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Uneven Development ยป The Global Pattern of LICs, MICs and HICs

What you'll learn this session

Study time: 30 minutes

Cambridge spec: 8.2.2

  • How the World Bank sorts countries into LICs, MICs and HICs
  • Where each group is found on a world map
  • How to describe a pattern on a map
  • Why the pattern has changed and why the groups are not perfect

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How countries are grouped

Every year the World Bank sorts the world's countries into groups using one number: gross national income (GNI) per capita. This is the average income for each person in a country. Countries below a set line are low-income. Countries above a higher line are high-income. The countries in between are middle-income.

The World Bank also splits the middle group into lower-middle and upper-middle. The money thresholds change every year, so in an exam you do not need to learn exact figures. You need to know the idea.

Key terms:

  • World Bank: an international organisation that lends money to countries and publishes data, including the income groups.
  • Low-income country (LIC): a country with a low GNI per capita, below the World Bank's lowest line.
  • Middle-income country (MIC): a country with a GNI per capita between the low and high lines.
  • High-income country (HIC): a country with a GNI per capita above the World Bank's highest line.
  • Emerging economy: a country, usually a MIC, whose economy is growing fast and which is becoming richer.

Where are LICs, MICs and HICs?

Income groups follow a clear pattern across the world.

🌍 LICs

Mostly in sub-Saharan Africa, for example Niger, Mali and Madagascar. A few are elsewhere, such as Afghanistan and Yemen in Asia.

🌏 MICs

Much of Asia, Latin America and North Africa. Examples are India and Egypt (lower-middle) and Brazil, Mexico and China (upper-middle).

🏢 HICs

North America, most of Europe, Japan, Australia and the Gulf states. Examples are the USA, Germany, Japan and Qatar.

Most of the world's people live in the middle group, so the middle is the largest and most varied group.

How to describe a pattern on a map

"Describe" questions ask what the map shows, not why. Use four steps:

  1. Overall pattern: say the main trend, for example "most LICs are clustered in one area".
  2. Places: name continents, regions or countries.
  3. Exceptions: point out anything that does not fit, such as a LIC outside sub-Saharan Africa.
  4. Evidence: use figures or country names from the map or table.

Do not give reasons when the question only says "describe". Save those for "explain".

The Brandt line and how the pattern has changed

In about 1980 a group led by Willy Brandt, a German politician, drew a line across a world map. It is called the Brandt line. It ran roughly along 30 degrees north, then bent south to put Australia and New Zealand with the rich countries. Rich countries lay in the "North" above the line. Poor countries lay in the "South" below it.

It was a simple way to show a world split in two. The line is an older idea and it is less useful today for three reasons:

  • Emerging economies have grown. Countries such as China have grown quickly and are now upper-middle-income, yet the line still groups them in the South with much poorer countries.
  • Some countries have moved up a whole group. South Korea was one of the poorer countries in the 1960s and is now a HIC. Some Gulf states became HICs because of oil.
  • The middle has grown. The world is no longer just rich and poor. There is a large group in between.

Key idea

The pattern is not fixed. Countries can move between groups when their incomes change, and the World Bank updates the lists every year.

Are the groups always meaningful?

Cambridge expects you to know that income groups are useful but limited. A group is only a label based on one average number.

✅ Why they are useful

They give a quick way to compare countries, to see the world pattern and to decide which countries most need help.

❌ Why they can mislead

Countries in one group can be very different. Averages hide inequality inside a country. Income alone does not show health, education or quality of life.

  • Big differences within a group. A country just inside the middle group is very different from one near the top of it.
  • Inequality hides in averages. A HIC can still have poor people, and a MIC can have very rich cities beside very poor rural areas.
  • Income is not everything. Two countries in the same group can have very different life expectancy and literacy, as the Human Development Index shows.
  • Lines are only cut-off points. A country just below a line is almost the same as one just above it, yet gets a different label.

Common mistakes

Common mistakes

  • Using old labels such as developed and developing. The syllabus words are LICs, MICs and HICs.
  • Saying every country in Africa is a LIC. Many African countries are MICs, and some are upper-middle.
  • Giving exact money thresholds from memory. They change every year, so write "a low GNI per capita" instead.
  • Explaining reasons when the question says "describe".
  • Treating the Brandt line as a modern, accurate map.

Exam-style question

Fig. 1.1 shows made-up data for the share of countries in each income group in three regions.

RegionLICs (%)MICs (%)HICs (%)
Region P70255
Region Q06040
Region R01090

Fig. 1.1 (made-up data)

(a) Define the term middle-income country. [2 marks]

(b) Identify the region with the highest share of LICs. [1 mark]

(c) Compare the income groups in Region Q and Region R. [3 marks]

(d) Explain why grouping countries as LICs, MICs and HICs may not always be meaningful. [6 marks]

Model answer

(a) A country with a GNI per capita (1) that is between the World Bank's low and high lines (1).

(b) Region P (1).

(c) Neither region has any LICs (1). Region Q has mostly MICs, 60%, whereas Region R is mostly HICs, 90% (1). Region Q has 40% HICs compared with 90% in Region R, so Region R is richer overall (1).

(d) Level 3 answer: The groups use only one number, the average GNI per capita, so they hide a lot. Countries in the same group can be very different. A MIC that has just passed the low line is far poorer than one near the top of the group, yet they have the same label. Averages also hide inequality inside a country. A MIC may have a wealthy city and very poor rural areas, and a HIC may still have people living in poverty. Income also does not show quality of life. Two countries in the same group can have different life expectancy or literacy, which is why the Human Development Index is also used. The lines between groups are only cut-off points, so a country just below a line is almost the same as one just above it. The groups are also not fixed because they are updated every year and countries move. The groups are useful for a quick comparison, but they should be used with care.

Exam tip

In (c), use words that compare, such as "whereas" or "compared with", and quote figures from Fig. 1.1 for both regions.

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