and Tanzania is still one of the least developed countries in the world.
24. Benin
Human Development Index (2021): 0.525
GDP per Capita (2024): $1,540
Literacy Rate (2022): 47%
Population in Multidimensional Poverty (2017): 66.8%
Benin has an informal employment rate of 90.1%, which is one of the characteristics of the world’s least developed countries. In recent years, the country has also struggled due to the WAEMU sanctions on the neighboring state of Niger. Furthermore, public debt rose to 54.1% of the national GDP in 2022.
23. Ethiopia
Human Development Index (2021): 0.498
GDP per Capita (2024): $1,790
Literacy Rate (2017): 52%
Population in Multidimensional Poverty (2019): 68.74%
Even though Ethiopia’s economy has grown nearly 10% annually in the past 15 years, it still remains one of the poorest countries in the world, with an average gross national income of $1,020 per capita. Food insecurity is one of the biggest challenges in the country currently, with 20 million people being severely food insecure.
22. Togo
Human Development Index (2021): 0.539
GDP per Capita (2024): $1,060
Literacy Rate (2019): 67%
Population in Multidimensional Poverty (2017): 37.61%
The female population in Togo is especially more vulnerable than the men, with female-led households having a higher rate of poverty. The poverty in rural areas is also twice as high as that in urban areas. Furthermore, the country has a score of 0.43 on the Human Capital Index, which means that children in Togo will only be 43% as productive as they would have been if they had proper access to resources.
21. Uganda
Human Development Index (2021): 0.525
GDP per Capita (2024): $1,250
Literacy Rate (2022): 81%
Population in Multidimensional Poverty (2016): 57.17%
In fiscal year 2023, Uganda had a current account deficit amounting to 8.7% of the GDP, up from 7.9% in 2022. Education is one of the biggest issues for the country. Children who start school at the age of 4 complete only 6.8 years of schooling by their 18th birthday. However, the actual learning years are counted to be only 4.3, with 2.5 years ‘wasted’ due to low-quality education.
20. Lesotho
Human Development Index (2021): 0.514
GDP per Capita (2024): $1,170
Literacy Rate (2022): 82%
Population in Multidimensional Poverty (2018): 19.6%
Even though the poverty rate in Lesotho is lower than that of most of the least developed countries, the country still faces significant economic challenges. In 2022, the inflation rate was 8.3%, while fiscal debt rose to 7.6% of the total GDP. Lesotho also has the world’s second-highest HIV rate, which stands at 25% in the population aged 15-49.
19. Rwanda
Human Development Index (2021): 0.534
GDP per Capita (2024): $998
Literacy Rate (2021): 76%
Population in Multidimensional Poverty (2019): 48.82%
According to the World Bank, Rwanda’s increasing public debt is one of the country’s biggest problems. The government relies mainly on large public investments, which has led to an increase in fiscal deficit. The debt-to-GDP ratio rose to 71% in 2020, primarily augmented due to increased borrowing needs in the pandemic.
18. Guinea
Human Development Index (2021): 0.465
GDP per Capita (2024): $1,650
Literacy Rate (2021): 45%
Population in Multidimensional Poverty (2018): 66.21%
According to Coface, 96.5% of the jobs in Guinea are in the informal sector of employment. The country has one of the highest rates of multidimensional poverty in the world, which makes it one of the least developed countries heading into 2024.
17. Guinea-Bissau
Human Development Index (2021): 0.483
GDP per Capita (2024): $1,100
Literacy Rate (2022): 54%
Population in Multidimensional Poverty (2018): 64.4%
In 2022, the economic growth in Guinea-Bissau fell to 3.5% from 6.4% in 2021. On the other hand, inflation increased to 7.8% as compared to 3.3% in 2021. Public debt was also high, reaching 80.2% in the year. These economic challenges make Guinea-Bissau one of the world’s least developed countries.
16. Gambia
Human Development Index (2021): 0.500
GDP per Capita (2024): $985.41
Literacy Rate (2022): 59%
Population in Multidimensional Poverty (2019): 41.71%
As climate conditions decreased domestic production, imported food increased food prices, which caused year-on-year inflation to reach 18.4% in August 2023 in Gambia, an all-time high. The public debt was projected to be 81% in 2023, high values of which is another characteristic of least developed countries.
