80661 Copyright © 2000 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved First printing October 2000 The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank, provided that the appropriate fee is paid directly to Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978-750-8400, fax 978-750-4470. Please contact the Copyright Clearance Center before photocopying items. For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax 978-750-4470. All other queries on rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422. For more information and classroom materials on issues of sustainable development, visit our web sites at www.worldbank.org/depweb and www.worldbank.org/html/schools. Please send comments to dep@worldbank.org. Tatyana P. Soubbotina is an education specialist at the World Bank Institute. Katherine A. Sheram is manager of the Development Education Program at the World Bank Institute. Cover and chapter opener design by Gennadiy O. Velte. Inside design and typesetting by Communications Development Inc. The printing of the book was managed by the St. Petersburg Institute, School of Economics (Russia). Library of Congress Cataloging-in-Publication Data Soubbotina, Tatyana P., 1957- Beyond economic growth : meeting the challenges of global development / Tatyana P. Soubbotina with Katherine A. Sheram. p. cm. — (WBI learning resources series) Includes bibliographical references. ISBN 0-8213-4853-1 1. Economic development. 2. International economic relations. I. Sheram, Katherine, 1947- II. Title. III. Series. HD75 .S684 2000 338.9’27—dc21 00-043965 Contents Acknowledgments v Introduction 1 Difficult Questions, Different Answers 1 Data and Development 1 About This Book 2 How to Use The Book 3 1. What Is Development? 7 Goals and Means of Development 7 Sustainable Development 9 2. Comparing Levels of Development 11 Gross Domestic Product and Gross National Product 11 Grouping Countries by Their Level of Development 13 3. World Population Growth 16 Global Trends in Natural Population Increase 16 Demographic Changes in Transition Countries of Europe 20 4. Economic Growth Rates 22 5. Income Inequality 27 Cross-country Comparisons of Income Inequality 27 Lorenz Curves and Gini Indexes 28 Costs and Benefits of Income Inequality 29 6. Poverty 31 The Geography of Poverty 31 The Vicious Circle of Poverty 32 7. Education 35 Education and Human Capital 35 Primary Education and Literacy 38 Issues in Secondary and Tertiary Education 40 8. Health and Longevity 43 Global Trends 43 Population Age Structures 45 Future Challenges 47 i 9. Growth of the Service Sector 50 Industrialization and Postindustrialization 50 Service Sector Growth and Development Sustainability 52 Challenges for Transition Economies 53 10. Urbanization and Urban Air Pollution 55 Particulate Air Pollution 56 Airborne Lead Pollution 59 11. Public and Private Enterprises: Finding the Right Mix 61 The Dilemma of Public-Private Ownership 61 Is There a Trend toward Privatization? 64 12. Globalization and International Trade 66 Costs and Benefits of Free Trade 66 Geography and Composition of Global Trade 69 Trade Issues in Transition Countries 71 13. Foreign Aid and Foreign Investment 73 Official Development Assistance 73 Private Capital Flows 75 14. Economic Development and the Risk of Global Climate Change 78 15. Composite Indicators of Development 83 Development “Diamonds� 83 Human Development Index 84 16. Indicators of Development Sustainability 86 Composition of National Wealth 86 Accumulation of National Wealth as an Indicator of Sustainable Development 87 17. Some Additional Issues: In Search of a Comprehensive Development Strategy 90 Social Capital and Social Cohesion 90 The Role of Government Policies 91 Choices and Challenges 92 Glossary 94 Annex 1 Classification of Economies by Income and Region 109 Annex 2 Data Tables 113 v i Acknowledgments The preparation of this book benefited John Didier for his dedicated editing of greatly from the support and valuable the final text of the book. contributions of many colleagues in the World Bank Institute and in other The authors are also grateful to the departments of the World Bank. The Russian DEP project team, Vladimir authors express their sincere appreciation Avtonomov, Andrei Mitskevitch, Sergei to those World Bank experts who pro- Ravichev, and Alexandre Kuznetsov, who vided extremely useful comments, sug- provided their valuable advice while gestions, and inputs during the drafting working on the national adaptation of of this book: Vinod Thomas, John this book published in Russian as The Middleton, Philip Karp, Carl Dahlman, World and Russia. Simon Commander, John Oxenham, Dusan Vujovic, Peter Miovic, Vladimir The editing and the pre-press produc- Kreacic, Kirk Hamilton, Ksenia Lvovsky, tion of this book was done by Magda Lovei, Tim Heleniak, Joanne Communications Development Epp, and William Prince. Special thanks Incorporated. The printing of the book go to Development Education Program was managed by our valued Russian (DEP) team members for their warm partner, the St. Petersburg Institute, support and close collaboration and to School of Economics. v Introduction This book is designed primarily to help claim to have all the answers to these readers broaden their knowledge of and other questions posed directly or global issues, gain insight into their indirectly in the book. Instead, students country’s situation in a global context, together with their teachers are encour- and understand the problems of sus- aged to suggest their own answers by tainable development—both national analyzing and synthesizing the informa- and global. Because development is a tion presented here. They should engage comprehensive process involving eco- in open discussions of problems that nomic as well as social and environ- have no simple solutions, in order to for- mental changes, this book takes an mulate their own opinions and support interdisciplinary approach. It attempts them with objective data and rational to describe and explain the complex arguments. relationships among various aspects of development, including population Many of the answers inevitably involve growth, economic growth, improve- value judgments, which makes absolute ments in education and health, urban- objectivity impossible. Even the ization, and globalization. Teachers, authors have differing views on some students, and learners of all ages are of the issues addressed here, but they invited to explore these relationships have based this book on one funda- even further using the statistical data mental idea: development should be a and theoretical concepts presented in tool for improving the lives of all this book. people. It is up to readers to define for themselves the meaning of a better life and to prioritize the goals of Difficult Questions, Different development. Answers The book starts with three difficult Data and Development questions: What is development? How can we compare the levels of develop- Perhaps, the main strength of this book ment achieved by different countries? is that it is based on abundant statistical And what does it take to make develop- data for most countries, presented in ment sustainable? The authors do not data tables at the end of the book as 1 BEYOND ECONOMIC GROWTH well as in figures, maps, and references all countries are becoming more inter- in the text. Statistics can be powerful related. The authors hope that this tools for learning. They can help paint book will help satisfy popular demand a more accurate picture of reality, iden- for information about national and tify issues and problems, and suggest global development processes and con- possible explanations and solutions. But tribute to a better understanding of statistics have their limitations too. sustainability issues, from local to They are more reliable for some coun- international. tries than for others. And because it takes a long time to collect and verify A word of caution is warranted here. some statistics, they may be out of date The authors hope that a better under- before they are even published. The sta- standing of the complex interrelations tistics presented here were the most among the economic, social, and envi- recent available when this book was ronmental aspects of development will written. help readers avoid oversimplified conclu- sions based on just one or two statistical It is also important to remember that indicators. Readers would be wise to many aspects of development cannot be explore each issue in more detail by find- accurately measured by statistics. ing additional data, questioning their Examples include people’s attitudes, feel- accuracy, and taking into account social ings, values, ideas, freedoms, and cul- processes that might be hard to measure tural achievements. Thus statistical data and quantify. can tell us only part of the story of development—but it is an important part. About This Book Comparing statistical data on your This book was prepared as part of an country with those on other countries international project under the World can be extremely revealing for several Bank Institute’s Development reasons. First, seeing one’s country in a Education Program (DEP). The global context and learning how it is objective was to create a template different from or similar to other text about the global issues of countries can improve understanding sustainable development—social, of the country’s status and of its devel- economic, and environmental— opment prospects and priorities. that could then be customized for Second, because the economies of the various countries by teams of local world are becoming increasingly inter- educators and published in their dependent, development processes in respective national languages. Work on 2 INTRODUCTION these national adaptations has already We hope that the Russian and begun. Latvian examples will inspire educators from other countries to use The first national adaptation of this this international template to develop international template was The World customized student materials that and Russia student book, published in meet the needs of their national cur- Russian, which was officially approved ricula. Alternatively, students and by the Russian Ministry of General other readers interested in develop- and Professional Education for stu- ment issues could use this interna- dents in the 10th and 11th grades tional template without adaptation as studying economics, social studies, a source of relatively current statistical geography, and environmental studies. data and widely accepted concepts for The authors of the Russian adaptation purposes of research and classroom represent several leading research and discussions. educational institutions in Moscow. Those of you who might be interested in seeing how the adaptation was How to Use The Book performed but cannot read Russian will find its English translation on the Because all development issues are Development Education Program’s intricately interrelated, there is no sin- Web site at www.worldbank.org/ gle, best sequence in which to study depweb. You will see that the portions them. Thus the structure of this book of the text adapted for Russia are allows the readers to start with almost highlighted. The Russian language text any chapter that they might find the of The World and Russia can be found most intriguing. The authors, however, on the Web site of its Russian would advise not skipping Chapters 1 publisher, the St. Petersburg Institute, and 2 since they serve as a general School of Economics, at introduction to the book and present www.ise.spb.ru. some important basic concepts on which the following chapters build. The Latvian adaptation, The World and Chapters 15 and 16 can be read as a Latvia, is currently being prepared by a continuation of the conceptual discus- local team led by two professors at the sion started in the first two chapters. University of Latvia. The English trans- And the final chapter, Chapter 17, lation of this second adaptation will also should preferably be saved for last even appear on the DEP Web site with the though, rather than presenting conclu- Latvia-specific portions of the text sions, it invites the reader to explore highlighted. some additional issues. 3 BEYOND ECONOMIC GROWTH As you read this book, you should keep change? You could then explore the in mind the multiplicity of interconnec- links between privatization and energy tions among all aspects of the develop- efficiency (Chapter 11) or between ment process. In some cases, these education (Chapter 7) and environ- interconnections will be explicitly mental protection. Eventually, it pointed out in the text (including cross- becomes clear that development is so references to other chapters), while in comprehensive that understanding any other cases readers may need to identify one issue inevitably requires studying them on their own. Questions in the all the rest. margins are intended to help readers see the larger picture behind the specific Although teachers of various school data. subjects can use this book to help their students understand specific develop- Suppose you are most interested in ment issues, students should always be environmental issues. Chapters 10 and made aware that no single issue exists 14 are devoted to two different envi- in isolation from the others. Ideally, ronmental challenges: local particulate teachers would use most or all of the air pollution in large cities and global book’s content to build one or more air pollution from carbon dioxide learning modules centered around emissions. But to gain a better under- given curricular topics. For example, standing of these issues you will also an Air Pollution module might look need to read about population growth like this: and economic growth (Chapters 3 and 4), industrialization and postindustrial- Air Pollution ization (Chapter 9), income inequality and poverty (Chapters 5 and 6), and 1. Introduction: Concepts of “develop- health and longevity (Chapter 8). ment� and “sustainable develop- These are the most obvious links, and ment.� Chapters 1 and 2 they are relatively easy to identify while 2. Local and global air pollution. reading the environmental chapters. Chapters 10 and 14 You could also, however, look into 3. What are the major courses of the links with all the other chapters in the increasing air pollution? book. For example, how does globaliza- • Population growth—Chapter 3 tion (Chapters 12 and 13) affect air • Economic growth—Chapter 4 pollution in large cities in developed • Industrialization—Chapter 9 and developing countries? Or how does • Urbanization—Chapter 10 globalization help international efforts • Income inequality—Chapter 5 to minimize the risk of global climate • Poverty—Chapter 6 4 INTRODUCTION 4. Aggravating factors or new the data tables (at the end of this opportunities? book). Comparing data on different • International trade—Chapter 12 countries and looking for correlation • Foreign investment—Chapter among various indicators can often 13 provide more insights and food for • Foreign aid—Chapter 13 thought than simply reading a text. • Privatization—Chapter 11 Most of the statistics in the data tables, 5. Air pollution as a threat to develop- figures, and maps are from the World ment sustainability: Development Indicators (1997, 1998), • Healthy environment as one of the World Development Report (various the goals of development— years), and other statistical and analyti- Chapters 1and 15 cal studies published by the World • Natural capital as a component Bank. Figures 4.4 and 9.2 as well as of national wealth—Chapter 16 some data in chapters 12 and 13 have • The role of government been included with permission from policies—Chapter 17. the International Monetary Fund. You will note that most of a module’s The authors hope that the discussions components can be formulated as ques- generated by this book will help read- tions for discussion. It is up to the reader ers understand how global and to conclude whether, for example, the national development relate to issues effects of economic growth are more detri- in their own lives, and that this under- mental to environment than are the effects standing will lead to practical action at of poverty or whether foreign investment the local level. Teachers and other edu- in developing countries contributes to cators can use this book to inform dis- pollution rather than helps reduce it. The cussion about local development book provides helpful (although not challenges not only among their stu- exhaustive) data and concepts but does dents but also among parents and not provide any easy answers. other community members. Students can use the knowledge gained to make When discussing questions arising better informed life choices and to from this book, it is important to make become more active, involved citizens full use of the statistics contained in of their countries. 5 1 What Is Development? Are you sure that you know what “devel- compare their development levels, you opment� really means with respect to would first have to make up your mind How do we different countries? And can you deter- about what development really means to determine which mine which countries are more devel- you, what it is supposed to achieve. oped and which are less? Indicators measuring this achievement countries are more could then be used to judge countries’ developed and It is somewhat easier to say which coun- relative progress in development. which less? tries are richer and which are poorer. But indicators of wealth, which reflect the Is the goal merely to increase national quantity of resources available to a society, wealth, or is it something more subtle? provide no information about the alloca- Improving the well-being of the majority tion of those resources—for instance, of the population? Ensuring people’s free- about more or less equitable distribution dom? Increasing their economic security? of income among social groups, about the shares of resources used to provide free Recent United Nations documents health and education services, and about emphasize “human development,� mea- the effects of production and consumption sured by life expectancy, adult literacy, on people’s environment. Thus it is no access to all three levels of education, as wonder that countries with similar average well as people’s average income which is incomes can differ substantially when it a necessary condition of their freedom of comes to people’s quality of life: access to choice. In a broader sense the notion of education and health care, employment human development incorporates all opportunities, availability of clean air and aspects of individuals’ well-being, from safe drinking water, the threat of crime, their health status to their economic and and so on. With that in mind, how do we political freedom. According to the determine which countries are more devel- Human Development Report 1996, pub- oped and which are less developed? lished by the United Nations Development Program, “human devel- opment is the end—economic growth a Goals and Means of Development means� (p.1). Different countries have different priori- It is true that economic growth, by ties in their development policies. But to increasing a nation’s total wealth, also 7 BEYOND ECONOMIC GROWTH enhances its potential for reducing fruits of human development such as poverty and solving other social prob- improvements in workers’ knowledge lems. But history offers a number of and skills along with opportunities for examples where economic growth was their efficient use: more and better jobs, not followed by similar progress in better conditions for new businesses to human development. Instead growth was grow, and greater democracy at all levels achieved at the cost of greater inequity, of decisionmaking (Figure 1.1). higher unemployment, weakened democ- Conversely, slow human development racy, loss of cultural identity, or overcon- can put an end to fast economic growth. sumption of resources needed by future According to Human Development Report generations. As the links between eco- 1996, “during 1960–1992 not a single nomic growth and social and environ- country succeeded in moving from lop- mental issues are better understood, sided development with slow human experts including economists tend to development and rapid growth to a vir- agree that this kind of growth is tuous circle in which human develop- inevitably unsustainable—that is, it can- ment and growth can become mutually not continue along the same line for long. reinforcing.� Since slower human devel- opment has invariably been followed by To be sustainable, economic growth slower economic growth, this growth must be constantly nourished by the pattern was labeled a “dead end.� Figure 1.1 Economic growth and human development Means: Economic growtha Conditions enabling Conditions enabling economic growth human development • People's knowledge and • Health services skills (human capital) • Education services • Efficient use of human capital • Employment opportunities • Sound economic policy • Democracy • ? Goal: • Environmental protection • ? Human developmentb • ? • ? • ? • ? a. See the Glossary about the difference between economic growth and economic development. b. One should distinguish between indicators that measure components of human development (such as health and literacy) and those that measure its conditions (such as health services and education). 8 1. WHAT IS DEVELOPMENT? Sustainable Development Commission on Environment and Development in 1987, development is Sustainable development is a term widely sustainable if it “meets the needs of the used by politicians all over the world even present without compromising the abil- though the notion is still rather new and ity of future generations to meet their lacks a uniform interpretation. Important own needs.� It is usually understood that as it is, the concept of sustainable devel- this “intergenerational� justice would be What are the opment is still being developed and the impossible to achieve in the absence of necessary definition of the term is constantly being present-day social justice, if the economic revised, extended, and refined. Using this activities of some groups of people con- conditions for book, you can try to improve the defini- tinue to jeopardize the well-being of peo- sustainable tion as you learn more about the relation- ple belonging to other groups or living in development? ships among its main components—the other parts of the world. Imagine, for economic, social, and environmental fac- example, that continuing deforestation of tors of sustainable development—and as the Amazon basin, known for its out- you decide on their relative significance standing biodiversity, leads to the extinc- based on your own system of values. tion of an unresearched plant species that could help cure acquired immune defi- According to the classical definition, ciency syndrome (AIDS), a lethal disease given by the United Nations World threatening people all over the world. Or Figure 1.2 Objectives of sustainable development Economic objectives • Growth • Efficiency • Stability • ? • ? • ? • ? Social objectives • Equity Environmental • Social cohesion objectives • Social mobility • Healthy environment • Participation for humans • Cultural identity • Rational use of • ? renewable natural • ? resources • ? • Conservation of • ? nonrenewable natural resources • ? • ? • ? • ? 9 BEYOND ECONOMIC GROWTH consider emissions of greenhouse gases, within and among generations of peo- generated mainly by industrial countries, ple, can be seen as having at least three which can lead to global warming and aspects: economic, social, and environ- flooding of certain low-lying islands— mental. Only development that manages resulting in the displacement and impov- to balance these three groups of objec- erishment of entire nations. tives can be sustained for long (Figure 1.2). Conversely, ignoring one of the Social justice defined as equality of aspects can threaten economic growth as opportunities for well-being, both well as the entire development process. 10 2 Comparing Levels of Development Countries are unequally endowed with on elements of natural and human capital. natural capital. For example, some In practice economists use gross national countries benefit from fertile agricultural product (GNP) per capita or gross soils, while others have to put a lot of domestic product (GDP) per capita for effort into artificial soil amelioration. the same purpose. These statistical indica- Some countries have discovered rich oil tors are easier to calculate, provide a rough and gas deposits within their territories, measure of the relative productivity with while others have to import most fossil which different countries use their fuels. In the past a lack or wealth of nat- resources, and measure the relative mater- ural capital made a big difference in ial welfare in different countries, whether countries’ development. But today a this welfare results from good fortune wealth of natural capital is not the most with respect to land and natural resources important determinant of development or superior productivity in their use. success. Consider such high-income countries as the Republic of Korea or Japan. Their high economic develop- Gross Domestic Product and ment allows them to use their limited Gross National Product natural resources much more produc- tively (efficiently) than would be possi- GDP is calculated as the value of the total ble in many less developed countries. final output of all goods and services pro- The productivity with which countries duced in a single year within a country’s use their productive resources—physical boundaries. GNP is GDP plus incomes capital, human capital, and natural received by residents from abroad minus capital—is widely recognized as the incomes claimed by nonresidents. main indicator of their level of eco- nomic development. There are two ways of calculating GDP and GNP: Theoretically, then, economists compar- ing the development of different countries • By adding together all the incomes should calculate how productively they are in the economy—wages, interest, using their capital. But such calculations profits, and rents. are extremely challenging, primarily • By adding together all the expendi- because of the difficulty of putting values tures in the economy—consumption, 11 BEYOND ECONOMIC GROWTH investment, government purchases of of the stocks and bonds of other countries’ goods and services, and net exports firms or governments, and receive income (exports minus imports). from them, GNP may be greater than GDP. In Saudi Arabia, for instance, GNP In theory, the results of both calculations exceeded GDP by 7 percent in 1994. For should be the same. Because one person’s most countries, however, these statistical expenditure is always another person’s indicators differ insignificantly. income, the sum of expenditures must equal the sum of incomes. When the cal- GDP and GNP can serve as indicators culations include only incomes received or of the scale of a country’s economy. But expenditures made by a country’s citizens, to judge a country’s level of economic the result is GNP. When the calculations development, these indicators have to be are made of all incomes (or all expendi- divided by the country’s population. tures) that originated within a country’s GDP per capita and GNP per capita boundaries, including those of foreign cit- show the approximate amount of goods izens, the result is GDP. and services that each person in a coun- try would be able to buy in a year if GNP may be much less than GDP if incomes were divided equally (Figure much of the income from a country’s pro- 2.1). That is why these measures are also duction flows to foreign persons or firms. often called “per capita incomes.� For example, in 1994 Chile’s GNP was 5 percent smaller than its GDP. If a coun- In the data tables at the end of this book try’s citizens or firms hold large amounts GNP per capita is shown not only in Figure 2.1 GNP per capita, 1995 South Asia $$350 $ = US$1,000 Sub-Saharan Africa $ $490 East Asia and East Asia and the Pacific $ $800 the Pacific Middle East and $ $ $1,780 North Africa Europe and Central Asia $ $ $ $2,220 Latin America and the Caribbean $ $ $ $ $3,320 High-income $ $ $ $ $ $ $ $ $ $ $ $ countries $24,930 $ $ $ $ $ $ $ $ $ $ $ 12 2 COMPARING LEVELS OF DEVELOPMENT U.S. dollars but also in PPP dollars—that They do not account for pollution, envi- is, adjusted with the help of a purchasing ronmental degradation, and resource power parity (PPP) conversion factor. depletion. They do not register unpaid The PPP conversion factor shows the work done within the family and commu- number of units of a country’s currency nity, or work done in the shadow (gray) required to buy the same amount of economy. And they attach equal impor- goods and services in the domestic mar- tance to “goods� (such as medicines) and What are the main ket as one dollar would buy in the United “bads� (cigarettes, chemical weapons) limitations of per States. By applying this conversion factor, while ignoring the value of leisure and one can, for example, convert a country’s human freedom. Thus, to judge the rela- capita income as a nominal GNP per capita (expressed in tive quality of life in different countries, measure of U.S. dollars in accordance with the mar- one should also take into account other development? ket exchange rate of the national cur- indicators showing, for instance, the distri- rency) into its real GNP per capita (an bution of income and incidence of poverty indicator adjusted for the difference in (see Chapters 5 and 6), people’s health and prices for the same goods and services longevity (Chapter 8), access to education between this country and the United (Chapter 7), the quality of the environ- States, and independent of the fluctua- ment (Chapter 10), and more. Experts also tions of the national currency exchange use composite statistical indicators of rate). GNP in PPP terms thus provides a development (Chapter 16). better comparison of average income or consumption between economies. Grouping Countries by Their In developing countries real GNP per Level of Development capita is usually higher than nominal GNP per capita, while in developed Different organizations use different cri- countries it is often lower (Table 2.1). teria to group countries by their level of Thus the gap between real per capita incomes in developed and developing Table 2.1 Nominal and real GNP per capita in various countries is smaller than the gap countries, 1995 between nominal per capita incomes. GNP per capita GNP per capita Country (U.S. dollars) (PPP dollars) Although they reflect the average incomes India 340 1,400 in a country, GNP per capita and GDP China 620 2,920 per capita have numerous limitations Russia 2,240 4,480 when it comes to measuring people’s actual United States 26,980 26,980 Germany 27,510 20,070 well-being. They do not show how equi- Japan 39,640 22,110 tably a country’s income is distributed. 13 BEYOND ECONOMIC GROWTH development. The World Bank, for ment. Dividing countries into “less devel- instance, uses GNP per capita to classify oped� and “more developed� does not countries as low-income (GNP per capita help much either, because it is unclear of $765 or less in 1995), middle-income where to draw the line between the two (including lower-middle-income, $766 groups. In the absence of a single criterion to $3,035, and upper-middle-income, of a country’s development, such divisions $3,036 to $9,385), or high-income can only be based on convention among ($9,386 or more; Map 2.1). researchers. For example, it is conven- tional in the World Bank to refer to low- A more popular, though apparently more income and middle-income countries as disputable, approach involves dividing all “developing,� and to refer to high-income countries into “developing� and countries as “industrial� or “developed.� “developed�—despite the general under- standing that even the most developed The relatively accurate classification of countries are still undergoing develop- countries into “developing� and “devel- Map 2.1 Gross national product per capita, 1995 High-income Upper-middle-income Lower-middle-income Low-income No data countries countries countries countries 14 2 COMPARING LEVELS OF DEVELOPMENT oped� based on their per capita income tries has achieved the established thresh- does not, however, work well in all old of high per capita income. But on cases. There is, for instance, a group of the other, many of them are highly “high-income developing countries� industrialized. This is one reason their that includes Israel, Kuwait, Singapore, classification by the World Bank is cur- and the United Arab Emirates. These rently “under review.� Note that in the countries are considered developing World Bank’s World Development Report What are some of because of their economic structure or 1982 these same countries were classi- the problems because of the official opinion of their fied as “industrial nonmarket,� and in governments, although their incomes current United Nations publications associated with formally place them among developed most of them are still grouped among grouping countries countries. “industrial� countries. into “developed� and “developing�? Another challenge is presented by many In 1995 less than 1 of every 6 people in of the countries with “transition� or “for- the world lived in high-income (devel- merly planned� economies—that is, oped) countries, and almost 2 of every 6 countries undergoing a transition from lived in transition countries— centrally planned to market economies. including 21 percent of the world popu- On the one hand, none of these coun- lation in China alone (Figure 2.2). Figure 2.2 Distribution of world population among countries grouped by GNP per capita, 1995 High-income countries 16% Low-income Middle-income countries countries 56% 28% 7% 23% Countries with transition economies (30%) 15 3 World Population Growth Population dynamics are one of the key Around the world, death rates gradually Why is world factors to consider when thinking about decreased in the late 19th and the 20th development. In the past 50 years the centuries, with death rates in the devel- population world has experienced an unprecedented oping world plummeting after World growing faster increase in population growth (Figure War II thanks to the spread of modern than ever before? 3.1). Do you know why? medicine. In much of the developing world the decline in death rates preceded the decline in birth rates by 20 years or Global Trends in Natural more, resulting in record-high rates of Population Increase population growth of 3 percent or even 4 percent a year. Since the 1960s birth A “natural population increase� occurs rates have also been declining rapidly in when the birth rate is higher than the most developing countries except those death rate. While a country’s popula- in Sub-Saharan Africa and the Middle tion growth rate depends on the natural East. This trend in birth rates in the increase and on migration, world popu- developing world is comparable to what lation growth is determined exclusively took place in Europe and the United by the natural increase. States in the 19th century (Figure 3.2). Figure 3.1 World population, 1750–2050 Billions 9 8 7 Agriculture Total world population 6 Services 5 4 3 2 Industry Developing countries 1 Developed countries 0 1750 1800 1850 1900 1950 2000 2050 16 3 WORLD POPULATION GROWTH Figure 3.2 Trends in birth and death rates, 1850–2000 Births/deaths per 1,000 people 50 Death rate in developing countries Birth rate in developing countries 40 Natural population Natural population increase increase 30 Death rate in 20 developed countries 10 Birth rate in developed countries 0 1850 1875 1900 1925 1950 1975 2000 Note: Developed countries include high-income countries and present-day transition economies. Today’s low-income countries still have starting their families later and having the world’s highest birth rates (see Map fewer children. On top of all that, access 3.1), although women tend to have fewer to family planning is improving, so par- children than before. The reasons for ents can control the number and spacing lower fertility are varied, but most are of their children. related to developing countries’ economic growth and human development (Figure A lower fertility rate may not immediately 3.3; see also Chapters 4 and 7). Parents lead to a lower birth rate and lower popu- choose to have smaller families when lation growth if a country has a larger health conditions improve so that they no number of men and women in their repro- longer have to fear that many of their ductive years than before. Population babies might die, and when they do not growth caused by more women giving have to rely on their children to work on birth even though each has the same num- the family farm or business or to take care ber of or fewer children is called “demo- of them in their old age. In addition, graphic momentum.� Demographic more parents are sending their daughters momentum is particularly significant in to school, which is important also because developing countries that had the highest women with basic education tend to pro- fertility rates 20–30 years ago. duce healthier children and smaller fami- lies. More women now have opportunities The decline in birth rates over the past to work outside the home, so they are few decades has lowered population 17 BEYOND ECONOMIC GROWTH Map 3.1 Population growth rates, 1985–95 More than 3% 2.5–3% 2–2.4% 1–1.9% Less than 1% No data growth rates in developing countries But in absolute numbers the world’s pop- despite a continuing decline in death ulation is growing faster than ever rates. Population growth is even slower in before—by about 230,000 people a day developed countries (Figure 3.4). in mid-1995. This is happening because Stabilizing birth rates and increasing death of the larger than ever population base. rates (the latter being a result of aging In 1995 there were about 5.7 billion peo- populations; see Chapter 8) have already ple on earth, almost twice as many as in led to a natural population decrease in 1970. The next 35 years are projected to Italy and Germany. Japan and Spain are add another 2.5 billion people—90 per- expected to follow soon (see birth rates cent of them in developing countries. and death rates in Data Table 1). The share of developing countries in the world population is expected to increase Over the past 30 years the worldwide from 84 percent to 88 percent. population growth rate fell from more than 2.0 percent to 1.5 percent a year, In the short run, rapid population and experts expect this trend to continue. growth in poor countries leads to lower 18 3 WORLD POPULATION GROWTH Figure 3.3 Average fertility rates, 1980 and 1995 Births per woman 8 7 6.7 6.1 6 5.7 5.3 5 Why are fertility 4.1 4.2 4.1 4 3.5 and population 3.1 3.1 3 2.8 growth rates 2.5 2.2 2 1.9 1.7 2.0 different in 1 different countries? 