In this article, we take a look at the 10 least developed countries in Asia. If you want to check out our detailed analysis of uneven economic development in Asia, go directly to the 25 Least Developed Countries in Asia.
10. Kyrgyzstan
HDI Ranking: 14
GDP Per Capita Ranking: 7
Average Ranking: 10.5
Kyrgyzstan is a landlocked country in Central Asia. It is one of the most corrupt countries in the world, ranking at 144th position out of 180 countries on the Corruption Perception Index of 2021. Apart from that, 31% of the country’s economy is informal, being a significant indicator for low economic development.
9. India
HDI Ranking: 9
GDP Per Capita Ranking: 11
Average Ranking: 10
India is the biggest economy in South Asia. However, poverty is rampant in the country, with 55.4% of its population living below the poverty line. There is also a hygiene crisis in India, with widespread open defecation and waterborne diseases in the country.
In terms of economic development, India has made strides in the services sector, but the country lags far behind the more developed Asian countries like China in Manufacturing.
Another major problem hampering development in the country is the size of its informal economy, which stands at a whopping 43% as of 2021.
8. Tajikistan
HDI Ranking: 12
GDP Per Capita Ranking: 3
Average Ranking: 7.5
Tajikistan is another Central Asian country on the list of the least developed countries in Asia. It is underdeveloped due to poor infrastructure, ranking in 147th position out of 167 countries on the aggregate Logistics Performance Index.
The country also has limited access to capital and its dependence on Aluminum and Cotton production leaves its economy vulnerable to demand shocks.
7. Cambodia
HDI Ranking: 5
GDP Per Capita Ranking: 9
Average Ranking: 7
Cambodia is located in Southeast Asia and is one of the least developed countries in Asia, due to its legacy of political unrest, corruption, disproportionate reliance on agriculture and poor infrastructure.
As with any underdeveloped country with the right policies in place, Cambodia is rapidly growing, and had a consistent growth rate of 7% prior to the pandemic. Now that the pandemic shocks are fading away, Cambodia’s economic growth, mainly due to the blooming manufacturing sector, is projected to accelerate to 5.2% in 2023, as per the World Bank estimates.
6. Nepal
HDI Ranking: 6
GDP Per Capita Ranking: 5
Average Ranking: 5.5
Nepal is a landlocked country in the Himalayas, and as such, its challenging geography is a bane for its economic growth. The country also suffers from poor infrastructure. Nepal has a GDP per Capita of $1,208 as of 2021.
5. Pakistan
HDI Ranking: 2
GDP Per Capita Ranking: 8
Average Ranking: 5
Pakistan is one of the least developed countries in Asia. Among the most notable issues that have hampered development in the country include terrorism in the Northwest, lack of land reforms, incomplete market reforms, poor human capital, lack of quality education, political instability and widespread corruption.
Pakistan has an imports-oriented economy that largely survives on foreign debt and aid, and it is currently on the verge of bankruptcy and economic collapse, due to fiscal deficit.
4. Myanmar
HDI Ranking: 4
GDP Per Capita Ranking: 6
Average Ranking: 5
Myanmar is underdeveloped because of political instability, civil unrest and corruption. It has a GDP per Capita of only $1,210 as of 2021. The economy of Myanmar is largely reliant on agriculture.
3. North Korea
GDP Per Capita Ranking: 4
North Korea is the least developed country in East Asia. The exact data on human development in the country is lacking but it is estimated to be far worse than the more developed Asian economies. The GDP per Capita in North Korea is estimated to be $790 for 2018, according to Nature.
2. Syria
HDI Ranking: 3
GDP Per Capita Ranking: 2
Average Ranking: 2.5
Syria is a West Asian country whose infrastructure has been ravaged by more than a decade of civil war, which is still ongoing. The country has effectively collapsed, with limited capacity for recovery in economy and infrastructure. The GDP per Capita in Syria is $533 as of 2021.
1. Afghanistan
HDI Ranking: 1
GDP Per Capita Ranking: 1
Average Ranking: 1
Afghanistan is the least developed country in all of Asia, primarily due to half a century of conflict the country has experienced. It has a low GDP per Capita of only $369, with an estimated 72% of its economy being informal.
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