Legal classification and definition of developing countries
The term “developing country” refers to states that exhibit a lower level of economic, social, and technological development compared to industrialized nations. In legal and international law contexts, the term is widely used but is neither defined uniformly nor codified as binding at the international level. This article precisely describes the legal aspects, definitions, and methods of classification as well as their significance in various areas of law.
Legal foundations of classification
International law and classification
The legal categorization of developing countries is mainly based on soft-law instruments and internationally non-binding criteria. Major international organizations such as the United Nations (UN), the World Bank, and the World Trade Organization (WTO) use various assessment systems for classification.
- United Nations (UN): The UN uses various indicators, including gross national income (GNI) per capita, the Human Development Index (HDI), and structural vulnerability. A group relevant under international law within the UN is the “Least Developed Countries” (LDCs), for which specific support is provided according to UN resolutions.
- World Bank: For legal determination, the World Bank primarily classifies countries into income groups based on per capita GNI. This classification is often used as a basis for development policy programs.
- Organisation for Economic Co-operation and Development (OECD): The OECD publishes the so-called DAC List (Development Assistance Committee List). This serves as a reference for states and non-profit actors when awarding development assistance.
National laws and bilateral legal acts
In national legal systems, the term developing countries is often relevant in the context of foreign trade law, export promotion, and tax regulations. Various states adopt their own country classifications for domestic regulations or base them on international models.
Examples of regulatory areas:
- Tax privileges in the context of development aid
- Foreign trade regulations for export promotion
- Awarding of public contracts with funding conditions for cooperation with developing countries
Significance of developing countries in international law
Special treatment and preference systems
Within international trade law, developing countries enjoy a status specially enshrined in international law. The General Agreement on Tariffs and Trade (GATT), particularly in Articles XXXVI to XXXVIII, as well as the WTO Agreement provide for various special provisions to support developing countries. These include in particular:
- Generalized System of Preferences (GSP): Industrialized countries grant tariff concessions to developing countries for exported goods.
- Special and Differential Treatment (S&D): Allows for longer implementation periods of WTO rules and additional support in implementing trade-related measures.
Protection mechanisms and support
The United Nations and the European Union provide specific mechanisms and financing programs to support developing countries (e.g., development funds, technology transfers, debt relief).
Developing countries under European Union law
Legal framework conditions
Under EU law, cooperation with developing countries is governed in particular by Articles 208 et seq. of the Treaty on the Functioning of the European Union (TFEU). The aim is sustainable development and the integration of developing countries into the global economy. Specific focuses are set as follows:
- Development cooperation and aid
- Trade preferences
- Support measures for institutional capacity building
Trade and customs law
According to EU regulations, there are special preference provisions for developing countries, which provide for trade, customs, and origin-related facilitations, for example, in the form of the Generalised Scheme of Preferences Regulation (GSP Regulation).
Significance in international contract law
International agreements and treaties
The status as a developing country is often expressly specified in bilateral or multilateral treaties and entails modified obligations or rights (e.g., in multilateral environmental agreements or in the field of patent law/TRIPS Agreement). This allows developing countries to claim special exceptions or support.
Criticism and legal challenges
Dynamics and terminology
The term developing countries is neither always legally clear nor static. Changes in economic or social status affect legal treatment. Several states reject the categorization as developing countries for political or ethical reasons and prefer alternative terms such as “Global South” or “low- and middle-income countries.”
Issue of legal ambiguity
As there is no internationally binding definition, categorization may vary depending on the legal field. This complicates harmonized application in international practice and can lead to conflicts in connection with privileges or obligations.
Summary
The legal classification of developing countries represents a complex field encompassing international, supranational, and national sources and systems of law. Legal distinctions and categorizations depend significantly on economic, social, and institutional factors and are reflected in a variety of special arrangements and support mechanisms. Due to the lack of binding international definitions, ongoing adjustments and differentiations are required to ensure the lawfulness and effectiveness of support and protection measures.
Frequently asked questions
Which international agreements regulate the legal relationships of developing countries in the areas of trade and investment?