0 Low- and High- Sub- Middle South Latin East Asia Europe middle- income Saharan East and Asia America and the and income countries Africa North and the Pacific Central countries Africa Caribbean Asia 1980 1995 Figure 3.4 Average annual population growth rates, 1980–2010 2.0 1.9% 1.8 1.7% 1.6 1.5% 1.4 1.2% 1.2 1.0 0.8 0.7% 0.6 0.4% 0.4 0.2 0.0 –0.2 Low-income Middle-income High-income countries countries countries 1980–95 1995–2010 19 BEYOND ECONOMIC GROWTH GNP per capita, allowing fewer and 1980s. In the 1990s death rates resources to be invested in each person’s actually increased in Russia and some human capital—the key to increasing other transition countries, including labor productivity. But in the long run, Belarus, Bulgaria, Estonia, Latvia, provided that labor productivity does in Lithuania, Moldova, Romania, and fact increase, having more workers could Ukraine. In 1995 the death rate in Why are contribute to the economic strength of Russia equaled the average for Sub- developing countries. Saharan Africa—15 deaths per 1,000 demographic people—while the average death rate for changes in developing countries was 9 per 1,000 transition Demographic Changes in and for developed countries was 8 per countries of Transition Countries of Europe 1,000. Europe different The formerly socialist countries of This dramatic and historically unprece- from those Central and Eastern Europe present a dented reversal in mortality trends is pri- occurring in most major exception to the broad similarity marily explained by higher adult male developing of demographic trends in developed and mortality: among older men mainly developing countries. The rapid decline because of the increase in cardiovascular countries? in death rates that occurred in the 1950s disease, among younger men because of and 1960s slowed down in the 1970s more accidents, suicides, and murders. Figure 3.5 Demographic changes in three countries with transition economies, 1979–95 Per 1,000 people Russia Latvia Czech Republic 20 20 20 15 15 15 10 10 10 5 5 5 0 0 0 79 81 83 85 87 89 91 93 95 79 81 83 85 87 89 91 93 95 79 81 83 85 87 89 91 93 95 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 Birth rate Death rate 20 3 WORLD POPULATION GROWTH Many of these factors can be related to countries: they are believed to be closely substance abuse—heavy drinking and associated with a lower quality of life smoking, which in turn can be linked to caused by the social and economic crisis worsening living conditions and the of transition. As a result fertility rates in greater uncertainty and stress that have these countries are now far below the accompanied the transition. But rapid “replacement level� (equaling slightly economic reforms have not necessarily more than two children per family) and been detrimental to people’s health in all lower than those in most developed transition countries. For example, in the countries (see Figure 3.3). Czech Republic the death rate has con- tinued to decline (Figure 3.5), while in Because of these unusual demographic Hungary and Poland it has held steady. trends—increasing death rates combined with dropping birth rates—many of the Birth rates in the transition countries of transition countries of Europe (for Europe have dropped sharply in the past example, Russia and Latvia, see Figure 5–10 years. The reasons for that drop are 3.5) have experienced natural decreases different from those in most developing in population. 21 4 Economic Growth Rates GDP and GNP growth rates in devel- Unfortunately, the economic growth pat- Will the poor oping countries are on average higher terns described above do not mean that the than those in developed countries. world is on its way to “convergence�—that countries catch up Moreover, the difference became even is, to the gradual elimination of the eco- with the rich? larger in recent years because GNP nomic gap between rich and poor coun- growth in developed countries slowed tries. Much faster population growth in from more than 3 percent a year in the most developing countries is offsetting 1980s to about 2 percent a year in the comparatively faster GNP growth, causing first half of the 1990s. Low-income GNP per capita growth rates in these countries, by contrast, appear to have countries to be low or even negative performed much better during this (Figure 4.1; Map 4.1). period, with GNP growing by almost 6 percent a year in 1980–95. So, will As a result the gulf between the average the poor countries soon catch up with GNP per capita in developing and devel- the rich? oped countries continues to widen. Figure 4.1 Average annual growth rates of GNP, population, and GNP per capita, 1980–95 7 5.9% 6 5 4 3.8% 3 2.8% 2.6% 2.1% 1.8% 1.9% 2 1.7% 1.4% 1 0.7% 0 –1 –0.4% –0.9% –2 GNP Population GNP per capita Low-income countries Middle-income countries Low-income countries excluding China and India High-income countries 22 4 ECONOMIC GROWTH RATES Map 4.1 GNP per capita growth rates, 1985–95 3% or more 2–2.9% 1–1.9% 0–0.9% Less than 0% No data According to a World Bank study, per 1995 East Asia experienced the fastest capita income in the richest countries growth of GNP per capita—more than 7 was 11 times greater than in the poorest percent a year (Figure 4.2). But in two countries in 1870, 38 times greater in other regions of the developing world, the 1960, and 52 times greater in 1985. In average annual growth rate was negative: the early 1990s, of $23 trillion in global –1.1 percent in Sub-Saharan Africa, and GDP, only $5 trillion—less than 20 per- –0.3 percent in the Middle East and cent—was generated in developing North Africa,. The biggest drop in GNP countries—even though these countries per capita growth occurred in Eastern accounted for about 80 percent of the Europe and Central Asia because of the world’s population. economic crisis caused by the transition from planned to market economies. The rapid average growth in developing countries also masks growing disparities The news is not all bad for developing among these countries. Between 1985 and countries, however. The two developing 23 BEYOND ECONOMIC GROWTH Figure 4.2 Average annual GNP per capita growth rates, 1985–95 –3.5% $ $ $ $ Europe and Central Asia –1.1% $ Sub-Saharan Africa –0.3% Middle East and North Africa Latin America and the Caribbean 0.3% South Asia $ $ $ 2.9% East Asia and the Pacific 7.2% $ $ $ $ $ $ $ –4 –2 0 2 4 6 8 Percent Figure 4.3 Shares of 1995 world population by groups of countries with different GNP per capita growth rates Average annual GNP per capita growth rate, 1985–95 3.0% or more 2.0–2.9% 9% 1.0–1.9% 46% 17% 7% 0–0.9% 17% 4% Less than 0% No data countries with the biggest populations growth in China and India explains why did comparatively well in 1985–95. In more than half of the world’s population India GNP per capita grew by about 3.2 lives in economies growing faster than 2 percent a year, and in China by an percent a year (Figure 4.3). But when unprecedented 8.3 percent a year. Rapid China and India are excluded from the 24 4 ECONOMIC GROWTH RATES sample of low-income countries, average major region to achieve significant con- annual growth in this group turns nega- vergence toward developed countries’ tive (see Figure 4.1). In 1985–95 more level of GNP per capita. Per capita than half of developing countries had income in the newly industrialized negative growth rates, and four-fifths of economies of Asia—Hong Kong those with positive growth rates were (China), the Republic of Korea, growing slower than high-income coun- Singapore, and Taiwan (China)— How has the tries (see Map 4.1). increased from 18 percent of the devel- economic gap oped countries’ average in 1965 to 66 Between 1965 and 1995 the gap percent in 1995. At the same time between developed between developed countries and most Africa, for instance, became even poorer and developing developing countries widened consider- in relative terms. The average per capita countries changed ably (Figure 4.4). Asia was the only income in African countries equaled 14 over the past few Figure 4.4 Real GDP per capita in developed and developing countries, 1965–95 decades? Percentage of 1995 average for developed countries 100 90 Developed countries 80 70 Asian newly 60 Major oil industrialized exportersb Developing economiesa countries 50 excluding Rapidly industrializing Asian newly countriesc industrialized 40 economies Western 30 Middle East hemispheree and Europed Africad 20 China 10 Asiaf 0 1965 1970 1975 1980 1985 1990 1995 a. Asian newly industrialized economies: Hong Kong (China), Republic of Korea, Singapore, and Taiwan (China). b. Excluding Iraq. c. Consists of Chile, Indonesia, Malaysia, and Thailand. d. Excluding major oil exporters. e. Excluding major oil exporters and Chile. f. Excluding China, Hong Kong (China), Indonesia, Republic of Korea, Malaysia, Singapore, Taiwan (China), and Thailand. 25 BEYOND ECONOMIC GROWTH percent of the developed countries’ level growth rates more than 1 percentage in 1965 and just 7 percent in 1995. You point higher than the average for devel- can mark the 1995 position of your oped countries—can look forward to country on Figure 4.4 using Data Table catching up with developed countries 1 at the end of this book (see the PPP within the next hundred years. And estimates of GNP per capita and use the those 10 countries will only catch up if average of $24,930 for GNP per capita they can maintain their high growth in developed countries). rates. Doing so will be a challenge. In fact, the poorer a country is, the harder Today only about 10 developing it is to maintain the high investment countries—those with GNP per capita needed for growth (see Chapter 6). 26 5 Income Inequality To begin to understand what life is like with the help of Figure 5.1, which shows in a country—to know, for example, the percentages of national income How does income how many of its inhabitants are poor—it received by equal percentiles of individuals inequality affect is not enough to know that country’s per or households ranked by their income lev- capita income. The number of poor peo- els. In Hungary the richest 20 percent poverty and ple in a country and the average quality (quintile) of the population receives about quality of life in a of life also depend on how equally—or 4 times more than the poorest quintile, country? unequally—income is distributed. while in Brazil the richest quintile receives more than 30 times more than the poorest quintile. Cross-country Comparisons of Income Inequality Compare these ratios to an average of about 6:1 in high-income countries. In In Brazil and Hungary, for example, GNP the developing world income inequality, per capita levels are quite comparable, but measured the same way, varies by region: the incidence of poverty in Brazil is much it is 4:1 in South Asia, 6:1 in East Asia higher. This observation can be explained and the Middle East and North Africa, Figure 5.1 Income distributed by population quintile in Brazil and Hungary Brazil, 1989 Hungary, 1993 Richest 20% of population 67.5 36.6 Second 20% 16.8 22.3 Third 20% 8.9 17.6 Fourth 20% 4.9 14.0 Poorest 20% 2.1 9.5 0 20 40 60 80 0 20 40 60 80 Percentage of total income Percentage of total income 27 BEYOND ECONOMIC GROWTH 10:1 in Sub-Saharan Africa, and 12:1 in percent in each) or 10 groups (10 percent Latin America. in each) and the income of each group is calculated and expressed as a percentage of GDP (see Figure 5.1). Next economists Lorenz Curves and Gini Indexes plot the shares of GDP received by these groups cumulatively—that is, plotting the To measure income inequality in a coun- income share of the poorest quintile try and compare this phenomenon among against 20 percent of population, the countries more accurately, economists use income share of the poorest quintile and Lorenz curves and Gini indexes. A Lorenz the next (fourth) quintile against 40 per- curve plots the cumulative percentages of cent of population, and so on, until they total income received against the cumula- plot the aggregate share of all five quintiles tive percentages of recipients, starting with (which equals 100 percent) against 100 the poorest individual or household percent of the population. After connect- (Figure 5.2). How is it constructed? ing all the points on the chart—starting with the 0 percent share of income First, economists rank all the individuals received by 0 percent of the population— or households in a country by their they get the Lorenz curve for this country. income level, from the poorest to the rich- est. Then all of these individuals or house- The deeper a country’s Lorenz curve, the holds are divided into 5 groups (20 less equal its income distribution. For Figure 5.2 Lorenz curves and Gini indexes for Brazil, Russia, and Hungary Percentage of total income 100 Hungary (Gini index = 27.0%) Brazil 80 (Gini index = 63.4%) ity Line of absolute ual eq 60 inequality te lu so ab of 40 ne Li 20 0 0 20 40 60 80 100 Percentage of total population Poorest Richest 28 5 INCOME INEQUALITY comparison, see on Figure 5.2 the “curve� greater than 0 percent but less than 100 of absolutely equal income distribution. percent (see Figure 5.3 and Data Table 1). Under such a distribution pattern, the first 20 percent of the population would receive exactly 20 percent of the income, Costs and Benefits of Income 40 percent of the population would Inequality receive 40 percent of the income, and so Is a more equal on. The corresponding Lorenz curve Is a less equal distribution of income good distribution of would therefore be a straight line going or bad for a country’s development? There from the lower left corner of the figure (x are different opinions about the best pat- income good or = 0 percent, y = 0 percent) to the upper terns of distribution—about whether, for bad for a country’s right corner (x = 100 percent, y = 100 example, the Gini index should be closer development? percent). Figure 5.2 shows that Brazil’s to 25 percent (as in Sweden) or to 40 per- Lorenz curve deviates from the hypotheti- cent (as in the United States). Consider cal line of absolute equality much further the following arguments. than that of Hungary. This means that of these two countries, Brazil has the highest An excessively equal income distribution income inequality. can be bad for economic efficiency. Take, for example, the experience of A Gini index is even more convenient socialist countries, where deliberately than a Lorenz curve when the task is to low inequality (with no private profits compare income inequality among many and minimal differences in wages and countries. The index is calculated as the salaries) deprived people of the incen- area between a Lorenz curve and the line tives needed for their active participation of absolute equality, expressed as a per- in economic activities—for diligent centage of the triangle under the line (see work and vigorous entrepreneurship. the two shaded areas on Figure 5.2). Thus Among the consequences of socialist a Gini index of 0 percent represents per- equalization of incomes were poor disci- fect equality—the Lorenz curve coincides pline and low initiative among workers, with the straight line of absolute equality. poor quality and limited selection of A Gini index of 100 implies perfect goods and services, slow technical inequality—the Lorenz curve coincides progress, and eventually, slower eco- with the x axis and goes straight upward nomic growth leading to more poverty. against the last entry (that is, the richest individual or household; see the thick dot- On the other hand, excessive inequality ted line on Figure 5.2). In reality, neither adversely affects people’s quality of life, perfect equality, nor perfect inequality is leading to a higher incidence of poverty possible. Thus Gini indexes are always and so impeding progress in health and 29 BEYOND ECONOMIC GROWTH Figure 5.3 Income inequality in selected countries, various years Gini index (percent) 70 63% 60 56% 58% 48% 50% 50% 50 Average for middle-income countries, 1989 40% 41% 40 Average for OECD countries, 1989 33% 27% 28% 30 25% 26% 20% 22% 20 10 0 92 . 19 en 19 any 19 rus 19 ine 19 nd ni 19 nce 19 tes 19 sia 19 ssia ne 992 o 19 sau 19 ep 19 ina 19 nya 89 l 19 azi 1 ic ed U 2 89 Sw93 92 G 92 d 9 94 89 91 la ay R 93 M 95 92 a ex la a Ch s m a 9 Br Ru Ke te 8 St Bi kr Po ak Fr Be al M er a- ov Sl ui U G Note: An index value of 0 percent represents absolute equality in income distribution; 100 percent represents absolute inequality. education and contributing to crime. energy efficiency (see Chapter 15), Think also about the following effects of but in the face of serious inequality, high income inequality on some major governments introducing even factors of economic growth: slightly higher rates risk causing extreme deprivation among the • High inequality threatens a country’s poorest citizens. political stability because more peo- • High inequality may discourage ple are dissatisfied with their eco- certain basic norms of behavior nomic status, which makes it harder among economic agents (individu- to reach political consensus among als or enterprises) such as trust and population groups with higher and commitment. Higher business risks lower incomes. Political instability and higher costs of contract increases the risks of investing in a enforcement impede economic country and so significantly under- growth by slowing down all eco- mines its development potential (see nomic transactions. Chapter 6). • High inequality limits the use of These are among the reasons some inter- important market instruments such national experts recommend decreasing as changes in prices and fines. For income inequality in developing coun- example, higher rates for electricity tries to help accelerate economic and and hot water might promote human development. 30 6 Poverty The notion of poverty varies by country. 1993, from 30 percent to 29 percent. Generally speaking, the richer a country But the absolute number of poor people How can poverty is, the higher is its national poverty line. increased, from 1.2 billion to 1.3 billion. in different To allow for international comparisons, Another 2 billion are only a little better the World Bank has established an inter- off. countries be national poverty line of $1 a day per per- compared? son in 1985 purchasing power parity (PPP) prices. According to this measure The Geography of Poverty the portion of poor people in the world’s population—those living on less than $1 Most of the world’s poor live in South a day—fell slightly between 1987 and Asia (39 percent), East Asia (33 percent, mostly in China and Indochina), and Figure 6.1 Population living on Sub-Saharan Africa (17 percent). South less than $1 a day, Asia also has the highest incidence of 1993 poverty (43 percent of its population), followed by Sub-Saharan Africa (39 per- South Asia $ 43% cent; Figure 6.1). Countries in which more than half the population lives Sub-Saharan below the international poverty line $ 39% Africa include Guatemala, Guinea-Bissau, India, Kenya, Lesotho, Madagascar, East Asia and the Pacific $ 26% Nepal, Niger, Senegal, and Zambia (Map 6.1 and Data Table 1). Latin America and the $ 24% Caribbean Analysts have found a strong positive relationship between economic growth Middle East and North Africa 4% and poverty reduction. For example, East Asia (excluding China),which con- Europe and 3% tains the world’s fastest-growing Central Asia economies, reduced the share of its pop- 0 10 20 30 40 50 ulation living in poverty from 23 per- Percentage of population cent in 1987 to less than 14 percent in 1993. But in Sub-Saharan Africa, where 31 BEYOND ECONOMIC GROWTH Map 6.1 Percentage of population living on less than US$1 a day, 1981–95 More than 25–40% 16–24% 6–15% 5% No data Not 40% or less applicable negative growth of GNP per capita pre- national saving tends to be low. Low dominated during that period, the inci- saving hinders desperately needed dence of poverty hardly changed. domestic investment in both physical capital and human capital. Without new investment, an economy’s produc- The Vicious Circle of Poverty tivity cannot be increased and incomes cannot be raised. That closes the vicious Economists generally assume that peo- circle of poverty (Figure 6.2). So are ple’s willingness to save for future con- poor countries doomed to remain poor? sumption grows with their incomes. The poorer people are, the less they can Recent data on gross domestic investment afford to plan for the future and save. in East Asia suggest that the answer is no. The same logic applies to businesses and Despite low initial GNP per capita, gross governments. Thus in poor countries, domestic saving and gross domestic where most incomes have to be spent to investment in the region were high and meet current—often urgent—needs, growing until the 1998 financial crisis 32 6 POVERTY Figure 6.2 The vicious circle of poverty Low income Can poor countries break the vicious Low productivity Low consumption Low savings circle of poverty? Low investment (Figure 6.3). Experts are still trying to to attract foreign investment to a country explain this phenomenon. Generally are the same as those needed to stimulate speaking, however, many of the factors domestic investment. that encourage people to save and invest are well known, including political and A favorable investment climate includes economic stability, a reliable banking sys- many factors that make investing in one tem, and favorable government policy. country more profitable and less risky than in another country. Political stabil- In addition to domestic investment, for- ity is one of the most important of these eign investment can help developing factors. Both domestic and foreign countries break out of the vicious circle of investors are discouraged by the threat of poverty, particularly if such investment is political upheaval and by the prospect of accompanied by transfers of advanced a new regime that might impose puni- technology from developed countries. tive taxes or expropriate capital assets. As The opportunity to benefit from foreign a result a country can fall into another investment and technology is sometimes vicious circle, one seen historically in referred to as the “advantage of backward- some Latin American countries (Figure ness,� which should (at least theoretically) 6.4). Political instability scares away new enable poor countries to develop faster investments, which prevents faster eco- than did today’s industrial countries. nomic growth and improvements in However, many of the conditions needed people’s economic welfare, causing even 33 BEYOND ECONOMIC GROWTH Figure 6.3 Gross domestic investment as a percentage of GDP, 1980 and 1995 40 38% $ 35 $ 30 28% $ $ 26% $ 25% 25 23% 23% 23% 21% What is the 20 $ $ $ $ 20% 20% $ $ $ 19% $ $ $ $ $ $ $ $ $ $ $ $ $ relationship 15 $ $ $ $ $ $ $ $ $ $ $ between poverty 10 $ $ $ $ $ $ $ $ $ $ $ and political 5 $ $ $ $ $ $ $ $ $ $ $ 0 instability? East Asia Middle East Latin America South Sub- High- and the and and the Asia Saharan income Pacific North Africaa Caribbean Africa countries $ 1980 $ 1995 a. 1995 data are not available. Figure 6.4 The vicious circle of political instability Political instability and threat of property rights violation Poverty and Low domestic and social conflict foreign investment Low or negative economic growth more dissatisfaction with the political political instability can seriously impede regime and increasing political instabil- efforts to boost economic development ity. Falling into this vicious circle of and reduce poverty. 34 7 Education Capital is a stock of wealth used to pro- devoting money and time to education duce goods and services. Most often, by and training (to accumulating knowl- How are human capital people mean physical capital: edge and skills). Like any other invest- capital and buildings, machines, technical equip- ment, these investments in human ment, stocks of raw materials, and capital require sacrifices. People agree to physical capital goods. But “human capital�—people’s make these sacrifices if they expect to be similar? How are knowledge and skills—is at least as rewarded with additional income in the they different? important for production, and at least as future. valuable to people who have it. The importance of the “human factor� in Governments spend public funds on modern production is reflected in the education because they believe that a distribution of income among people better-educated population will con- who own physical capital and people tribute to faster development. Employers who “own� knowledge and skills. For pay for employee training because they example, in the United States in the expect to cover their costs and gain addi- 1980s the income received on knowl- tional profits from increased productiv- edge and skills (through wages and ity. And individuals are often prepared salaries) was about 14 times that received to spend time and money to get educa- on physical capital (through dividends tion and training, since in most coun- and undistributed corporate profits). tries people with better education and This phenomenon led economists to skills earn more. Educated and skilled acknowledge the existence of human people are usually able to deliver more capital. output or output that is more valuable in the marketplace, and their employers tend to recognize that fact with higher Education and Human Capital wages. Most human capital is built up through Economic returns to education are not education or training that increases a always the same, however. Returns to person’s economic productivity—that is, education may be lower if: enables him or her to earn a higher income. Governments, workers, and • The quality of education is low or employers invest in human capital by knowledge and skills acquired at 35 BEYOND ECONOMIC GROWTH school do not match market Nevertheless, until recently both coun- demand. In this case investments in tries were growing relatively slowly, human capital were not efficient largely because of development strategies enough, resulting in less human cap- that prevented them from taking full ital and lower returns to individuals advantage of their stock of human capi- and society. tal. In Vietnam central planning stood What are the best • There is insufficient demand for in the way, and in the Philippines eco- human capital because of slow eco- nomic isolation from the global market ways to build a nomic growth. In this case workers’ was to blame. In recent years, however, country’s human human capital may be underused both countries have realized a return on capital? and underrewarded. their investments in human capital— • Workers with lower and higher edu- Vietnam by adopting a more market- cation and skills are deliberately paid based approach to development and similar wages to preserve a relative radically improving its growth rate, and equality of earnings—as used to hap- the Philippines by “exporting� many of pen in countries with centrally its educated workers and “importing� planned economies. These distor- their foreign exchange earnings. tions in relative wages are being eliminated as part of these countries’ Most governments are playing an transition to market economies. increasingly active role in providing edu- cation (Map 7.1 and Data Table 2). The national stock of human capital and Differences in public spending on educa- its rate of increase are critical to a coun- tion (relative to GDP) across countries try’s level and rate of economic develop- reflect differences in government efforts ment, primarily because human capital to increase national stocks of human cap- is the most important determinant of a ital. Governments of developing coun- country’s ability to produce and adopt tries devote a larger share of their GDP technological innovations. But investing to education today than they did in in human capital, although extremely 1980. But this share is still smaller than important, is not sufficient for rapid that in developed countries: 3.4 percent economic growth. Such investment must of GDP in low-income countries and 4.4 be accompanied by the right develop- percent in middle-income counties com- ment strategy. pared with 5.6 percent in high-income countries. Using Data Tables 1 and 2, Consider the Philippines and Vietnam. you can calculate the absolute gap In both countries adult literacy is higher between per capita public spending on than in most other Southeast Asian education in developed and developing countries (see Data Table 2). countries. This gap is an important man- 36 7 EDUCATION Map 7.1 Public expenditure on education, percent of GDP, 1995 More than 8% 6–8% 4–5.9% 2–3.9% Less than 2% No data ifestation of the vicious circle of poverty country’s average income. Among low- described in Chapter 6: low per capita income countries, for example, the share income inhibits investment in human (as of private spending on education ranges well as physical) capital, slows productiv- from about 20 percent in Sri Lanka to 60 ity growth, and so prevents per capita percent in Uganda and Vietnam, while income from increasing significantly. among high-income countries it ranges from 5 percent in Austria to 50 percent Data on public education spending does in Switzerland. not, however, paint a complete picture of investment in human capital because in There are, however, certain patterns in many countries private spending on edu- the balance between public and private cation is considerable. Around the world, spending on different levels of educa- the difference between public and private tion. Most governments are committed spending on education varies enormously to providing free primary and often and does not seem to be correlated with a secondary education because it is 37 BEYOND ECONOMIC GROWTH believed that not just individuals but communicate clearly in writing and to the entire country benefits significantly use mathematics and science skills to when most of its citizens can read, diagnose and solve problems. write, and fully participate in social and economic life. At the same time, tertiary education institutions, both Primary Education and Literacy private and public, usually charge tuition, because more of the benefits Attending primary school helps children from this level of education are acquire basic literacy and numeracy as believed to accrue to graduates (in the well as other knowledge and skills needed form of much higher future earnings) for their future education. In low-income rather than to society at large. countries primary education in itself often improves the welfare of the poor by mak- In vocational education, employers often ing them more productive workers, play an important role in providing on- enabling them to learn new skills through- the-job training for employees and in out their working lives, and reducing the financing training in vocational schools. risk of unemployment. In addition, pri- Governments try to encourage employ- mary education—especially for girls and ers’ involvement in order to save public women—leads to healthier and smaller funds and to link vocational education families and fewer infant deaths. to the needs of the labor market. Specific work skills are best developed through Despite rapid growth in the number of training during employment, especially children of primary school age, since in jobs involving substantial technologi- 1970 developing countries have suc- cal change. ceeded in sharply increasing the percent- age of children enrolled in primary school Public financing of vocational training is (Figure 7.1). But universal primary edu- generally considered justified when cation, a goal being pursued by most gov- employer training capacity is weak (as in ernments of developing countries, is still small and medium-size firms) or absent far from being achieved in many of them (as with retraining for unemployed (see Data Table 2). Low enrollments in workers). High-quality general pre- many low-income countries may signal employment education is the best guar- inadequacies in education system capacity antee of an individual’s ability to learn as well as social conditions that prevent new skills throughout a career and of children from enrolling. employers’ willingness to invest in that individual’s professional training. Most Because economic and social returns to important, employees must be able to society are known to be higher for pri- 38 7 EDUCATION Figure 7.1 Primary school enrollment, 1970 and 1995 Percentage of relevant age group 120 107% 100 Middle-income countries 103% 93% 80 Low-income countries 82% 74% 60 Low-income countries 50% excluding China and India For low-income 40 countries, what are 20 the main obstacles 0 1970 1995 to universal Note: Enrollment ratios may exceed 100 percent because some students, including repeaters, are older than the standard primary school age group; others are younger. Therefore, ratios above 100 percent do not necessarily indicate better primary education? educational outcomes. mary education than for other levels of work damages their health and impedes study, most governments are committed development of their social skills, to providing free access to primary school decreasing their future earning power as to all children. But in low-income coun- adults and perpetuating the vicious circle tries the public funds available for this of poverty. purpose are often insufficient to meet the increasing demand of rapidly growing In addition, primary school enrollments populations. These funds also tend to be are generally lower for girls than for boys. allocated inequitably, with better educa- This gender gap is widest in South Asia, tion opportunities often provided to the Middle East, and Sub-Saharan Africa. urban children relative to rural children, The gap reflects cultural norms, early to well-off children relative to poor chil- child-bearing, limited employment oppor- dren, and to boys relative to girls. In some tunities for women, and traditional expec- countries public financing of education tations of girls’ larger contribution to favors the higher levels of study, benefit- household work. As a result, of the 900 ing mostly older, better-off children and million adults in developing countries thus exacerbating social inequity. who are illiterate (nearly one in three), almost two-thirds are women (Figure 7.2). Even when primary education is accessi- ble, poor children may be unable to ben- Note that child labor is known to be a efit from it. Many of these children must poverty issue—that is, its incidence work rather then attend school. declines as per capita income rises. That Premature and extensive involvement in means that further economic growth will 39 BEYOND ECONOMIC GROWTH tend to remove this obstacle to universal Figure 7.2 Adult illiteracy, 1995 primary education. By contrast, gender 38% disparities in school enrollments are not South Asia 64% correlated with overall living standards, so countries do not just “grow out of them.� 34% Sub-Saharan Narrowing the gender gap requires sup- Africa 53% portive national policies, such as reducing the direct and indirect costs of girls’ Middle East 28% and North Africa schooling for their parents and building 50% more schools for girls in education sys- Latin America 12% tems that are segregated by sex. and the Caribbean 15% East Asia and 9% Issues in Secondary and Tertiary the Pacific 24% Education 0 20 40 60 80 100 Percentage of adult population In most developing countries enroll- (age 15 or older) ment in secondary schools is much Male Female lower than in primary schools (see Data Table 2). Although the situation has been improving over the past few decades, on average less than 60 percent tries. According to available data, almost of children of secondary school age in one-third of children 10–14 are in the low- and middle-income countries are labor force in low-income countries enrolled, while in high-income coun- (excluding China and India), while in tries secondary education has become many Sub-Saharan countries this pro- almost universal (Figure 7.3). portion is one-half. In fact, the situation may be even worse—in many countries Among the world regions, Sub-Saharan data on child labor are underreported or Africa has the largest share of children not reported at all because officially the not enrolled in secondary school. Check problem is presumed not to exist. Data Table 2 for the indicator of child labor incidence—that is, the percentage The gap between developed and devel- of children ages 10–14 who work. Note oping countries is particularly wide in that this indicator is highest in Sub- tertiary education. In high-income Saharan Africa too. Child labor remains countries tertiary enrollments have the most formidable obstacle to educa- increased rapidly since 1980, but in low- tion for children in low-income coun- and middle-income countries they have 40 7 EDUCATION Figure 7.3 Secondary school enrollment, 1980 and 1995 Percentage of relevant age group 120 High-income countries 104% 100 87% 80 60 Middle-income countries 60% 54% 56% How does a 40 Low-income countries 34% country’s economic 20 situation 0 1970 1995 determine its Note: Enrollment ratios may exceed 100 percent because some students, including repeaters, are older than the standard secondary school age group; others are younger. Therefore, ratios above 100 percent do not necessarily indicate better education needs? educational outcomes. improved only slightly (Figure 7.4 and guage skills. Overall, innovative people Data Table 2). are needed everywhere, and an education system that fails to develop this quality in The number of students enrolled at a its graduates can hardly be considered level of study does not indicate the qual- fully effective. ity of their education and thus provides only a rough idea of a country’s educa- Figure 7.5 illustrates some differences in tional achievements. To generate eco- the quality of education between coun- nomic returns, education and training tries with transition and with established have to meet the ever-changing demands market economies. Relative to their of the labor market—that is, they have to counterparts in Canada, France, Israel, equip graduates with the knowledge and and the United Kingdom, children in skills needed at each stage of a country’s Hungary, Slovenia, and the former Soviet economic development. For example, Union were better at demonstrating their countries moving from planned to mar- knowledge of facts but worse at using ket economies usually need more people that knowledge in new and different cir- trained in economics and business man- cumstances. In a competitive market agement to work in emerging private sec- economy, graduates who lack innovation tors as well as in reformed public sectors. and problem-solving skills run a higher Today’s information revolution requires risk of becoming unemployed and poor. more people with computer skills, and globalization (see Chapters 13 and 14) Investing in education is not only an has increased the demand for foreign lan- important way to build a nation’s human 41 BEYOND ECONOMIC GROWTH Figure 7.4 Tertiary education enrollment, 1980 and 1995 Percentage of relevant age group 80 60 High-income countries 57% 40 35% Middle-income countries 20 19% 19% Low-income countries 6% 0 3% 1980 1995 Figure 7.5 Science and mathematics test performance of children in selected countries, 1991 Deviation from the mean 10 Transition economies Hungary 8 Slovenia Former Soviet Union 6 Established market economies 4 United Kingdom Canada 2 France Israel Mean 0 –2 Awareness Application Use of knowledge of facts of facts in an unanticipated circumstance Note: The data shown here are the scores of 9- to 13-year-olds on the Second International Assessment of Educational Progress, conducted in 1991. A value of 0 represents the mean score for the 19 countries in the sample. The countries shown are those whose performance was generally above the sample mean. capital and to improve its prospects for healthier, more financially secure, and economic growth and higher living more fulfilling lives. This is why experts standards. It also has a value in its own use data on literacy, for example, as an right because education broadens peo- important indicators of the quality of ple’s horizons and helps them to live life in a country. 