15. Liberia
Human Development Index (2021): 0.481
GDP per Capita (2024): $825.98
Literacy Rate (2017): 48%
Population in Multidimensional Poverty (2019): 52.32%
Despite being one of the world’s least developed countries, the mining and agricultural industries in Liberia are contributing to significant economic growth, with the economy expanding by 4.8% in 2022. However, the government is performing poorly in terms of its fiscal position. The fiscal deficit rose to 5.6% of the GDP in 2022, whereas the value was 2.4% in 2021.
14. Malawi
Human Development Index (2021): 0.512
GDP per Capita (2024): $472
Literacy Rate (2022): 68%
Population in Multidimensional Poverty (2019): 49.88%
80% of Malawi’s employed population works in the agricultural sector, which makes the country’s economy highly susceptible to environmental shocks. The economic growth in the year 2022 was merely 0.9%, most of it due to a severe shortage of foreign exchange. In July 2023, inflation was measured at 28.4%.
13. Madagascar
Human Development Index (2021): 0.501
GDP per Capita (2024): $548
Literacy Rate (2022): 77%
Population in Multidimensional Poverty (2021): 68.42%
Madagascar is one of the countries with the world’s highest rates of multidimensional poverty, making it one of the least developed countries in the world. Even in terms of absolute poverty, 75% of the country’s population lives below the national poverty line. Public debt rose to 56.9% of the GDP in 2022.
12. Sudan
Human Development Index (2021): 0.508
GDP per Capita (2024): $479.04
Literacy Rate (2018): 61%
Population in Multidimensional Poverty (2014): 52.33%
Decades of conflict and instability have resulted in several economic shocks in Sudan, making it one of the world’s least developed countries. One of the most significant issues facing Sudan is the state of the healthcare industry, with around 80% of the country’s hospitals being out of service. Failing healthcare is also a characteristic of poorly developed countries, as noted by a Johns Hopkins Bloomberg School of Public Health study.
11. Democratic Republic of the Congo
Human Development Index (2021): 0.479
GDP per Capita (2024): $710.16
Literacy Rate (2022): 81%
Population in Multidimensional Poverty (2017): 64.52%
Around 60 million people in Congo live below the poverty line, which makes it one of the poorest nations in the world. In Sub-Saharan Africa, every one in six people living in extreme poverty are citizens of the DRC. A child in DRC reaches only 37% of the potential he would have acquired if he had received proper access to resources.
10. Burkina Faso
Human Development Index (2021): 0.449
GDP per Capita (2024): $952.37
Literacy Rate (2022): 34%
Population in Multidimensional Poverty (2021): 83.3%
The World Bank estimates that 40% of Burkina Faso’s population lives below the poverty line. Violence and conflict have been significant issues in the country, with the state having more than 2.06 million internally displaced people in March 2023.
9. Mali
Human Development Index (2021): 0.428
GDP per Capita (2024): $957.41
Literacy Rate (2020): 31%
Population in Multidimensional Poverty (2018): 68.33%
Most of Mali’s population lives below the poverty line, and a considerable chunk of the poor are concentrated within the rural areas. In 2022, at least 19.2% of the population was estimated to be in ‘extreme’ poverty. These issues make Mali one of the world’s least developed countries in 2024.
8. Yemen
Human Development Index (2021): 0.455
GDP per Capita (2024): $628.50
Literacy Rate (2004): 54%
Population in Multidimensional Poverty (2013): 48.47%
Years of conflict in Yemen have prevented significant development milestones from being achieved while also creating gaps in reporting data figures, as evidenced by the old values of literacy rate and poverty. This is why Yemen remains one of the least developed countries in the world.
7. Mozambique
Human Development Index (2021): 0.446
GDP per Capita (2024): $687.38
Literacy Rate (2020): 60%
Population in Multidimensional Poverty (2019): 61.93%
In 2022, Mozambique had a headline inflation of 10.3%, an increase from 6.4% in 2021. The country currently houses 18.9 million poor individuals, most of whom were heavily impacted by the COVID-19 pandemic. In rural settings, 95% of households fall below the poverty line set according to the Multidimensional Poverty Index.
6. Chad
Human Development Index (2021): 0.394
GDP per Capita (2024): $715.52
Literacy Rate (2022): 27%
Population in Multidimensional Poverty (2019): 84.17%
Chad is sixth on our list of the world’s least developed countries. The country has the world’s lowest literacy rate and the second-lowest rate of multidimensional poverty. Despite its own poverty and vulnerability, Chad also has to host refugees from the conflict in the neighboring Sudan, which places an extensive burden on the local government.
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Disclaimer: None. 30 Least Developed Countries and Their Characteristics is originally published on Insider Monkey.