The legal relations of developing countries in the area of trade and investment are governed by a variety of international agreements. Central among these is the World Trade Organization (WTO) and its agreements, especially the General Agreement on Tariffs and Trade (GATT) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Within the WTO, developing countries often benefit from special and preferential provisions (“Special and Differential Treatment”, SDT), which, for example, grant them longer transition periods or lesser obligations regarding market access. In the area of international investment, there is no uniform global instrument, but many developing countries enter into bilateral investment protection agreements (BITs) or multilateral treaties such as the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID). There are also regional agreements, such as the Cotonou Agreement between the European Union and countries in Africa, the Caribbean, and the Pacific (ACP), which regulate not only economic but also legal framework conditions.
To what extent are developing countries legally bound to comply with international human rights standards?
Developing countries are generally bound by international human rights treaties to the extent that they have ratified them. The most important among these include the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR). Under these treaties, states are obliged to protect, respect, and ensure fundamental human rights. However, the implementation of these rights in developing countries is often hampered by financial, infrastructural, or administrative capacity constraints. International law provides for certain facilitations here, such as the possibility of realizing rights gradually “to the maximum of available resources.” In addition, there are optional protocols that enable individual complaints procedures – but only if the country has ratified such additional protocols.
What legal obligations exist for developing countries in the area of environmental protection and sustainable development?
Developing countries are legally obliged to promote environmental protection and sustainable development through various multilateral environmental agreements. Important examples include the Convention on Biological Diversity (CBD), the United Nations Framework Convention on Climate Change (UNFCCC), and the Paris Agreement. These agreements often explicitly recognize the special situation and the more limited economic resources of developing countries and contain differentiated obligations. For example, the Paris Agreement requires developing countries to make efforts to reduce emissions but grants them financial and technical support from industrialized nations. The principles of “common but differentiated responsibilities” and “respective capabilities” are firmly anchored in international law and enable a tailored application of environmental law obligations.
How are the rights of indigenous peoples in developing countries protected by international law?
International agreements such as ILO Convention No. 169 concerning Indigenous and Tribal Peoples and the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) obligate developing countries to particularly respect the rights of indigenous communities. This includes the right to cultural self-determination, traditional land rights, participation in the use of natural resources, and access to justice. Customary international law increasingly recognizes these rights, while individual states, through ratification of the conventions mentioned, are obliged to implement specific domestic legislative and protective measures. In practice, there are often implementation deficits, but these are addressed through international reporting and monitoring mechanisms.
What mechanisms exist for resolving international disputes involving developing countries?
Developing countries can resort to various mechanisms to resolve international disputes. Within the WTO, the state-centered dispute settlement mechanism is available; in investment disputes, the ICSID arbitration procedure or other international arbitral tribunals such as the United Nations Commission on International Trade Law (UNCITRAL) are often used. For human rights violations, various treaty bodies provide for individual or state complaint procedures, for example, before the UN Human Rights Committee or regional human rights courts such as the African Court on Human and Peoples’ Rights. However, access frequently depends on the ratification of the relevant additional protocols or the explicit recognition of the court’s jurisdiction.
What role do development cooperation and aid play in the context of international law?
Development cooperation and aid are not strictly mandatory under international law but are strongly promoted by frameworks such as the 2030 Agenda for Sustainable Development and the resulting Sustainable Development Goals (SDGs). Numerous multilateral and bilateral agreements provide for obligations to provide support, such as through technology transfer, capacity building, and debt relief. The Organisation for Economic Co-operation and Development (OECD) has developed standards for this purpose, such as Official Development Assistance (ODA). Nevertheless, the exact amount and structure of development aid largely depend on the political will of donor countries, so developing countries have only a limited legal claim to support.
To what extent are developing countries subject to international economic and monetary rules?
Like all member states, developing countries are subject to the statutes and guidelines of global economic and financial institutions, such as the International Monetary Fund (IMF) and the World Bank, insofar as they are members. These organizations set standards for transparency, fiscal discipline, currency stability, and debt sustainability, and often link financial assistance to compliance with specific program conditions (“conditionality”). International payment standards and regulatory norms, such as those prescribed by the Financial Action Task Force (FATF) to combat money laundering, are increasingly applied in developing countries as well. Legal enforcement occurs via the contractual commitments of member states; violations may result in sanctions or suspension of cooperation.