42 8 Health and Longevity The health of a country’s population is Global Trends often monitored using two statistical Which factors indicators: life expectancy at birth and During the second half of the 20th cen- account for most the under-5 mortality rate. These indi- tury health conditions around the world cators are also often cited as overall improved more than in all previous of the health measures of a population’s quality of human history. Average life expectancy improvements in life because they indirectly reflect many at birth in low- and middle-income the 20th century? aspects of people’s welfare, including countries increased from 40 years in their levels of income and nutrition, the 1950 to 65 years in 1996. Over the same quality of their environment, and their period the average under-5 mortality access to health care, safe water, and rate for this group of countries fell from sanitation. 280 to 80 per 1,000. But these achieve- ments are still considerably below those Life expectancy at birth indicates the in high-income countries, where aver- number of years a newborn baby would age life expectancy at birth is 77 years live if health conditions prevailing at the and the average under-5 mortality rate is time of its birth were to stay the same 7 per 1,000. throughout its life. This indicator does not tell how long a baby will actually Throughout the 20th century, national live, but rather how long a baby born in indicators of life expectancy have been a certain year is likely to live. The under- strongly associated with GNP per 5 mortality rate indicates the number of capita. If you compare Figure 8.1 (Life children who are likely to die before expectancy at birth, 1995) with Figure reaching age five per 1,000 live births. 2.1 (GNP per capita, 1995), you will find that in general the higher a coun- Because infants and children are most try’s income per capita, the higher is its vulnerable to malnutrition and poor life expectancy—although this relation- hygienic living conditions, they account ship does not explain all the differences for the largest portion of deaths in most among regions and countries. (See Data developing countries. Therefore, decreas- Tables 1 and 2 for country-specific ing under-5 mortality is the most effec- data.) The two other factors believed to tive way of increasing life expectancy at be the most important for increasing birth in the developing world. national and regional life expectancies 43 BEYOND ECONOMIC GROWTH Figure 8.1 Life expectancy at birth, 1995 Years 100 90 81 80 74 73 72 70 66 68 70 68 65 64 61 62 60 53 50 50 40 30 20 10 0 High-income Latin East Asia Middle Europe South Asia Sub-Saharan countries America and the East and and Africa and the Pacific North Central Caribbean Africa Asia Male Female are improvements in medical technology vices, and education allows countries to (with some countries clearly making bet- realize “more health� for a given income ter use of it than others) and develop- than before. For example, in 1900 life ment of and better access to public expectancy in the United States was health services (particularly clean water, about 49 years and income per capita sanitation, and food regulation). was more than $4,000. In today’s Sub- Education, especially of girls and Saharan Africa life expectancy is more women, makes a big difference too, than 50 years even though GNP per because wives and mothers who are capita is still less than $500. knowledgeable about healthier lifestyles play a crucial role in reducing risks to In general, for nearly all countries, life their families’ health. expectancy at birth continued to grow in recent years (see Data Table 2 ). In devel- These other factors help explain how oping countries this growth was largely most developing countries are catching due to much lower under-5 mortality up with developed countries in terms (Figure 8.2). Better control of communi- of people’s health even though they are cable diseases that are particularly dan- generally not catching up in terms of per gerous for children, such as diarrhea and capita income (see Chapter 4). Progress worm infections, accounts for most of in medical technology, public health ser- the gains. In many countries higher per 44 8 HEALTH AND LONGEVITY Figure 8.2 Mortality rate of children under age 5, 1980 and 1995 Per 1,000 children 200 193 180 174 160 157 141 140 120 108 100 82 80 72 75 60 53 47 40 35 20 7 0 Sub-Saharan South Asia Middle East Asia Latin Europe High-income Africa East and and the America and countriesa North Pacific and the Central Africa Caribbean Asiaa 1980 1995 a. 1980 data not available capita incomes (see Chapter 4 and Data where the rate of measles immunization Table 1) also contributed to better nutri- is the lowest—about 60 percent. As tion and housing for most families. many as 2 million people die every year as a result of malaria and malaria-related Governments of developing countries diseases, mostly in low income coun- have invested in improving public health tries; and in Africa alone more than 2 measures (safe drinking water, sanita- million lives a year are claimed by AIDS. tion, mass immunizations), training medical personnel, building clinics and hospitals, and providing medical care. Population Age Structures But much remains to be done. Malnutrition, especially among women The health and longevity of a country’s and children, is still a big problem. And people are reflected in its population age communicable, largely preventable dis- structure—that is, the percentages of dif- eases still claim millions of lives. For ferent age groups in the population of the example, the average rate of measles country. A population age structure can immunization worldwide is just 80 per- be shown by a population pyramid, also cent, and every year more than 1 million known as an age-sex pyramid. In such children die of the disease. Many of pyramids a country’s population is those children are in Sub-Saharan Africa, divided into males and females as well as 45 BEYOND ECONOMIC GROWTH Figure 8.3 Population pyramids for low- and high-income countries, 1995 and 2025 Low-income High-income Low-income High-income 1995 2025 countries countries countries countries Age Age 75+ 75+ 70–74 70–74 65–69 65–69 60–64 60–64 What are the social 55–59 55–59 50–54 50–54 and economic 45–49 45–49 40–44 40–44 challenges that 35–39 35–39 30–34 30–34 result from 25–29 25–29 20–24 20–24 different 15–19 15–19 10–14 10–14 population age 5–9 5–9 0–4 0–4 structures? 6 4 2 0 2 4 6 6 4 2 0 2 4 6 6 4 2 0 2 4 6 6 4 2 0 2 4 6 Percentage of population Percentage of population Percentage of population Percentage of population Males Females Males Females age groups (for example, five-year age population is under 15, compared with groups, as in Figure 8.3). Figure 8.3 less than one-fifth in high-income coun- shows population pyramids typical of tries. From a demographic perspective, low- and high-income countries in 1995 that means that larger age groups are and expected to be typical in 2025. Note about to enter childbearing age, and the how these shapes represent higher birth increase in the number of parents will rates, higher death rates (particularly outweigh a decrease in the average num- among children), and lower life expectan- ber of children per family. This phenom- cies in low-income countries. Think enon, called population momentum, will about why in poor countries the base of keep birth rates high despite a drop in the pyramid is broader and the pyramid is fertility (see Chapter 3). From a social basically triangular rather than pear- and economic perspective, a high per- shaped or rectangular as in rich countries. centage of children in a population Explain also the changes expected to hap- means that a large portion is too young pen to both pyramids by 2025. to work and, in the short run, is depen- dant on those who do. This is the main As seen in Figure 8.3, in low-income reason for the relatively high age depen- countries more than one-third of the dency ratio in most developing coun- 46 8 HEALTH AND LONGEVITY tries. While in high-income countries nounced in older age groups due to the there are roughly 2 people of working naturally higher longevity of females. In age to support each person who is too high-income countries on average there young or too old to work, in low-income are 133 females per 100 males 60 and countries this number is around 1.0–1.5. over. In low-income countries the imbal- ance is smaller (104 females per 100 High-income countries currently face males), but the reasons for this seeming How are major the problem of an aging population— “advantage� of poor countries are higher health risks that is, a growing percentage of elderly, maternal mortality and gender discrimi- nonworking people. In 1996 people 60 nation, including discrimination in changing for and above made up 18 percent of the access to health care. different groups of population in these countries, and this countries? portion is expected to grow to almost 22 percent by 2010. In several of these Future Challenges countries (Belgium, Germany, Greece, Italy, Japan, Sweden) the share of As the health of the world population has elderly people has already reached or improved, the burden of disease has surpassed 21 percent. An aging popula- declined. Simultaneously, the structure of tion puts greater pressure on a country’s disease has shifted rapidly from a prepon- pension, health care, and social security derance of communicable disease (diar- systems. rhea, worm infections, measles), which are the main health risks for infants and As life expectancy continues to increase children, to a preponderance of noncom- in developing countries, they too will municable disease (heart and circulatory face the problem of an aging popula- disease, cancer) that mostly affect adults. tion (see Figure 8.3). In fact, develop- While there are inexpensive and effective ing countries are expected to be hit ways to eliminate most communicable even harder because they are financially diseases, noncommunicable diseases are less prepared to deal with it, because generally much more expensive to treat. the rate of growth in life expectancy Moreover, substantially reducing their and therefore population aging is much incidence will require changing people’s faster than in developed countries, and behaviors and lifestyles. because there will be a high depen- dency ratio of both children and The importance of lifestyle choices can elderly people. be illustrated by the health gap between Eastern and Western Europe. The largest Figure 8.3 also illustrates the issue of contributors to this health gap are heart gender imbalance increasingly pro- attacks and strokes, for which the main 47 BEYOND ECONOMIC GROWTH Figure 8.4 Adult smoking, 1985–95 Percentage of population over 15 80 70 60 Why is the 50 51% 48% incidence of 40 39% smoking higher in 30 22% poorer countries? 20 16% 6% 10 0 Low-income Middle-income High-income countries countries countries Male Female risk factors include unhealthy diet, lack The governments of most developed of exercise, excessive consumption of countries have made efforts to reduce alcohol, and smoking. All these factors, smoking and so lower its costs to society particularly smoking, are more prevalent by introducing tobacco taxes, limiting in Eastern Europe (Figure 8.4 and Data tobacco advertising, and educating peo- Table 2). ple about the risks of smoking. Cigarette taxes are highest in Western Europe. Cigarette smoke does more damage to According to a 1998 report by the human health than all air pollutants Worldwatch Institute, smokers in combined. Smoking is hazardous not Norway pay $5.23 in taxes per pack of only to smokers, about half of whom die cigarettes, which is 74 percent of the prematurely from tobacco-related dis- total price. And in the United Kingdom eases including cancer, heart disease, and smokers pay $4.30 in taxes, which is 82 respiratory conditions, but also to “pas- percent of the total price. Experience in sive� smokers (those inhaling second- many countries has shown that tobacco hand smoke). According to some taxes are effective in discouraging smok- estimates, passive smokers increase their ing: a 10 percent increase in cigarette risk of cancer by 30 percent and their prices leads to a 5 percent decrease in risk of heart disease by 34 percent. smoking among adults and a 6-8 percent 48 8 HEALTH AND LONGEVITY decrease among young adults (age 15 to sales by entering the underregulated and 21), who usually have less disposable underinformed markets of less developed income. countries. In the past 10 years exports of cigarettes as a share of production have According to the same report, while in doubled to 60 percent in the United Western Europe and the United States the Kingdom and 30 percent in the United number of smokers is declining, in most States, the two largest exporters. If current developing countries smoking is on the smoking trends persist, the number of rise, particularly among women and tobacco-related deaths worldwide will soar young people. European and U.S. tobacco from 3 million a year today to 10 million firms, facing declining demand in their a year in 2020, with 70 percent of the home countries, have managed to increase deaths occurring in the developing world. 49 9 Growth of the Service Sector Everything that grows also changes its these questions while reading this chap- What are the structure. Just as a growing tree con- ter and the three that follow it. stantly changes the shape, size, and con- economic figuration of its branches, a growing reasons behind economy changes the proportions and Industrialization and industrialization interrelations among its basic sectors— Postindustrialization and postindustrial- agriculture, industry, and services and between other sectors—rural and urban, One way to look at the structure of an ization? public and private, domestic- and economy is to compare the shares of its export-oriented (Chapters 10, 11, and three main sectors—agriculture, indus- 12). Are there common patterns in how try, and services—in the country’s total growing economies change? Which output (Figure 9.1) and employment.1 changes should be promoted and which Initially, agriculture is a developing should be discouraged? Think about economy’s most important sector. But as Figure 9.1 Sectoral structure of world economies, 1995 Percentage of GDP 70 66% 60 52% 50 40 38% 35% 35% 32% 30 25% 20 11% 10 2% 0 Low-income Middle-income High-income countries countries countries Agriculture Industry Services 50 9 GROWTH OF THE SERVICE SECTOR income per capita rises, agriculture loses because of new farm techniques and its primacy, giving way first to a rise in machinery, labor productivity increases the industrial sector, then to a rise in the faster in agriculture than in industry, mak- service sector. These two consecutive ing agricultural products relatively less shifts are called industrialization and expensive and further diminishing their postindustrialization (or “deindustrial- share in gross domestic product (GDP). ization�). All growing economies are The same trend in relative labor produc- likely to go through these stages, which tivity also diminishes the need for agricul- can be explained by structural changes in tural workers, while employment consumer demand and in the relative opportunities in industry grow. As a result labor productivity of the three main industrial output takes over a larger share economic sectors. of GDP than agriculture and employment in industry becomes predominant. Industrialization Postindustrialization As people’s incomes increase, their demand for food—the main product of As incomes continue to rise, people’s agriculture—reaches its natural limit, and needs become less “material� and they they begin to demand relatively more begin to demand more services—in industrial goods. At the same time, health, education, entertainment, and Figure 9.2 The changing structure of employment during economic development Percentage of employment 100 Agriculture Services 50 Industry 0 Low High Per capita income over time 51 BEYOND ECONOMIC GROWTH many other areas. Meanwhile, labor pro- economy (Data Table 2). By the mid- ductivity in services does not grow as 1990s services accounted for almost fast as it does in agriculture and industry two-thirds of world GDP (Map 9.1), up because most service jobs cannot be from about half in the 1980s. filled by machines. This makes services more expensive relative to agricultural How can growth of and industrial goods, further increasing Service Sector Growth and the share of services in GDP. The lower Development Sustainability the service sector mechanization of services also explains help make why employment in the service sector The service sector produces “intangible� development more continues to grow while employment in goods, some well known—government, sustainable? agriculture and industry declines because health, education—and some quite of technological progress that increases new—modern communications, infor- labor productivity and eliminates jobs. mation, and business services. Producing (Figure 9.2). Eventually the service sec- services tends to require relatively less tor replaces the industrial sector as the natural capital and more human capi- leading sector of the economy. tal than producing agricultural or indus- trial goods. As a result demand has Most high-income countries today are grown for more educated workers, postindustrializing—becoming less prompting countries to invest more in reliant on industry—while most low- education—an overall benefit to their income countries are industrializing— people. Another benefit of the growing becoming more reliant on industry service sector is that by using fewer nat- (Figure 9.3). But even in countries that ural resources than agriculture or indus- are still industrializing, the service sector try, it puts less pressure on the local, is growing relative to the rest of the regional, and global environment. Figure 9.3 Industrial output as a percentage of GNP, 1980 and 1995 Percent 40 High-income 38% (postindustrializing) 37% countries 35 Low-income 32% (industrializing) 32% countries 30 1980 1995 52 9 GROWTH OF THE SERVICE SECTOR Map 9.1 The share of services in GDP, 1995 60% or more 50–59% 40–49% 30–39% Less than 30% No data Conserving natural capital and building veloped because governments con- up human capital may help global devel- trolled supply and failed to respond to opment become more environmentally growing demand for services. In addi- and socially sustainable. Growth of the tion, many modern services that play service sector will not, however, be a mir- an important role in market acle solution to the problem of sustain- economies—such as financial, busi- ability, because agricultural and industrial ness, and real estate services—were not growth are also necessary to meet the needed under socialism. During these needs of the growing world population. countries’ transition to market economies, their service sectors have grown rapidly to meet previously Challenges for Transition unfulfilled demand and the needs of Economies the emerging private sector. In formerly planned economies the Growth of services in transition service sector was previously underde- economies is particularly important 53 BEYOND ECONOMIC GROWTH because it allows these economies to different perspectives—economic, social, employ a share of the educated labor and environmental. force that might otherwise be unem- ployed due to the economic crisis. So, in addition to continued public support for Note health and education, growth of services can help formerly socialist countries pre- 1. Agriculture here refers to crop cultivation, serve the stock of human capital that livestock production, forestry, fishing, and hunt- will be crucial to their postindustrial ing. Industry includes manufacturing, mining, development. construction, electricity, water, and gas. Services cover all other economic activities, including Think of the service industries that you trade, transport, and communications; govern- consider particularly important for your ment, financial, and business services; and per- country’s sustainable development from sonal, social, and community services. 54 10 Urbanization and Urban Air Pollution Urbanization is a process of relative (Figure 10.1). In 1990–95 the average growth in a country’s urban population annual growth of the urban population Can urbanization accompanied by an even faster increase in low-income countries was 3.8 percent serve as an in the economic, political, and cultural and in middle-income countries, 3.1 importance of cities relative to rural percent, compared with 0.1 percent in indicator of areas. There is a worldwide trend toward high-income countries. Because the development? urbanization. In most countries it is a developing world has a larger popula- natural consequence and stimulus of tion, percentages of its population also economic development based on represent more people. As a result, by industrialization and postindustrial- 1995 almost three-quarters of the ization (see Chapter 9). Thus the level world’s 2.5 billion urban residents lived of urbanization, as measured by the in developing countries. The share of the share of a country’s urban population in urban population in the total population its total population, is highest in the of low- and middle-income countries most developed, high-income countries increased from less than 22 percent in and lowest in the least developed, low- 1960 to 39 percent in 1995 and is income countries (see Data Table 2). expected to exceed 50 percent by 2015. At the same time, urbanization is pro- A rough indication of the urban contri- gressing much faster in developing bution to GDP is the combined share of countries than in developed countries GDP produced in the industry and ser- Figure 10.1 Urban population, 1980 and 1995 Millions of urban residents 1000 962 Middle-income countries 912 800 Low-income countries 680 639 600 603 High-income countries 501 400 1980 1995 55 BEYOND ECONOMIC GROWTH vice sectors relative to agriculture. Judging Most of the world’s most populous cities by this indicator, cities in developing are in developing countries. Many of these countries are already more economically cities are in Asian countries with low per important than rural, primarily agricul- capita incomes but big populations, such tural areas, because more than half of the as China, India, and Indonesia. These developing world’s GDP originates in cities have high concentrations of poor Why is urban air cities. (This is not yet true for every coun- residents and suffer from social and envi- try, as you can see in Data Table 2.) ronmental problems including severe air pollution often pollution (Table 10.1). higher in While urbanization is characteristic of developing nearly all developing countries, levels of countries? urbanization vary quite significantly by Particulate Air Pollution region (Figure 10.2). Most Latin American countries are as urbanized as Suspended particulate matter is made up Europe, with 74 percent of the popula- of airborne smoke, soot, dust, and liquid tion living in urban areas. But South droplets from fuel combustion. The Asia, East Asia, and Sub-Saharan Africa amount of suspended particulate matter, remain predominantly rural, though usually measured in micrograms per cubic they are urbanizing rapidly. meter of air, is one of the most important Figure 10.2 Urban population as a percentage of total population, 1980 and 1995 80 78% 74% 75% 65% 65% 60 57% 58% 48% 40 31% 31% 26% 22% 21% 23% 20 0 South East Asia Sub- Middle East Europe Latin America High- Asia and the Saharan and and and the income Pacific Africa North Africa Central Asia Caribbean countries 1980 1995 56 10 URBANIZATION AND URBAN AIR POLLUTION indicators of the quality of the air that Table 10.1 Particulate air pollution in the largest cities, 1995 people breathe. According to the World SPM Health Organization’s air quality stan- City population (micrograms dards, the concentration of suspended Country City (thousands) per m3) particulates should be less than 90 micro- Brazil São Paolo 16,533 86 grams per cubic meter. In many cities, Rio de Janeiro 10,187 139 however, this number is several times China Shanghai 13,584 246 higher (Map 10.1; see also Table 10.1). Beijing 11,299 377 Tianjin 9,415 306 High concentrations of suspended par- Egypt, Arab Rep. Cairo 9,690 — ticulates adversely affect human health, France Paris 9,523 14 provoking a wide range of respiratory India Mumbai 15,138 240 Calcutta 11,923 375 diseases and exacerbating heart disease Delhi 9,948 415 and other conditions. Worldwide, in Indonesia Jakarta 8,621 271 1995 the ill health caused by such pollu- Japan Tokyo 26,959 49 tion resulted in at least 500,000 prema- Osaka 10,609 43 ture deaths and 4–5 million new cases of Korea, Rep. Seoul 11,609 84 chronic bronchitis. Mexico Mexico City 16,562 279 Philippines Manila 9,286 200 Russian Federation Moscow 9,269 100 Most of the people at risk are urban Turkey Istanbul 7,911 — dwellers in developing countries, espe- United Kingdom London 7,640 — cially China and India. In many Chinese United States New York cities air quality is so poor that nation- (1987–90) 16,332 61 wide, the costs of excess morbidity and Los Angeles 12,410 — mortality for urban residents are esti- — No data. mated at 5 percent of GDP. According Note: Selected are the cities with more than 7 million residents. to estimates for 18 cities in Central and Eastern Europe, 18,000 premature ural gas and higher-grade coal), burning deaths a year could be prevented and these fuels more efficiently, and increas- $1.2 billion a year in working time lost ing reliance on even cleaner, renewable to illness could be regained by achieving sources of energy (hydro, solar, geother- European Union pollution standards for mal, wind) are some of the best ways to dust and soot. control and reduce air pollution without limiting economic growth. See Figure The level of air pollution depends on a 10.3 for the main sources of electricity country’s technology and pollution con- in China, Russia, and the United States. trol, particularly in energy production. Compare these data to the concentra- Using cleaner fossil fuels (such as nat- tions of suspended particulates in the 57 BEYOND ECONOMIC GROWTH Map 10.1 Particulate air pollution in selected cities, 1995 or most recent estimates Moscow Paris New York Beijing Seoul Tianjin Tokyo Delhi Osaka Shanghai Calcutta Mexico City Mumbai Manila Jakarta Rio de Janeiro Sгo Paulo Micrograms per m3 300 or more 200–299 91–199 90 or less biggest cities of these three countries as Fuel combustion by motor vehicles is shown in Table 10.1. Note that coal is another major source of suspended par- considered to be the “dirtiest� of the ticulate emissions in urban areas. These sources shown, although a lot depends emissions are particularly detrimental to on its quality and methods of combus- human health because pollutants are tion. In many ways nuclear energy is one emitted at ground level. Motor vehicles of the “cleanest� sources of electricity, are much more common in developed but safe disposal of nuclear waste and countries: in 1996 there were 559 of the risks of radioactive pollution in case them per 1,000 people in high-income of a serious accident are of major con- countries compared with just 8 per cern. Sources with the least environmen- 1,000 people in low-income countries tal impact, such as solar energy, are not and 91 in middle-income countries. (See shown because they account for only a Data Table 2 for the number of motor small fraction of generated electricity vehicles in individual countries.) But worldwide. motor vehicles in developing countries 58 10 URBANIZATION AND URBAN AIR POLLUTION Figure 10.3 Sources of electricity in selected countries, 1995 China Russia United States 0.2% 1.3% 6.1% 11.6% 8.8% 18.9% 20.5% 20.1% Is it possible to 18.3% 14.9% 40.1% 73.4% 51.5% reduce air 9.2% 2.5% pollution without Hydropower Oil Natural gas Nuclear power slowing economic Coal growth? Note: Percentages may not total 100 because of rounding and because other sources of electricity (such as geothermal power, solar power, and wind) are not shown. still cause serious air pollution because such dynamics can lead to grave health they are concentrated in a few large consequences for urban populations. cities, many are in poor mechanical con- dition, and few emission standards exist. Airborne Lead Pollution According to World Bank estimates, demand for gasoline in developing coun- Airborne lead is one of the most harmful tries tends to grow 1.2–1.9 times faster particulate pollutants. Young children than GNP per capita. If per capita are especially vulnerable: lead poisoning income growth rates of 6–8 percent a of children leads to permanent brain year are typical of industrializing and damage, causing learning disabilities, urbanizing countries, growth rates in hearing loss, and behavioral abnormali- motive fuel consumption of 10–15 per- ties. In adults lead absorption causes cent a year are possible. In many transi- hypertension, blood pressure problems, tion countries in the late 1980s and early and heart disease. The main sources of 1990s, the number of cars in use grew airborne lead are motor vehicles using rapidly despite the contraction in eco- leaded gasoline, industrial processes such nomic activity and reduced per capita as ferrous and nonferrous metallurgy, incomes. In Moscow (Russia) the pas- and coal combustion. senger car fleet grew 10 percent a year during 1984–94 and 17.5 percent a year While governments increasingly control during 1990–94. Without effective poli- large industrial sources of pollution, cies to curb motor vehicle emissions, motor traffic is rapidly growing. In 59 BEYOND ECONOMIC GROWTH many urban areas more than 80 percent nance, and improved fuel efficiency. of lead pollution is caused by vehicles Recognizing the high costs of the dam- using leaded gasoline. Therefore, since age to human health caused by lead the 1970s—when medical evidence on emissions and adopting appropriate the adverse health impacts of lead national policy are matters of high became available—many countries have urgency for many developing countries. reduced or eliminated lead additives in gasoline. The elimination of leaded gaso- International experience shows that in line has been achieved, for example, in most countries air quality deteriorates in Austria, Japan, and Sweden. But in the early stages of industrialization and much of the developing world lead addi- urbanization. But when countries become tives are still widely used, especially in richer their priorities shift—they recog- Africa. Experts suspect that in develop- nize the value of their natural resources ing countries all children under 2 and (clean air, safe water, fertile topsoil, abun- more than 80 percent of those between dant forests), enact and enforce laws to 3 and 5 have blood lead levels exceeding protect those resources, and have the World Health Organization standards. money to tackle environmental problems. As a result air quality and other environ- Economists have calculated that, with mental conditions start to improve. the technological options available Certain experts have even calculated the today, phasing out leaded gasoline is average levels of per capita income at highly cost-effective. Shifting production which levels of various pollutants peaked from leaded to unleaded gasoline rarely for a panel of countries between 1977 costs more than 2 cents a liter, and and 1988. Smoke, for example, tended to countries can save 5 to 10 times as much peak in the urban air when a country as that, mostly in health savings from reached a per capita income of about reduced morbidity and mortality. When $6,000, after which this kind of air pollu- the United States converted to unleaded tion tended to decrease. For airborne gasoline, it saved more than $10 for lead, peak concentrations in urban air every $1 it invested thanks to reduced were registered at considerably lower lev- health costs, savings on engine mainte- els of per capita income—about $1,900. 60 11 Public and Private Enterprises: Finding the Right Mix During the 20th century the economic economy—was widely followed. Still, importance of the state grew all over the the share of government spending in the Is a growing share world. In developed countries central GDP of developing countries is less than of government government spending accounted for less half that in developed countries (see than 10 percent of gross domestic Figure 11.1 and Data Table 3). Does this spending a reliable product (GDP) in the early 1900s, but mean that a growing share of govern- indicator of by the 1990s that share had grown to ment spending in GDP should be seen development? nearly 50 percent in many of those as a sign of development? countries (Figure 11.1; Data Table 3 ). Among the major historical factors con- tributing to this government expansion The Dilemma of Public-Private were the Russian Revolution of 1917 Ownership and the Great Depression of the 1930s. But the data suggest that this expansion Government budgets in developing coun- continues even today: over the past 35 tries are not only proportionately smaller, years the share of government spending but they are also structured differently. In in the GDP of developed countries developed countries more than half of roughly doubled. government spending is devoted to social services, including pensions, unemploy- In developing countries the economic ment insurance, social security, and other role of government grew dramatically in transfer payments. In developing coun- the second half of the 20th century, after tries much less government spending goes the end of colonialism and in pursuit of for social services and much more is used such development goals as industrial- to subsidize commercial (that is, selling ization and social equity. In many of goods and services) state-owned enter- these countries the state was striving to prises. Unlike other state-owned enter- mobilize resources and direct them prises that provide free public services (for toward rapid economic growth, rather example, schools and health clinics), these than just to stabilize the economy, as in state-owned enterprises could also be run most developed countries. Until the for profit by private firms. Governments, 1980s the pattern of state-dominated however, sometimes prefer to keep them development—which included central- under their direct control. The share of ized planning and state control of the commercial state enterprises in GDP and 61 BEYOND ECONOMIC GROWTH Figure 11.1 Central government expenditure as a percentage of GDP, 1995 China 9.4% India 16.1% Mexico 16.8% Chile 19.2% Russia 22.2% Turkey 22.8% United States 22.9% Japan 23.8% Germany 33.8% United United Kingdom Kingdom 41.8% Sweden 45.0% France 46.4% Netherlands 50.8% 0 10 20 30 40 50 60 $ Developing countries $ Transition economies $ Developed countries in gross domestic investment tends to • Only government ownership of the be higher in poorer countries (Figure biggest enterprises can help avoid 11.2). mass unemployment. Is a high share of state enterprises a On the other hand, experience from problem? Is it good or bad for the eco- many countries shows that state enter- nomic growth and development of prises are normally less efficient than developing countries? Those who want private firms. One of the main reasons is to preserve extensive state enterprises that state enterprise managers have little argue that: or no incentive to pursue profitability for their enterprises. Easy access to gov- • Only government is capable of pro- ernment subsidies and government-guar- viding sufficient investment for tech- anteed loans effectively remove the nical modernization of major threat of bankruptcy as a check on inef- national industries. ficiency. Besides, it is often hard to run • Only direct government control over state enterprises at a profit because gov- certain enterprises can prevent ernments tend to keep state enterprises’ socially unacceptable high prices for selling prices artificially low, and because basic goods and services such as rules often do not allow these enterprises energy, housing, and transportation. to lay off excess employees. 