<P> A developing country, also called a less developed country or an underdeveloped country, is a nation or a sovereign state with a less developed industrial base and a low Human Development Index (HDI) relative to other countries . There are no universally agreed - upon criteria for what makes a country developing versus developed and which countries fit these two categories, although there are general reference points such as a nation's GDP per capita compared with other nations . Also the general term less - developed country should not be confused with the specific least developed country . The term "developing" describes a currently observed situation and not a dynamic or expected direction of progress . Since the late 1990s developing countries tended to demonstrate higher growth rates than the developed ones . </P> <P> There is criticism for using the term developing country . The term implies inferiority of a developing country or undeveloped country compared with a developed country, which many countries dislike . It assumes a desire to develop along the traditional Western model of economic development which a few countries, such as Cuba and Bhutan, choose not to follow . An alternative measurement that has been suggested is that of gross national happiness . Countries on the boundary between developed and developing are often categorized under the term newly industrialized countries . </P>

What does it mean to be a developing country