62 11 PUBLIC AND PRIVATE ENTERPRISE: FINDING THE RIGHT MIX Figure 11.2 State-owned position of a country’s public sector? enterprises’ share of And can there be any general answers to GDP and gross domestic investment (GDI), these questions independent of ideologi- 1986–91 cal beliefs? 30 28% In fact, it is increasingly recognized that 25 state intervention is justified only where When should markets fail. There are five basic situa- governments 20 tions, called market failures, where the 17% private sector tends to underproduce or intervene in 15 14% 13% overproduce certain goods and services: economic 9% activities? 10 8% • Underproduction of public goods such as defense, law and order, 5 roads, and environmental 0 protection. Low- Middle- High- • Underproduction of goods and ser- income income income countries countries countries vices with positive externalities (for example, public health and educa- $ GDP GDI $ tion) and overproduction of goods and services with negative externali- ties (for example, cigarettes). In countries where the share of state • Overpricing and underproduction enterprises is high, their typically low by natural monopolies, for example efficiency can hinder economic growth. by electric and water utilities. In addition, governments have to cover • Insufficient supply of social services the financial losses of these inefficient such as pensions or medical and enterprises. To meet the resulting budget unemployment insurance. deficits, governments often have to • Insufficient information available to either print more money and thus cause some parties affected by market inflation, or borrow and build up their processes (for example, information domestic or foreign debt. In both cases about the quality of food products national economies are destabilized and and medicines available to con- growth opportunities are lost. sumers whose health is at risk). Given all that, is it ever preferable to These five situations call for some kind of keep enterprises under government own- government intervention. But even where ership? What is the ideal size and com- markets clearly fail, government provision 63 BEYOND ECONOMIC GROWTH of undersupplied goods and services is not to increase their health spending by necessarily the best option. We have about four times in Mexico and five already discussed the reasons for the typi- times in India. Alternatively, Mexico’s cally low efficiency of state enterprise central government could have increased management. Add to that the possibility its education spending by 50 percent, of corruption among bureaucrats and you and India’s by 550 percent. get what came to be called “government failure�. Increased awareness of this prob- If governments are to shift away from lem explains why some governments of supplying marketable goods and ser- developed countries are searching for vices, there must be active private sectors alternatives to state ownership, such as that are ready to take up these activities. new methods of regulation or government In some cases reducing the economic funding for private provision of public prominence of state enterprises is even goods. A notable example of such an alter- possible without extensive privatization, native solution to both market and gov- mainly by means of market liberaliza- ernment failures is provided by the new tion that leads to accelerated growth of phenomenon of public funding for pri- the private sector. That was the case in vate prisons in the United States.1 the Republic of Korea in the 1970s and 1980s, and in China in the 1980s and 1990s. But more often, particularly Is There a Trend toward where public sectors are much larger Privatization? than private sectors and so absorb a lot of scarce national resources, special pri- By privatizing all the enterprises that can vatization programs are needed. be successfully run by private firms, gov- ernments can often make national Since the 1980s many developing and economies more efficient, on the one some developed countries have adopted hand, and free their budgets from the privatization programs. You can attempt burden of subsidizing loss-making enter- to judge their scale by examining data on prises, on the other. As a result they are government proceeds from privatization able to focus on tasks that cannot be in Data Table 3. Note that these data handed over to markets, such as building depend not only on the scale of privatiza- human capital and providing for tion but also on its methods. Selling state human development (see chapter 1). For enterprises to outside owners normally example, according to some estimates, brings more revenue than selling them to shifting budget funds from state enter- enterprise managers and employees, while prise subsidies to public health care voucher privatization (such as in Russia in would have allowed central governments 1991–93) brings no revenue at all. 64 11 PUBLIC AND PRIVATE ENTERPRISE: FINDING THE RIGHT MIX Figure 11.3 Private sector output the different starting points and speeds as a share of GDP, of privatization in this group of coun- 1990 and 1995 tries, see Figure 11.3. Among other Belarus regions of the developing world, privati- Turkmanistan $ $ zation programs have accelerated in Tajikistan 1990 1995 Latin America and Southeast Asia, while Kazakhstan in Sub-Saharan Africa the process is less Azerbajan pronounced. Uzbekistan Georgia Moldova Unfortunately, in some transition Bulgaria countries—particularly those suffering Ukraine from transitional economic crises— Romania market reforms have resulted in neglect Slovenia of the state’s vital functions, such as law Kyrgyz Republic and order or critical social services. Macedonia, FYR Armenia Important programs in education and Croatia health, for instance, have been cut along Mongolia with or even instead of cutting subsidies Lithuania to money-losing enterprises. Such poli- Latvia cies not only damage people’s welfare, Poland they also erode the foundations of fur- Russia ther national development. Slovak Republic Albania Hungary Many experts argue that, although state- Estonia dominated development has failed, so Czech Republic would “stateless� development. Think about it: why are an effective state and 0 10 20 30 40 50 60 70 80 Percent viable private sector both important for development? The most impressive privatization process is currently under way in former Note socialist countries. Their transition to market-oriented economies requires 1. Prisons were traditionally state-owned “enter- unprecedented mass privatization of for- prises� because they “produce� such public goods merly dominant state enterprises. For as obedience to the law and public safety. 65 12 Globalization and International Trade “Globalization� refers to the growing important role in promoting free trade interdependence of countries resulting in place of protectionism. from the increasing integration of trade, finance, people, and ideas in one global Empirical evidence suggests that global- marketplace. International trade and ization has significantly boosted eco- cross-border investment flows are the nomic growth in East Asian economies main elements of this integration. such as Hong Kong (China), the Republic of Korea, and Singapore. But Globalization started after World War II not all developing countries are equally but has accelerated considerably since engaged in globalization or in a position the mid-1980s, driven by two main fac- to benefit from it. In fact, except for tors. One involves technological most countries in East Asia and some in advances that have lowered the costs of Latin America, developing countries transportation, communication, and have been rather slow to integrate with computation to the extent that it is often the world economy. The share of Sub- economically feasible for a firm to locate Saharan Africa in world trade has different phases of production in differ- declined continuously since the late ent countries. The other factor has to do 1960s, and the share of major oil with the increasing liberalization of exporters fell sharply with the drop in oil trade and capital markets: more and prices in the early 1980s. Moreover, for more governments are refusing to pro- countries that are actively engaged in tect their economies from foreign com- globalization, the benefits come with petition or influence through import new risks and challenges. The balance of tariffs and nontariff barriers such as globalization’s costs and benefits for dif- import quotas, export restraints, and ferent groups of countries and the world legal prohibitions. A number of interna- economy is one of the hottest topics in tional institutions established in the development debates. wake of World War II—including the World Bank, International Monetary Fund (IMF), and General Agreement Costs and Benefits of Free Trade on Tariffs and Trade (GATT), suc- ceeded in 1994 by the World Trade For participating countries the main Organization (WTO)—have played an benefits of unrestricted foreign trade 66 12 GLOBALIZATION AND INTERNATIONAL TRADE stem from the increased access of their industries—those that are less competi- producers to larger, international mar- tive and adaptable—will be forced out of kets. For a national economy that access business. Meanwhile, reliance on foreign means an opportunity to benefit from suppliers may be considered unaccept- the international division of labor, on able when it comes to industries with a the one hand, and the need to face significant role in national security. For stronger competition in world markets, example, many governments are deter- Should all on the other. Domestic producers pro- mined to ensure the so-called food secu- countries be duce more efficiently due to their inter- rity of their countries, in case food national specialization and the pressure imports are cut off during a war. equally open to that comes from foreign competition, foreign trade? and consumers enjoy a wider variety of In addition, governments of developing domestic and imported goods at lower countries often argue that recently estab- prices. lished industries require temporary pro- tection until they become more In addition, an actively trading country competitive and less vulnerable to for- benefits from the new technologies that eign competition. Thus governments “spill over� to it from its trading part- often prohibit or reduce selected imports ners, such as through the knowledge by introducing quotas, or make imports embedded in imported production more expensive and less competitive by equipment. These technological imposing tariffs. Such protectionist poli- spillovers are particularly important for cies can be economically dangerous developing countries because they give because they allow domestic producers them a chance to catch up more quickly to continue producing less efficiently with the developed countries in terms and eventually lead to economic stagna- of productivity. Former centrally tion. Wherever possible, increasing the planned economies, which missed out economic efficiency and international on many of the benefits of global trade competitiveness of key industries should because of their politically imposed iso- be considered as an alternative to protec- lation from market economies, today tionist policies. aspire to tap into these benefits by rein- tegrating with the global trading system. A country that attempts to produce almost everything it needs domestically But active participation in international deprives itself of the enormous economic trade also entails risks, particularly those benefits of international specialization. associated with the strong competition But narrow international specialization, in international markets. For example, a which makes a country dependent on country runs the risk that some of its exports of one or a few goods, can also be 67 BEYOND ECONOMIC GROWTH risky because of the possibility of sudden more. Think of examples of countries unfavorable changes in demand from whose geographic location is particularly world markets. Such changes can signifi- favorable or unfavorable for their partici- cantly worsen a country’s terms of trade. pation in global trade. Thus some diversification of production and exports can be prudent even if it Despite the risks, many countries have entails a temporary decrease in trade. been choosing to globalize their Every country has to find the right place economies to a greater extent. One way in the international division of labor to measure the extent of this process is based on its comparative advantages. by the ratio of a country’s trade (exports plus imports) to its GDP or GNP. By The costs and benefits of international this measure, globalization has roughly trade also depend on factors such as the doubled on average since 1950. Over the size of a country’s domestic market, its past 30 years exports have grown about natural resource endowment, and its twice as fast as GNP (Figure 12.1). As a location. For instance, countries with result, by 1996 the ratio of world trade large domestic markets generally trade to world GDP (in purchasing power less. At the same time, countries that are parity terms) had reached almost 30 well endowed with a few natural percent—on average about 40 percent in resources, such as oil, tend to trade developed countries and about 15 per- Figure 12.1 Average annual growth rates of GNP and exports of goods and services, 1965–96 Percent 10 8.8% 8 7.4% 6.2% 5.8% 5.9% 6 5.2% 4.6% 4 3.1% 3.0% 3.3% 2.7% 2.1% 2 0 World High-income East Asia Latin America South Asia Sub-Saharan countries and the and the Africa Pacific Caribbean GNP Exports 68 12 GLOBALIZATION AND INTERNATIONAL TRADE Map 12.1 Trade as a percentage of real GDP, 1996 45% or more 35.0–44.9% 20.0–34.9% 15.0–19.9% Less than 15% No data Note: The ratio of trade to purchasing power parity–adjusted GDP is considered the best available tool for comparing integration with the world economy across countries. But the use of this tool is complicated by the different shares of the service sector in the economies of different countries. For example, developed countries appear to be less integrated because a larger share of their output consists of services, a large portion of which are by their nature nontradable. cent in developing countries (Map 12.1 the same time, developing countries and Data Table 3). have increased trade among themselves. Still, developed countries remain their main trading partners, the best markets Geography and Composition of for their exports, and the main source of Global Trade their imports. Over the past 10 years patterns of inter- Most developing countries’ terms of national trade have been changing in trade deteriorated in the 1980s and favor of trade between developed and 1990s because prices of primary developing countries. Developed coun- goods—which used to make up the tries still trade mostly among themselves, largest share of developing country but the share of their exports going to exports—have fallen relative to prices of developing countries grew from 20 per- manufactured goods. For example, cent in 1985 to 22 percent in 1995. At between 1980 and 1995 real prices of 69 BEYOND ECONOMIC GROWTH oil dropped almost fourfold, prices of tries (Figure 12.2). The most dynamic cocoa almost threefold, and prices of categories of their manufactured exports coffee about twofold. There is still are labor-intensive, low-knowledge debate about whether this relative products (clothes, carpets, some manu- decline in commodity prices is perma- ally assembled products) that allow nent or transitory, but developing coun- these countries to create more jobs and How is the role of tries that depend on these exports have make better use of their abundant labor already suffered heavy economic losses resources. developing that have slowed their economic growth countries in global and development. By contrast, developing countries’ trade changing? imports from developed countries are In response to these changes in their mostly capital- and knowledge-intensive terms of trade, many developing coun- manufactured goods—primarily tries are increasing the share of manu- machinery and transport equipment—in factured goods in their exports, which developed countries retain their including exports to developed coun- comparative advantage.1 Figure 12.2 Developing countries’ trade with OECD countries, 1985 and 1996 Exports to OECD countries 1985 1996 16% 12% 22% 5% 26% 57% 57% 3% 2% Imports from OECD countries 1985 1996 4% 5% 2% 11% 8% 3% 3% 1% 80% 83% Food Ores and fuel Agricultural raw materials Miscellaneous Manufactured goods 70 12 GLOBALIZATION AND INTERNATIONAL TRADE Trade Issues in Transition ing a customs union for four members Countries of the Commonwealth of Independent States—Russia, Belarus, Kazakhstan, Countries in transition from planned to and the Kyrgyz Republic. Russia and market economies have recognized the Belarus have since signed a treaty on potential benefits of global integration, forming an Interstate Commonwealth. and most have significantly liberalized What problems do their trade regimes. As a result many Regional trade blocs can contribute to transition Central and Eastern European countries transition countries’ economic stabiliza- saw the share of trade in GDP increase tion but they also carry risks of diverting countries face as from 10 percent or less in 1990 to 20 trade from potentially more beneficial they join in global percent or more in 1995. In Russia and trade partnerships with other countries. trade? other countries of the former Soviet Ten transition countries in Central and Union the ratio of trade to GDP fell dur- Eastern Europe and the Baltics have ing this period, but this was a result of the applied for membership in the European collapse of trade within the former Soviet Union, and nearly all transition countries Union—trade with the rest of the world have applied to join the World Trade actually expanded. As market-determined Organization (WTO). Membership in patterns of trade replace government- the WTO would provide these countries determined patterns, a massive reorienta- with protection from substantial tion of trade is under way favoring closer barriers—particularly quotas—which still links with established market economies. impede their exporting of so-called sensi- tive goods to developed countries. Trade among transition countries is also Among these goods are agricultural prod- recovering following a sharp, politically ucts, iron and steel, textiles, footwear, and motivated decline at the start of the others in which transition economies may transition. A number of regional eco- have comparative advantages. Joining the nomic integration initiatives are WTO would not only confer rights on unfolding—the Baltic Free Trade Area transition economies, it would also (comprising Estonia, Latvia, and require them to meet certain obligations, Lithuania), Central Europe Free Trade such as maintaining low or moderate tar- Area (the Czech Republic, Hungary, iffs and abolishing nontariff barriers. Poland, the Slovak Republic, Slovenia, and countries of the Baltic Free Trade A major challenge for transition Area), and free trade initiatives within economies is finding their place in the the Commonwealth of Independent worldwide division of labor. In many States. One of these initiatives started in cases that implies diversifying the struc- 1995 with negotiations about establish- ture of exports, particularly to developed 71 BEYOND ECONOMIC GROWTH countries. Some former Soviet Union sure of low-cost, labor-intensive imports from countries are narrowly specialized in the developing countries pushes down the wages of production and export of a small number unskilled workers in developed countries (thus of commodities, such as cotton in increasing the wage gap between skilled and Turkmenistan and Uzbekistan and food unskilled workers, as in the United Kingdom products in Moldova. For others, such as and United States) and pushes up unemploy- Russia and Belarus, the biggest problems ment, especially among low-skill workers (as in are the quality and international compet- Western Europe). But empirical studies suggest itiveness of their manufactured goods. that although trade with developing countries affects the structure of industry and demand for industrial labor in developed countries, the main Note reasons for the wage and unemployment prob- lems are internal and stem from labor-saving 1. A popular debate in many developed coun- technological progress and postindustrial eco- tries asks whether the growing competitive pres- nomic restructuring (see Chapters 7 and 9). 72 13 Foreign Aid and Foreign Investment Financial flows to developing countries operation and Development (OECD) take two main forms—aid that comes in 1996. How can official from foreign governments, often called development official development assistance, and On average, the donor countries in Table investment from foreign private compa- 13.1 spend about one-third of 1 percent assistance be nies, known as private capital flows. of their combined gross domestic prod- improved? uct (GDP) on official development assistance. Use Table 14.1 and Data Official Development Assistance Table 1 to calculate which countries spend larger and smaller shares of their After World War II and until the early GDP on such assistance. 1990s, the main source of external finance for developing countries was Official assistance to developing and official development assistance provided transition countries has three main by the governments of high-income components: countries in the form of food aid, emer- gency relief, technical assistance, peace- • Grants, which do not have to be keeping efforts, and financing for repaid. construction projects. Donor countries • Concessional loans, which have to are motivated by the desire to support be repaid but at lower interest rates their political allies and trade partners, and over longer periods than com- to expand the markets for their exports, mercial bank loans. and to reduce poverty and military con- • Contributions to multilateral insti- flicts threatening international security. tutions promoting development, After the breakup of the Soviet Union, such as the United Nations, former centrally planned economies also International Monetary Fund, started to receive official assistance, World Bank, and regional develop- aimed primarily at supporting market ment banks (Asian Development reforms. Table 13.1 shows the amounts Bank, African Development Bank, of net official assistance provided to Inter-American Development Bank). developing and transition countries by the member countries of the Grants account for 95–100 percent of Organization for Economic Co- the official assistance of most donor 73 BEYOND ECONOMIC GROWTH Table 13.1 Net capital flows from OECD countries, 1996 (millions of U.S. dollars) Official assistance Private capital flows Foreign direct Portfolio Total investment investment Total to Total to Total to Total to Total to Total to Total to Total to developing transition developing transition developing transition developing transition countries countries countries countries countries countries countries countries Australia 1,121 10 0 0 0 0 0 0 Austria 557 226 938 355 247 355 0 0 Belgium 913 70 4,528 4,109 461 169 4,194 4,007 Canada 1,795 181 1,859 3 2,024 0 –154 0 Denmark 1,772 120 188 248 199 248 0 0 Finland 408 57 472 146 257 194 162 –64 France 7,451 709 11,115 4,860 4,657 1,192 5,352 3,886 Germany 7,601 1,329 12,336 4,671 3,456 3,648 6,980 171 Ireland 179 1 125 0 0 0 125 0 Italy 2,416 294 289 218 457 153 1,642 706 Japan 9,439 184 27,469 1,928 8,573 1,315 19,981 1,652 Luxembourg 82 2 0 0 0 0 0 0 Netherlands 3,246 13 5,858 –36 6,225 45 –912 –78 New Zealand 122 0 9 0 9 0 0 0 Norway 1,311 50 294 –193 202 –201 0 0 Portugal 218 18 593 –4 482 3 0 0 Spain 1,251 2 2,865 –102 2,865 –102 0 0 Sweden 1,999 178 –17 –107 339 –84 0 0 Switzerland 1,026 97 395 705 1,316 705 –583 0 United Kingdom 3,199 362 18,196 3,952 5,852 390 12,120 3,500 United States 9,377 1,694 42,848 2,652 23,430 2,226 19,472 578 Total 55,485 5,596 130,360 23,406 61,051 10,255 68,963 14,358 Note: Negative figures in the table indicate net outflow of capital to respective OECD countries. Total private capital flows in the table can be greater or smaller than the sum of foreign direct and portfolio investments because they also include smaller flows of capital such as private export credits, grants by nongovernmental institutions, and others. countries. Most official assistance, how- or mismanaging aid receipts, but they ever, comes in the form of “tied� aid, may also reduce the value of aid if the which requires recipients to purchase arrangements are motivated by a desire goods and services from the donor to benefit suppliers of certain countries country or from a specified group of and that may prevent recipients from countries. Tying arrangements may pre- buying at the lowest price. Official assis- vent a recipient from misappropriating tance can also be “tied up� by condition- 74 13 FOREIGN AID AND FOREIGN INVESTMENT alities—as happens with aid to transition investment, driven by rapid growth of countries. Because these conditionalities multinational corporations and encour- are linked to the speed of market aged by liberalization of markets and reforms, rapidly reforming economies better prospects for economic growth in such as the Czech Republic and Poland a number of developing countries. receive more official assistance (relative to their population and GDP) than The developing world is becoming more Can increased those which are less prepared to do so integrated with global capital markets, but private capital (see Data Table 3). the level of integration varies widely from country to country. In 1990–94 about 90 flows to percent of private capital flows to develop- developing Private Capital Flows ing countries were concentrated in just 12 countries make up countries (Figure 13.2). For the distribu- for reduced official While official assistance to developing tion of foreign direct investment in 1996, countries hardly changed in the 1990s, see Data Table 3. At least half of all devel- assistance? net private capital flows to these coun- oping countries receive little or no foreign tries roughly quadrupled between 1990 direct investment. and 1994, far surpassing official flows (Figure 13.1). The structure of private Because poor African countries tend to flows also changed notably, shifting from be the least attractive for foreign a predominance of bank loans to foreign investors, the growth opportunities fed direct investment and portfolio invest- by foreign capital flows continue to pass ment (see Table 13.1). The share of for- them by. The effective exclusion of such eign direct investment going to countries from the globalization process developing countries has risen to more may widen international disparities even than one-third of global foreign direct further. Figure 13.1 Net capital flows to developing countries: period averages 1983–95 Billions of U.S. dollars 120 108 Net private capital flows 80 40 29 Net official flows 21 15 0 1983–88 1989–95 75 BEYOND ECONOMIC GROWTH Figure 13.2 Distribution of private capital flows to developing country recipients, 1991–94 Others Indonesia 2% 11% Hungary 3% Turkey 3% China Should developing 29% India 4% and transition Thailand 4% countries try to attract more Brazil 5% Mexico 13% foreign Portugal 6% investment? Malaysia 6% Republic of Korea 6% Argentina 8% The developing countries that attract the The increased international mobility of most private capital flows do so thanks capital has its risks, however. If private to their favorable investment climate investors (foreign and domestic alike) sud- (business environment), which includes denly lose confidence in a country’s stabil- such elements as a stable political ity and growth prospects, they can move regime, good prospects for economic their capital out of the country much growth, easy convertibility of the faster. In that respect portfolio investment national currency, and liberal govern- is much more dangerous than foreign ment regulation. Higher foreign invest- direct investment, because portfolio ment in these countries helps them investors—who own only a small stock of break the vicious circle of poverty (see shares in a company and have little or no Chapter 6) without adding to their for- influence on its management—are much eign debt. In addition, foreign direct more likely to try to get rid of these shares investment usually brings with it at the first sign or suspicion of falling advanced technologies, managerial and profits. The East Asian financial crisis that marketing skills, and easier access to started in 1997 is seen by some experts as export markets. The added competition an example of the negative implications of between foreign and domestic compa- excessive capital mobility. nies also makes national markets more competitive and national economies Private capital flows to the transition more efficient. countries of Europe and Central Asia are 76 13 FOREIGN AID AND FOREIGN INVESTMENT often deterred by uncertainties about Table 13.2 Foreign direct investment in selected transition property rights, inflation, taxes, price con- countries, 1991–96 trols, export and import regulations, and (millions of U.S. dollars) other aspects of the business environment. Country Cumulative flows As a result private capital flows to these Armenia 36 countries remain relatively small, account- Belarus 54 ing for only about 13 percent of the flows Kyrgyz Republic 146 to developing countries in 1990–95. Uzbekistan 190 Moreover, the distribution of these flows Albania 248 has been highly uneven. Countries seen as Bulgaria 588 Latvia 614 more advanced in market reforms—the Slovenia 650 Czech and Slovak Republics, Hungary, Slovak Republic 687 and Poland—attracted almost three-quar- Estonia 859 ters of foreign investment in this group of Ukraine 1,163 countries (see Data Table 3). The distribu- Romania 1,379 tion of foreign direct investment among Kazakhstan 2,997 selected transition countries is also shown Poland 4,862 Russia 6,205 in Table 13.2. Czech Republic 6,368 Hungary 12,767 While some countries have managed to China 121,704 rely on foreign investment to alleviate the difficulties of the transition period, Russia—along with some other former Russia in 1993–97. The ongoing capital Soviet Union countries—has suffered flight from Russia is the biggest obstacle from significant, mostly illegal capital to its economic development. This situa- outflows. If the illegal outflows of the tion underscores the importance of cre- 1990s were reflected in statistics, the ating a favorable investment climate, numbers for net capital flows to these which is critical not only for attracting countries would turn negative. foreign investors but, even more impor- According to some estimates, more than tant, for preventing and reversing $110 billion in capital flowed out of domestic capital flight. 77 14 Economic Development and the Risk of Global Climate Change Since the industrial revolution, economic to suffer—and those in poor countries Who is primarily development has been accompanied by may suffer the most, being less prepared growth in the consumption of fossil to cope with the changes. responsible for fuels, with more and more coal, oil, and creating the risk of natural gas being burned by factories and Many developing countries in arid and global climate electric power plants, motor vehicles, and semiarid regions may see their access to change? households. The resulting carbon dioxide safe water worsen. (As things stand (CO2) emissions have turned into the today, more than 1 billion people lack largest source of greenhouse gases— access to safe water.) Tropical diseases gases that trap the infrared radiation from may spread farther to the North, and the earth within its atmosphere and create flooding will likely become a bigger the risk of global warming. Because the problem in temperate and humid earth’s environmental systems are so com- regions. While food production could plex, the exact timing and extent to become easier in middle and high lati- which human economic activities will tudes, in the tropics and subtropics change the planet’s climate are still yields will likely fall. Large numbers of unclear. But many scientists believe that people could be displaced by a rise in the the changes are already observable. sea level—including tens of millions in Bangladesh alone, as well as entire According to the 1995 report of the nations inhabiting low-lying islands such Intergovernmental Panel on Climate as those in the Caribbean. Change, by 2100 the mean global tem- perature could increase by 1.0–3.5 The amount of carbon dioxide a country degrees Celsius and the global sea level emits into the atmosphere depends could rise by 15–95 centimeters if cur- mainly on the size of its economy, the rent trends in greenhouse gas emissions level of its industrialization, and the continue. Though these may seem like efficiency of its energy use. Even though minor changes, they could have multiple developing countries contain most of adverse consequences, along with some the world’s population, their industrial uncertain benefits. Forests and other production and energy consumption per ecosystems, unable to adapt to changing capita are relatively low. Thus until temperatures and precipitation patterns, recently there has been little doubt that may be damaged. People are also likely the primary responsibility for creating 78 14 ECONOMIC DEVELOPMENT AND THE RISK OF GLOBAL CLIMATE CHANGE Map 14.1 Carbon dioxide emissions per capita, 1992 (metric tons) 15.0 or more 7.0–14.9 3.0–6.9 1.0–2.9 Less than 1.0 No data the risk of global warming lies with industrialization: it is also because many developed countries (Map 14.1; Figures Russian enterprises use technologies that 14.1 and 14.2). are older and “dirtier� than those nor- mally used in developed countries. The United States is the largest contrib- Extremely inefficient energy use is one utor to global warming. Although it of Russia’s biggest economic problems. contains just 4 percent of the world’s Measured in terms of gross domestic population, it produces almost 25 per- product (GDP) per unit of energy use, cent of global carbon dioxide emissions. energy efficiency in Russia is more than Russia was recently replaced by China as 5 times lower than in the United States the second largest emitter, but on a per and more than 12 times lower than in capita basis it is still far ahead of China Japan. Only four countries are less (see Figures 14.1 and 14.2). Russia’s high energy efficient than Russia—and all are per capita carbon dioxide emissions are former members of the Soviet Union explained not only by its high level of (see Data Table 4). 79 BEYOND ECONOMIC GROWTH Figure 14.1 Commercial energy use and carbon dioxide emissions per capita, early 1990s 20 19.1 15 14.1 10.9 10 8.8 7.8 6.6 5.7 5 3.8 4.0 4.1 3.5 2.3 0.5 0.9 1.4 0.7 1.5 0.7 0.01 0.2 0 en a a a a ia es n y il ol di in tin an pa az ss at ed ng In Ch Ru m en Ja Br St Sw A er rg d G te A ni U Carbon dioxide emissions per capita, Energy use per capita, 1994 1992 (Metric tons) (Metric tons of oil equivalent) Figure 14.2 Shares of world energy use and carbon dioxide emissions by country income group, early 1990s Energy use, 1994 Carbon dioxide emissions, 1992 China 10% United States China United States 25% 12.5% 23% Low-income Low-income countries countries 14% 18% High-income High-income countries countries Middle-income 48% 57% countries Middle-income 29% countries 34% Russia 7% Russia 10% The link between economic growth and ide emissions—is direct and positive for increased energy consumption— low- and middle-income countries. accompanied by increased carbon diox- But at high income levels, there are signs 80 14 ECONOMIC DEVELOPMENT AND THE RISK OF GLOBAL CLIMATE CHANGE of lower per capita energy consumption States—were falling short of that target. and pollution despite economic growth The Kyoto Protocol, adopted at the con- (see Data Table 4). This occurs because ference, is meant to be legally binding energy use becomes more efficient and and calls on all wealthy nations to reduce environmentally cleaner technologies are greenhouse gas emissions by 6–8 percent introduced. In addition, a higher- below 1990 levels by 2012. income economy usually includes a pro- Should all portionately larger service sector, which This agreement is considered the most developing is less energy-intensive than industry (see ambitious global environmental under- Chapter 9). taking in history—even though devel- countries join in oping countries’ participation in it was international Germany sets the example for other postponed. Most developing countries efforts to reduce developed countries in this regard: refuse to commit to reducing green- carbon dioxide between 1980 and 1992 its per capita house gas emissions, arguing that these energy use has dropped 11 percent and its commitments would undermine their emissions? per capita carbon dioxide emissions economic development and impede almost 20 percent. In the United States poverty alleviation. At the same time, a during the same period, per capita energy number of countries with transition consumption was stable and per capita economies have joined in the efforts of carbon dioxide emissions fell about 6 per- developed countries. For example, cent. But these changes were not suffi- Russia and Ukraine have vowed not to cient to stop the growth of carbon exceed their greenhouse gas emissions of dioxide emissions by high-income coun- 1990, while Hungary and Poland have tries or to slow the growth of global emis- promised to go 6 percent below these sions (see Data Table 4). To prevent levels. global climate change, concerted efforts are needed from the governments of most Developed countries are expected to take countries. the lead in preventing global climate change even though in less than 20 years At the 1992 Earth Summit in Rio de developing countries will likely surpass Janeiro (Brazil), developed nations agreed them as the main emitters of carbon to work toward stabilizing their green- dioxide. But it will take much longer house gas emissions at 1990 levels by than 20 years for per capita energy con- 2000. By the time representatives of 165 sumption in developing countries to countries had gathered in Kyoto (Japan) become comparable to that in today’s for the United Nations Conference on developed countries. So, in terms of fair- Climate Change in 1997, it was clear ness, today’s poor countries have every that many—including the United right to continue polluting the atmos- 81 BEYOND ECONOMIC GROWTH Figure 14.3 What if the right to emit carbon dioxide were based on population size? Low-income countries Middle-income countries High-income countries 56% 28% 48% 32% 16% 18% Total global carbon % “Fair� quota based Estimated share of global dioxide emissions on population emissions as of 1992 phere. But is it wise for them to follow a Assume, for the sake of fairness, that model of development that has already every person on earth has an equal right proven unsustainable? And is it true that to the atmosphere as a resource. In that environmental concerns cannot be case carbon dioxide emission quotas for addressed without impeding poor coun- countries would be determined by popu- tries’ economic growth? Many analysts lation size. Low-income countries would believe that the sooner these countries not yet have reached their quotas and take advantage of cleaner production would have the right to continue emit- technologies and more efficient ways of ting carbon dioxide. But middle- and generating and using energy, the better it high-income countries would already will be for their long-term development have exceeded their quotas (compare prospects. Figures 2.2 and 14.3). 82 15 Composite Indicators of Development Comparing countries’ GNP (or GDP) capita are presented, one on each axis, per capita is the most common then connected with bold lines to form a Can you suggest a approach to assessing their level of devel- polygon (Figure 15.1). The shape of this better way to opment. But higher per capita income in “diamond� can easily be compared to the a country does not always mean that its reference diamond, which represents the measure countries’ people are better off than those in a average indicators for the country’s development (than country with lower income, because income group, each indexed to 100 per- those described in there are many aspects of human well- cent (see green and blue diamonds). Any this chapter)? being that these indicators do not cap- point outside the reference diamond ture. (Can you give some examples? See shows a value better than the group’s Chapter 2.) Seeking a better measure of average, while any point inside signals development success, experts use differ- below-average achievement. ent methods of integrating data on aver- age incomes with data on average health Russia’s development diamond has a tri- and education levels. These methods angular shape because data on the per- make it possible to assess a country’s centage of its population with access to achievements in both economic devel- safe water are unavailable in the World opment and human development (see Bank. Think of another indicator, possi- Chapter 1). bly more important for former Soviet Union countries, that you would use to compare levels of development. Use an Development “Diamonds� indicator from the Data Tables at the back of this book to complete the devel- Experts at the World Bank use so-called opment diamonds for Russia and one or development diamonds to portray rela- two other countries of your choice. tionships among four socioeconomic indicators for a given country relative to Note that the development diamonds the averages for that country’s income for China and Ethiopia, and Russia and group (low-income, lower-middle- Turkey were constructed using indexes income, upper-middle-income, or high- based on average indicators for two dif- income). Life expectancy at birth, gross ferent groups of countries—low-income primary (or secondary) enrollment, and lower-middle-income (see Figure access to safe water, and GNP per 15.1). This approach makes it impossi- 83 BEYOND ECONOMIC GROWTH Figure 15.1 Development diamonds for selected countries: recent index values Low-income countries: Lower-middle-income countries: China and Ethiopia Russia and Turkey Life expectancy, 1995 Life expectancy, 1995 1.5 1.5 1.0 1.0 How can countries 0.5 Primary 0.5 Primary 1.5 1.5 GNP per school GNP per school use their wealth to capita, 1.5 enrollment, capita, 1.5 enrollment, 1995 0.5 1993 1995 0.5 1993 more effectively 1.0 1.0 benefit their 1.5 1.5 Access to Access to people? safe water, 1993 safe water, 1993 Average for low-income countries Average for lower-middle-income countries a Ethiopia Russia China Turkey a. Data on access to safe water in Russia are not available. ble to visually compare the development primary, secondary, and tertiary enroll- achievements of these two pairs of coun- ments), and living standard (measured tries. This is one of the main disadvan- by GDP per capita in purchasing tages of this methodology—that it power parity terms). Achievement in cannot in practice be used to compare each area is measured by how far a coun- countries in different income groups try has gone in attaining the following goal: life expectancy of 85 years, adult literacy and enrollments of 100 percent, Human Development Index and real GDP per capita of $40,000 in purchasing power parity terms. United Nations experts prefer to use the Although highly desirable, these goals human development index to measure a have not yet been fully attained by any country’s development. This composite country, so the actual indicators are index is a simple average of three indexes expressed as decimal shares of the ideal. reflecting a country’s achievements in health and longevity (as measured by life The advantage of the human develop- expectancy at birth), education (mea- ment index relative to the development sured by adult literacy and combined diamond method is that it allows coun- 84 15 COMPOSITE INDICATORS OF DEVELOPMENT tries to be ranked in order of their Table 15.1 Differences between rankings by GNP per capita achievements in human development. and by the human development index In the recent ranking, based on 1997 Real GNP per data, the top five countries were capita (PPP$) Rank by real Rank by rank minus Canada, Norway, the United States, (PPP$) GNP index of human human Japan, and Belgium. The bottom five per capita, development, development countries were, Sierra Leone, Niger, Country 1995 1995 index rank Ethiopia, Burkina Faso, and Burundi. Kuwait 4 54 –50 The top five developing economies Pakistan 96 138 –42 were Singapore, Hong Kong (China), United Arab Emirates 24 48 –24 Brunei, Cyprus, and the Republic of Russia 62 72 –10 Korea. United States 2 4 –2 Tajikistan 128 118 10 Canada 12 1 11 The disadvantage of the human develop- Finland 21 6 15 ment index is that it does not allow us to judge the relative importance of its dif- ferent components or to understand why is (or isn’t), compared with other coun- a country’s index changes over time— tries, in translating the benefits of eco- whether, for example, it happens because nomic growth into quality of life for its of a change in GNP per capita or population (see Data Table 4). A positive because of a change in adult literacy. difference means that a country is doing relatively better in terms of human The human development index ranking development than in terms of per capita of some countries differs significantly income. This outcome is often seen in from their ranking by real GNP (or former socialist countries and in the GDP) per capita (Table 15.1). The dif- developed countries of Europe. A nega- ference between a country’s human tive difference means the opposite. The development ranking and per capita most striking examples are Kuwait and income ranking shows how successful it Pakistan (see Table 15.1). 85 16 Indicators of Development Sustainability Classical economists consistently identi- Composition of National Wealth How does the fied three sources and components of national wealth: land, labor, and capital. According to a number of recent World structure of By contrast, economists of the 20th cen- Bank studies, physical capital (produced national wealth tury preferred to focus on capital, under- assets) is not the main—much less the change as a stood to be physical capital only—the only—component of a country’s wealth. country develops? stock of structures and equipment used Most important for all countries are for production. Thus expenses aimed at human resources, which consist of “raw adding to this stock were the only labor,� determined mainly by the num- expenses categorized as investment. ber of people in a country’s labor force, Most other expenses, such as those for and human capital (Figure 16.1). education or for environmental protec- Natural capital is another important tion, were considered to constitute con- component of every nation’s wealth. sumption and treated as deductions from potential capital accumulation. A country’s level of development deter- mines the roles played by the different A better understanding of the need for components of its national wealth. The sustainable development first led to dominance of human capital is particu- attempts to “green� national accounts— larly marked in the most developed that is, to account for changes in natural countries, where natural capital accounts capital in calculations of gross domestic for just 2–5 percent of aggregate wealth. product and gross national product— By contrast, in West Africa—one of the then to the development of statistical world’s poorest regions—natural capital methods to account for changes in a still prevails over physical capital, and country’s human capital. Although val- the share of human resources is among uation methods for natural and human the lowest in the world despite a large capital are still imperfect, they allow population (see Figure 16.1). experts to explore some critical develop- Comparing West Africa to Western ment issues. These include the changing Europe is particularly indicative because composition of a country’s national in absolute terms the two regions have wealth and operational indicators of roughly the same per capita value for sustainable—or unsustainable— natural capital. Thus the striking differ- development. ence in the composition of their national 86 16 INDICATORS OF DEVELOPMENT SUSTAINABILITIY Figure 16.1 Composition of national wealth, 1994 Western Europea West Africab Human resources Human resources Produced assets 75% 60% 19% Produced assets 23% Natural capital 2% Natural capital 21% a. Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom. b. Benin, Burkina Faso, Cameroon, Central African RepublIc, Chad, Republic of Congo, Côte d'Ivoire, Gambia, Ghana, Guinea-Bissau, Mali, Mauritania, Senegal, Sierra Leone, Togo. wealth can be entirely attributed to the natural and human capital. To be sus- fact that the average West European has tainable, development must provide for 13–14 times as much human and physi- all these assets to grow over time—or at cal capital at his or her disposal. least not to decrease. The same logic applies to prudent management of a national economy as applies to prudent Accumulation of National management of personal property. Wealth As an Indicator of Sustainable Development With that definition in mind, the main indicator of sustainable (or unsustain- Over the past 10 years the concept of able) development might be the “gen- sustainable development has become uine saving rate� or “genuine investment more comprehensive and measurable. A rate,� a new statistical indicator being recent World Bank study defined sus- developed by World Bank experts. tainable development as “a process of Standard measures of wealth accumula- managing a portfolio of assets to pre- tion ignore the depletion of, and damage serve and enhance the opportunities to, natural resources such as forests and people face.� The assets that this defini- oil deposits, on the one hand, and tion refers to include not just tradition- investment in one of a nation’s most ally accounted physical capital, but also valuable assets—its people—on the 87 BEYOND ECONOMIC GROWTH other. The genuine saving (investment) lead to declining well-being of their citi- rate is designed to correct for this short- zens if no consistent efforts are made to coming by adjusting the traditional sav- reverse the trend. The only two “safe� ing rate downward by an estimate of regions of the developing world appear natural resource depletion and pollution to be South Asia and East Asia and the damages (the loss of natural capital), and Pacific, where genuine saving rates in How can countries upward by growth in the value of 1970–93 were positive and sometimes human capital (which comes primarily topped 15 percent of GNP (Figure make their from investing in education and basic 16.3). In developed countries the rates development more health services) (see Figure 16.2). of genuine saving were near 10 percent sustainable? for much of that period. Calculating genuine saving rates for dif- ferent countries is extremely challenging, It would be totally incorrect to conclude particularly because of difficulties in from this analysis that countries should valuing human capital. But the effort is not choose to develop at the expense of considered worthwhile because of the depleting their natural resources. potential importance of sustainable However, negative or low genuine saving development indicators for informing rates show that a considerable part of and guiding practical policymaking. nonrenewable natural resources has been used irrationally, to the detriment World Bank analysis has already shown of people’s future well-being. Income that many of the most resource-depen- from these natural resources has simply dent countries seem to have low or nega- been consumed rather than invested in tive genuine saving. This will eventually the other components of national Figure 16.2 Calculating the genuine saving rate Increase Decrease Increase in produced in natural in human capital capital capital Genuine saving 100% rate Gross national product 88 16 INDICATORS OF DEVELOPMENT SUSTAINABILITIY Figure 16.3 Genuine saving (investment) rate: Estimates for 1970–93 Percentage of GNP Percentage of GNP 15 20 Developed countries East Asia 10 and the 15 Pacific 5 South Asia 0 10 –5 Latin America –10 5 and the Caribbean –15 Middle East and 0 –20 North Africa –25 –5 Sub-Saharan –30 Africa –35 –10 70 73 76 79 82 85 88 91 94 70 73 76 79 82 85 88 91 94 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 wealth—physical capital and human 1980s, when their windfall oil incomes capital. Such investments can boost a could have been used to substantially country’s development in a sustainable build up their long-term economic manner. But according to the data in potential. That kind of development Figure 16.3, most countries in the policy is apparently unsustainable and Middle East and North Africa failed to should normally cause concern among make such investments in the 1970s and policymakers. 89 17 Some Additional Issues: In Search of a Comprehensive Development Strategy What are the main Over the past several decades some (see Chapter 1). This comprehensive developing countries have achieved process of change has to involve most of factors of success high economic growth rates, signifi- the population and cannot be limited to in development? cantly narrowing the gap between them- modernization at the top or in the capi- selves and the most developed tal city. countries. But many more developing countries have actually seen the eco- nomic gap widen (see Figure 4.4). Thus, Social Capital and Social while accelerated growth and develop- Cohesion ment leading to convergence with devel- oped countries are possible, they are in Researchers analyzing development have no way guaranteed. Do we understand shown that some countries and commu- the main reasons for successful develop- nities use all their productive resources ment? And what can governments do to (human, physical, and natural capital) catalyze their countries’ development? much more efficiently than do others and so are developing more successfully. To begin to answer these questions, it is How can this be explained? Refer back important to realize that development is to Figure 16.1. What this picture fails to far more complex than simply economic acknowledge is perhaps the most critical growth or the quantitative accumulation factor in any society’s development: the of national capital, even in the broader way people interact, cooperate, and meaning of the term (as described in resolve their conflicts. This is what con- Chapter 16, for instance). Development ventional statistical indicators have trou- is also the qualitative transformation of a ble measuring. And this is what whole society, a shift to new ways of researchers have recently come to call the thinking, and, correspondingly, new social capital of society. relations and new methods of produc- tion. Moreover, as you will probably Social capital refers to organizations and agree, transformation only qualifies as associations (including public, private, development if it benefits most people— and nonprofit) as well as to norms and improves their quality of life and gives relationships (such as laws, traditions, them more control over their destinies and personal networks). It is the glue 90 17. SOME ADDITIONAL ISSUES: IN SEARCH OF A NATIONAL DEVELOPMENT STRATEGY that holds societies together—what authority. Corruption not only wastes social cohesion depends on. Abundant resources by distorting government poli- social capital considerably lowers the cies away from the interests of the costs of doing business and increases majority, it also generates apathy and productivity by promoting trust, coordi- cynicism among citizens, makes laws nation, and cooperation at all levels. By dysfunctional, and contributes to a rise contrast, a lack of social capital leads to in crime. Eventually, corruption discred- How can countries conflicts and inefficiencies. its political democracy, which is essential build their social for development, and undermines broad Because social capital is so multidimen- public support for economic reforms. capital? sional, there can hardly be a single “best� No wonder that, according to some way of measuring it. But that does not studies, countries suffering from high mean that measurement is impossible. levels of corruption typically exhibit Researchers measure social capital in a lower rates of economic growth. Such number of creative ways, usually by calcu- elements of social capital as good gover- lating composite indexes based on a range nance and the rule of law are no less of data collected through surveys. The data important for economic development used for these calculations generally reflect than such basic economic conditions as people’s trust in governments and in public sufficient saving and investment (see institutions, memberships in civic organi- Chapter 6) or strong incentives for effi- zations, and access to information. ciency (see Chapter 11). Mounting evidence suggests that social capital is critical for economies to grow The Role of Government Policies and for people to prosper. However, radi- cal reforms or even rapid but unbalanced Governments seeking to accelerate their development often undermine existing countries’ development must do so with forms of social capital without replacing limited resources. Even though develop- them with new ones. Such degradation ment is a comprehensive process of of social capital threatens social cohesion change, governments must, nevertheless, and renders development unsustainable. identify and focus on areas where their Some development experts believe that limited action can make the biggest dif- this is what has happened, for example, ference. In addition to making up for in many transition countries. well-known market failures (see Chapter 11), government can also play Consider corruption among public ser- an important role in coordinating the vants, including bribery, misappropria- involvement of all development tion of public funds, and misuse of agents—private firms, public agencies, 91 BEYOND ECONOMIC GROWTH and civic associations—within the other forces are being weakened by rapid framework of a national development change. Cultural development is not a strategy. Government can help different luxury, but a way to strengthen social segments of society arrive at a common capital and thus one of the keys to suc- vision of the country’s short-term and cessful social and economic development. long-term future, build broad national Which roles in consensus on ways of making this vision In the economic sphere, the government a reality, and enable all the development is indispensable in promoting and safe- national agents to act in accordance with their guarding market competition in the pri- development social responsibilities. Formulating vate sector. The government can also play should the national development priorities and an important role in improving public government play? coordinating their achievement is a cru- access to the information and knowledge cial task that cannot be entrusted to the needed for development—for example, How can the market system—let alone underdevel- by supporting modern means of commu- government oped markets in poor countries. nication (telephones, faxes, Internet), catalyze national investing in fundamental research, and development? The roles of the government and the pri- creating a favorable environment for vate sector in implementing the national independent media and civic associations. development strategy cannot be the same in all countries. They depend on the Some government roles are still highly maturity and capabilities of the country’s debatable, however. For example, it is market system, on the one hand, and on not clear to what extent governments the organizational and financial capabili- should support and protect from foreign ties of the government, on the other. But competition those industries identified there are certain areas where government as areas of a country’s comparative involvement is indispensable: providing advantage (see Chapter 12). Nor is it for universal health care and education, clear how best to monitor and supervise protecting the economically vulnerable, private banks and other financial institu- creating and maintaining an effective tions to avoid restraining private initia- legal system with strong law enforcement tive while protecting society from the and well-functioning courts. risk of painful financial crisis. Supporting the preservation and develop- ment of national culture is another Choices and Challenges important role for government, particu- larly where the private sector and civic Every country faces many choices in deal- associations are weak. Cultural values can ing with its development issues. These serve as a strong cohesive force when choices are made daily in more or less 92 17. SOME ADDITIONAL ISSUES: IN SEARCH OF A NATIONAL DEVELOPMENT STRATEGY coordinated and more or less democratic passive, optimistic or pessimistic—is ways, with a longer- or shorter-term per- part of your country’s social capital too. spective in mind. They entail big risks or You can make a real difference by devel- big benefits for entire nations, but there is oping informed opinions and making a lot of uncertainty in every choice. them known to other people, by influ- Learning from historical experience, encing the course of public debates and national as well as global, may be the best eventually the choice of government way to minimize this uncertainty. The policies. authors of this book hope that it will help you start thinking about your country’s The experience of many countries development in a global context—com- shows that policies can be sustained paring countries and searching for useful over the long term only if they are lessons of development experience from understood and supported by most of around the world—and looking forward the population. If the changes that to what can realistically be achieved in these policies bring about do not con- 10, 20, or 50 years. tradict most people’s values and sense of fairness, the ongoing process of change The authors also hope that this book is broadly acknowledged as develop- will encourage you to play an active role ment. That is why your participation, in your country’s development efforts, and that of your peers, in shaping and including discussions on the vision for implementing a national development its future and on its unique path of strategy is so important for your coun- development. Your attitude—active or try’s future success. 93 Glossary Absolute advantage. An advantage that Age dependency ratio. The ratio of the a country has in producing certain goods nonworking population—people under or services relative to all or many other 15 or over 65—to the working popula- countries due to specific factors of pro- tion—people 15–64. In 1996 the aver- duction at its disposal—such as rich age ratio for low-income countries was farmland and a favorable climate for 0.7, for middle-income countries 0.6, agricultural production or a highly edu- and for high-income countries 0.5. cated labor force for high-tech manufac- turing. A country’s absolute advantage Agriculture. The sector of an economy means that it can produce certain goods that includes crop production, animal or services at a lower cost than would be husbandry, hunting, fishing, and possible for other countries. Thus it is forestry. clearly beneficial for this country to spe- cialize in producing and exporting these Birth rate. The number of live births in goods and services. But even countries a year expressed as a percentage of the that do not have any absolute advantages population or per 1,000 people. can benefit from international trade; see comparative advantage. Capital (capital assets). A stock of wealth used to produce goods and ser- Access to safe water. The percentage of vices. Modern economists divide capital the population with reasonable means of into physical capital (also called produced getting safe water—either treated surface assets), natural capital, and human water or clean untreated water from capital. springs, wells, or protected boreholes. Carbon dioxide emissions per capita. Accumulation of capital. Using invest- The amount of carbon dioxide a country ment to build capital assets. releases into the atmosphere during a certain period—usually one year— Adult illiteracy. The percentage of the divided by the total population of that population 15 and older who cannot, country. Large amounts of carbon diox- with understanding, read and write a ide are released when people burn fossil simple statement about their everyday fuels and biomass—fuelwood, charcoal, life. dung—to produce energy. 94 GLOSSARY Chlorofluorocarbons (CFCs). Cheap prices that are lower than the costs of synthetic gases that serve as coolants in their domestic production, the country refrigerators and air conditioners and as will maximize the overall volume of propellants in aerosol spray cans. national production and consumption. Although originally considered harmless, CFCs are now known to accumulate in Countries with transition economies the earth’s atmosphere, where they (transition countries, transition destroy the protective ozone layer and economies). Countries moving from trap the sun’s heat—contributing to the centrally planned to market-oriented greenhouse effect (see greenhouse gases). economies. These countries—which The use of CFCs is now controlled by include China, Mongolia, Vietnam, for- the Montreal Protocol, an agreement mer republics of the Soviet Union, and signed by many countries. the countries of Central and Eastern Europe—contain about one-third of the Comparative advantage. The concept, world’s population. formulated by British economist David Ricardo, according to which economic Death rate. The number of deaths in a agents—people, firms, countries—are year expressed as a percentage of the most efficient when they do the things population or per 1,000 people. that they are best at doing. Comparative advantage is particularly important in Demilitarization. Orientation of a coun- global markets, where countries benefit try’s economy away from military pro- most by producing and exporting goods duction. The opposite of militarization. and services that they can produce more efficiently (at a lower cost, by using less Demography. The scientific study of physical, human, and natural capital) than human populations, including their size, other goods and services. In particular, composition, distribution, density, and Ricardo showed that a country can bene- growth as well as the causes and socioe- fit from international trade even if it has conomic consequences of changes in higher costs of production for all traded these factors. goods and services relative to the coun- tries it trades with—that is, even if it has Developed countries (industrial coun- no absolute advantages whatsoever. This tries, industrially advanced countries). can be done by correctly choosing the High-income countries, in which most country’s international specialization in people have a high standard of living. accordance with its comparative advan- Sometimes also defined as countries tages. In this case, by using export earn- with a large stock of physical capital, in ings to import other goods and service at which most people undertake highly 95 BEYOND ECONOMIC GROWTH specialized activities. According to the tor of economic development is increas- World Bank classification, these include ing GNP per capita (or GDP per capita), all high-income economies except Hong reflecting an increase in the economic Kong (China), Israel, Kuwait, Singapore, productivity and average material well- and the United Arab Emirates. being of a country’s population. Depending on who defines them, devel- Economic development is closely linked oped countries may also include middle- with economic growth. income countries with transition economies, because these countries are Economic growth. Quantitative change highly industrialized. Developed coun- or expansion in a country’s economy. tries contain about 15 percent of the Economic growth is conventionally mea- world’s population. They are also some- sured as the percentage increase in gross times referred to as “the North.� domestic product (GDP) or gross national product (GNP) during one year. Developing countries. According to the Economic growth comes in two forms: World Bank classification, countries with an economy can either grow “exten- low or middle levels of GNP per capita as sively� by using more resources (such as well as five high-income developing physical, human, or natural capital) or economies—Hong Kong (China), Israel, “intensively� by using the same amount Kuwait, Singapore, and the United Arab of resources more efficiently (produc- Emirates. These five economies are clas- tively). When economic growth is sified as developing despite their high achieved by using more labor, it does not per capita income because of their eco- result in per capita income growth (see nomic structure or the official opinion Chapter 4). But when economic growth of their governments. Several countries is achieved through more productive use with transition economies are sometimes of all resources, including labor, it results grouped with developing countries based in higher per capita income and on their low or middle levels of per improvement in people’s average stan- capita income, and sometimes with dard of living. Intensive economic developed countries based on their high growth requires economic development. industrialization. More than 80 percent of the world’s population lives in the Energy use per capita. The amount of more than 100 developing countries. energy a country consumes in a certain period—usually one year—divided by Economic development. Qualitative the population of that country. This change and restructuring in a country’s includes fossil fuels burned by machines economy in connection with technologi- (such as cars), as well as electricity gener- cal and social progress. The main indica- ated from nuclear power, geothermal 96 GLOSSARY power, hydropower, and fossil fuels. No Foreign direct investment. Foreign matter what its source, energy use per investment that establishes a lasting inter- capita is measured in equivalent est in or effective management control amounts of oil. Though substantial in over an enterprise. Foreign direct invest- some developing countries, energy from ment can include buying shares of an biomass—fuelwood, charcoal, dung—is enterprise in another country, reinvest- not considered in this statistic because ing earnings of a foreign-owned enter- reliable data are not available. prise in the country where it is located, and parent firms extending loans to their European Union (EU). A regional foreign affiliates. International Monetary international organization with most Fund (IMF) guidelines consider an developed countries of Europe among its investment to be a foreign direct invest- members. In 1995 it succeeded the ment if it accounts for at least 10 per- European Economic Community cent of the foreign firm’s voting stock of (EEC), established in 1957 to promote shares. However, many countries set a economic integration among its member higher threshold because 10 percent is countries. often not enough to establish effective management control of a company or Externalities. Effects of a person’s or demonstrate an investor’s lasting interest. firm’s activities on others which are not compensated. Externalities can either Foreign investment. Investment in an hurt or benefit others—they can be neg- enterprise that operates outside the ative or positive. One negative external- investor’s country. See also foreign direct ity arises when a company pollutes the investment and portfolio investment. local environment to produce its goods and does not compensate the negatively Fossil fuels. Coal, natural gas, and affected local residents. Positive external- petroleum products (such as oil) formed ities can be produced through primary from the decayed bodies of animals and education—which benefits not only pri- plants that died millions of years ago. A mary students but also society at large. nonrenewable source of energy. Governments can reduce negative exter- nalities by regulating and taxing goods GDP. See gross domestic product. with negative externalities. Governments can increase positive externalities by sub- General Agreement on Tariffs and sidizing goods with positive externalities Trade (GATT). From 1947 until 1995, or by directly providing those goods. an international organization with a mandate to reduce protection and pro- Fertility rate. See total fertility rate. mote free trade among nations. Many 97 BEYOND ECONOMIC GROWTH barriers to trade—import tariffs, import Gray economy (shadow economy). quotas, and others—were reduced during Consists of business activities that are its eight rounds of international negotia- not accounted for by official statistics. It tions. Issues discussed during the last includes illegal activities (or the so- round of GATT negotiations, in called black market) and activities that Uruguay (1986–94), included reducing are in themselves legal but go unre- government restrictions on foreign ported or under-reported for purposes investment and on trade in services such of tax evasion. as banking, insurance, transport, tourism, and telecommunications. In Greenhouse gases. Gases that trap the 1995 GATT was succeeded by the sun’s heat within the earth’s atmosphere, World Trade Organization (WTO). creating a greenhouse effect that may dangerously raise temperatures around GNP. See gross national product. the globe. Greenhouse gases include ozone, methane, water vapor, nitrous- GNP per capita. A country’s gross oxide, carbon dioxide, and chlorofluoro- national product (GNP) divided by its carbons (CFCs). population. Shows the income each per- son would have if GNP were divided Gross domestic investment rate. All equally. Also called income per capita. the outlays made to replace and increase GNP per capita is a useful measure of eco- a country’s physical capital, plus changes nomic productivity, but by itself it does in inventories of goods, expressed as a not measure people’s well-being or a coun- percentage of GDP. Gross domestic try’s success in development. It does not investment, along with foreign direct show how equally or unequally a country’s investment, is critical for economic growth income is distributed among its citizens. It and economic development. does not reflect damage made by produc- tion processes to natural resources and the Gross domestic product (GDP). The environment. It does not take into value of all final goods and services pro- account any unpaid work done within duced in a country in one year (see also households or communities or production gross national product). GDP can be taking place in the gray (shadow) economy. measured by adding up all of an econ- It attributes value to anything being pro- omy’s incomes—wages, interest, profits, duced whether it harms or contributes to and rents—or expenditures— general welfare (for example, medicines consumption, investment, government and chemical weapons). And it ignores the purchases, and net exports (exports value of such elements of people’s well- minus imports). Both results should be being as leisure or freedom. the same because one person’s expendi- 98 GLOSSARY ture is always another person’s income, “Gross� indicates that the value lost so the sum of all incomes must equal the through the “wear and tear� of capital sum of all expenditures. used in production is not deducted from the value of total output. If it were Gross domestic saving rate. Gross deducted, we would have a measure domestic product (GDP) minus consump- called net domestic product (NDP), tion by government and the private sec- also known as national income. The tor, expressed as a percentage of GDP. A words “product� and “income� are often high gross domestic saving rate usually used interchangeably, so GNP per capita indicates a country’s high potential to is also called income per capita. invest. See also savings. Gross primary school enrollment Gross enrollment ratio. The number of ratio. The ratio of primary school students enrolled at a certain level of enrollment to the number of primary education as a percentage of the popula- school-aged children (usually children tion of the age group that officially cor- 6–11). The gross secondary school responds to that level. Can be above 100 enrollment ratio is calculated in the percent if some enrolled students are same way, except that the corresponding older or younger than the age group that age group is 12–17. For the gross ter- officially corresponds to that level of tiary education enrollment ratio, cal- education. culations are based on the number of young people in the five-year age group Gross national product (GNP). The following the secondary school leaving value of all final goods and services pro- age. Gross enrollment ratios can be duced in a country in one year (gross higher than 100 percent because some domestic product) plus income that resi- students are younger or older than the dents have received from abroad, minus corresponding age group. income claimed by nonresidents. GNP may be much less than GDP if much of High-income countries. Classified by the income from a country’s production the World Bank in 1997 as countries flows to foreign persons or firms. But if whose GNP per capita was $9,386 or the people or firms of a country hold large more in 1995. The group includes both amounts of the stocks and bonds of firms developed countries and high-income or governments of other countries, and developing economies. receive income from them, GNP may be greater than GDP. For most countries, High-income developing economies. however, these statistical indicators differ Economies that the United Nations clas- insignificantly (see Chapter 2). sifies as developing even though their per 99 BEYOND ECONOMIC GROWTH capita incomes would place them with tic industries from foreign competition. developed countries. This classification See protection. may be based on their economic structure or the official opinion of their govern- Import tariffs. Taxes imposed on cer- ments. In 1995 this group included tain imported goods or services. May be Hong Kong (China), Israel, Kuwait, levied as a percentage of the value of Singapore, and the United Arab Emirates. imports or as a fixed amount per unit. Used to increase government revenue Human capital. The knowledge, skills, and protect domestic industries from and experience of people that make foreign competition. See protection. them economically productive. Human capital can be increased by investing in Income per capita. Another term for education, health care, and job training. GNP per capita. Human development index (HDI). A Industrial countries. See developed composite of several social indicators countries. that is useful for broad cross-country comparisons even though it yields little Industrialization. The phase of a coun- specific information about each country. try’s economic development in which First used in the United Nations industry grows faster than agriculture and Development Programme’s Human gradually comes to play the leading role Development Report 1990. in the economy. Human resources. The total quantity Industry. The sector of an economy that and quality of human effort available to includes mining, construction, manufac- produce goods and services. The muscle turing, electricity, gas, and water. power and brain power of human beings. Human resources can be viewed Infant mortality rate. Of every 1,000 as consisting of raw labor—determined infants born, the number that die before mostly by the number of people in a reaching their first birthday. country’s labor force—combined with human capital. International Monetary Fund (IMF). An international institution founded in Import quotas. Government-imposed 1944—together with the World Bank— limits on the quantities of certain goods to promote international monetary coop- and services allowed to be imported. eration and facilitate balanced growth of Like import tariffs, import quotas are trade by encouraging the removal of for- used by governments to protect domes- eign exchange restrictions, promoting 100 GLOSSARY exchange rate stability, and expediting and unpaid caregivers such as payments among member countries. homemakers. International poverty line. An income Least developed countries. Low-income level established by the World Bank to countries where, according to the United determine which people in the world are Nations, economic growth faces long- poor—set at $1 a day per person in term impediments—such as structural 1985 international purchasing power par- weaknesses and low human resources ity (PPP) prices. A person is considered development. A category used to guide poor if he or she lives in a household donors and countries in allocating for- whose daily income or consumption is eign assistance. less than $1 per person. Although this poverty line is useful for international Life expectancy at birth. The number of comparisons, it is impossible to create an years a newborn baby would live if, at indicator of poverty that is strictly com- each age it passes through, the chances of parable across countries. The level of $1 his/her survival were the same as they were a day per person is close to national for that age group in the year of his/her poverty lines in low-income countries but birth. The change in this indicator reflects considerably lower than those in high- changes in the overall health of a country’s income countries. population, in people’s living conditions, and in the quality of health care. Investment. Outlays made by individu- als, firms, or governments to add to their Living standard. See standard of living. capital. From the viewpoint of individual economic agents, buying property rights Low-income countries. Classified by for existing capital is also an investment. the World Bank in 1997 as countries But from the viewpoint of an economy whose GNP per capita was $765 or less as a whole, only creating new capital is in 1995. counted as an investment. Investment is a necessary condition for economic Manufactured goods. Goods produced growth. See savings, gross domestic saving using primary goods. Include petroleum, rate, and gross domestic investment rate. steel, textiles, and baked goods. Labor force. All the economically active Market failures. Cases when a market people in a country between 15 and 65. economy fails to provide people with a Includes all employed persons, the desirable supply of certain kinds of unemployed, and members of the goods and services. Market failures can armed services, but excludes students occur in a market economy when it does 101 BEYOND ECONOMIC GROWTH not produce enough public goods and Natural capital. A stock of natural goods with positive externalities, when it resources—such as land, water, and min- produces too many goods with negative erals—used for production. Can be externalities, when goods are overpriced either renewable or nonrenewable. by natural monopolies, and when market agents do not have access to sufficient Natural monopoly. A situation that information, such as information about occurs when one firm in an industry can the quality of some consumer goods. serve the entire market at a lower cost These market failures usually justify eco- than would be possible if the industry nomic intervention by the government. were composed of many smaller firms. But there is always the risk of govern- Gas and water utilities are two classic ment failure—in which faulty political examples of natural monopolies. These processes or institutional structures pre- monopolies must not be left to operate vent government measures from improv- freely; if they are, they can increase ing social welfare (see Chapter 11). prices and profits by restricting their output. Governments prevent such a Market liberalization. Removing and scenario by regulating utility monopolies abstaining from using state controls that or providing utility services themselves. impede the normal functioning of a mar- ket economy—for example, lifting price Natural population increase. The dif- and wage controls and import quotas or ference between the birth rate and the lowering taxes and import tariffs. Market death rate over a period of time. See also liberalization usually does not mean that population growth rate. a government completely abstains from interfering with market processes. Natural resources. All “gifts of nature�—air, land, water, forests, Middle-income countries. Classified by wildlife, topsoil, minerals—used by peo- the World Bank in 1997 as countries ple for production or for direct con- whose GNP per capita was between $766 sumption. Can be either renewable or and $9,385 in 1995. These countries are nonrenewable. Natural resources include further divided into lower-middle- natural capital plus those gifts of nature income countries ($766–$3,035) and that cannot be stocked (such as sunlight) upper-middle-income countries or cannot be used in production (such as ($3,036–$9,385). picturesque landscapes). Militarization. Orientation of a coun- Net official assistance. The sum of try’s economy toward military produc- grants and concessional loans from tion. The opposite of demilitarization. donor country governments to recipi- 102 GLOSSARY ent countries, minus any repayment of Organisation for Economic Co- loan principal during the period of the operation and Development (OECD). loans. An organization that coordinates policy among developed countries. OECD mem- Net private flows. Privately financed ber countries exchange economic data capital flows that enter a country on and create unified policies to maximize market terms, minus such flows that their countries’ economic growth and help leave the country. An example of a net nonmember countries develop more private flow is net portfolio invest- rapidly. The OECD arose from the ment—the value of stocks and bonds Organisation for European Economic bought by foreign investors minus the Co-operation (OEEC), which was cre- value of stocks and bonds sold by them. ated in 1948 to administer the Marshall See also portfolio investment. Plan in Europe. In 1960, when the Marshall Plan was completed, Canada, Nominal indicator. An indicator mea- Spain, and the United States joined sured using the prices prevailing at the OEEC members to form the OECD. time of measurement. A change in a nominal indicator sometimes reflects Ozone. A gas that pollutes the air at low changing market prices more than any altitudes, but that high in the atmos- other changes (changes in the real indi- phere forms a thin shield protecting life cator). For example, during periods of on earth from harmful solar radiation. inflation, nominal wages can increase Chlorofluorocarbons (CFCs) destroy this while their real value decreases. high-level ozone layer. In making cross-country compar- isons, this term also applies to the con- Physical capital (produced assets). version of indicators calculated in local Buildings, machines, and technical currency units into some common cur- equipment used in production plus rency, most often US dollars. Nominal inventories of raw materials, half-fin- indicators are those converted into US ished goods, and finished goods. dollars using current exchange rates, while real indicators are calculated based Population growth rate. The increase on purchasing power parity (PPP) conver- in a country’s population during a cer- sion factors. tain period—usually one year— expressed as a percentage of the Nonrenewable natural resources. population when the period began. The Natural resources that cannot be replaced population growth rate is the sum of the or replenished. See renewable natural difference between the birth rate and the resources. death rate—the natural population 103 BEYOND ECONOMIC GROWTH increase—and the difference between the (or produced) capital, human capital, and population entering and leaving the natural capital. country—the net migration rate. Productivity (economic productivity, Portfolio investment. Stock and bond efficiency). Output of goods and services purchases that, unlike direct investment, per unit of input—for example, per unit do not create a lasting interest in or of labor (labor productivity), per unit of effective management control over an energy (such as GNP per unit of energy enterprise. See foreign direct investment. use), or per unit of all production resources combined (see Chapter 2). Postindustrialization. The phase in a country’s economic development that fol- Protection. The imposition of import lows industrialization and is character- tariffs, import quotas, or other barriers ized by the leading role of service sector that restrict the flow of imports. The in the national economy. opposite of “free trade.� Used to: • Protect “strategically important� Poverty line. The income level people industries—such as agriculture— require to buy life’s basic necessities— without which a country would be food, clothing, housing—and satisfy vulnerable in times of war. their most important sociocultural • Protect new industries until they are needs. The poverty line changes over strong enough to compete in inter- time and varies by region. Also called national markets. subsistence minimum. • Retaliate against protectionist poli- cies of trade partners. Primary goods. Goods that are sold (for Since World War II protectionist policies consumption or production) just as they have been significantly reduced in most were found in nature. Include oil, coal, countries through negotiations under iron, and agricultural products like wheat the General Agreement on Tariffs and or cotton. Also called commodities. Trade (GATT). Produced assets. See physical capital. Public goods. Goods that are nonri- val—consumption by one person does Production resources. The main inputs not reduce the supply available for oth- for any production. Traditionally, econo- ers—and nonexcludable—people cannot mists identified three factors of produc- be prevented from consuming them. tion: labor, land, and capital. More These characteristics make it impossible recently, economists came to use the to charge consumers for public goods, so concept of three types of capital: physical the private sector is not interested in 104 GLOSSARY supplying them. Instead, they are often or nation) because in addition to mater- supplied by government. Public goods ial well-being (see standard of living) it are usually national or local. Defense is a includes such intangible components as national public good—benefiting the the quality of the environment, national entire population of a country. Rural security, personal safety, and political roads are local public goods, benefiting a and economic freedoms. smaller group of people. There can also be global public goods, benefiting most Real indicator. An economic indicator of the world’s population, for example that uses the prices from some base year. global peace and security, or information This approach controls for fluctuating needed to prevent global climate change. market prices so that other economic Providing such goods (and services) is a changes can be seen more clearly. In function of international organizations. cross-country comparisons, this term also applies to the conversion of indica- Purchasing power parity (PPP) con- tors calculated in local currency units version factor. The PPP conversion fac- into some common currency, most often tor shows how much of a country’s US dollars. Real indicators are calculated currency is needed in that country to with the help of purchasing power parity buy what $1 would buy in the United (PPP) conversion factors, while nominal States. By using the PPP conversion fac- indicators are those converted into US tor instead of the currency exchange dollars using current exchange rates. rate, we can convert a country’s GNP per capita calculated in national currency Renewable natural resources. Natural units into GNP per capita in U.S. dol- resources that can be replaced or replen- lars while taking into account the differ- ished by natural processes or human ence in domestic prices for the same action. Fish and forests are renewable goods. Thus PPP helps us compare natural resources. Minerals and fossil GNPs of different countries more accu- fuels are nonrenewable natural resources rately. Because prices are usually lower in because they are regenerated on a geo- developing countries, their GNP per logical, rather than human, time scale. capita expressed in PPP dollars is higher Some aspects of the environment—soil than their GNP per capita expressed in quality, assimilative capacity, ecological U.S. dollars. In developed countries the support systems—are called semirenew- opposite is true (see Chapter 2). able because they are regenerated very slowly on a human time scale. Quality of life. People’s overall well- being. Quality of life is difficult to mea- Savings. Income not used for current sure (whether for an individual, group, consumption. See also gross domestic sav- 105 BEYOND ECONOMIC GROWTH ing rate and gross domestic investment compromising the ability of future rate. generations to meet their own needs.� According to the more operational Services. Intangible goods that are often (practice-oriented) definition used by produced and consumed at the same the World Bank, sustainable develop- time. An example is education: students ment is “a process of managing a port- consume a lesson—an educational folio of assets to preserve and enhance service—at the same time a teacher pro- the opportunities people face.� duces it. The service sector of the econ- Sustainable development includes eco- omy includes hotels, restaurants, and nomic, environmental, and social sus- wholesale and retail trade; transport, tainability, which can be achieved by storage, and communications; financing, rationally managing physical, natural, insurance, real estate, and business ser- and human capital (see Chapters 1 and vices; community and social services 16). (such as education and health care); and personal services. Terms of trade. The ratio of export prices to import prices. A high ratio ben- Shadow economy. See gray economy. efits an economy, because then the country can pay for many imports by Standard of living. The level of well- selling a small amount of exports. If being (of an individual, group or the terms of trade worsen, the country needs population of a country) as measured by to sell more exports to buy the same the level of income (for example, GNP amount of imports. per capita) or by the quantity of various goods and services consumed (for exam- Total fertility rate. The average number ple, the number of cars per 1,000 people of children a woman will have during or the number of television sets per her lifetime, by country or region. capita). See also quality of life. Between 1980 and 1995 the average fer- tility rate in low-income countries and Subsistence minimum. Another term middle-income countries fell from 4.1 to for poverty line. 3.1, while in high-income countries it fell from 1.9 to 1.7. Sustainable development. According to the United Nations World Transfer payments. Payments from the Commission on Environment and government to individuals used to redis- Development (1987), sustainable tribute a country’s wealth. Examples are development is “development that pensions, welfare, and unemployment meets the needs of the present without benefits. 106 GLOSSARY Transition countries. See countries with The World Bank’s poorest members transition economies. receive loans for up to 50 years without interest. Other needy members receive World Bank. An international lending loans for 15–20 years at lower interest institution that aims to reduce poverty rates than are charged by commercial and improve people’s lives by strength- banks. ening economies and promoting sus- tainable development. Owned by the World Trade Organization (WTO). An governments of its 181 member coun- international organization established on tries, the Bank lends about $20 billion January 1, 1995, to succeed the General a year to development projects, pro- Agreement on Tariffs and Trade (GATT). vides technical assistance and policy Serves as a forum for multilateral trade advice, and acts as a catalyst for invest- negotiations and helps resolve its mem- ment and lending from other sources. bers’ trade disputes. 107 108 Classification of Economies by Income and Region Sub-Saharan Africa Europe and Central Asia East and Asia Eastern Middle East Income Southern East Asia Europe and Rest of and North Africa group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe Middle East North Africa Americas Angola Benin Cambodia Afghanistan Albania Yemen, Rep. Guyana Burundi Burkina Faso China Bangladesh Armenia Haiti Comoros Cameroon Lao PDR Bhutan Azerbaijan Honduras Eritrea Central African Mongolia India Bosnia and Nicaragua Ethiopia Republic Myanmar Nepal Herzegovina Kenya Chad Vietnam Pakistan Georgia Madagascar Congo, Rep. Sri Lanka Kyrgyz Malawi Côte d’Ivoire Republic Mozambique Eq. Guinea Tajikistan Rwanda Gambia, The Low- Somalia Ghana income Sudan Guinea Tanzania Guinea- Uganda Bissau Zaire Liberia Zambia Mali Zimbabwe Mauritania Niger Nigeria São Tomé and Principe Senegal Sierra Leone Togo Botswana Cape Verde Fiji Maldives Belarus Turkey Iran, Islamic Algeria Belize Djibouti Indonesia Bulgaria Rep. Egypt, Arab Bolivia Lesotho Kiribati Estonia Iraq Rep. Colombia Namibia Korea, Dem. Kazakhstan Jordan Morocco Costa Rica Swaziland Marshall Latvia Lebanon Tunisia Cuba Islands Lithuania Syrian Arab Dominica Micronesia, Macedonia, Rep. Dominican Fed. Sts. FYR a West Bank Republic Papua New Moldova and Gaza Ecuador Middle- Lower Guinea Poland El Salvador income Philippines Romania Grenada Solomon Russian Guatemala Islands Federation Jamaica Thailand Slovak Rep. Panama Tonga Turkmenistan Paraguay Vanuatu Ukraine Peru Western Uzbekistan St. Vincent and Samoa Yugoslavia, the Grenadines Fed. Rep. b Suriname Venezuela Classification of Economies by Income and Region, (continued) Sub-Saharan Africa Europe and Central Asia East and Asia Eastern Middle East Income Southern East Asia Europe and Rest of and North Africa group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe Middle East North Africa Americas Mauritius Gabon American Croatia Greece Bahrain Libya Antigua and Mayotte Samoa Czech Isle of Man Oman Barbuda Seychelles Malaysia Republic Malta Saudi Argentina South Africa Hungary Arabia Barbados Slovenia Brazil Chile Upper Guadeloupe Mexico Puerto Rico St. Kitts and Nevis St. Lucia Trinidad and Tobago Uruguay Australia Austria Canada Japan Belgium United States Korea, Rep. Denmark New Zealand Finland France Germany Iceland Ireland OECD Italy countries Luxembourg Netherlands Norway High- Portugal income Spain Sweden Switzerland United Kingdom Reunion Brunei Andorra Israel Aruba French Channel Kuwait Bahamas, The Polynesia Islands Qatar Bermuda Guam Cyprus United Arab Cayman Non- Hong Kong Faeroe Emirates Islands OECD Macao Islands French Guiana countries New Greenland Martinique Caledonia Liechtenstein Netherlands N. Mariana Is. Monaco Antilles Singapore Virgin OAE c Islands (U.S.) Total 210 27 23 34 8 27 28 14 5 44 Note: Economies are divided according to 1995 GNP per capita. a. Former Yugoslav Republic of Macedonia. b. Federal Republic of Yugoslavia (Serbia/Montenegro). c. Other Asian economies— 109 Taiwan, China. BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 Afghanistan 3639 .. 15.95 23.48 7.0 6.9 50 48 Albania .. 2192 3.0 1.4 2.67 3.26 3.6 2.6 29 21 Algeria 42345 41435 2.8 0.1 18.67 27.96 6.7 3.5 42 26 American Samoa .. .. 0.03 0.06 .. .. .. .. Andorra .. .. .. 0.06 .. .. .. .. Angola .. 3722 3.7 -4.1 7.02 10.77 6.9 6.9 50 49 Antigua and Barbuda 112 .. 0.06 0.07 2.1 1.7 17 17 Argentina 76962 281060 -0.3 5.7 28.11 34.67 3.3 2.7 24 20 Armenia .. 2843 3.3 -21.2 3.10 3.76 2.3 1.8 23 14 Aruba .. .. .. 0.08 .. .. .. .. Australia 160109 348782 3.4 3.5 14.69 18.05 1.9 1.9 15 15 Austria 76882 233427 2.1 1.9 7.55 8.05 1.6 1.5 12 11 Azerbaijan .. 3473 .. -20.2 6.17 7.51 3.2 2.3 25 21 Bahamas, The 1335 3459 0.21 0.28 3.3 2.0 24 19 Bahrain 3073 5060 0.33 0.58 5.2 3.1 34 22 Bangladesh 12950 29110 4.3 4.1 86.70 119.77 6.1 3.5 44 28 Barbados 860 1742 0.25 0.27 2.0 1.8 17 13 Belarus .. 20561 .. -9.3 9.64 10.34 2.0 1.4 16 11 Belgium 118022 269081 1.9 1.1 9.85 10.15 1.7 1.6 13 12 Belize 195 578 0.15 0.22 .. 3.9 .. 32 Benin 1405 .. 2.6 4.1 3.46 5.48 6.5 6.0 49 43 Bermuda 613 .. 0.05 0.06 .. .. .. .. Bhutan 142 304 0.49 0.70 .. .. .. .. Bolivia 3074 6131 0.0 3.8 5.36 7.41 5.5 4.5 39 35 Bosnia and Herzegovina .. .. .. .. 4.09 4.38 2.1 .. 19 .. Botswana 971 4318 10.3 4.2 0.90 1.45 6.7 4.4 48 34 Brazil 235025 688085 2.7 2.7 121.29 159.22 3.9 2.4 31 21 Brunei 4906 4986 0.19 0.29 4.0 2.9 31 22 Bulgaria 20040 12366 4.0 -4.3 8.86 8.41 2.0 1.2 15 10 Burkina Faso 1709 2325 3.7 2.6 6.96 10.38 7.5 6.7 47 46 Burundi 920 1062 4.4 -2.3 4.13 6.26 6.8 6.5 46 44 Cambodia .. 2771 .. 6.4 6.50 10.02 4.7 4.7 39 40 Cameroon 6741 7931 3.1 -1.8 8.70 13.29 6.5 5.7 47 41 Canada 263193 568928 3.4 1.8 24.59 29.61 1.7 1.7 15 13 Cape Verde 107 .. 0.29 0.38 6.5 4.0 37 34 Cayman Islands .. .. .. 0.03 .. .. .. .. Central African Republic 797 1128 1.7 1.0 2.31 3.28 5.8 5.1 43 38 Chad 727 1138 6.3 1.9 4.48 6.45 5.9 5.9 44 43 Channel Islands .. .. 0.13 0.14 1.4 1.6 12 12 Chile 27572 67297 4.1 7.3 11.14 14.23 2.8 2.3 24 20 China 201688 697647 10.2 12.8 981.24 1200.24 2.5 1.9 18 17 Colombia 33399 76112 3.7 4.6 27.89 36.81 3.8 2.8 30 23 Comoros 124 227 0.34 0.50 .. 5.9 .. 43 110 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 23 21 2.6 .. .. .. .. .. .. .. .. 6 6 1.0 670 .. .. .. .. .. -8 35 16 12 5 2.5 1600 5 300 -2.6 38.7 1.6 43 29 39 32 .. .. 3.9 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 23 19 3.0 410 1 310 -6.1 .. .. .. 43 .. 27 6 6 0.5 .. .. 2.7 .. .. .. .. .. 9 8 1.3 8030 8 310 1.9 .. .. 24 18 25 18 6 7 1.2 730 2 260 -15.1 .. .. .. -29 29 9 .. .. .. .. .. .. .. .. .. .. .. 7 7 1.4 18720 18 940 1.4 33.7 .. 24 22 25 23 12 10 0.6 26890 21 250 1.9 23.1 .. 26 26 28 27 7 7 1.2 480 1 460 -16.3 .. .. .. 4 .. 16 7 5 1.7 11940 14 710 -1.0 .. 26 .. 18 .. 6 4 3.1 7840 13 400 0.6 .. 55 .. 46 .. 18 10 2.0 240 1 380 2.1 28.3 .. 2 8 15 17 8 9 0.5 6560 10 620 -0.2 .. 23 .. 25 .. 10 12 0.4 2070 4 220 -5.2 21.6 .. .. 20 .. 25 12 11 0.3 24710 21 660 2.2 25.0 .. 19 24 22 18 .. 4 2.6 2630 5 400 4.4 .. 11 .. 24 .. 19 15 3.0 370 1 760 -0.4 .. .. -5 .. 15 .. .. .. 1.2 .. .. -1.2 .. .. .. .. .. .. .. 2.6 420 1 260 4.0 .. 8 .. 31 .. 15 10 2.3 800 2 540 1.7 42 7.1 19 .. 15 .. 7 .. .. .. .. .. .. .. .. .. .. .. 14 12 3.0 3020 5 580 6.0 .. 34.7 28 23 38 25 9 7 1.6 3640 5 400 -0.7 63.4 28.7 21 21 23 22 5 4 2.5 25160 .. .. .. .. .. 3 .. 11 13 -0.6 1330 4 480 -2.2 30.8 2.6 39 25 34 21 20 18 2.8 230 780 -0.1 .. .. -6 .. 17 .. 18 17 2.8 160 630 -1.3 .. .. -1 -7 14 11 27 13 3.0 270 .. 2.0 .. .. .. .. .. .. 15 11 2.9 650 2 110 -7.0 .. .. 20 21 21 15 7 7 1.3 19380 21 130 0.4 31.5 .. 25 21 24 19 11 8 2.0 960 1 870 2.1 .. .. -24 .. 52 .. .. .. .. .. .. .. .. .. .. .. .. .. 19 17 2.3 340 1 070 -2.0 .. .. -10 6 7 15 22 18 2.5 180 700 0.5 .. .. .. .. .. .. 12 10 0.6 .. .. .. .. .. .. .. .. .. 7 6 1.6 4160 9 520 6.1 56.5 15.0 20 29 25 27 6 7 1.3 620 2 920 8.0 41.5 29.4 35 42 35 40 7 7 1.8 1910 6 130 2.8 51.3 7.4 20 16 19 20 .. 12 2.8 470 1 320 -1.4 .. .. -10 -8 33 17 111 BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 (continued) Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 Congo 1706 2164 3.6 -0.6 1.67 2.63 6.2 6.0 46 47 Costa Rica 4831 9233 3.0 5.1 2.28 3.40 3.7 2.8 30 25 Côte d’Ivoire 10175 10069 0.1 0.7 8.19 13.98 7.4 5.3 51 37 Croatia .. 18081 .. .. 4.59 4.78 .. 1.5 .. 11 Cuba .. .. .. .. 9.72 11.01 2.0 1.7 14 14 Cyprus 2154 .. 0.61 0.73 2.5 2.2 20 16 Czech Republic 29123 44772 1.7 -2.6 10.23 10.33 2.0 1.3 15 10 Denmark 66322 172220 2.4 2.0 5.12 5.22 1.5 1.8 11 13 Djibouti .. 495 0.28 0.63 6.6 5.8 48 46 Dominica 58 227 0.07 0.07 .. 2.3 25 23 Dominican Republic 6631 11277 2.7 3.9 5.70 7.82 4.2 2.9 33 24 Ecuador 11733 17939 2.0 3.4 7.96 11.48 5.0 3.2 36 27 Egypt, Arab Rep. 22913 47349 5.0 1.3 40.88 57.80 5.1 3.4 39 26 El Salvador 3574 9472 0.2 6.3 4.55 5.62 5.3 3.7 39 30 Equatorial Guinea .. 169 0.22 0.40 5.7 5.9 43 43 Eritrea .. .. .. .. .. 3.57 .. 5.8 .. 43 Estonia .. 4007 2.1 -9.2 1.48 1.49 2.0 1.3 15 10 Ethiopia .. 5287 2.3 .. 37.72 56.40 6.6 7.0 47 47 Faeroe Islands .. .. .. 0.05 .. .. .. .. Fiji 1204 2068 0.63 0.78 3.5 2.7 30 23 Finland 51306 125432 3.3 -0.5 4.78 5.11 1.6 1.8 13 13 France 664597 1536089 2.4 1.0 53.88 58.06 1.9 1.7 15 12 French Guiana 213 .. 0.07 0.15 .. .. 28 .. French Polynesia .. .. 0.16 0.23 .. 3.0 31 27 Gabon 4285 4691 0.5 -2.5 0.69 1.08 4.5 5.2 33 39 Gambia, The 233 384 3.4 1.6 0.64 1.11 6.5 5.3 48 41 Georgia .. 2325 0.5 -26.9 5.07 5.40 2.3 .. 18 11 Germany .. 2415764 2.2 .. 78.30 81.87 1.6 1.2 11 9 Ghana 4445 6315 3.0 4.3 10.74 17.08 6.5 5.1 45 37 Greece 40147 90550 1.4 1.1 9.64 10.47 2.2 1.4 15 10 Greenland .. .. .. 0.06 .. .. .. .. Grenada 75 276 0.09 0.09 .. .. .. .. Guadeloupe 1426 .. 0.33 0.42 2.8 2.1 20 19 Guam .. .. 0.11 0.15 .. 2.7 28 22 Guatemala 7879 14489 0.8 4.0 6.92 10.62 6.2 4.7 43 35 Guinea .. 3686 4.5 3.5 4.46 6.59 6.1 6.5 46 48 Guinea-Bissau 105 257 .. 3.8 0.81 1.07 6.0 6.0 43 45 Guyana 591 595 0.76 0.84 3.5 2.4 30 23 Haiti 1462 2043 -0.2 -6.5 5.35 7.17 5.9 4.4 37 35 Honduras 2566 3937 2.7 3.5 3.66 5.92 6.5 4.6 43 35 Hong Kong 28495 143670 6.9 5.6 5.04 6.19 2.0 1.2 17 11 Hungary 22163 43712 1.6 -1.0 10.71 10.23 1.9 1.6 14 11 Iceland 3373 7052 0.23 0.27 2.5 2.1 20 16 112 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 16 16 3.1 680 2 050 -3.2 .. .. 36 23 36 27 4 4 2.5 2610 5 850 2.9 46.1 18.9 16 24 27 25 16 12 3.4 660 1 580 -4.3 36.9 17.7 20 20 27 13 .. 11 0.2 3250 .. .. .. .. .. 1 .. 14 6 7 0.9 .. .. .. .. .. .. .. .. .. 8 7 1.2 .. .. 4.6 .. .. 20 .. 38 .. 13 11 0.0 3870 9 770 -1.8 26.6 3.1 .. 20 .. 25 11 12 0.2 29890 21 230 1.5 24.7 .. 17 21 19 16 20 16 4.8 .. .. .. .. .. .. -5 .. 12 5 6 -0.1 2990 .. 4.0 .. .. .. .. .. .. 7 5 2.0 1460 3 870 2.1 50.5 19.9 15 16 25 20 9 6 2.3 1390 4 220 0.8 46.6 30.4 26 21 26 19 13 8 2.2 790 3 820 1.1 32 7.6 15 6 28 17 11 6 1.8 1610 2 610 2.9 .. .. 14 6 13 19 22 17 2.5 380 .. 2.3 .. .. .. .. .. .. .. 16 .. .. .. .. .. .. .. -27 .. 20 12 14 -0.3 2860 4 220 -4.3 39.5 6.0 .. 18 .. 27 20 17 2.6 100 450 -0.5 .. 33.8 3 7 9 17 .. .. .. .. .. .. .. .. .. .. .. .. 6 5 1.1 2440 5 780 2.3 .. .. 27 12 32 14 9 10 0.4 20580 17 760 -0.2 25.6 .. 28 24 29 16 10 9 0.5 24990 21 030 1.5 32.7 .. 23 20 24 18 7 .. 5.4 .. .. .. .. .. .. .. .. .. 6 5 2.7 .. .. .. .. .. .. .. .. .. 18 15 2.9 3490 .. -1.6 .. .. 61 48 28 26 24 18 4.0 320 930 0.3 .. .. 1 .. 26 .. 9 9 0.2 440 1 470 -17.0 .. .. .. -9 29 3 12 11 0.5 27510 20 070 .. 28.1 .. .. 23 .. 21 15 10 3.0 390 1 990 1.5 33.9 .. 5 10 6 19 9 9 0.5 8210 11 710 1.2 .. .. 23 7 29 19 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2980 .. .. .. .. -10 25 26 32 7 6 1.8 .. .. .. .. .. .. .. .. .. 4 4 2.1 .. .. .. .. .. .. .. .. .. 11 7 2.9 1340 3 340 0.3 59.6 53.3 13 .. 16 .. 24 20 2.8 550 .. 1.4 46.8 26.3 .. 11 .. 15 25 25 1.9 250 790 1.8 56.2 87.0 -6 -5 30 16 7 8 0.6 590 2 420 0.8 .. .. 20 .. 33 .. 15 12 2.0 250 910 -5.2 .. .. 8 .. 17 .. 10 6 3.0 600 1 900 0.2 52.7 46.5 17 14 25 23 5 5 1.3 22990 22 950 4.8 .. 34 33 35 35 14 14 -0.3 4120 6 410 -1.0 27 0.7 29 21 31 23 7 7 1.1 24950 20 460 0.3 .. 26 19 26 15 113 BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 (continued) Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 India 172321 324082 5.8 4.6 687.33 929.36 5.0 3.2 35 26 Indonesia 78013 198079 6.1 7.6 148.30 193.28 4.3 2.7 34 23 Iran, Islamic Rep. 92664 .. 1.5 4.2 39.12 64.12 6.1 4.5 44 32 Iraq 47562 .. -6.8 .. 13.01 20.10 6.4 5.4 41 38 Ireland 20080 60780 3.1 4.7 3.40 3.59 3.2 1.9 22 14 Isle of Man .. .. .. .. .. .. .. .. Israel 22579 91965 3.5 6.4 3.88 5.52 3.2 2.4 24 20 Italy 452648 1086932 2.4 1.0 56.43 57.20 1.6 1.2 11 9 Jamaica 2679 4406 2.0 2.9 2.13 2.52 3.7 2.4 28 22 Japan 1059253 5108540 4.0 1.0 116.78 125.21 1.8 1.5 14 10 Jordan .. .. -1.5 8.2 2.18 4.21 6.8 4.8 .. 31 Kazakhstan .. 21413 .. -11.9 14.91 16.61 2.9 2.3 24 18 Kenya 7265 9096 4.2 1.4 16.56 26.69 7.8 4.7 51 35 Kiribati 28 43 0.06 0.08 4.6 3.8 .. 27 Korea, Dem. Rep. .. .. .. .. 18.26 23.87 3.0 2.2 22 22 Korea, Rep. 63661 455476 9.4 7.2 38.12 44.85 2.6 1.8 22 16 Kuwait 28639 26650 0.9 12.2 1.38 1.66 5.3 3.0 37 22 Kyrgyz Republic .. 3054 .. -14.7 3.63 4.52 4.1 3.3 30 25 Lao PDR .. 1760 .. 6.5 3.21 4.88 6.7 6.5 45 44 Latvia .. 5690 3.4 -13.7 2.54 2.52 2.0 1.3 15 9 Lebanon .. 11143 .. .. 2.83 4.01 4.0 2.8 30 26 Lesotho 368 1029 4.3 7.5 1.37 1.98 5.6 4.6 41 33 Liberia 1117 .. 1.88 2.73 6.8 6.5 47 47 Libya 35545 .. -5.7 .. 3.04 5.41 7.3 6.1 46 41 Liechtenstein .. .. .. 0.03 .. .. .. .. Lithuania .. 7089 .. -9.7 3.41 3.72 2.0 1.5 16 11 Luxembourg 5022 16535 0.36 0.41 1.5 1.7 11 13 Macao .. 7232 0.29 0.45 .. 1.8 18 18 Macedonia, FYR .. 1975.4 .. .. 1.89 2.12 2.5 2.2 21 16 Madagascar 4042 3198 1.3 0.1 8.71 13.65 6.5 5.8 46 41 Malawi 1238 1465 2.3 0.7 6.14 9.76 7.6 6.6 57 47 Malaysia 24488 85311 5.2 8.7 13.76 20.14 4.2 3.4 31 26 Maldives 42 271 0.16 0.25 6.9 6.6 42 41 Mali 1629 2431 1.8 2.5 6.59 9.79 7.1 6.8 49 49 Malta 1135 .. 0.36 0.37 2.0 1.9 15 13 Marshall Islands .. 103 .. 0.06 .. .. .. .. Martinique 1444 .. 0.33 0.38 2.3 2.0 17 17 Mauritania 709 1068 1.7 4.0 1.55 2.27 6.3 5.2 43 38 Mauritius 1132 3919 6.2 4.9 0.97 1.13 2.7 2.2 24 19 Mayotte .. .. .. 0.11 .. .. .. .. Mexico 194914 250038 1.0 1.1 66.56 91.83 4.5 3.0 33 26 Micronesia, Fed. Sts. .. .. 0.07 0.11 .. 4.6 .. 33 Moldova .. 3518 .. .. 4.00 4.34 2.4 2.0 20 14 114 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 13 9 1.9 340 1 400 3.1 33.8 52.5 17 22 21 25 12 8 1.7 980 3 800 6.0 31.7 14.5 37 36 24 38 11 6 3.2 .. 5 470 0.5 .. .. 26 34 30 29 9 8 2.7 .. .. .. .. .. .. .. .. .. 10 9 0.1 14710 15 680 5.2 35.9 .. 14 27 27 13 .. .. .. .. .. .. .. .. .. .. .. .. 7 6 2.7 15920 16 490 2.5 35.5 .. 11 13 22 24 10 10 0.1 19020 19 870 1.7 31.2 .. 24 22 27 18 7 6 0.9 1510 3 540 3.7 41.1 4.7 16 10 16 17 6 7 0.4 39640 22 110 2.9 .. .. 31 31 32 29 .. 5 4.7 1510 4 060 -2.8 43.4 2.5 .. .. .. .. 8 9 0.5 1330 3 010 -8.6 32.7 .. .. 19 .. 22 13 9 2.9 280 1 380 0.1 57.5 50.2 18 13 29 19 .. 9 2.0 920 .. -0.3 .. .. -54 .. 33 .. 6 6 1.8 .. .. .. .. .. .. .. .. .. 6 6 0.9 9700 11 450 7.6 .. .. 25 36 32 37 4 3 -0.3 17390 23 790 0.9 .. .. 58 18 14 12 9 8 1.2 700 1 800 -6.9 .. 18.9 .. 10 .. 16 20 14 3.1 350 .. 2.7 30.4 .. .. .. .. .. 13 16 -0.4 2270 3 370 -6.6 27 .. .. 16 26 21 9 8 2.3 2660 .. 2.7 .. .. .. .. .. .. 15 11 2.4 770 1 780 1.5 56 50.4 -60 -9 42 87 17 19 2.2 .. .. .. .. 27 .. 27 .. 12 7 3.6 .. .. .. .. .. 57 .. 22 .. .. .. .. .. .. .. .. .. .. .. .. 10 12 0.5 1900 4 120 -11.7 33.6 2.1 .. 16 .. 19 11 9 1.1 41210 37 930 1.0 .. 23 .. 23 .. 7 5 3.9 .. .. .. .. .. .. .. .. 7 7 0.7 860 .. .. .. .. .. 4 .. 15 16 11 3.1 230 640 -2.0 43.4 72.3 -1 3 15 11 23 20 3.1 170 750 -0.7 .. .. 11 4 25 15 6 5 2.5 3890 9 020 5.7 48.4 5.6 33 37 30 41 13 8 3.2 990 3 080 6.7 .. .. .. .. .. 22 17 2.8 250 550 0.6 .. .. -2 10 17 26 9 7 0.8 .. .. 5.1 .. 19 .. 25 .. .. .. .. .. .. .. .. .. .. .. .. 7 7 1.1 .. .. .. .. .. .. .. .. 19 14 2.5 460 1 540 0.5 42.4 31.4 7 11 36 15 6 7 1.0 3380 13 210 5.7 .. .. 10 22 21 25 .. .. .. .. .. .. .. .. .. .. .. 7 5 2.1 3320 6 400 0.1 50.3 14.9 25 19 27 15 .. 7 2.2 2010 .. .. .. .. .. .. .. .. 10 11 0.4 920 .. -8.2 34.4 6.8 .. -1 .. 7 115 BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 (continued) Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 Monaco .. .. .. 0.03 .. .. .. .. Mongolia 2329 861 5.5 -3.3 1.66 2.46 5.3 3.4 38 27 Morocco 18821 32412 4.2 1.2 19.38 26.56 5.4 3.4 38 27 Mozambique 2028 1469 -0.2 7.1 12.10 16.17 6.5 6.2 46 44 Myanmar .. .. 0.6 5.7 33.82 45.11 5.1 3.4 36 28 Namibia 2190 3033 1.1 3.8 1.03 1.55 5.9 5.0 41 37 Nepal 1946 4232 4.6 5.1 14.64 21.46 6.4 5.3 44 36 Netherlands 171861 395900 2.3 1.8 14.15 15.46 1.6 1.6 13 12 Netherlands Antilles 986 .. 0.17 0.20 2.3 2.1 .. 19 New Caledonia .. .. 0.14 0.19 3.8 2.5 26 21 New Zealand 22469 57070 1.8 3.6 3.11 3.60 2.1 2.1 16 16 Nicaragua 2144 1911 -2.0 1.1 2.80 4.38 6.2 4.1 45 33 Niger 2538 1860 -1.1 0.5 5.52 9.03 7.4 7.4 51 52 Nigeria 93082 40477 1.6 1.6 71.15 111.27 6.9 5.5 50 42 Northern Mariana Islands .. .. .. 0.07 .. .. .. .. Norway 63283 145954 2.9 3.5 4.09 4.35 1.7 1.9 12 14 Oman 5982 12102 8.3 6.0 1.10 2.20 9.9 7.0 45 44 Pakistan 23690 60649 6.3 4.6 82.58 129.91 7.0 5.2 47 38 Panama 3592 7413 0.3 6.3 1.96 2.63 3.7 2.7 29 23 Papua New Guinea 2548 4901 1.9 9.3 3.09 4.30 5.7 4.8 37 33 Paraguay 4579 7744 2.5 3.1 3.14 4.83 4.8 4.0 36 31 Peru 20661 57424 -0.2 5.3 17.30 23.82 4.5 3.1 35 26 Philippines 32500 74180 1.0 2.3 48.32 68.60 4.8 3.7 35 29 Poland 57068 117663 1.9 2.4 35.58 38.61 2.3 1.6 19 13 Portugal 28526 102337 2.9 0.8 9.77 9.93 2.2 1.4 16 11 Puerto Rico 14436 .. 4.1 3.0 3.21 3.72 2.6 2.1 23 17 Qatar 7829 7612 0.23 0.64 5.6 3.9 29 21 Reunion .. .. 0.51 0.65 3.1 2.2 25 19 Romania .. 35533 0.5 -1.4 22.20 22.69 2.4 1.4 18 11 Russian Federation .. 346383 1.9 -9.8 139.01 148.20 1.9 1.4 16 9 Rwanda 1163 1128 2.3 -12.8 5.16 6.40 8.3 6.2 51 41 São Tomé and Principe 43 45 0.09 0.13 .. 4.8 39 35 Saudi Arabia 156487 125501 -1.2 1.7 9.37 18.98 7.3 6.2 43 36 Senegal 3016 4867 3.1 1.9 5.54 8.47 6.7 5.7 46 40 Seychelles 147 .. 0.06 0.07 .. 2.4 29 22 Sierra Leone 1166 824 1.6 -4.2 3.24 4.20 6.5 6.5 49 48 Singapore 11718 83695 6.4 8.7 2.28 2.99 1.7 1.7 17 16 Slovak Republic .. 17414 2.0 -2.8 4.98 5.37 2.3 1.5 19 12 Slovenia .. 18550 .. .. 1.90 1.99 2.1 1.3 15 10 Solomon Islands 116 357 0.23 0.38 6.7 5.1 44 37 Somalia 604 .. 6.71 9.49 7.0 7.0 50 49 South Africa 78744 136035 1.3 0.6 29.17 41.46 4.9 3.9 36 30 116 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 .. .. .. .. .. .. .. .. .. .. .. .. 11 7 2.5 310 1 950 -3.8 .. .. 27 .. 46 .. 12 7 2.0 1110 3 340 0.8 39.2 1.1 14 13 24 21 20 18 1.8 80 810 3.6 .. .. 1 5 22 60 14 10 1.8 .. .. 0.4 .. .. 18 .. 21 .. 14 12 2.7 2000 4 150 2.8 .. .. 39 .. 29 .. 18 12 2.5 200 1 170 2.4 36.7 53.1 11 12 18 23 8 9 0.6 24000 19 950 1.8 31.5 .. 22 29 22 22 .. 6 1.0 .. .. .. .. .. .. .. .. .. 7 5 2.0 .. .. .. .. .. .. .. .. .. 9 8 1.0 14340 16 360 0.6 .. .. 20 26 21 24 11 6 3.1 380 2 000 -5.8 50.3 43.8 -2 .. 17 .. 23 19 3.2 220 750 -2.1 36.1 61.5 23 .. 37 .. 18 13 2.9 260 1 220 1.2 37.5 28.9 32 .. 22 .. .. .. .. .. .. .. .. .. .. .. .. .. 10 10 0.5 31250 21 940 1.6 25.2 .. 31 29 25 23 10 4 4.5 4820 8 140 0.3 .. .. 47 .. 22 .. 15 8 3.0 460 2 230 1.2 31.2 11.6 7 16 18 19 6 5 1.9 2750 5 980 -0.4 56.6 25.6 .. 22 .. 24 14 10 2.2 1160 2 420 2.1 .. .. 15 39 25 24 7 5 2.7 1690 3 650 1.1 .. .. 18 .. 32 .. 11 6 2.1 2310 3 770 -1.6 44.9 49.4 32 11 29 17 9 7 2.3 1050 2 850 1.5 40.7 27.5 24 15 29 23 10 10 0.4 2790 5 400 -0.4 27.2 6.8 23 19 26 17 10 10 -0.1 9740 12 670 3.7 .. .. 21 18 34 28 6 8 1.0 .. .. 2.1 .. .. 10 .. 17 .. 7 4 5.8 11600 17 690 -2.6 .. .. .. .. .. .. 6 5 1.6 .. .. .. .. .. .. .. .. 10 12 0.0 1480 4 360 -4.0 25.5 17.7 35 21 40 26 11 15 0.3 2240 4 480 -5.1 49.6 1.1 .. 26 22 25 19 22 0.6 180 540 -5.0 28.9 45.7 5 -7 16 13 10 7 2.3 350 .. -2.1 .. .. -15 .. 34 .. 9 5 4.3 7040 8 820 -1.9 .. .. 62 .. 22 .. 20 14 2.8 600 1 780 -1.2 54.1 54.0 0 10 15 16 7 7 1.2 6620 .. 4.2 .. .. 27 .. 38 .. 29 29 1.6 180 580 -3.4 .. .. 2 -9 18 6 5 5 1.8 26730 22 770 6.2 .. .. 38 .. 46 33 10 10 0.3 2950 3 610 -2.6 19.5 12.8 .. 30 .. 28 10 10 0.1 8200 .. .. 28.2 .. .. 21 .. 22 10 7 3.1 910 2 190 2.2 .. .. 7 .. 36 .. 22 18 1.9 .. .. .. .. .. -13 .. 42 .. 12 8 2.3 3160 5 030 -1.0 58.4 23.7 36 18 28 18 117 BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 (continued) Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 Spain 211543 558617 3.2 1.1 37.39 39.20 2.2 1.2 15 10 Sri Lanka 4024 12915 4.2 4.8 14.74 18.11 3.5 2.3 28 19 St. Kitts and Nevis 48 225 0.04 0.04 .. 2.4 27 20 St. Lucia 133 556 0.12 0.16 4.4 2.9 31 28 St. Vincent and the Grenadines 59 256 0.10 0.11 .. 2.3 28 22 Sudan 6760 .. 0.6 6.8 18.68 26.71 6.5 4.8 45 35 Suriname 891 335 0.36 0.41 4.3 2.6 28 24 Swaziland 582 1073 0.57 0.90 6.2 4.6 44 34 Sweden 125557 228679 2.3 -0.1 8.31 8.83 1.7 1.7 12 13 Switzerland 101646 300508 2.2 0.1 6.32 7.04 1.5 1.5 12 12 Syrian Arab Republic 13062 16783 1.5 7.4 8.70 14.11 7.4 4.8 46 39 Tajikistan .. 1999 .. -18.1 3.97 5.84 5.6 4.2 37 28 Tanzania .. 3602 3.8 3.2 18.58 29.65 6.7 5.8 47 42 Thailand 32354 167060 7.6 8.4 46.72 58.24 3.5 1.8 28 17 Togo 1136 1263 1.8 -3.4 2.62 4.09 6.6 6.4 45 44 Tonga 52 170 0.09 0.10 4.8 3.3 29 28 Trinidad and Tobago 6236 5327 -2.5 1.0 1.08 1.29 3.3 2.1 29 19 Tunisia 8743 18035 3.3 3.9 6.38 8.99 5.2 2.9 35 24 Turkey 68790 164789 5.3 3.2 44.44 61.06 4.3 2.7 32 23 Turkmenistan .. 3917 .. -10.6 2.86 4.51 4.9 3.8 34 31 Uganda 1267 5655 3.1 6.6 12.81 19.17 7.2 6.7 49 49 Ukraine .. 80127 .. -14.3 50.04 51.55 2.0 1.5 15 10 United Arab Emirates 29625 39107 -2.0 .. 1.04 2.46 5.4 3.6 30 20 United Kingdom 537382 1105822 3.2 1.4 56.33 58.53 1.9 1.7 13 13 United States 2708150 6952020 3.0 2.6 227.76 263.12 1.8 2.1 16 15 Uruguay 10132 17847 0.4 4.0 2.91 3.18 2.7 2.2 19 16 Uzbekistan .. 21556 .. -4.4 15.95 22.77 4.8 3.7 34 29 Vanuatu 113 .. 0.12 0.17 .. 5.0 .. 35 Venezuela 69377 75016 1.1 2.4 14.87 21.67 4.1 3.1 33 25 Vietnam .. 20351 .. 8.3 53.70 73.48 5.0 3.1 36 26 Virgin Islands (U.S.) 728 .. 0.10 0.10 .. 2.4 26 19 West Bank and Gaza .. .. .. .. 1.20 2.15 .. .. .. .. Western Samoa 112 .. 0.16 0.17 .. 4.2 .. 33 Yemen, Rep. .. 4790 .. .. 8.54 15.27 7.9 7.4 53 48 Yugoslavia, FR (Serbia/Montenegro) .. .. .. .. 9.52 10.52 2.3 1.9 18 14 Zaire 14391 .. 1.7 .. 27.01 43.85 6.6 .. 48 .. Zambia 3884 4073 0.8 -0.2 5.74 8.98 7.0 5.7 50 45 Zimbabwe 5355 6522 3.5 1.0 7.01 11.01 6.8 3.8 49 31 118 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 8 9 0.2 13580 14 520 2.6 32.5 .. 21 22 23 21 6 6 1.3 700 3 250 2.7 30.1 4.0 11 14 34 25 11 12 -0.4 5170 9 410 4.6 .. .. 8 .. 38 .. 7 6 1.4 3370 .. 3.9 .. .. 7 .. 34 .. 7 7 0.8 2280 .. 3.9 .. .. -2 .. 39 .. 17 12 2.2 .. .. 0.6 .. .. 3 .. 15 .. 8 6 0.3 880 2 250 0.7 .. 21 .. 26 .. 15 9 3.1 1170 2 880 0.6 .. .. 6 9 30 17 11 10 0.6 23750 18 540 -0.1 25.0 .. 19 19 21 14 9 9 0.8 40630 25 860 0.2 36.1 .. 20 27 24 23 9 5 3.1 1120 5 320 1.0 .. .. 10 .. 28 .. 8 7 2.4 340 920 -13.0 .. .. .. 18 .. 17 15 14 3.1 120 640 0.9 38.1 16.4 .. -7 .. 31 8 6 1.3 2740 7 540 8.4 46.2 0.1 23 36 29 43 16 15 3.0 310 1 130 -2.8 .. .. 25 9 30 14 9 6 0.9 1630 .. 0.2 .. .. -7 .. 30 .. 7 6 0.9 3770 8 610 -1.6 .. .. 42 25 31 14 9 6 2.1 1820 5 000 1.8 40.2 3.9 24 20 29 24 10 7 1.9 2780 5 580 2.2 .. .. 11 20 18 25 8 7 3.3 920 .. -9.6 35.8 5.0 .. .. .. .. 18 19 3.0 240 1 470 2.8 40.8 50.0 0 7 6 16 11 14 0.1 1630 2 400 -9.2 25.7 .. .. .. .. .. 5 3 5.8 17400 16 470 -3.5 .. .. 72 .. 28 .. 12 11 0.3 18700 19 260 1.4 32.6 .. 19 15 17 16 9 8 0.9 26980 26 980 1.3 40.1 .. 19 .. 20 .. 10 10 0.6 5170 6 630 3.3 .. .. 12 13 17 14 8 6 2.3 970 2 370 -3.9 .. .. .. .. .. .. .. 7 2.7 1200 2 290 -1.1 .. .. .. .. .. 6 5 2.4 3020 7 900 0.5 53.8 11.8 33 21 26 16 8 7 2.2 240 .. 4.2 35.7 .. .. 16 .. 27 .. 5 -0.8 .. .. .. .. .. .. .. .. .. .. 4.6 .. .. .. .. .. .. .. .. .. .. 7 1 1120 2 030 -0.4 .. .. -4 .. 33 .. 19 13 4.2 260 .. .. .. .. .. .. .. .. 10 10 0.5 .. .. .. .. .. .. .. .. .. 17 .. 3.2 120 490 -8.5 .. .. 10 .. 10 .. 15 18 2.6 400 930 -1.0 46.2 84.6 19 3 23 12 13 10 2.8 540 2 030 -0.6 56.8 41.0 16 .. 19 .. 119 BEYOND ECONOMIC GROWTH Table1. Indicators to chapters 1–6 (continued) Gross domestic Average annual product GDP growth Population Fertility rate Birth rate $ millions % millions births per woman per 1,000 people COUNTRY or REGION 1980 1995 1980-90 1990-95 1980 1995 1980 1995 1980 1995 World 10768090 27846241 3.1 2.0 4429.39 5672.99 3.7 2.9 27 23 Low Income 739236 1352256 6.0 6.8 2377.58 3179.93 4.3 3.2 31 26 Excl. China & India 390472 316889 2.7 1.8 709.02 1050.33 6.3 5.0 44 37 Middle income 2461307 4033376 1.9 0.1 1235.94 1590.91 3.8 3.0 29 22 Lower middle income .. 2025853 2.3 -1.5 904.85 1152.56 3.7 3.0 28 22 Upper middle income 989317 1981511 1.3 2.6 331.08 438.35 3.9 2.9 30 23 Low & middle income 3192729 5393142 2.8 2.1 3613.52 4770.84 4.1 3.1 30 25 East Asia & Pacific 464719 1341265 7.6 10.3 1359.97 1706.44 3.1 2.2 22 19 Europe & Central Asia .. 1103330 2.3 -6.5 437.46 487.64 2.5 2.0 19 14 Latin America & Caribbean 758569 1688195 1.7 3.2 358.22 477.94 4.1 2.8 31 24 Middle East & N. Africa 463031 .. 0.2 2.3 174.74 272.44 6.1 4.2 42 32 South Asia 219283 439203 5.7 4.6 902.59 1243.03 5.3 3.5 37 28 Sub-Saharan Africa 292557 296748 1.7 1.4 380.55 583.35 6.7 5.7 47 41 High Income 7758074 22485548 3.2 2.0 815.87 902.15 1.9 1.7 15 13 120 INDICATORS TO CHAPTERS 1–6 Average Poverty annual GNP % of people Gross Gross population per capita living on less domestic domestic Death rate growth GNP per capita growth Gini than $1 a savings investment per 1,000 people % $ PPP $ annual % index day (PPP) % of GDP % of GDP 1980 1995 1985-95 1995 1995 1985-95 1981-95 1980 1995 1980 1995 12 9 1.6a 4880 0.8 25 21 24 23 13 10 1.9 430 3.8 22 30 24 32 17 13 2.6 300 -1.4 .. 10 .. 20 10 8 1.7 2390 0.7 .. 25 .. 25 10 8 1.6 1670 -1.3 .. .. .. .. 9 7 1.9 4260 0.2 32 23 25 21 12 9 1.9 1090 0.4 30 22 26 27 8 7 1.5 800 7.2 28 38 28 39 10 11 0.7 2220 -3.5 .. .. .. .. 8 7 1.9 3320 0.3 23 19 25 20 12 7 3.0 1780 -0.3 45 .. 26 .. 14 9 2.1 350 2.9 15 20 20 23 18 15 2.8 490 -1.1 27 16 23 19 9 8 0.7 24930 1.9 23 21 23 21 a. 1980–95. 121 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total Afghanistan 53 85 69 28 25 .. .. .. .. .. .. .. .. 44 45 44 Albania .. .. .. 4 1 .. 3.4 113 87 67 35 8 10 70 76 73 Algeria 26 51 38 7 2 7.8 .. 94 107 33 62 6 11 68 71 70 American Samoa .. .. .. .. .. .. .. .. .. .. .. .. .. .. Andorra .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Angola .. .. .. 30 27 .. .. 174 88 21 14 0 1 45 48 47 Antigua and Barbuda .. .. .. .. .. .. .. .. .. .. .. .. .. 72 78 75 Argentina 4 4 4 8 5 2.7 4.5 106 108 56 72 22 38 69 76 73 Armenia .. .. .. 0 0 .. .. .. 82 .. 79 30 49 68 74 71 Aruba .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Australia .. .. .. 0 0 5.5 5.6 112 108 71 147 26 72 74 80 77 Austria .. .. .. 0 0 5.6 5.5 99 101 99 104 26 45 74 80 77 Azerbaijan .. .. .. 0 0 .. 3.0 115 104 93 74 24 20 66 75 70 Bahamas, The 2 2 2 0 0 .. .. .. .. .. .. .. .. 70 77 73 Bahrain 11 21 15 0 0 .. .. .. .. .. .. .. .. 71 75 72 Bangladesh 51 74 62 35 30 1.5 2.3 61 92 18 .. 3 .. 57 58 58 Barbados 2 3 3 0 0 .. .. .. .. .. .. .. .. 73 78 .. Belarus .. .. .. 0 0 5.2 5.6 104 97 98 .. 39 .. 64 75 70 Belgium .. .. .. 0 0 6.1 5.7 104 103 91 144 26 49 73 80 77 Belize .. .. .. 4 2 .. .. .. .. .. .. .. .. 73 76 70 Benin 51 74 63 30 28 .. 3.1 67 72 16 16 1 3 49 52 50 Bermuda .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Bhutan 44 72 58 63 55 .. .. .. .. .. .. .. .. .. .. .. Bolivia 10 24 17 19 14 4.4 6.6 87 .. 37 .. 16 .. 59 62 60 Bosnia and Herzegovina .. .. .. 1 0 .. .. .. .. .. .. .. .. .. .. .. Botswana 20 40 30 26 17 .. 9.6 91 115 19 56 1 4 50 53 68 Brazil 17 17 17 19 16 3.6 .. 98 112 33 54 11 11 63 71 67 Brunei 7 17 12 0 0 .. .. .. .. .. .. .. .. 73 78 75 Bulgaria .. .. .. 0 0 4.5 4.2 98 94 84 78 16 39 68 75 71 Burkina Faso 71 91 81 71 51 2.6 3.6 17 38 3 8 0 1 45 47 49 Burundi 51 78 65 50 49 .. 2.8 26 70 3 7 1 1 45 48 49 Cambodia .. .. .. 27 25 .. .. .. 122 32 27 1 2 52 54 53 Cameroon 25 48 37 34 25 3.2 .. 98 88 18 27 2 .. 55 58 57 Canada .. .. .. 0 0 6.9 7.3 99 102 88 106 57 103 76 82 78 Cape Verde 19 .. 28 16 14 .. .. .. .. .. .. .. .. 65 67 65 Cayman Islands .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Central African Republic 32 48 40 39 31 .. .. 71 56 14 10 1 1 46 51 48 Chad 38 65 52 42 38 .. 2.2 .. 55 .. 9 .. 1 47 50 48 Channel Islands .. .. .. .. .. .. .. .. .. .. .. .. .. 74 82 78 Chile 5 5 5 0 0 4.6 2.9 109 99 53 69 12 28 72 78 72 China 10 27 19 30 12 2.5 2.3 113 118 46 67 2 5 68 71 69 122 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 .. 237 0.8 0.9 .. .. .. .. .. 16 20 .. .. .. .. .. .. 37 0.7 0.6 50 8 56 21 23 34 37 .. 31 .. 20 10 139 42 1 0.7 53 10 13 47 41 43 56 .. 53 30 25 19 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 209 0.9 1 .. .. 12 59 28 21 32 .. 21 .. 19 222 .. 23 .. 0.5 .. .. .. .. .. 31 35 .. .. .. .. .. 38 27 0.6 0.6 40 23 6 31 63 83 88 155 154 .. 127 339 .. 24 0.6 0.6 .. .. 44 35 20 66 69 .. 2 .. 0 3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8 0.5 0.5 29 21 3 28 70 86 85 502 604 401 485 409 .. 7 0.6 0.5 42 27 2 34 63 55 56 330 495 297 458 39 .. 31 0.7 0.6 .. .. 27 32 41 53 56 .. 48 .. 36 10 .. 18 0.7 0.5 .. .. .. .. .. 75 87 .. .. .. .. .. .. 23 0.6 0.6 .. .. 1 43 56 81 90 .. .. .. .. .. 207 115 1 0.9 60 15 31 18 52 11 18 .. 1 .. 0 10 .. 12 0.7 0.5 .. .. .. .. .. 40 48 .. .. .. .. .. .. 20 0.5 0.5 .. .. 13 35 52 56 71 .. 101 .. 101 74 .. 10 0.5 0.5 31 19 2 .. .. 95 97 349 469 .. 424 7 .. 46 1.1 0.8 .. .. 13 25 22 49 47 .. .. .. .. .. 205 156 0.9 1 .. .. 34 12 53 32 42 .. 8 .. 7 46 .. .. .. .. .. .. .. .. .. 100 .. .. .. .. .. .. .. 175 0.8 0.8 .. .. .. .. .. .. .. .. .. .. .. .. 171 96 0.9 0.8 50 21 .. .. .. 46 58 19 48 .. 29 483 .. .. 0.5 0.5 .. .. .. .. .. 36 49 .. 24 .. 22 27 80 74 1 0.8 21 .. 5 46 48 15 31 27 45 9 15 139 86 57 0.7 0.6 40 25 14 37 49 66 78 85 79 75 84 5511 .. 11 0.7 0.6 .. .. .. .. .. 60 59 .. .. .. .. .. .. 19 0.5 0.5 49 17 13 34 53 61 71 .. 234 92 204 32 241 164 0.9 1 .. .. 34 27 39 9 27 .. 5 .. 4 43 195 162 0.9 1 .. .. 56 18 26 4 8 .. 6 .. .. 3 .. 158 0.9 0.9 .. .. 51 14 34 12 21 .. 6 5 98 172 86 0.9 0.9 .. .. 39 23 38 31 45 8 12 7 196 .. 8 0.5 0.5 31 29 .. .. .. 76 77 548 559 417 440 2446 .. 68 1.1 0.9 .. .. .. .. .. 24 54 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 193 160 .. 0.9 .. .. 44 13 43 35 39 8 0 .. 0 299 206 197 0.8 0.9 .. .. 44 22 35 19 21 .. 4 .. 2 110 .. 9 .. 0.5 .. .. 14 32 54 32 29 .. .. .. .. .. 37 15 0.6 0.6 38 25 .. .. .. 81 86 61 110 45 71 79 60 43 0.7 0.5 61 7 21 48 31 19 30 2 8 .. 3 1333 123 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 (continued) Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total Colombia 9 9 9 12 7 1.9 3.5 124 114 41 67 9 17 67 73 70 Comoros 36 50 43 45 39 .. .. .. .. .. .. .. .. 54 58 56 Congo 17 33 25 27 26 7.0 5.9 141 114 74 53 5 .. 49 54 51 Costa Rica 5 5 5 10 5 7.8 4.5 105 107 48 50 21 32 74 79 77 Côte d’Ivoire 50 70 60 28 20 7.2 .. 75 69 19 23 3 4 53 56 55 Croatia .. .. .. 0 0 .. 5.3 .. 86 .. 82 19 28 70 78 74 Cuba 4 5 4 0 0 7.2 .. 106 105 81 80 17 14 74 78 76 Cyprus .. .. .. 4 0 .. .. .. .. .. .. .. .. 75 80 78 Czech Republic .. .. .. 0 0 .. 6.1 .. 96 .. 96 18 21 70 77 73 Denmark .. .. .. 0 0 6.9 8.3 96 99 105 118 28 46 72 78 75 Djibouti 40 67 54 .. .. .. .. .. .. .. .. .. .. 48 51 50 Dominica .. .. .. .. .. .. .. .. .. .. .. .. .. 71 75 73 Dominican Republic 18 18 18 25 16 2.2 1.9 118 103 42 41 .. .. 68 73 71 Ecuador 8 12 10 9 5 5.5 3.4 117 109 53 50 35 .. 67 72 69 Egypt, Arab Rep. 36 61 49 18 11 5.7 5.6 73 100 50 74 16 18 64 66 63 El Salvador 27 30 29 17 15 3.9 2.2 74 88 25 32 13 16 66 72 67 Equatorial Guinea 10 32 21 40 34 .. .. .. .. .. .. .. .. 48 51 49 Eritrea .. .. .. 44 40 .. .. .. 57 .. 19 .. 1 49 52 48 Estonia .. .. .. 0 0 .. 6.6 98 91 .. 86 25 36 65 76 70 Ethiopia 55 75 65 46 42 .. 4.7 36 31 8 11 0 1 47 51 49 Faeroe Islands .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Fiji 6 11 8 5 0 .. .. .. .. .. .. .. .. 70 74 72 Finland .. .. .. 0 0 5.3 7.6 96 100 100 116 32 67 73 80 76 France .. .. .. 0 0 5.0 5.9 111 106 85 111 25 50 74 82 78 French Guiana 52 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. French Polynesia .. .. .. .. .. .. .. .. .. .. .. .. .. 67 73 70 Gabon 26 47 37 29 18 2.7 .. .. 142 .. .. .. .. 53 56 55 Gambia, The 47 75 61 44 37 3.3 5.5 53 73 11 22 .. 2 45 48 46 Georgia .. .. .. 0 0 .. 5.2 .. 82 .. 73 30 38 69 78 73 Germany .. .. .. 0 0 .. 4.7 .. 102 98 103 34 43 73 79 76 Ghana 24 47 .. 16 13 3.1 .. 79 76 41 37 2 .. 57 61 59 Greece .. .. .. 5 0 .. 3.7 103 .. 81 95 17 38 75 81 78 Greenland .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 68 Grenada .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Guadeloupe .. .. .. 0 0 .. .. .. .. .. .. .. .. 72 79 75 Guam .. .. .. .. .. .. .. .. .. .. .. .. .. 70 76 73 Guatemala 38 51 44 19 16 .. 1.7 71 84 18 25 8 8 63 68 66 Guinea 50 78 .. 41 34 .. .. 36 48 17 12 5 .. 44 45 44 Guinea-Bissau 32 58 45 43 39 .. .. 68 64 6 .. .. .. 42 45 38 Guyana 2 .. 2 2 0 .. .. .. .. .. .. .. .. 61 67 66 Haiti 52 58 55 33 25 1.5 .. 76 .. 14 .. 1 .. 54 57 57 Honduras 27 27 27 14 9 3.2 3.9 98 111 30 32 8 10 64 69 67 Hong Kong 4 12 8 6 0 .. 2.8 107 96 64 75 10 .. 76 81 79 Hungary .. .. .. 0 0 4.7 6.0 96 97 70 81 14 19 66 74 70 124 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 58 31 0.8 0.6 35 19 .. .. .. 64 73 .. 38 12 20 530 .. 143 1 1 .. .. 39 13 48 21 28 .. .. .. .. .. .. 144 0.9 1 .. .. 10 38 51 41 59 .. 20 .. 14 195 29 16 0.7 0.7 35 20 17 24 58 43 50 .. 123 20 81 12 157 138 1 1 .. .. 31 20 50 35 44 24 32 .. 20 55 .. 18 0.5 0.5 37 38 12 25 62 50 64 196 .. 175 18 22 10 0.7 0.5 39 25 .. .. .. 68 76 .. 5 .. 2 18 .. 11 0.5 0.6 .. .. .. .. .. 46 54 .. .. .. .. .. .. 10 0.6 0.5 43 31 6 39 55 64 65 .. 349 .. 325 28 .. 7 0.5 0.5 37 37 4 33 67 84 85 322 390 271 331 4 .. 181 0.9 0.8 .. .. 3 20 77 74 83 .. .. .. .. .. .. 21 .. 0.7 .. .. .. .. .. .. .. .. .. .. .. .. 92 44 0.8 0.6 66 14 15 22 64 51 65 36 47 20 28 16 98 45 0.9 0.7 .. .. 12 36 52 47 58 .. 46 28 41 111 175 76 0.8 0.7 40 1 20 21 59 44 45 .. 30 8 23 0 125 42 1 0.8 38 12 14 22 65 42 45 .. 77 16 29 1 .. 185 0.8 0.9 .. .. .. .. .. 27 42 .. .. .. .. .. .. 196 .. 0.9 .. .. 11 20 69 .. 17 .. 2 .. 2 3 .. 16 0.5 0.5 52 24 8 28 64 70 73 .. 329 .. 277 20 213 188 1 1 .. .. 57 10 33 11 13 2 1 1 1 136 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 25 0.7 0.6 .. .. .. .. .. 38 41 .. .. .. .. .. .. 5 0.5 0.5 27 19 6 37 57 60 63 288 431 256 379 200 .. 9 0.6 0.5 40 27 2 27 71 73 73 402 524 355 437 150 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 24 0.8 0.6 .. .. .. .. .. 60 .. .. .. .. .. .. .. 145 0.6 0.8 .. .. .. .. .. 36 50 .. 36 .. 22 179 .. 213 0.8 0.8 .. .. 28 15 58 18 26 .. 15 11 8 1 .. 21 0.5 0.5 .. .. 67 22 11 52 58 .. 87 .. 79 30 .. 7 0.5 0.5 37 22 .. .. .. 83 87 399 528 297 500 107 157 116 0.9 0.9 .. .. 46 16 38 31 36 .. 8 .. 5 90 .. 10 0.6 0.5 46 28 21 36 43 58 65 134 312 91 223 65 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 32 .. 0.8 .. .. 11 19 70 .. .. .. .. .. .. .. .. 14 0.7 0.5 .. .. .. .. .. 44 52 .. .. .. .. .. .. 12 0.6 0.5 .. .. .. .. .. 40 38 .. .. .. .. .. 140 58 1 0.9 38 25 25 19 56 37 42 .. 18 .. 9 38 .. 220 0.9 1 40 2 24 31 45 19 30 .. 5 .. 2 64 .. 233 0.8 0.9 .. .. 46 24 30 17 22 .. 12 .. 7 23 .. 82 0.8 0.6 .. .. .. .. .. 31 37 .. .. .. .. .. 200 101 0.8 0.8 .. .. 44 12 44 24 32 .. 7 .. 4 0 101 59 1 0.9 36 11 21 33 46 36 48 .. 33 .. 4 41 12 6 .. .. .. .. 0 17 83 92 95 54 78 41 55 .. .. 14 0.5 0.5 40 27 8 33 59 57 65 108 273 95 239 17 125 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 (continued) Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total Iceland .. .. .. 0 0 .. .. .. .. .. .. .. .. 77 81 79 India 35 62 48 21 14 2.8 3.5 83 100 30 49 5 6 62 63 62 Indonesia 10 22 16 13 10 1.7 .. 107 114 29 48 4 11 62 66 64 Iran, Islamic Rep. 22 34 28 14 5 7.5 4.0 87 99 42 69 15 68 69 68 Iraq 29 55 42 11 3 3.0 .. 113 90 57 44 9 60 62 66 Ireland .. .. .. 1 0 .. 6.3 100 104 90 114 18 37 74 79 77 Isle of Man .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Israel .. .. .. 0 0 7.9 6.6 95 99 73 89 29 41 75 79 77 Italy .. .. .. 2 0 .. 4.9 100 98 72 74 27 41 75 81 78 Jamaica 19 11 15 0 0 7.0 8.2 103 109 67 66 7 6 72 77 74 Japan .. .. .. 0 0 5.8 3.8 101 102 93 99 31 40 77 83 80 Jordan 7 21 13 4 1 .. 6.3 104 94 75 27 69 72 70 Kazakhstan .. .. .. 0 0 .. 4.5 84 96 93 83 34 33 64 74 69 Kenya 14 30 22 45 41 6.8 7.4 115 85 20 24 1 .. 57 60 58 Kiribati .. .. .. .. .. .. .. .. .. .. .. .. .. 56 61 58 Korea, Dem. Rep. 1 3 .. 3 0 .. .. .. .. .. .. .. .. 67 74 70 Korea, Rep. 1 3 2 0 0 3.7 3.7 110 101 78 101 15 52 68 76 72 Kuwait 18 25 21 0 0 2.4 5.6 102 73 80 64 11 25 74 79 76 Kyrgyz Republic .. .. .. 0 0 7.2 6.8 116 107 110 61 16 14 63 72 68 Lao PDR 31 56 43 31 27 .. 2.4 113 107 21 25 0 2 51 54 52 Latvia .. .. .. 0 0 3.3 6.3 78 69 100 85 24 26 63 75 69 Lebanon 5 10 8 5 0 .. 2.0 111 109 59 91 30 27 68 71 68 Lesotho 19 38 29 28 22 5.1 5.9 102 99 16 28 1 2 57 60 61 Liberia 46 78 .. 26 19 .. .. .. .. .. .. .. .. 46 46 54 Libya 12 37 .. 9 0 3.4 .. 125 110 76 97 8 16 63 67 65 Liechtenstein .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Lithuania .. .. .. 0 0 5.5 6.1 79 96 114 84 35 28 63 75 69 Luxembourg .. .. .. 0 0 .. .. .. .. .. .. .. .. 73 80 76 Macao .. .. .. 7 0 .. .. .. .. .. .. .. .. 75 80 77 Macedonia, FYR .. .. .. 1 0 .. 5.5 100 89 61 57 28 18 71 75 73 Madagascar .. .. .. 40 36 4.4 .. 133 72 .. 14 3 3 56 59 52 Malawi 28 58 44 45 35 3.4 5.7 60 135 3 98 1 2 43 44 43 Malaysia 11 22 17 8 3 6.0 5.3 93 91 48 61 4 11 69 74 71 Maldives 7 7 7 23 6 .. .. .. .. .. .. .. .. 64 63 63 Mali 61 77 69 61 55 3.8 2.2 26 34 8 9 1 .. 48 51 50 Malta .. .. .. 1 0 .. .. .. .. .. .. .. .. 75 79 77 Marshall Islands .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Martinique .. .. .. 0 0 .. .. .. .. .. .. .. .. 73 80 77 Mauritania 50 74 .. 30 24 .. 5.0 37 78 11 15 .. 4 51 54 51 Mauritius 13 21 17 5 3 5.3 4.3 93 107 50 62 1 6 68 75 71 Mayotte .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Mexico 8 13 10 9 7 4.7 5.3 120 115 49 58 14 14 69 75 72 Micronesia, Fed. Sts. .. .. .. 9 6 .. .. .. .. .. .. .. .. 63 66 .. Moldova .. .. .. 3 0 .. 6.1 83 94 78 80 30 25 65 73 69 126 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 .. 6 0.6 0.5 .. .. .. .. .. 88 92 .. .. .. .. .. 173 95 0.7 0.7 40 3 29 29 41 23 27 2 7 .. 4 650 124 75 0.8 0.6 53 4 17 42 41 22 34 8 22 .. 11 1098 130 59 0.9 0.9 .. .. 25 34 40 50 59 .. 38 .. 29 15 93 145 0.9 0.9 40 5 .. .. .. 66 78 .. 14 .. 1 1 .. 7 0.7 0.5 29 28 .. .. .. 55 58 236 307 216 272 6 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 19 9 0.7 0.6 45 30 .. .. .. 89 .. 123 263 107 208 1 .. 8 0.5 0.5 38 26 3 31 66 67 66 334 674 303 571 65 34 15 0.9 0.6 43 13 9 38 53 47 55 .. 50 .. 41 2 .. 6 0.5 0.4 59 15 2 38 60 76 78 323 552 203 374 251 64 33 1.1 0.8 43 5 8 27 65 60 72 56 68 41 50 0 .. 35 0.6 0.6 .. .. 12 30 57 54 60 .. 80 .. 61 105 115 90 1.2 1 52 7 29 17 54 16 28 8 13 7 10 13 .. 75 .. 0.7 .. .. .. .. .. .. .. .. .. .. .. .. .. 32 0.8 0.5 .. .. .. .. .. 57 61 .. .. .. .. 62 18 14 0.6 0.4 68 7 7 43 50 57 81 14 195 7 151 76 33 14 0.7 0.6 52 12 0 53 46 90 97 390 404 .. 338 0 .. 42 0.8 0.8 .. .. 44 24 32 38 39 .. 32 .. 32 7 .. 147 0.8 0.9 .. .. 52 18 30 13 22 .. 4 .. 3 .. .. 20 0.5 0.5 67 12 9 31 60 68 73 .. 189 .. 153 29 .. 40 0.8 0.7 .. .. 7 24 69 73 87 .. 320 .. 298 1 .. 121 0.8 0.8 38 1 10 56 34 13 23 10 19 3 6 0 235 239 0.9 0.9 .. .. .. .. .. 35 46 .. .. .. .. .. .. 75 1 0.9 .. .. .. .. .. 70 86 .. 138 .. 87 4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 19 0.5 0.5 52 10 11 36 53 61 72 .. 238 .. 212 20 .. 9 0.5 0.5 .. .. .. .. .. 79 89 .. .. .. .. .. .. 9 .. 0.5 .. .. .. .. .. .. .. .. .. .. .. .. .. 31 0.6 0.5 .. .. .. .. .. 53 60 .. 142 .. 139 10 175 127 0.9 0.9 29 28 34 13 53 18 27 .. 6 .. 5 151 271 225 1 1 .. .. 42 27 31 9 13 5 6 2 3 33 .. 14 0.8 0.7 41 4 13 43 44 42 54 .. 152 52 131 155 .. 70 0.9 1 .. .. .. .. .. 22 34 .. .. .. .. .. 291 192 1 1 .. .. 46 17 37 19 27 .. 4 .. 3 116 .. 11 0.5 0.5 .. .. .. .. .. 83 89 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12 0.6 0.5 .. .. .. .. .. 66 79 .. 158 0.9 0.9 .. .. 27 30 43 29 54 .. 13 .. 8 6 38 20 0.6 0.5 47 4 9 33 58 42 41 44 88 27 63 0 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 76 41 0.9 0.7 38 14 8 26 67 66 75 .. 140 61 92 554 .. 40 0.9 0.8 .. .. .. .. .. 25 28 .. .. .. .. .. .. 26 0.5 0.6 .. .. 50 28 22 40 52 .. 54 .. 39 127 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 (continued) Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total Monaco .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Mongolia .. .. .. 4 2 .. 5.6 107 88 91 59 .. 15 64 66 65 Morocco 43 69 56 21 6 6.1 5.6 83 83 26 39 6 11 64 68 65 Mozambique 42 77 60 39 34 4.4 .. 99 60 5 7 0 1 45 48 47 Myanmar 11 22 17 28 25 1.7 1.3 91 100 22 32 5 5 58 61 59 Namibia .. .. .. 34 22 1.5 9.4 .. 133 .. 62 .. 8 55 57 59 Nepal 59 86 73 56 45 1.8 2.9 86 110 22 38 3 5 57 56 55 Netherlands .. .. .. 0 0 7.6 5.3 100 107 93 139 29 49 75 81 78 Netherlands Antilles .. .. .. 0 0 .. .. .. .. .. .. .. .. 75 80 77 New Caledonia .. .. .. .. .. .. .. .. .. .. .. .. .. 71 75 .. New Zealand .. .. .. 0 0 5.8 6.7 111 104 83 117 27 58 73 79 76 Nicaragua 35 33 34 19 14 3.4 .. 96 110 43 47 13 9 65 70 68 Niger 79 93 86 48 45 3.1 .. 25 29 5 7 0 .. 44 49 47 Nigeria 33 53 43 29 26 6.4 .. 105 89 16 30 2 4 51 54 53 Northern Mariana Islands .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Norway .. .. .. 0 0 7.2 8.3 100 99 94 92 26 55 75 81 78 Oman .. .. .. 6 1 2.1 4.6 51 80 12 66 .. 5 68 73 70 Pakistan 50 76 62 23 18 2.0 .. 39 74 14 26 .. 3 62 64 60 Panama 9 10 9 6 4 4.8 5.2 106 106 61 68 21 30 71 76 73 Papua New Guinea 19 37 28 28 19 .. .. 59 80 12 14 2 3 56 58 57 Paraguay 7 9 8 15 8 1.5 2.9 106 109 27 38 9 10 67 72 68 Peru 6 17 11 4 2 3.1 .. 114 123 59 70 17 31 65 68 66 Philippines 5 6 5 14 8 1.7 2.2 112 116 64 79 24 27 64 68 66 Poland .. .. .. 0 0 .. 4.6 100 98 77 96 18 27 67 76 70 Portugal .. .. .. 8 2 3.8 5.4 123 128 37 102 11 34 72 79 75 Puerto Rico .. .. .. 0 0 .. .. .. .. .. .. 48 .. 72 80 75 Qatar 21 20 21 0 0 .. .. .. .. .. .. .. .. 70 75 72 Reunion .. .. .. 0 0 .. .. .. .. .. .. .. .. 70 79 74 Romania .. .. .. 0 0 3.3 3.2 102 100 71 66 12 18 66 74 70 Russian Federation .. .. .. 0 0 3.5 4.1 102 106 96 87 46 43 58 72 65 Rwanda 30 48 40 43 42 2.7 .. 63 82 3 11 0 .. 38 40 39 São Tomé and Principe .. .. .. .. .. .. .. .. .. .. .. .. .. 66 72 69 Saudi Arabia 29 50 37 5 0 4.1 5.5 61 78 29 58 7 15 69 71 70 Senegal 57 77 67 43 31 .. 3.6 46 65 11 16 3 3 49 51 50 Seychelles .. .. 21 .. .. .. .. .. .. .. .. .. .. 69 76 72 Sierra Leone 55 82 .. 19 15 3.8 .. 52 .. 14 .. 1 .. 35 38 40 Singapore 4 14 9 2 0 2.8 3.0 108 104 58 62 8 34 74 79 76 Slovak Republic .. .. .. 0 0 .. 4.4 .. 97 .. 91 .. 20 68 76 72 Slovenia .. .. .. 0 0 .. 5.8 .. 98 .. 91 .. 32 70 78 74 Solomon Islands .. .. .. 40 29 .. .. .. .. .. .. .. .. 62 63 63 Somalia .. .. .. 38 33 .. .. .. .. .. .. .. .. 47 50 49 South Africa 18 18 18 1 0 .. 6.8 86 117 .. 84 .. 17 61 67 64 Spain .. .. .. 0 0 .. 5.0 109 105 87 118 23 46 74 81 77 128 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 74 0.9 0.7 40 7 .. .. .. 52 60 .. 26 .. 12 94 147 75 0.9 0.7 40 9 14 33 53 41 49 .. 50 .. 40 38 285 190 0.9 0.9 .. .. 33 12 55 13 38 .. 1 .. 0 169 134 119 0.8 0.7 .. .. .. .. .. 24 27 .. 2 .. 1 272 108 78 0.9 0.9 .. .. .. .. .. 23 38 .. 83 .. 40 124 179 131 0.9 0.8 .. .. 42 22 36 7 14 .. .. .. .. 48 .. 8 0.5 0.5 36 29 .. .. .. 88 89 343 400 322 363 3 .. 14 0.6 0.5 .. .. .. .. .. 68 70 .. .. .. .. .. .. 19 0.7 0.6 .. .. .. .. .. 57 62 .. .. .. .. .. .. 9 0.6 0.5 24 22 .. .. .. 83 84 492 562 420 461 78 120 61 1 1 .. .. 33 20 46 53 62 .. 30 9 16 56 300 200 1 1 .. .. 39 18 44 13 23 6 6 5 4 26 196 176 0.9 0.9 24 7 28 53 18 27 39 4 12 3 7 138 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8 0.6 0.5 36 36 .. .. .. 71 73 342 470 302 379 81 .. 22 0.9 1 .. .. .. .. .. 8 13 .. 134 .. 97 0 161 127 0.9 0.9 27 4 26 24 49 28 35 2 7 2 5 17 47 28 0.8 0.6 56 20 10 15 73 50 55 .. 99 .. 76 28 .. 95 0.8 0.7 46 28 26 .. .. 13 16 .. 26 .. 7 369 59 52 0.8 0.8 24 6 24 22 54 42 54 .. 24 .. 14 115 126 62 0.8 0.6 41 13 7 38 55 65 72 .. 121 .. 58 676 69 53 0.8 0.7 43 8 22 32 46 38 53 .. 13 6 9 68 .. 16 0.9 0.5 51 29 6 39 54 58 65 86 248 67 209 87 .. 11 0.6 0.5 38 15 .. .. .. 29 36 145 370 .. 277 29 22 15 0.7 0.6 .. .. .. .. .. 67 71 .. 285 .. 232 3 .. 22 0.5 0.5 .. .. .. .. .. 86 92 .. .. .. .. .. .. 10 0.7 0.5 .. .. .. .. .. 55 67 .. .. .. .. .. .. 29 0.6 0.5 .. .. 21 40 39 49 55 .. 124 .. 107 62 .. 21 0.5 0.5 67 30 7 38 55 70 73 .. 158 .. 92 7635 218 200 1 1.1 .. .. 37 17 46 5 8 2 4 1 2 3 .. 78 .. 0.8 .. .. .. .. .. 32 47 .. .. .. .. .. .. 31 0.9 0.9 53 .. .. .. .. 67 79 163 149 67 90 2 218 97 0.9 1 48 35 20 18 62 36 42 19 14 .. 10 74 .. 19 .. 0.6 .. .. .. .. .. 43 67 .. .. .. .. .. 335 236 0.9 0.9 .. .. 42 27 31 25 39 .. 6 .. 4 13 13 6 0.5 0.4 32 3 0 36 64 100 100 .. 167 71 120 0 .. 15 0.6 43 26 6 33 61 52 59 .. 217 .. 198 20 .. 8 0.5 35 23 5 39 57 48 64 .. 387 .. 365 11 .. 52 1 0.9 .. .. .. .. .. 11 17 .. .. .. .. .. .. 218 1 1 .. .. .. .. .. 19 24 .. .. .. .. .. .. 67 0.8 0.7 52 17 5 31 64 48 51 133 134 66 106 85 .. 9 0.6 0.5 48 25 3 .. .. 73 77 239 456 202 376 84 129 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 (continued) Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total Sri Lanka 7 13 10 4 2 2.7 3.1 103 113 55 75 3 5 70 75 72 St. Kitts and Nevis .. .. .. .. .. .. .. .. .. .. .. .. .. 67 72 69 St. Lucia .. .. .. .. .. .. .. .. .. .. .. .. .. 68 73 71 St. Vincent and the Grenadines .. .. .. .. .. .. .. .. .. .. .. .. .. 69 76 72 Sudan 42 65 54 33 29 4.8 .. 50 54 16 13 2 .. 52 55 54 Suriname 5 9 7 1 0 .. .. .. .. .. .. .. .. 66 73 70 Swaziland 22 24 23 17 14 .. .. .. .. .. .. .. .. 57 61 58 Sweden .. .. .. 0 0 9.0 8.0 97 105 68 132 31 43 76 81 79 Switzerland .. .. .. 0 0 5.0 5.5 .. 107 .. 91 18 32 75 82 78 Syrian Arab Republic 14 44 .. 14 6 4.0 .. 100 101 46 44 17 18 66 71 68 Tajikistan .. .. .. 0 0 8.2 8.6 .. 89 .. 82 24 20 66 66 67 Tanzania 21 43 32 43 39 4.4 .. 93 67 3 5 .. 1 50 52 51 Thailand 4 8 6 25 16 3.4 4.2 99 87 29 55 15 20 67 72 69 Togo 33 63 48 36 29 5.6 5.6 118 118 33 27 2 3 49 52 56 Tonga .. .. .. .. .. .. .. .. .. .. .. .. .. 67 72 69 Trinidad and Tobago 1 3 2 1 0 4.0 4.5 99 96 70 72 4 8 70 75 72 Tunisia 21 45 33 6 0 6.4 6.8 102 116 27 61 6 13 68 70 69 Turkey 8 28 18 21 24 2.8 3.4 96 105 36 56 5 18 66 71 67 Turkmenistan .. .. .. 0 0 .. .. .. .. .. .. 23 .. .. .. 67 Uganda 26 50 38 49 45 1.2 .. 50 73 5 12 1 2 44 44 42 Ukraine .. .. .. 0 0 5.6 7.7 102 87 84 91 42 41 64 74 69 United Arab Emirates 21 20 21 0 0 1.3 1.8 89 95 52 78 3 9 74 76 75 United Kingdom .. .. .. 0 0 5.6 5.5 103 115 83 134 19 48 74 79 77 United States .. .. .. 0 0 6.7 5.7 99 102 91 97 56 81 74 80 77 Uruguay 3 2 3 4 2 2.3 2.8 107 111 62 82 17 27 70 77 73 Uzbekistan .. .. .. 0 0 6.4 9.5 81 77 105 93 29 32 .. .. 70 Vanuatu .. .. .. .. .. .. .. .. .. .. .. .. .. 63 65 64 Venezuela 8 10 9 4 1 4.4 5.2 93 94 21 36 21 29 70 75 71 Vietnam 4 9 6 22 9 .. 2.7 109 114 42 47 2 4 65 70 68 Virgin Islands (U.S.) .. .. .. .. .. .. .. .. .. .. .. .. .. 72 79 76 West Bank and Gaza .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Western Samoa .. .. .. .. .. .. .. .. .. .. .. .. .. 67 71 68 Yemen, Rep. .. .. .. 26 20 .. 7.5 .. 79 .. 23 .. 4 53 54 53 Yugoslavia, FR (Serbia/Montenegro) .. .. .. 0 0 .. .. 29 72 .. 65 .. 21 70 75 73 Zaire .. 46 33 33 30 2.6 .. 80 72 24 26 1 2 .. .. .. Zambia 14 29 22 19 16 4.5 1.8 90 89 16 28 2 3 45 46 46 Zimbabwe 10 20 15 37 29 6.6 8.5 85 116 8 47 1 7 56 58 57 130 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 48 19 0.7 0.6 55 1 23 25 52 22 22 .. 14 8 6 18 .. 38 .. 0.8 .. .. .. .. .. 36 46 .. .. .. .. .. .. 21 .. 0.7 .. .. .. .. .. 42 49 .. .. .. .. .. .. 22 .. 0.6 .. .. 11 22 67 27 47 .. .. .. .. .. 132 109 0.9 0.9 .. .. .. .. .. 20 26 .. 12 .. 10 416 .. 41 0.8 0.6 .. .. .. .. .. 45 50 .. .. .. .. .. .. 96 1 1 .. .. 9 86 5 18 33 .. .. .. .. .. .. 5 0.6 0.6 22 24 2 32 66 83 83 370 450 347 414 244 .. 7 0.5 0.5 36 26 .. .. .. 57 61 383 501 356 462 11 74 40 1.1 1 .. .. .. .. .. 47 53 .. 28 .. 10 2 .. 61 0.9 0.9 .. .. .. .. .. 34 32 .. 1 .. 0 4 176 133 1 0.9 .. .. 58 17 24 15 24 3 5 2 1 326 58 42 0.8 0.5 49 4 11 40 49 17 20 13 106 9 28 116 175 128 0.9 1 .. .. 38 21 41 23 31 .. 27 .. 19 12 .. 23 .. 0.7 .. .. .. .. .. 24 41 .. .. .. .. .. 39 18 0.7 0.6 42 8 3 42 54 63 68 .. 113 .. 94 2 100 50 0.8 0.6 58 6 12 29 59 51 57 38 64 20 29 6 133 63 0.8 0.6 63 24 16 31 53 44 70 23 70 .. 55 89 .. 65 0.8 0.7 27 1 .. .. .. 47 45 .. .. .. .. 38 180 160 1 1.1 10 0 50 14 36 9 12 1 4 1 2 61 .. 21 0.5 0.5 .. .. 18 42 41 62 70 .. 92 .. 93 92 .. 19 0.4 0.5 .. .. 2 57 40 72 84 .. 99 .. 79 1 .. 7 0.6 0.5 28 26 2 32 66 89 90 303 399 268 359 24 .. 10 0.5 0.5 28 23 2 26 72 74 76 .. 767 536 521 2125 43 21 0.6 0.6 41 27 9 26 65 85 90 .. 166 .. 161 8 .. 48 0.9 0.8 40 1 33 34 18 41 42 .. .. .. .. 91 .. 51 0.9 0.8 .. .. .. .. .. .. .. .. .. .. .. .. 42 25 0.8 0.7 .. .. 5 38 56 83 93 112 88 92 68 440 60 49 0.9 0.7 73 4 28 30 42 19 21 .. .. .. .. 91 .. 23 .. 0.6 .. .. .. 46 49 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 27 1 0.8 .. .. .. .. .. 21 21 .. .. .. .. .. 198 145 1.1 1 .. .. .. .. .. 20 34 .. 34 8 15 0 .. 22 0.5 0.5 52 31 .. .. .. 46 57 118 163 .. 150 18 .. 144 1 1 .. .. .. .. .. 29 29 .. 31 .. 17 .. 149 180 1.1 1 39 7 22 40 37 40 45 .. 26 .. 17 314 107 83 1 0.8 36 15 .. .. .. 22 32 .. 32 .. 29 87 131 BEYOND ECONOMIC GROWTH Table2. Indicators to chapters 7–10 (continued) Adult illiteracy Child labor Public % of people % of child. expenditure 15 and above, 10-14 in the on education School enrollment as a % of age group Life expectency COUNTRY 1995 labor force % of GNP Primary Secondary Tertiary at birth, 1995 or REGION male female total 1980 1995 1980 1995 1980 1995 1980 1995 1980 1995 male female total World 21 38 30 21 14 4.4 5.2 97 103 49 62 14 .. 65 69 67 Low Income 24 45 34 28 19 3.4 3.6 93 107 34 56 3 6 62 64 63 Excl. China & India 36 55 46 33 28 3.4 3.9 75 82 21 .. 3 .. 55 58 56 Middle income 14 22 18 13 8 4.4 5.2 100 105 54 60 19 19 65 71 68 Lower middle income 14 25 20 13 8 4.5 5.2 99 104 57 60 21 22 64 70 67 Upper middle income 13 16 15 11 8 4.0 5.0 101 107 47 62 14 14 66 73 69 Low & middle Income 21 39 30 24 16 3.9 4.6 95 103 41 53 8 .. 63 67 64 East Asia & Pacific 9 24 17 25 11 2.1 2.6 111 115 43 65 3 6 67 70 68 Europe & Central Asia .. .. .. 3 11 5.0 5.6 97 100 84 81 31 32 64 73 68 Latin America & Caribbean 12 15 13 13 10 3.9 3.9 106 111 42 53 14 15 66 72 69 Middle East & N. Africa 28 50 39 14 5 5.0 5.6 87 97 42 64 11 15 65 68 66 South Asia 38 64 51 23 17 2.0 3.0 76 99 27 49 5 6 61 62 61 Sub-Saharan Africa 34 53 44 35 30 4.1 5.3 78 75 14 27 1 .. 50 53 52 High Income .. .. .. 0 0 5.6 5.5 102 103 87 104 35 57 74 81 77 132 INDICATORS TO CHAPTERS 7–10 Under-five Smoking Agri- Urban Forest mortality rate Age prevalence culture Industry Services population Motor vehicles Passenger cars area per 1,000 dependency (% of adult) % of % of % of % of total per 1,000 per 1,000 thousand live births ratio male female GDP GDP GDP population people people sq.km 1980 1995 1980 1995 1985-95 1985-95 1995 1995 1995 1980 1995 1980 1996 1980 1996 1995 132 81 0.7 0.6 48 12 5 33 63 40 45 72 121 .. 91 32712 145 104 0.8 0.7 51 6 25 38 35 21 29 2 8 .. 4 6227 175 143 0.9 0.9 .. .. 33 25 41 21 28 .. 10 .. 6 4243 .. 53 0.7 0.6 48 16 11 35 52 52 60 .. 91 .. 65 19985 .. 56 0.7 0.6 52 13 13 36 49 48 56 .. 70 .. 46 12884 .. 45 0.7 0.6 42 22 9 37 53 64 73 101 139 70 111 7100 133 88 0.8 0.6 50 9 14 36 48 32 39 14 36 .. 23 26211 75 53 0.7 0.5 59 6 18 44 38 21 31 3 15 .. 7 3756 .. 35 0.6 0.5 58 26 .. .. .. 58 65 .. 142 .. 109 8590 82 47 0.8 0.6 40 20 10 33 55 65 74 .. 92 62 72 9064 141 72 0.9 0.8 .. .. .. .. .. 48 56 .. 53 .. 35 69 174 106 0.8 0.7 41 4 30 27 41 22 26 2 6 .. 4 744 193 157 0.9 0.9 .. .. 20 30 48 23 31 .. 20 .. 14 3969 .. 9 0.5 0.5 39 22 2 32 66 75 78 321 559 338 427 6501 133 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 Afghanistan .. .. .. .. .. .. .. .. .. .. .. Albania .. 31.0 .. .. 22 .. .. .. .. 31 92 Algeria .. .. 57.6 30.7 .. .. .. 17.3 15.0 -442 -72 American Samoa .. .. .. .. .. .. .. .. .. .. .. Andorra .. .. .. .. .. .. .. .. .. .. Angola .. .. .. .. .. .. .. 23.3 29.3 237 753 Antigua and Barbuda .. .. .. .. .. .. .. .. .. .. .. Argentina 18.2 14.5 4.7 8.5 20644 2.6 0.8 5.9 14.0 -203 14407 Armenia .. .. .. .. .. .. .. .. 14.0 .. 18 Aruba .. .. .. .. .. .. .. .. .. .. .. Australia 22.7 27.4 .. 14.7 .. 2.13 2.06 24.2 34.0 .. .. Austria 36.6 42.2 13.9 .. .. 1.14 0.88 48.7 71.6 .. .. Azerbaijan .. .. .. .. .. .. .. .. 16.3 .. 601 Bahamas, The .. .. .. 0.3 .. .. .. .. .. Bahrain .. .. .. .. .. 5.11 5.27 .. .. .. .. Bangladesh 10.0 .. 3.0 29.8 55 0.94 .. 5.7 8.3 70 92 Barbados .. .. .. .. 1.1 .. .. .. .. .. Belarus .. .. .. .. .. .. 1.6 .. 26.3 .. 7 Belgium 50.6 49.4 2.8 7.0 .. 2.88 .. .. .. .. .. Belize .. .. .. .. 0.94 1.52 .. .. .. .. Benin .. .. .. 15.8 63 .. .. 12.4 15.9 1 2 Bermuda .. .. .. .. .. .. .. .. .. .. .. Bhutan .. .. .. .. .. .. 0 .. .. .. .. Bolivia .. 23.1 13.7 26.9 813 .. 2.07 11.7 12.0 3 571 Bosnia and Herzegovina .. .. .. .. .. .. .. .. .. .. .. Botswana 31.8 38.0 5.9 20.6 .. 3.3 5.6 .. .. 77 66 Brazil 20.2 37.4 8.6 15.2 10724 0.8 1 5.8 10.2 562 28384 Brunei .. .. .. .. .. .. .. .. .. .. .. Bulgaria .. 41.6 .. .. 321 .. 2.6 18.3 23.8 -42 300 Burkina Faso 12.2 .. .. .. 0 2.1 2.1 8.5 9.8 0 0 Burundi 21.5 24.9 7.3 40.3 5 .. .. 12.5 4.2 -5 0 Cambodia .. .. .. .. .. .. .. .. .. 0 290 Cameroon 15.7 12.7 18.0 .. .. 1.4 1.5 9.6 13.0 -125 -28 Canada 21.3 24.6 .. .. .. 1.6 1.7 45.6 58.5 .. .. Cape Verde .. .. .. .. .. .. .. .. .. .. .. Cayman Islands .. .. .. .. .. .. .. .. .. .. .. Central African Republic 22.0 .. 3.9 17.0 .. .. .. 8.7 8.6 0 5 Chad .. .. .. .. .. .. .. 4.7 5.7 -1 18 Channel Islands .. .. .. .. .. .. .. .. .. .. .. Chile 28.0 19.2 12.9 19.1 1550 3.5 1.8 11.6 18.9 2098 6803 134 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 90 .. 16.3 .. 3.4 0 0 0 0 324.2 222 99 68 29.2 8.1 470.1 40.2 0 4 2.1 0 0.8 0 -15 0 0 0 340 309 13 11 0.8 0.7 2.4 2.5 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. -335 300 .. 39.7 .. 4.5 0 0 0 0 279.7 544.2 29 49 9.6 15.8 51.5 72 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1836 4285 3.5 7.9 0.9 1.5 -857 8945 13 864 299.5 277.4 9 8 0.2 0.1 1.1 5 .. 18 .. 9.4 .. 1 .. 0 .. 0 2.7 294.9 1 78 0.1 18.2 0.2 146.8 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6517 6321 4.6 18.9 1.2 1.6 .. .. .. .. 653 3826 1.1 1.1 0.3 1.7 .. .. .. .. .. 601 .. 67.3 .. 16.5 .. 0 .. 0 0 106.3 0 14 0 3 2.3 11.9 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3 15 0 0.3 0 0 0 0 0 30 1889.1 1254.5 17 10 6.1 3.9 70.2 23.2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 18 .. 0.4 .. 0.1 .. 0 .. 0 187 73 18 7 0.5 0.4 1.8 1.5 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1 2 2 0.5 0.3 0.1 0 0 0 0 268.4 292.8 55 52 14.5 13.5 98.6 77.5 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 27 527 10.3 17.9 1.5 6.4 0 0 0 0 512.6 849.9 76 112 10.8 13.3 74 71.6 .. .. .. .. .. .. .. .. .. .. 0.0 811.6 0 184 .. .. .. .. 95 75 30.5 6.3 10.8 1.5 0 0 0 0 136.0 80.8 103 55 3.4 1.7 10.9 6.8 989 9889 3.5 6.8 0.8 1.3 129 4634 0 3981 182.6 406.2 1 3 0.0 0.1 0.2 0.3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4 115 0.0 8.6 0.0 1.2 65 -205 0 500 316.0 170.0 37 20 3.2 1.9 12.8 12.7 0 0 0.0 0.0 0.0 0.0 0 0 0 0 423.7 418.2 46 38 15.2 16.5 73.7 64.8 1 1 0.0 1.0 0.0 0.1 0 0 0 0 259.1 203.8 46 32 22.4 18.1 154.0 203.2 0 294 .. 45.4 .. 9.4 0 0 0 0 91.0 452.9 10 44 5.6 14.5 59.3 70.0 -113 35 9.2 2.4 1.9 0.4 0 0 0 0 518.5 413.3 44 30 4.5 4.9 25.0 28.4 7581 8398 9.4 10.5 2.2 1.1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1 5 9.5 8.4 0.7 0.5 0 0 0 0 174.7 166.9 58 50 12.8 16.1 99.8 280.7 0 18 0.0 8.0 0.0 1.5 0 0 0 0 265.8 305.2 46 46 20.2 26.9 274.0 134.9 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 590 4091 3.7 19.9 0.8 5.5 -7 1859 320 103 125.5 203.4 9 14 0.4 0.3 1.5 1.0 135 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 (continued) State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 China .. 8.3 .. .. 7720 .. 1.2 6.6 7.1 8107 50100 Colombia 13.4 14.4 6.7 12.0 826 1.1 1.3 7.1 9.5 345 7739 Comoros .. .. .. .. .. .. .. .. .. .. Congo 49.4 .. 16.1 .. .. .. .. 51.4 70.6 -100 -7 Costa Rica 25.0 29.1 8.2 8.4 64 0.7 0 20.2 34.4 23 387 Côte d’Ivoire 31.7 .. .. 21.0 168 .. .. 36.0 32.0 57 160 Croatia .. 46.5 .. .. 97 .. 8.3 .. 59.9 .. 915 Cuba .. .. .. .. .. .. .. .. .. .. .. Cyprus .. .. .. .. .. 1.4 1.2 .. .. .. .. Czech Republic .. 39.9 .. .. 1645 .. 2.7 .. 46.3 876 4894 Denmark 39.4 43.4 5.1 13.5 .. 2.6 1.8 58.8 73.7 .. .. Djibouti .. .. .. .. .. .. .. .. .. .. .. Dominica .. .. .. .. .. .. .. .. .. Dominican Republic 16.9 15.6 .. 10.6 .. 1.3 0.8 12.3 28.3 130 366 Ecuador 14.2 15.7 10.5 13.4 178 1.8 .. 11.8 16.3 183 816 Egypt, Arab Rep. 45.6 37.4 30.0 63.3 735 6.2 3.7 13.6 14.8 698 1434 El Salvador 17.1 13.7 1.6 7.7 .. 1.51 1.17 20.7 22.5 8 48 Equatorial Guinea .. .. .. .. .. .. .. .. .. .. .. Eritrea .. .. .. .. .. .. .. .. .. .. 0 Estonia .. 35.2 .. .. 267 .. 1 .. 77.4 .. 191 Ethiopia 19.5 18.1 .. .. .. 6.8 3.7 10.5 6.8 -45 -205 Faeroe Islands .. .. .. .. .. .. .. .. .. .. .. Fiji .. .. .. .. 0.9 1.9 .. .. .. .. Finland 28.1 42.7 .. .. .. 1.6 1.8 51.5 70.1 .. .. France 39.5 46.4 .. 11.6 .. 2.9 2.5 33.7 45.4 .. .. French Guiana .. .. .. .. .. .. .. .. .. .. .. French Polynesia .. .. .. .. .. .. .. .. .. .. .. Gabon 36.5 .. .. .. .. .. .. 40.4 45.5 103 -114 Gambia, The 32.1 21.6 .. .. .. 22.4 11.9 -7 11 Georgia .. .. .. .. .. .. .. .. 9.6 .. 40 Germany .. 33.9 .. .. .. .. .. .. 55.1 .. .. Ghana 10.9 22.1 8.4 25.0 667 0.4 1 11.0 15.3 -5 477 Greece 29.3 33.6 11.5 19.6 1231 4.5 3.8 21.2 27.9 .. .. Greenland .. .. .. .. .. .. .. .. .. .. .. Grenada .. .. .. .. 0 .. .. .. .. Guadeloupe .. .. .. .. .. .. .. .. .. .. .. Guam .. .. .. .. .. .. .. .. .. .. .. Guatemala 12.1 8.9 2.0 7.8 17 1.3 1.4 9.7 12.2 44 5 Guinea .. .. 8.7 .. .. .. .. 13.2 13.1 -1 41 Guinea-Bissau .. .. .. .. .. .. .. 11.4 14.2 2 1 Guyana .. .. .. 3.7 .. .. .. .. .. Haiti 17.4 .. 9.8 .. .. .. 6.9 12.6 8 4 136 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 3487 40180 0.0 11.6 0.0 4.9 -48 1190 0 3466 1998.7 2617.3 2 2 0.5 0.3 1.5 0.8 500 3322 2.5 18.7 0.5 3.9 -4 1844 0 290 122.5 250.8 4 7 0.3 0.3 1.9 1.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 8 6.6 0.6 2.3 0.3 0 0 0 0 133.7 429.7 57 159 5.9 22.9 24.9 29.6 163 410 4.1 19.7 1.1 4.5 -42 -7 0 1 174.1 -6.8 56 -2 3.2 -0.1 12.3 -0.3 48 21 3.5 1.4 0.9 0.2 -1 0 0 30 632.7 967.6 51 67 6.9 9.9 82.0 66.1 .. 349 .. 12.4 .. 1.8 .. 22 .. 111 0.0 133.4 0 28 0.0 0.7 0.0 4.7 .. .. .. .. .. .. .. .. .. .. 37.6 67.8 4 6 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 207 1435 0.0 7.6 0.0 2.6 0 171 0 164 231.0 122.0 22 12 0.9 0.2 3.2 0.6 1132 773 1.1 14.1 0.2 0.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 133 394 5.6 12.3 1.4 3.0 0 0 0 0 66.5 105.8 9 13 0.9 0.8 3.8 3.3 126 447 2.3 13.4 0.6 2.3 0 -10 0 1 238.0 260.9 23 22 2.2 1.5 9.1 7.8 734 636 8.7 5.7 2.4 0.9 -1 0 0 1233 5024.7 2211.8 94 37 14.3 3.3 64.2 19.7 2 25 1.2 1.5 0.2 0.2 0 0 0 0 294.2 317.2 57 55 5.6 3.1 36.0 19.3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 .. .. .. .. .. 0 .. 0 0.0 157.2 0 43 .. .. .. .. .. 150 .. 12.9 .. 3.5 .. 40 .. 5 15.0 62.0 10 42 0.3 1.4 1.0 5.4 12 5 0.0 0.4 0.0 0.1 0 0 0 0 1097.3 849.4 21 15 20.6 14.3 287.8 67.6 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 812 1118 0.2 5.1 0.1 0.9 .. .. .. .. 13183 21972 2.0 8.5 0.5 1.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 74 -65 2.7 -5.7 0.7 -1.1 0 0 0 0 143.4 126.5 145 112 3.0 2.6 10 11 0 11 0.0 10.2 0.0 2.2 0 0 0 0 102.7 38.5 107 34 31.6 13.4 157.2 62.6 .. 40 .. 4.6 .. 0.2 .. 0 .. 0 0.2 318.4 0 59 0.0 7.1 0.0 121.1 2532 -3183 .. 2.2 .. -0.1 .. .. .. .. 15 120 6.2 10.1 0.4 1.9 0 250 0 124 882.1 653.6 58 37 13.6 10.5 84.2 55.2 .. .. 5.9 7.0 1.4 0.7 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 48 77 8.9 3.8 1.4 0.5 -11 -33 0 0 198.6 216.1 21 20 2.1 1.4 14.8 10.7 18 24 .. 4.7 .. 0.6 0 0 0 0 382.0 295.5 64 44 13.6 7.8 77.6 57.6 2 1 0.0 1.7 0.0 0.4 0 0 0 0 115.5 179.9 118 164 49.4 67.5 144.9 304.3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8 4 5.3 0.0 0.9 0.2 0 0 0 0 181.9 375.2 28 51 5.6 14.4 49.6 2117.2 137 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 (continued) State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 Honduras .. .. 5.5 12.6 114 .. .. 21.7 42.5 77 65 Hong Kong .. .. .. .. .. .. .. 111.8 247.6 .. .. Hungary 56.2 .. .. .. 8648 2.4 .. 34.5 41.4 -308 1618 Iceland .. .. .. .. .. 0 0 .. .. .. .. India 13.3 16.4 13.8 39.0 5744 2.6 2.5 3.9 4.5 1873 6404 Indonesia 22.1 14.7 14.1 10.3 4199 3.0 1.1 10.7 13.6 3219 18030 Iran, Islamic Rep. 35.7 23.2 .. .. 7 5.7 1.6 9.7 9.6 -392 -352 Iraq .. .. .. .. .. .. .. .. .. .. .. Ireland 45.1 40.3 .. .. .. 1.7 1.3 86.7 121.6 .. .. Isle of Man .. .. .. .. .. .. .. Israel 70.2 44.7 .. .. .. 27.9 8.4 39.5 47.5 .. .. Italy 41.3 48.6 12.9 .. 1.4 .. 28.0 39.6 .. .. Jamaica 41.5 .. .. 21.3 546 .. .. 28.8 53.7 92 191 Japan 18.4 23.7 .. 5.5 .. .. 1 21.5 26.1 .. .. Jordan 41.3 31.6 .. .. 15 .. 6.4 36.8 36.6 254 -119 Kazakhstan .. .. .. .. 341 .. .. .. 19.6 .. 615 Kenya 25.3 29.8 11.5 20.8 77 4.2 1.6 16.8 17.9 124 -104 Kiribati .. .. .. .. .. .. .. .. .. .. .. Korea, Dem. Rep. .. .. .. .. .. .. .. .. .. .. .. Korea, Rep. 17.0 17.7 10.3 15.3 4717 5.8 3.3 33.6 46.7 .. .. Kuwait 27.7 51.4 .. .. 951 3.4 12.5 54.3 45.8 .. .. Kyrgyz Republic .. .. .. .. .. .. .. .. 13.6 .. 46 Lao PDR .. .. .. .. 35 .. .. 2.9 16.5 6 104 Latvia .. 32.2 .. .. 173 .. 0.9 .. 41.1 .. 331 Lebanon .. 32.5 .. .. .. .. .. .. 36.0 12 740 Lesotho .. 50.7 .. .. .. .. 2.8 .. .. 17 38 Liberia .. .. .. .. .. 1.5 .. .. .. .. .. Libya .. .. .. .. .. .. .. .. .. .. .. Liechtenstein .. .. .. .. .. .. .. .. .. .. .. Lithuania .. 25.5 .. .. 114 .. 0.5 .. 46.6 .. 469 Luxembourg .. .. .. .. .. 1.0 0.6 .. .. .. .. Macao .. .. .. .. .. .. .. .. .. .. .. Macedonia, FYR .. .. .. .. 685 .. .. .. .. .. 8 Madagascar .. 17.2 .. .. .. .. 0.9 7.8 10.0 7 5 Malawi 34.6 .. 4.1 10.3 .. 4.4 .. 13.0 16.8 2 -3 Malaysia 28.5 22.9 17.0 15.8 9981 4.2 3 33.6 70.2 769 12096 Maldives .. .. .. .. .. 0 0 .. .. .. .. Mali 20.6 .. .. .. .. 2.4 .. 16.4 19.9 -8 23 Malta .. .. .. .. .. 0.6 .. .. .. .. .. Marshall Islands .. .. .. .. .. .. .. .. .. .. .. Martinique .. .. .. .. .. .. .. .. .. .. .. Mauritania .. .. .. 19.3 1 .. .. 29.6 26.7 6 25 138 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 44 75 0.9 5.8 0.2 1.9 0 -13 0 0 302.5 367.3 58 60 10.5 9.2 40.0 28.6 .. .. .. .. .. .. .. .. .. .. 36.1 13.2 6 2 0.0 0.0 0.2 0.0 0 1982 0.0 16.5 0.0 4.4 921 -940 150 1004 626.0 185.0 61 18 2.0 0.4 9.2 1.5 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 162 2587 0.2 2.7 0.0 0.7 147 -457 105 4398 2745.0 1936.2 3 2 1.1 0.6 4.8 2.1 1093 7960 1.0 11.1 0.2 3.5 26 3744 312 3099 1874.4 1120.6 10 6 1.5 0.5 5.0 1.6 -362 10 0.0 .. 0.0 .. 0 0 0 0 194.4 171.0 4 3 0.2 0.1 0.5 .. .. .. .. .. 0.0 .. .. .. .. .. 552.4 387.4 30 18 .. .. .. .. 627 2456 .. 23.6 1.7 3.5 .. .. .. .. 101 2110 1.0 7.3 0.2 1.7 .. .. .. .. 1749.5 2216.7 353 389 2.8 0.4 11.6 1.6 6411 3523 0.5 2.5 0.1 0.3 .. .. .. .. 138 175 6.5 14.9 1.0 4.0 0 53 0 0 162.2 59.9 67 24 4.9 1.4 16.7 5.1 1777 200 1.0 0.0 0.0 0.0 .. .. .. .. 38 16 2.3 0.6 0.9 0.2 0 -5 0 25 920.7 513.7 260 119 23.8 7.2 84.9 20.2 .. 310 .. 6.4 .. 1.5 .. 200 .. 0 111.5 124.0 7 8 0.4 0.6 0.1 2.6 57 13 3.7 0.7 1.1 0.1 0 0 0 43 921.2 606.1 38 22 12.1 6.8 53.9 32.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 9.0 42.8 0 2 .. .. .. .. 788 2325 0.0 1.3 0.0 0.5 .. .. .. .. 54.8 -146.9 1 -3 0.0 0.0 0.0 -0.1 .. .. 0.0 .. 0.0 .. .. .. .. .. 4.5 3.1 3 2 0.0 0.0 0.0 0.2 .. 46 .. 13.8 .. 2.6 .. 0 .. 0 0.0 231.9 0 51 0.0 13.9 0.0 69.2 6 104 .. 18.4 .. 5.6 0 0 0 0 143.3 338.6 35 72 13.9 18.2 .. 59.8 .. 328 .. 34.9 .. 6.5 .. 0 .. 0 3.0 79.0 1 32 0.0 1.6 0.1 8.4 6 80 .. 2.0 .. 0.6 0 460 0 122 132.2 232.8 36 57 2.7 1.8 15.4 6.0 17 28 2.9 3.0 1.2 3.2 0 0 0 0 126.2 107.2 69 53 12.1 8.7 27.6 11.6 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. -13.9 .. -3.1 .. .. .. .. .. 26.9 9.9 6 2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 152 .. 9.3 .. 2.0 .. 160 .. 21 4.0 89.0 1 24 0.0 1.2 0.1 5.5 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8 .. 4.6 .. 0.7 .. 0 .. 0 0.0 105.5 0 53 0.0 5.3 0.0 26.0 22 10 -0.2 2.4 0.0 0.2 0 0 0 0 455.9 364.5 38 27 17.9 9.1 161.3 87.8 0 1 3.1 0.3 0.8 0.0 0 0 0 0 524.6 500.8 60 50 24.6 23.2 119.6 132.4 2333 4500 12.5 11.0 3.8 4.5 -1239 2062 293 4353 289.5 -451.6 16 -22 0.6 -0.5 1.7 -1.1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. -7 23 0.9 3.3 0.1 0.9 0 0 0 0 457.7 505.1 53 51 19.2 19.4 83.0 71.7 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 7 5 10.6 2.1 3.8 0.5 0 0 0 0 219.9 273.6 107 117 20.6 26.4 108.4 113.8 139 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 (continued) State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 Mauritius 27.2 22.6 4.8 .. .. 0.2 0.3 30.9 35.7 85 112 Mayotte .. .. .. .. .. .. .. .. .. .. .. Mexico 15.7 15.9 11.0 14.3 31717 0.4 0.8 6.8 26.1 8240 23647 Micronesia, Fed. Sts. .. .. .. .. .. .. .. Moldova .. .. .. .. .. .. .. .. 41.4 .. 115 Monaco .. .. .. .. .. .. .. .. .. .. .. Mongolia .. 21.5 .. .. .. .. 2.5 3.8 19.5 16 -15 Morocco 33.1 .. 17.2 18.7 922 5.9 4.2 12.6 14.0 337 388 Mozambique .. .. .. .. 66 .. .. 17.8 14.4 35 23 Myanmar 15.8 10.6 .. 30.8 .. 3.5 4.1 .. .. 153 129 Namibia .. 38.5 .. 10.8 .. .. .. .. .. .. .. Nepal 14.3 17.5 .. 53.3 14 1.0 0.9 4.2 4.3 -9 9 Netherlands 52.9 50.8 .. 6.0 .. 3.0 2.1 86.7 106.4 .. .. Netherlands Antilles .. .. .. .. .. 0 .. .. .. .. .. New Caledonia .. .. .. .. .. .. .. .. .. .. .. New Zealand 38.3 32.9 .. .. .. 1.96 1.19 29.7 45.0 .. .. Nicaragua 30.4 33.2 .. .. 146 3.3 1.9 15.5 19.4 21 41 Niger 18.4 .. 5.2 14.5 .. 0.7 .. 9.6 7.4 9 -24 Nigeria .. .. 14.8 15.1 862 .. .. 17.2 21.5 467 706 Northern Mariana Islands .. .. .. .. .. .. .. .. .. .. .. Norway 34.4 39.0 .. 26.8 .. 2.7 2.8 67.8 80.3 .. .. Oman 38.5 42.4 .. .. 67 19.7 16.1 52.9 45.4 -259 69 Pakistan 17.5 23.2 11.4 28.6 1726 .. .. 9.3 10.0 182 1936 Panama 30.5 24.7 8.4 8.9 111 .. 1.5 14.3 111.0 127 301 Papua New Guinea 34.4 29.4 .. 7.1 .. 1.5 1.0 31.2 33.0 204 414 Paraguay 9.9 13.0 4.1 10.7 20 1.2 1.4 8.2 29.3 67 202 Peru 19.5 17.2 5.3 7.7 4735 4.1 .. 6.6 13.0 59 5854 Philippines 13.4 17.9 2.4 6.7 3760 2.1 1.36 8.0 21.3 639 4600 Poland .. 43.0 .. .. 3234 .. .. 15.9 26.5 71 5333 Portugal 33.1 44.1 14.2 15.3 .. 2.5 .. 23.2 43.1 .. .. Puerto Rico .. .. .. .. .. .. .. .. .. .. .. Qatar .. .. .. .. .. .. .. .. .. .. .. Reunion .. .. .. .. .. .. .. .. .. .. .. Romania 44.8 32.0 .. .. 125 1.7 2.4 20.3 16.8 4 1814 Russian Federation .. 24.0 .. .. 1226 .. 4.4 .. 19.8 5604 7454 Rwanda 14.3 25.8 10.0 .. .. .. .. 11.7 12.9 6 1 São Tomé and Principe .. .. .. .. .. .. .. Saudi Arabia .. .. .. .. .. .. .. 36.2 41.2 .. .. Senegal 23.1 .. 6.2 22.0 .. 3.9 .. 22.6 16.1 42 34 Seychelles .. .. .. .. .. .. 2.43 .. .. .. .. Sierra Leone 26.5 16.4 .. .. .. .. .. 14.1 22.8 36 5 140 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 41 37 0.5 3.3 0.1 0.9 0 0 0 34 67.5 19.6 63 17 2.4 0.5 8.3 1.8 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2634 7619 4.1 10.9 1.1 2.3 661 11344 563 3922 278.3 289.1 3 3 0.1 0.1 0.4 0.4 .. 41 .. 8.0 .. 2.2 .. 0 .. 0 0.0 37.0 0 9 0.0 2.1 0.0 7.3 .. .. .. .. .. .. .. .. .. .. 0 5 .. 2.3 .. 0.5 0 0 0 0 69.5 202.6 31 81 24.2 21.3 80.8 93.0 165 311 2.0 4.1 0.5 0.8 0 293 0 222 1232.4 650.8 50 24 4.6 1.8 19.5 8.6 9 29 0.0 3.6 0.0 1.7 0 0 0 0 1070.3 922.9 74 51 83.8 59.8 163.4 111.5 161 100 .. .. .. .. 0 0 0 10 179.4 56.2 4 1 .. .. .. .. .. .. 0.0 21.4 0.0 4.2 .. .. .. .. 184.4 188.6 133 119 6.9 5.7 38.8 29.4 6 19 0.0 1.9 0.0 0.4 0 0 0 0 453.4 401.4 24 18 12.0 8.9 58.8 38.8 12343 7824 6.0 18.7 1.3 2.0 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1735 280 3.7 31.5 0.8 0.4 .. .. .. .. 0 45 0.0 8.2 0.0 2.3 0 -8 0 0 841.1 954.0 217 212 64.1 57.1 239.8 174.5 -1 0 5.3 0.0 1.9 0.0 0 0 0 0 377.0 258.7 48 28 16.5 13.2 176.4 134.8 588 1391 -5.4 23.2 -1.2 4.3 0 0 0 5 262.6 191.8 3 2 1.1 0.6 4.1 3.2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1003 3960 0.4 .. 0.1 2.5 .. .. .. .. 141 67 7.4 4.0 1.6 0.4 0 0 0 25 15.2 61.6 9 28 0.2 0.6 0.9 5.0 244 690 1.4 5.7 0.3 1.1 0 150 0 700 1370.9 876.8 12 7 2.9 1.4 15.9 7.3 132 238 -4.4 9.9 -1.2 2.9 -2 75 0 5 101.9 89.5 42 33 1.9 1.1 9.1 3.7 155 225 11.8 16.2 3 4.4 0 0 0 187 396.8 385 101 87 10.8 8 38.2 27.7 76 220 2.2 10.1 0.7 2.3 0 0 0 0 146.0 97.1 34 20 2.4 1.0 10.1 4.6 41 3581 0.4 25.0 0.1 5.9 0 0 0 2740 614.0 409.8 28 17 2.2 0.7 12.6 2.9 530 1408 -1.1 6.9 -0.3 1.7 395 2319 0 1333 1053.0 883.2 16 12 2.3 1.0 11.5 4.4 89 4498 0.1 16.4 0.0 3.3 0 216 0 722 2508.0 830.0 0 22 0.0 0.6 0.0 3.0 2610 618 .. 8.3 0.5 0.6 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 263 .. 2.9 .. 0.7 0 1029 0 11 321.0 218.0 14 10 1.1 0.6 4.0 2.4 0 2479 .. 2.5 .. 0.6 310 21 0 5008 564.0 1225.0 4 8.3 0.1 0.3 0.3 1.3 8 1 8.7 0.6 1.4 0.1 0 0 0 0 363.6 674.3 51 100 19.9 51.2 166.8 371.9 .. .. -9.4 -7.7 -2.0 -1.5 .. .. .. .. 44.7 28.5 3 1 0.0 0.0 0.2 0.1 57 45 3.1 5.3 0.5 0.9 0 0 0 0 639.0 581.5 85 68 12.0 11.6 94.8 68.3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 32 5 -9.0 5.7 -1.6 0.5 0 0 0 0 104.9 195.5 26 42 14.8 21.2 123.3 223.2 141 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 (continued) State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 Singapore 20.0 15.9 .. .. .. 5.1 4.4 191.0 316.0 .. .. Slovak Republic .. .. .. .. 1525 .. .. .. 52.2 278 1265 Slovenia .. .. .. .. 565 .. .. .. 74.0 .. 1219 Solomon Islands .. .. .. .. .. 0 .. .. .. .. .. Somalia .. .. .. .. .. .. .. .. .. .. .. South Africa 22.1 33.7 14.7 15.5 796 .. .. 17.4 20.7 .. 1417 Spain 26.7 38.2 .. 8.6 .. 1.2 1.3 18.4 36.8 .. .. Sri Lanka 41.4 29.3 10.4 25.5 316 0.7 3.4 14 21.5 54 123 St. Kitts and Nevis .. .. .. .. .. .. .. .. .. .. St. Lucia .. .. .. .. .. .. .. .. .. .. St. Vincent and the Grenadines .. .. .. .. 0 0 .. .. .. .. Sudan 19.6 .. 48.2 .. .. 2.6 .. .. .. 0 0 Suriname .. .. .. .. .. .. .. .. .. .. .. Swaziland .. .. .. .. .. 2.19 .. .. .. .. .. Sweden 39.3 49.6 .. 10.1 .. 3.0 2.7 61.5 87.2 .. .. Switzerland 20.1 26.5 .. .. .. 2.1 1.7 67.4 89.6 .. .. Syrian Arab Republic 48.2 24.5 .. .. .. 17.2 7.5 20.0 19.6 18 77 Tajikistan .. .. .. .. .. .. .. .. 26.9 .. 16 Tanzania .. .. 13.7 30.0 113 3.4 .. .. .. 5 143 Thailand 18.8 15.8 5.4 13.5 1171 4.1 2.4 14.7 31.3 4498 13517 Togo 30.8 .. 11.8 11.4 32 2.3 .. 11.0 19.5 0 0 Tonga .. .. .. .. .. 0 .. .. .. .. .. Trinidad and Tobago 30.9 29.2 9.1 16.4 492 .. .. 42.7 53.7 -69 343 Tunisia 31.6 32.8 30.2 30.4 148 3.84 1.7 20.6 30.2 -122 697 Turkey 21.3 22.2 9.1 31.9 3434 3.3 2.2 10.3 17.5 1782 5635 Turkmenistan .. .. .. .. .. .. .. .. 32.8 .. 355 Uganda 6.2 .. .. .. 107 1.5 .. 10.1 6.3 16 114 Ukraine .. .. .. .. 264 .. .. .. 35.0 .. 395 United Arab Emirates 12.1 11.8 .. .. 190 5.8 4.4 83.6 135.7 .. .. United Kingdom 38.3 42.0 3.0 5.6 .. 5.3 3.6 33.3 46.3 .. .. United States 22.0 22.7 1.0 3.7 .. 4.7 4.2 14.0 19.4 .. .. Uruguay 21.8 31.5 5.4 14.7 20 2.9 2.5 14.7 22.8 -192 499 Uzbekistan .. .. .. .. 30 .. .. .. 12.4 .. 431 Vanuatu .. .. .. .. .. .. .. .. .. .. .. Venezuela 18.7 18.8 23.0 53.6 2918 1.1 .. 15.3 19.0 -126 4244 Vietnam .. .. .. .. .. .. .. .. 17.7 16 2061 Virgin Islands (U.S.) .. .. .. .. .. .. .. .. .. .. .. West Bank and Gaza .. .. .. .. .. .. .. .. .. .. .. Western Samoa .. .. .. .. .. .. .. .. .. Yemen, Rep. .. 24.7 .. .. .. .. 11.7 .. 56.3 30 100 142 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 5575 9440 22.8 28.6 10.5 10.0 .. .. .. .. 7.8 0.0 3 0 0.0 0.0 0.1 0.0 0 281 .. 3.9 .. 1.5 0 380 0 0 114.0 141.0 22 26 1.1 0.7 3.4 2.0 .. 186 .. 4.3 .. 1.0 .. 163 .. 360 0.0 82.2 0 41 0.0 0.4 0.0 1.9 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 136 -0.1 0.6 0.0 0.1 .. 367 .. 1759 0.0 361.1 0 10 0.0 0.3 0.0 1.6 13984 6.396 3.0 5.2 0.7 1.1 .. .. .. .. 43 120 3.2 3.4 1.1 0.9 0 0 0 70 890.5 494.5 52 27 10.1 3.6 43.3 13.9 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 0 0.0 .. 0.0 .. 0 0 0 0 880.9 230.3 36 8 12.3 .. 49.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1982 5492 0.9 41.2 0.2 2.2 .. .. .. .. 4961 3512 .. .. .. 1.2 .. .. .. .. 71 89 0.0 .. 0.0 0.6 0 0 0 0 381.4 225.3 30 16 3.0 1.4 18.6 .. .. 16 .. 4.7 .. 0.8 .. 0 .. 0 0.0 113.0 0 19 0.0 5.6 0.0 20.3 0 150 .. 14.2 .. 2.6 0 0 0 0 1080.7 893.7 41 29 24.9 15.6 86.7 84.8 2444 2336 2.0 3.1 0.6 1.3 -87 3774 449 1551 721.5 832.0 13 14 0.7 0.5 1.7 1.1 0 0 13.1 0.0 3.7 0.0 0 0 0 0 202.2 166.0 56 39 12.9 12.0 73.7 85.4 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 109 320 9.7 38.1 3.0 5.9 -62 125 0 0 -1.5 16.9 -1 13 0.0 0.3 -0.2 2.0 76 320 9.1 6.8 2.7 1.6 -60 0 0 0 357.2 126.4 43 14 2.8 0.7 10.5 2.7 684 722 0.1 1.7 0.0 0.4 597 1578 35 799 1622.5 232.5 28 4 1.1 0.1 4.7 0.5 .. 108 .. .. .. 2.5 .. 0 .. 0 0.0 23.8 0 5 0.0 0.5 0.0 .. 0 121 0.0 12.1 0.0 2.0 0 0 0 0 666.8 683.6 39 35 20.4 11.3 132.3 68.3 .. 350 .. 3.5 .. 0.8 .. -80 .. 0 368.0 379.0 7 7 0.5 0.9 1.7 3.8 .. .. .. .. .. .. .. .. .. .. -5.9 0.0 -3 0 0.0 0.0 -0.1 -0.1 32427 32347 11.2 .. 1.9 2.8 .. .. .. .. 47918 76955 3.1 5.4 0.6 1.0 .. .. .. .. 0 169 16.5 7.7 2.9 0.9 -16 59 0 5 51.5 51.5 17 16 0.5 0.3 4.3 2.3 .. 55 .. 1.4 .. 0.2 .. 0 .. 0 0.0 87.2 0 4 0.0 0.4 0.0 2.1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. 451 1833 0.3 16.3 0.1 2.7 346 51 0 1740 30.7 44.2 2 2 0.1 0.1 0.3 0.4 16 1500 .. 23.0 .. 6.4 0 0 0 390 237.5 927.2 4 12 2.5 4.0 16.5 14.2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0.0 593.0 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. -131 100 .. 6.6 .. 1.7 0 0 0 0 300.1 260.4 22 17 6.2 4.9 37.4 17.1 143 BEYOND ECONOMIC GROWTH Table3. Indicators to chapters 11–13 (continued) State-owned Proceeds enterprises from Central share in privati- Net private government gross dom- zation Defence capital expenditure share in estic invest- millions of expenditure Trade flows COUNTRY or % of GDP GDP, % ment, % 1995 $ % of GDP % of PPP GDP $ millions REGION 1980 1995 1986-1991 1986-1991 1989-95 1980 1994 1986 1996 1990 1996 Yugoslavia, FR (Serbia/Montenegro) .. .. .. .. .. .. .. .. .. 1836 0 Zaire 12.4 7.6 .. 19.0 .. .. .. 4.2 6.9 -24 2 Zambia 37.1 25.0 29.8 .. 72 0 .. 22.4 26.1 194 33 Zimbabwe 34.8 34.1 .. .. 290 8.72 .. 13.8 19.8 85 42 World 25.7 29.1 .. .. 20.7 29.1 .. .. Low Income .. 12.9 .. .. 7.1 7.9 11625 65176 Excl. China & India .. .. .. .. 12.0 15.7 .. .. Middle income .. .. .. .. 12.5 21.8 29271 181769 Lower middle income .. 22.6 .. .. 12.5 20.0 .. .. Upper middle income 20.3 29.0 .. .. 12.5 24.1 .. .. Low & middle Income .. 21.9 .. .. 10.4 15.2 41881 246944 East Asia & Pacific .. 11.5 .. .. 9.1 13.0 18443 101272 Europe & Central Asia .. 30.9 .. .. .. 25.5 7787 35005 Latin America & Caribbean 18.8 24.5 .. .. 7.9 17.3 12601 95569 Middle East & N. Africa .. .. .. .. 19.4 18.9 646 1979 South Asia 14.2 17.6 .. .. 4.9 5.8 2173 8743 Sub-Saharan Africa 22.2 .. .. .. 15.8 18.9 195 4376 High Income 26.3 31.3 .. .. 26.5 38.9 .. .. 144 INDICATORS TO CHAPTERS 11–13 Aid dependency Foreign direct investment Aid as % % of gross Portfolio investment of gross domestic Bonds Equity Aid per Aid % domestic $ millions investment % of GDP $ millions $ millions $ millions capita, $ of GNP investment 1990 1996 1980 1996 1980 1996 1990 1996 1990 1996 1991 1996 1991 1996 1991 1996 1991 1996 0 0 0.0 .. 0.0 .. -2 0 0 0 159.0 681.0 15 64 .. .. .. .. -12 2 0.0 0.5 0.0 0.0 0 0 0 0 476.2 167.4 12 4 5.7 2.8 94.0 38.5 203 58 6.8 11.4 1.6 1.7 0 0 0 0 883.3 613.9 110 67 27.7 18.6 237.4 120.2 -12 63 0.1 4.7 0.0 0.8 -30 -30 0 17 393.3 374.2 39 33 6.3 5.2 23.9 27.6 238969 552616 2.3 8.1 0.6 1.1 .. .. .. .. 68110.3 63773.6 15 13 1.4 1.0 .. .. 4683 49531 0.0 9.8 0.0 3.3 67 1082 105 9283 28568.2 28186.8 10 8 3.1 1.8 11.6 5.1 .. .. -0.1 10.6 0.0 2.1 .. .. .. .. 23824.5 23633.2 25 21 8.5 7.1 48.5 33.6 19004 69429 1.1 7.8 0.3 1.8 32 44602 2134 36457 26049.7 19403.2 17 12 0.8 0.5 3.2 2.3 .. .. 1.6 6.5 0.4 1.6 .. .. .. .. 20832.9 16145.9 20 14 1.2 0.8 4.0 3.2 .. .. 0.8 9.2 0.2 2.0 .. .. .. .. 5216.8 3527.3 12 7 0.4 0.3 1.8 1.4 23687 118960 0.8 8.5 0.2 2.2 100 45684 3225 45830 61160.0 54035.8 14 11 1.5 0.9 5.7 3.4 10347 58681 1.1 10.4 0.4 4.0 -952 13089 1750 14389 7541.2 8359.5 5 5 1.0 0.6 .. .. 1097 14941 0.1 5.7 0.0 1.3 1893 2755 235 8705 8890.3 8938.2 19 17 0.8 0.6 2.6 2.3 8188 38015 3.4 10.4 0.8 2.1 101 28812 1099 13893 5850.2 8025.1 13 17 0.5 0.5 2.6 1.7 2757 614 3.1 3.3 0.7 0.7 -148 748 0 1632 10311.9 5342.5 43 19 2.4 1.3 9.2 .. 464 3439 0.4 2.9 0.1 0.7 147 -307 105 5198 8114.1 5499.9 7 4 2.3 1.1 10.6 4.8 834 3271 0.0 6.0 0.0 1.1 -941 586 0 2012 18206.9 17299.5 33 26 6.3 5.3 35.3 27.8 167908 195736 2.9 5.4 0.7 0.9 .. .. .. .. 2653.6 3091.5 .. .. .. .. .. .. 145 BEYOND ECONOMIC GROWTH Table 4. Indicators to chapters 14–17 Commercial energy use Total, thousand metric per capita, GDP per unit of energy use tons of oil equivalent kg of oil equivalent 1987 $ per kg oil equivalent COUNTRY or REGION 1980 1994 1980 1994 1980 1994 Afghanistan 893 2590 56 114 .. .. Albania 3058 1093 1145 341 0.61 2.44 Algeria 12078 24834 647 906 4.15 2.58 American Samoa 141 51 4352 927 .. .. Andorra 0 0 .. .. .. .. Angola 937 931 133 89 .. 6.98 Antigua and Barbuda 106 131 1738 2017 1.72 2.91 Argentina 39669 51405 1411 1504 2.83 2.68 Armenia 1071 1441 346 384 4.29 1.43 Aruba 0 0 .. .. .. .. Australia 70399 95280 4792 5341 2.38 2.65 Austria 23449 26500 3105 3301 4.56 5.41 Azerbaijan 15001 16274 2433 2182 .. 0.19 Bahamas, The 1764 1867 8400 6864 1.22 1.50 Bahrain 3169 5719 9488 10268 1.06 0.79 Bangladesh 2809 7566 32 64 4.46 3.06 Barbados 396 363 1590 1375 3.43 4.19 Belarus 2385 24772 247 2392 .. 0.79 Belgium 46122 51790 4684 5120 2.81 3.16 Belize 74 88 507 417 3.15 5.09 Benin 149 107 43 20 8.34 18.01 Bermuda 190 176 3519 2816 6.33 .. Bhutan 0 22 0 33 .. 16.93 Bolivia 1713 2698 320 373 2.74 2.09 Bosnia and Herzegovina .. 1525 .. 348 .. .. Botswana 384 549 426 387 2.12 4.69 Brazil 72141 112795 595 718 3.45 2.81 Brunei 330 3045 1710 10839 9.97 1.00 Bulgaria 28476 20568 3213 2438 0.73 1.05 Burkina Faso 144 160 21 16 11.21 16.03 Burundi 58 143 14 23 13.89 8.28 Cambodia 393 512 60 52 .. 2.41 Cameroon 774 1335 89 103 10.01 6.94 Canada 193170 229730 7854 7854 1.72 2.04 Cape Verde 105 114 363 307 1.14 2.13 Cayman Islands 0 0 .. .. .. .. Central African Republic 59 93 26 29 16.17 12.09 Chad 93 100 21 16 6.17 10.91 Channel Islands 0 0 0 0 .. .. Chile 7743 14155 695 1012 2.27 2.34 China 413130 791040 421 664 0.33 0.66 Colombia 13972 22470 501 622 2.08 2.14 Comoros 15 18 45 37 10.23 11.78 Congo 262 847 157 331 5.74 2.79 Costa Rica 1292 1843 566 558 3.12 3.41 146 INDICATORS TO CHAPTERS 14–17 CO2 emission Human total, million, per capita, Access to safe water Development PPP GDP per metric tons metric tons kg per 1987 $ of GDP % of population, 1993 Index HDI rank capita rank 1980 1992 1980 1992 1980 1992 Urban Rural 1995 1995 1995 1.8 1.4 0.1 0.1 .. .. .. .. 7.4 4.0 2.8 1.2 4.0 1.8 .. .. 0.656 105 66.2 79.2 3.5 3.0 1.3 1.2 .. .. 0.746 82 59 .. .. .. .. .. .. .. .. .. .. .. .. 5.3 4.5 0.8 0.5 .. 0.6 .. .. 0.344 156 120 0.1 .. 2.3 .. 0.8 .. 0.895 29 107.5 117.0 3.8 3.5 1.0 1.0 73 17 0.888 36 41 .. 4.2 .. 1.1 .. 1.8 .. .. 0.674 99 94 .. .. .. .. .. .. 202.8 267.9 13.8 15.3 1.2 1.2 .. .. 0.932 15 19 52.2 56.6 6.9 7.2 0.5 0.4 .. .. 0.933 13 10 .. 63.9 .. 8.7 .. 13.6 .. .. 0.623 110 115 8.0 .. 38.0 .. 3.7 .. 0.893 32 27 6.6 .. 19.7 .. 2.0 .. 0.872 43 29 7.6 17.2 0.1 0.2 0.6 0.8 47 85 0.371 147 118 0.7 .. 2.7 .. 0.5 .. 0.909 24 34 .. 102.0 .. 9.9 .. 4.0 .. .. 0.783 68 67 127.7 101.8 13.0 10.1 1.0 0.6 .. .. 0.933 12 9 0.2 0.3 1.3 1.3 0.8 0.6 0.807 63 57 0.5 0.6 0.1 0.1 0.4 0.3 82 63 0.378 145 110 .. .. .. .. .. .. 0.0 0.1 0.0 0.2 0.1 0.4 0.347 155 121 4.5 6.6 0.8 1.0 1.0 1.3 82 21 0.593 116 88 .. 15.1 .. 3.4 .. .. .. .. 1.0 2.2 1.1 1.6 1.2 0.9 100 53 0.678 97 53 183.6 217.1 1.5 1.4 0.7 0.8 99 68 0.809 62 56 6.9 .. 35.5 .. 2.1 .. 0.889 35 74.9 54.4 8.4 6.4 3.6 2.4 .. .. 0.789 67 63 0.4 0.6 0.1 0.1 0.3 0.2 .. .. 0.219 172 132 0.1 0.2 0.0 0.0 0.1 0.1 97 55 0.241 170 138 0.3 0.5 0.0 0.1 .. 0.4 20 12 0.422 140 3.9 2.2 0.4 0.2 0.5 0.2 71 24 0.481 132 98 430.2 409.9 17.5 14.4 1.3 0.9 .. .. 0.96 1 12 0.1 .. 0.4 .. 1.0 .. 0.591 117 106 .. .. .. .. .. .. 0.1 0.2 0.0 0.1 0.1 0.2 .. .. 0.347 154 125 0.2 0.3 0.0 0.0 0.4 0.2 .. .. 0.318 163 135 .. .. .. .. .. .. 27.0 34.7 2.4 2.6 1.5 1.2 100 31 0.893 31 36 1489.2 2668.0 1.5 2.3 11.0 6.6 .. .. 0.65 106 83 39.3 61.5 1.4 1.8 1.4 1.4 90 90 0.85 53 48 0.0 .. 0.1 .. 0.3 .. 0.411 141 119 0.4 4.0 0.2 1.6 0.3 1.6 94 8 0.519 128 99 2.5 3.8 1.1 1.2 0.6 0.7 .. .. 0.889 34 50 147 BEYOND ECONOMIC GROWTH Table 4. Indicators to chapters 14–17 (continued) Commercial energy use Total, thousand metric per capita, GDP per unit of energy use tons of oil equivalent kg of oil equivalent 1987 $ per kg oil equivalent COUNTRY or REGION 1980 1994 1980 1994 1980 1994 Côte d’Ivoire 1435 1406 175 103 6.77 6.83 Croatia .. 6667 .. 1395 .. .. Cuba 9645 10133 992 923 .. .. Cyprus 938 1961 1535 2701 2.71 2.79 Czech Republic 29394 39982 2873 3868 .. 0.78 Denmark 19488 20700 3804 3977 4.43 5.48 Djibouti 517 548 1840 909 .. .. Dominica 12 21 164 290 6.96 7.41 Dominican Republic 2083 2591 366 337 2.04 2.47 Ecuador 4209 6345 529 565 2.32 2.19 Egypt, Arab Rep. 15176 34071 371 600 1.59 1.20 El Salvador 1000 2032 220 370 4.48 2.65 Equatorial Guinea 19 31 88 80 .. 5.23 Eritrea .. .. .. .. .. .. Estonia .. 5560 .. 3709 .. 0.66 Ethiopia 624 1193 17 22 .. 6.95 Faeroe Islands 156 188 .. .. .. .. Fiji 334 404 527 527 3.54 3.94 Finland 24998 30520 5230 5997 2.90 2.96 France 190660 234160 3539 4042 4.12 4.38 French Guiana 125 194 1812 .. .. .. French Polynesia 179 306 1140 1399 .. .. Gabon 759 692 1098 652 4.98 5.51 Gambia, The 53 60 83 56 3.49 4.93 Georgia .. 3325 .. 614 .. 0.74 Germany 359170 336490 4587 4128 .. .. Ghana 1303 1542 121 93 3.57 4.45 Greece 15973 23560 1656 2260 2.76 2.19 Greenland 186 209 .. .. .. .. Grenada 17 27 191 293 6.48 6.89 Guadeloupe 159 262 486 622 .. .. Guam 1210 1372 11308 9429 .. .. Guatemala 1443 2165 209 210 5.01 4.28 Guinea 356 418 80 65 .. 6.10 Guinea-Bissau 31 39 38 37 3.76 5.78 Guyana 599 288 788 350 0.74 1.49 Haiti 240 200 45 29 9.55 7.91 Honduras 843 1173 230 204 4.23 4.39 Hong Kong 5628 13243 1117 2185 5.32 5.32 Hungary 28322 24450 2645 2383 0.78 0.96 Iceland 1432 2110 6281 7932 2.92 2.66 India 93907 226638 137 248 1.92 1.64 Indonesia 25028 69740 169 366 2.07 1.85 Iran, Islamic Rep. 38347 94159 980 1505 3.04 1.92 Iraq 12003 23864 923 1213 7.15 .. 148 INDICATORS TO CHAPTERS 14–17 CO2 emission Human total, million, per capita, Access to safe water Development PPP GDP per metric tons metric tons kg per 1987 $ of GDP % of population, 1993 Index HDI rank capita rank 1980 1992 1980 1992 1980 1992 Urban Rural 1995 1995 1995 4.7 6.3 0.6 0.5 0.5 0.6 97 73 0.368 148 111 .. 16.2 .. 3.4 .. .. 98 74 0.759 76 30.7 28.6 3.2 2.6 .. .. 100 91 0.729 85 3.2 .. 5.2 .. 1.3 .. .. .. 0.913 23 .. 135.6 .. 13.1 .. 4.4 .. .. 0.884 39 35 63.2 53.9 12.3 10.4 0.7 0.5 .. 100 0.928 18 11 0.3 .. 1.1 .. .. .. 0.324 162 0.0 .. 0.5 .. 0.4 .. 0.879 41 6.4 10.2 1.1 1.4 1.5 1.7 75 40 0.72 88 71 13.4 18.9 1.7 1.8 1.4 1.4 79 45 0.767 73 66 45.2 84.0 1.1 1.5 1.9 2.1 95 74 0.612 112 72 2.1 3.6 0.5 0.7 0.5 0.7 95 16 0.604 114 87 0.1 0.1 0.3 0.3 .. 0.8 0.465 135 .. .. .. .. .. .. .. .. 0.275 168 0.4 20.9 0.3 13.5 0.1 4.9 .. .. 0.758 77 65 1.8 2.9 0.0 0.1 .. 0.4 90 20 0.252 169 143 .. .. .. .. .. .. .. .. .. .. .. 0.8 0.7 1.2 0.9 0.7 0.5 0.869 44 51 55.1 41.2 11.5 8.2 0.8 0.5 100 100 0.942 6 21 484.1 362.1 9.0 6.3 0.6 0.4 100 100 0.946 2 13 0.4 .. 5.3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4.8 5.6 6.9 5.5 1.3 1.3 80 30 0.568 120 0.2 0.2 0.2 0.2 0.9 0.6 87 86 0.291 165 127 .. 13.8 .. 2.5 .. 3.0 .. .. 0.633 108 114 1068.3 878.1 13.6 10.9 .. .. .. .. 0.925 19 15 2.4 3.8 0.2 0.2 0.5 0.6 76 46 0.473 133 103 51.4 73.9 5.3 7.2 1.2 1.4 .. .. 0.924 20 32 0.6 .. .. .. .. .. .. .. .. 0.0 .. 0.5 .. 0.4 .. 0.851 51 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4.5 5.7 0.6 0.6 0.6 0.7 84 51 0.615 111 80 0.9 1.0 0.2 0.2 .. 0.4 78 51 0.277 167 .. 0.1 0.2 0.2 0.2 1.2 1.0 18 47 0.295 164 131 1.8 0.8 2.3 1.0 4.0 2.3 0.67 100 90 0.8 0.8 0.1 0.1 0.3 0.4 55 34 0.34 159 129 2.1 3.1 0.6 0.6 0.6 0.6 90 54 0.573 119 105 16.4 29.1 3.3 5.0 0.5 0.5 .. .. 0.909 25 5 82.0 59.9 7.7 5.8 3.7 2.6 .. .. 0.857 47 46 1.9 1.8 8.2 6.8 0.4 0.3 0.942 5 14 350.1 769.4 0.5 0.9 1.9 2.3 87 85 0.451 139 116 94.6 184.6 0.6 1.0 1.8 1.7 86 56 0.679 96 73 116.1 235.5 3.0 4.0 1.0 1.3 100 75 0.758 78 54 44.0 64.5 3.4 3.4 0.5 .. 100 85 0.538 127 .. 149 BEYOND ECONOMIC GROWTH Table 4. Indicators to chapters 14–17 (continued) Commercial energy use Total, thousand metric per capita, GDP per unit of energy use tons of oil equivalent kg of oil equivalent 1987 $ per kg oil equivalent COUNTRY or REGION 1980 1994 1980 1994 1980 1994 Ireland 8485 11200 2495 3137 3.12 3.90 Isle of Man .. .. .. .. .. .. Israel 8616 14624 2222 2717 3.44 3.72 Italy 139190 154600 2466 2707 4.79 5.53 Jamaica 2169 2703 1017 1083 1.27 1.47 Japan 347120 481850 2972 3856 5.51 6.21 Jordan 1710 4306 784 1067 .. 1.53 Kazakhstan 76799 56664 5153 3371 .. 0.31 Kenya 1991 2872 120 110 3.09 3.34 Kiribati 9 8 155 103 2.82 3.79 Korea, Dem. Rep. 30932 26464 1694 1129 .. .. Korea, Rep. 41426 132538 1087 2982 1.80 1.76 Kuwait 9500 13968 6909 8622 2.67 1.97 Kyrgyz Republic .. 2755 .. 616 .. 0.88 Lao PDR 107 182 33 38 .. 9.09 Latvia .. 3997 .. 1569 .. 1.22 Lebanon 2376 3790 840 964 .. .. Lesotho .. .. .. .. .. .. Liberia 793 108 422 41 1.60 .. Libya 7122 13039 2340 2499 5.65 .. Liechtenstein 0 0 .. .. .. .. Lithuania .. 7555 .. 2030 .. 0.81 Luxembourg 3643 3780 9984 9361 1.56 2.32 Macao 174 377 605 857 .. 9.24 Macedonia, FYR .. 2686 .. 1279 .. .. Madagascar 391 479 45 36 6.72 5.57 Malawi 334 370 54 39 3.15 3.39 Malaysia 9522 33410 692 1699 2.44 1.71 Maldives 14 34 89 139 .. 4.81 Mali 164 205 25 22 11.22 11.51 Malta 402 924 1104 2511 3.36 .. Marshall Islands .. .. .. .. .. .. Martinique 79 244 242 649 .. .. Mauritania 214 229 138 103 3.79 4.77 Mauritius 339 431 351 387 3.69 6.32 Mayotte .. .. .. .. .. .. Mexico 97434 140840 1464 1561 1.33 1.21 Micronesia, Fed. Sts. .. .. .. .. .. .. Moldova .. 4763 .. 1095 .. .. Monaco 0 0 .. .. .. .. Mongolia 1943 2550 1168 1058 1.16 1.17 Morocco 4927 8509 254 327 3.08 2.92 Mozambique 1123 619 93 40 1.39 3.33 Myanmar 1858 2181 55 49 .. .. Namibia .. .. .. .. .. .. 150 INDICATORS TO CHAPTERS 14–17 CO2 emission Human total, million, per capita, Access to safe water Development PPP GDP per metric tons metric tons kg per 1987 $ of GDP % of population, 1993 Index HDI rank capita rank 1980 1992 1980 1992 1980 1992 Urban Rural 1995 1995 1995 25.1 30.9 7.4 8.7 0.9 0.8 .. .. 0.93 17 26 .. .. .. .. .. .. .. .. .. 21.1 41.6 5.4 8.1 0.7 0.9 .. .. 0.913 22 23 372.1 407.7 6.6 7.2 0.6 0.5 .. .. 0.922 21 17 8.4 8.0 4.0 3.3 3.1 2.1 92 48 0.735 84 77 933.9 1093.5 8.0 8.8 0.5 0.4 .. .. 0.94 8 7 4.7 11.3 2.2 3.0 .. 1.9 98 94 0.729 87 70 .. 298.0 .. 17.6 .. 12.6 .. .. 0.695 93 83 6.2 5.3 0.4 0.2 1.0 0.6 74 43 0.463 137 117 0.0 .. 0.5 .. 1.2 .. .. .. .. 125.6 253.8 6.9 11.2 .. .. 100 100 0.766 75 .. 125.7 289.8 3.3 6.6 1.7 1.4 .. .. 0.894 30 33 24.7 16.0 18.0 11.2 1.0 0.8 .. .. 0.848 54 4 .. 15.4 .. 3.4 .. 4.3 .. .. 0.633 109 107 0.2 0.3 0.1 0.1 .. 0.2 34 36 0.465 136 .. 14.8 .. 5.6 .. 2.6 .. .. 0.704 92 78 6.2 11.1 2.2 2.9 .. .. .. .. 0.796 66 .. .. .. .. .. .. 90 40 0.469 134 109 2.0 0.3 1.1 0.1 1.6 .. .. .. .. 26.9 39.5 8.8 8.1 0.7 .. .. .. 0.806 64 .. .. .. .. .. .. .. .. .. .. 22.0 .. 5.9 .. 3.1 .. .. 0.75 79 69 10.6 .. 29.1 .. 1.9 .. 0.9 26 1 0.5 .. 1.7 .. .. .. .. .. .. .. 4.1 .. 2.0 .. .. .. .. 0.749 80 1.6 0.9 0.2 0.1 0.6 0.4 55 10 0.348 153 137 0.7 0.7 0.1 0.1 0.7 0.5 91 41 0.334 161 134 28.0 70.5 2.0 3.8 1.2 1.5 100 80 0.834 60 38 0.0 .. 0.3 .. .. .. 0.683 95 82 0.4 0.4 0.1 0.0 0.2 0.2 42 25 0.236 171 140 1.0 .. 2.7 .. 0.7 .. 0.899 27 .. .. .. .. .. .. .. .. .. 0.8 .. 2.4 .. .. .. .. .. .. 0.6 2.9 0.4 1.4 0.8 2.9 49 86 0.361 149 112 0.6 1.4 0.6 1.3 0.5 0.5 .. .. 0.833 61 30 .. .. .. .. .. .. .. .. .. 260.1 332.9 3.9 3.8 2.0 2.0 90 66 0.855 49 47 .. .. .. .. .. .. .. .. .. 0.0 14.2 0.0 3.3 .. .. .. .. 0.61 113 .. .. .. .. .. .. .. .. .. 6.7 9.3 4.0 4.0 3.0 3.1 .. .. 0.669 101 104 16.0 27.3 0.8 1.1 1.1 1.2 100 18 0.557 125 79 3.2 1.0 0.3 0.1 2.0 0.6 44 17 0.281 166 130 4.8 4.4 0.1 0.1 .. .. 38 36 0.481 131 .. .. .. .. .. .. 97 37 0.644 107 68 151 BEYOND ECONOMIC GROWTH Table 4. Indicators to chapters 14–17 (continued) Commercial energy use Total, thousand metric per capita, GDP per unit of energy use tons of oil equivalent kg of oil equivalent 1987 $ per kg oil equivalent COUNTRY or REGION 1980 1994 1980 1994 1980 1994 Nepal 174 582 12 28 12.47 7.34 Netherlands 65106 70440 4601 4580 3.01 3.71 Netherlands Antilles 3974 2371 22839 11981 .. .. New Caledonia 711 603 5152 3308 .. .. New Zealand 9202 15070 2956 4245 3.37 2.80 Nicaragua 756 1273 270 300 5.10 2.69 Niger 210 327 38 37 12.11 7.35 Nigeria 9879 17503 139 162 3.07 2.15 Northern Mariana Islands .. .. .. .. .. .. Norway 18865 23060 4611 5318 3.87 4.62 Oman 1346 5018 1223 2392 2.93 2.38 Pakistan 11698 32133 142 254 1.83 1.47 Panama 1376 1597 703 618 3.20 3.87 Papua New Guinea 705 990 228 236 3.86 4.75 Paraguay 550 1402 175 299 5.97 3.46 Peru 8139 8555 471 367 2.49 2.68 Philippines 13406 21199 277 316 2.45 1.94 Poland 124500 92537 3499 2401 0.48 0.67 Portugal 10291 18090 1054 1827 3.54 2.77 Puerto Rico 8042 7371 2508 2000 3.54 2.77 Qatar 4738 7684 20690 12597 2.42 .. Reunion 322 429 636 669 Romania 63846 39387 2876 1733 0.53 0.73 Russian Federation 750240 595440 5397 4014 0.59 0.52 Rwanda 190 209 37 34 9.31 4.93 São Tomé and Principe 13 23 139 184 5.15 2.64 Saudi Arabia 35496 83772 3787 4566 2.70 1.14 Senegal 875 803 158 97 4.20 6.33 Seychelles 70 122 1110 1691 3.18 2.94 Sierra Leone 310 323 96 77 2.32 2.44 Singapore 6049 23743 2651 8103 2.23 1.55 Slovak Republic .. 17343 .. 3243 .. 0.88 Slovenia .. 5195 .. 2612 .. .. Solomon Islands 389 58 1670 159 0.25 3.92 Somalia 389 61 58 7 2.10 .. South Africa 60511 86995 2074 2146 1.25 1.00 Spain 68692 96200 1837 2458 3.62 3.62 Sri Lanka 1411 1728 96 97 3.42 5.09 St. Kitts and Nevis 0 20 0 486 .. 7.33 St. Lucia 39 53 315 338 .. 7.93 St. Vincent and the Grenadines 17 22 174 199 5.41 8.76 Sudan 1150 1731 62 66 12.74 12.09 Suriname 1002 784 2813 1926 0.43 1.06 Swaziland 191 232 338 264 2.15 3.00 Sweden 40992 50250 4933 5723 3.43 3.33 152 INDICATORS TO CHAPTERS 14–17 CO2 emission Human total, million, per capita, Access to safe water Development PPP GDP per metric tons metric tons kg per 1987 $ of GDP % of population, 1993 Index HDI rank capita rank 1980 1992 1980 1992 1980 1992 Urban Rural 1995 1995 1995 0.5 1.3 0.0 0.1 0.2 0.3 60 41 0.351 152 123 152.8 139.0 10.8 9.2 0.8 0.5 100 100 0.941 7 16 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 17.6 26.2 5.7 7.6 0.6 0.7 .. .. 0.939 9 25 2.0 2.5 0.7 0.6 0.5 0.7 74 30 0.547 126 102 0.6 1.1 0.1 0.1 0.2 0.5 58 54 0.207 173 133 68.1 96.5 1.0 0.9 2.2 2.6 69 11 0.391 142 122 .. .. .. .. .. .. .. .. .. 40.0 60.2 9.8 14.1 0.5 0.6 .. .. 0.943 3 8 5.9 10.0 5.3 5.3 1.5 0.9 98 56 0.771 71 42 31.7 71.9 0.4 0.6 1.5 1.6 85 47 0.453 138 96 3.6 4.2 1.9 1.7 0.8 0.8 .. .. 0.868 45 49 1.8 2.3 0.6 0.6 0.7 0.6 97 18 0.507 129 89 1.5 2.6 0.5 0.6 0.4 0.6 .. 17 0.707 91 75 23.5 22.3 1.4 1.0 1.2 1.2 76 24 0.729 86 74 36.5 49.7 0.8 0.8 1.1 1.3 .. .. 0.677 98 86 459.6 341.9 12.9 8.9 7.7 6.0 .. .. 0.851 52 55 27.1 47.2 2.8 4.8 0.7 0.9 .. .. 0.892 33 31 14.0 .. 4.4 .. 0.7 .. .. .. 12.9 .. 56.3 .. .. .. .. .. 0.84 57 22 0.7 .. 1.4 .. .. .. 191.4 122.1 8.6 5.4 5.7 4.5 .. .. 0.767 74 64 .. 2103.1 .. 14.1 .. 5.5 .. .. 0.769 72 62 0.3 0.5 0.0 0.1 0.1 0.2 .. .. .. .. 141 0.0 .. 0.4 .. 0.6 .. 0.563 121 130.8 220.6 14.0 13.1 1.4 2.3 98 54 0.778 70 39 2.8 2.8 0.5 0.4 0.8 0.6 .. .. 0.342 158 108 0.1 .. 1.5 .. 0.4 .. 0.845 56 0.6 0.4 0.2 0.1 0.8 0.6 85 .. 0.185 174 139 30.1 49.8 13.2 17.7 2.2 1.6 100 .. 0.896 28 6 .. 37.0 .. 7.0 .. 2.5 .. .. 0.875 42 76 .. 5.5 .. 2.8 .. .. .. .. 0.887 37 0.1 0.2 0.4 0.5 1.0 0.8 0.56 123 97 0.6 0.0 0.1 0.0 0.7 .. .. .. .. 213.4 290.3 7.3 7.5 2.8 3.5 .. .. 0.717 89 60 200.0 223.2 5.4 5.7 0.8 0.6 .. .. 0.935 11 28 3.4 5.0 0.2 0.3 0.7 0.6 87 49 0.716 90 81 .. .. .. .. .. .. 0.854 50 37 0.1 .. 0.9 .. .. .. 0.839 58 0.0 .. 0.4 .. 0.4 .. 0.845 55 .. 3.3 3.5 0.2 0.1 0.2 0.2 89 73 0.343 157 2.4 2.0 6.7 5.0 5.5 2.1 0.796 65 95 0.5 0.3 0.8 0.3 1.2 0.4 0.597 115 85 71.4 56.8 8.6 6.6 0.5 0.3 .. .. 0.936 10 20 153 BEYOND ECONOMIC GROWTH Table 4. Indicators to chapters 14–17 (continued) Commercial energy use Total, thousand metric per capita, GDP per unit of energy use tons of oil equivalent kg of oil equivalent 1987 $ per kg oil equivalent COUNTRY or REGION 1980 1994 1980 1994 1980 1994 Switzerland 20840 25380 3298 3629 7.29 7.36 Syrian Arab Republic 5343 13675 614 997 1.90 1.23 Tajikistan .. 3542 .. 616 .. 0.48 Tanzania 1023 975 55 34 .. 4.53 Thailand 12093 44395 259 769 2.77 2.23 Togo 195 183 75 46 6.33 6.94 Tonga 13 18 138 178 .. 4.80 Trinidad and Tobago 3863 6935 3570 5436 1.46 0.69 Tunisia 3083 5264 483 595 2.44 2.39 Turkey 31314 57580 705 957 1.88 1.85 Turkmenistan .. 10401 .. 2361 .. .. Uganda 320 425 25 23 .. 22.59 Ukraine 108290 165132 2164 3180 .. 0.35 United Arab Emirates 8558 25137 8205 10531 3.64 .. United Kingdom 201200 220270 3572 3772 2.84 3.49 United States 1801000 2037980 7908 7819 2.07 2.62 Uruguay 2208 1971 758 622 3.42 4.61 Uzbekistan .. 41825 .. 1869 .. 0.33 Vanuatu 39 46 339 279 2.42 2.95 Venezuela 35011 46300 2354 2186 1.30 1.21 Vietnam 4024 7267 75 101 .. 7.53 Virgin Islands (U.S.) 3224 3362 33237 33843 0.31 .. West Bank and Gaza .. .. .. .. .. .. Western Samoa 0.00 71.00 0.00 432.93 .. .. Yemen, Rep. 1364 3044 160 206 .. .. Yugoslavia, FR (Serbia/Montenegro) .. 11681 .. 1110 .. .. Zaire 1487 1902 55 45 4.38 .. Zambia 1685 1296 294 149 1.28 1.84 Zimbabwe 2797 4722 399 438 1.52 1.44 World 6249745 8011531 1419 1433 2.27 2.38 Low Income 587124 1154712 248 369 0.89 1.07 Excl. China & India 80087 137034 114 134 .. 2.65 Middle income 1873142 2313337 1537 1475 1.69 1.16 Lower middle income 1448776 1647009 1632 1449 1.40 0.96 Upper middle income 424366 666328 1282 1544 2.27 1.65 Low & middle Income 2460266 3468049 686 739 1.39 1.13 East Asia & Pacific 514066 1000586 378 593 0.69 0.94 Europe & Central Asia 1279071 1288624 3105 2647 .. 0.64 Latin America & Caribbean 317962 451011 888 960 2.28 2.02 Middle East & N. Africa 143540 323064 825 1220 3.20 1.65 South Asia 110906 271293 123 222 2.01 1.70 Sub-Saharan Africa 94721 133471 249 237 2.16 1.99 High Income 3789479 4543482 4644 5066 2.90 3.38 154 INDICATORS TO CHAPTERS 14–17 CO2 emission Human total, million, per capita, Access to safe water Development PPP GDP per metric tons metric tons kg per 1987 $ of GDP % of population, 1993 Index HDI rank capita rank 1980 1992 1980 1992 1980 1992 Urban Rural 1995 1995 1995 40.9 43.7 6.5 6.4 0.3 0.2 100 .. 0.93 16 3 19.3 42.4 2.2 3.3 1.9 2.8 95 77 0.749 81 58 .. 4.0 .. 0.7 .. 1.6 .. .. 0.575 118 128 1.9 2.1 0.1 0.1 .. 0.5 65 45 0.358 150 136 40.0 112.5 0.9 2.0 1.2 1.3 89 72 0.838 59 44 0.6 0.7 0.2 0.2 0.5 0.6 64 54 0.38 144 124 0.0 .. 0.4 .. .. .. .. .. .. 16.7 20.6 15.4 16.5 3.0 4.4 83 80 0.88 40 40 9.5 13.6 1.5 1.6 1.3 1.1 100 67 0.744 83 61 76.0 145.5 1.7 2.5 1.3 1.4 100 85 0.782 69 52 .. 42.3 .. 10.5 .. .. .. .. 0.66 103 .. 0.6 1.0 0.1 0.1 .. 0.1 .. .. 0.34 160 113 .. 611.3 .. 11.7 .. 6.9 .. .. 0.665 102 91 36.3 70.6 34.8 33.9 1.2 .. 98 98 0.855 48 24 588.3 566.2 10.4 9.8 1.0 0.8 100 100 0.932 14 18 4623.2 4881.3 20.3 19.1 1.2 1.0 .. .. 0.943 4 2 5.8 5.0 2.0 1.6 0.8 0.6 93 .. 0.885 38 45 .. 123.3 .. 5.7 .. 8.5 .. .. 0.659 104 92 0.1 .. 0.5 .. 0.7 .. 0.559 124 93 89.6 116.4 6.0 5.7 2.0 2.0 68 67 0.86 46 43 17.0 21.5 0.3 0.3 .. 0.5 100 66 0.56 122 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0.10 .. 0.64 .. 0.97 .. 0.694 94 101 3.3 10.1 0.4 0.7 .. .. 88 17 0.356 151 .. 38.2 .. 3.6 .. .. .. .. .. .. .. 3.5 4.2 0.1 0.1 0.5 0.7 .. .. 0.383 143 142 3.5 2.5 0.6 0.3 1.6 1.0 76 43 0.378 146 126 9.7 18.7 1.4 1.8 2.3 3.0 99 65 0.507 130 100 14770.0 21347.5 3.6 4.0 1.1 1.2 .. .. 0.7715 2062.6 3880.3 0.9 1.3 4.2 3.6 .. .. 223.3 442.9 0.3 0.5 1.1 1.3 71 45 2830.7 7221.0 2.9 4.8 1.7 .. .. .. 1663.7 5564.7 2.6 5.1 .. 3.3 .. .. 1166.9 1656.3 3.7 4.0 1.4 .. 93 65 4893.3 11101.4 1.5 2.4 2.2 3.0 .. .. 1845.8 3378.0 1.4 2.1 6.0 4.8 .. .. 944.1 4506.4 .. 9.3 .. 4.8 .. .. 855.0 1029.3 2.4 2.3 1.2 1.2 89 57 500.5 849.1 2.9 3.4 1.1 .. 98 70 395.2 866.4 0.4 0.7 1.8 2.1 84 80 352.7 472.2 0.9 0.9 1.7 1.8 .. .. 9876.7 10246.1 12.4 11.9 0.9 0.7 .. .. 155