UNIVERSITA’ CARLO CATTANEO (WWW.LIUC.IT)
Unità di Studi Interdisciplinari per l’Economia Sostenibile
Comparing
Economic
Systems
Global
thematic
comparison
Selected performance survey: GDP and other indicators
This growing interest may reflect a combination of objective as well as societal factors.
A first one probably lies with the increasingly visibility of some of the adverse
consequences of economic activity on the environment (e.g. climatic change).
A second factor is the end of the “catching up” period, the so-called “30 glorieuses”,
where GDP growth was substantial. The period of lower and less regular economic
growth that followed was accompanied by higher perceived economic insecurity, in the
form of greater exposure to unemployment, poverty and bad work conditions.
Changes in goals necessarily go along with changes in indicators.
From a perspective of economic welfare, the main limits can be identified to this concept:
• the exclusion of many household activities that are productive in an economic sense
•the problems concerning the measurement of non market output and its aggregation
with market production.
Gross Domestic Product (GDP)
The GDP is a basic measure of a country's overall
economic performance. It is the market value of all final
goods and services made within the borders of a country in a
year.
1.Product approach
– GDP = Gross Value Added + Taxes on products - Subsidies on products
Sales of goods - purchase of intermediate goods to produce the goods sold
2.Expenditure method
– GDP = Consumption + Investment + Government Spending + (ExportsImports).
3.Income method
– GDP = Rents + interests + profits + statistical adjustments + wages
3
Gross National Income
• Gross national income (GNI) comprises the value of all
products and services generated within a country in one
year (i.e., its gross domestic product), together with its
net income received from other countries (notably
interest and dividends).
• The GNI consists of: the personal consumption
expenditures, the gross private investment, the
government consumption expenditures, the net income
from assets abroad (net income receipts), and the gross
exports of goods and services, after deducting two
components: the gross imports of goods and services,
and the indirect business taxes. The GNI is similar to
the gross national product (GNP), except that in
measuring the GNP one does not deduct the indirect
business
GDP per capita (US$)
Luxembourg
Norway
Switzerland
Denmark
Sweden
United States
Netherlands
Canada
Ireland
Austria
Finland
Singapore
Japan
Belgium
Germany
Iceland
France
United
Kingdom
Italy
Spain
Country Name
2010
108.921
84.840
66.934
55.988
48.832
47.184
47.159
46.148
45.497
44.863
44.522
43.867
43.137
42.969
40.509
39.679
39.460
Last 20
First 20
Country Name
GDP is the sum of gross value added by all resident producers in
the economy plus any product taxes and minus any subsidies not
included in the value of the products.
36.100
33.917
30.542
Source: World Bank, 2011
Guinea-Bissau
Burkina Faso
Rwanda
Tanzania
Nepal
Togo
Uganda
Gambia, The
Central African
Republic
Guinea
Madagascar
Mozambique
Eritrea
Ethiopia
Niger
Malawi
Sierra Leone
Liberia
Congo, Dem. Rep.
Burundi
2010
580
536
530
527
524
523
509
467
457
452
421
410
403
358
358
343
325
247
199
192
United States; Guinea-Bissau
Malta
Dominica
Gabon
High income
Switzerland
Marshall Islands
Austria
Norway
Grenada
Kiribati
Greenland
United Kingdom
St. Kitts and Nevis
Belgium, Netherlands
GDP growth (2000-2010)
2000-2010
17,8
14,9
13,6
13,5
13,0
12,4
10,7
10,5
10,4
10,3
9,2
8,4
8,4
8,4
8,3
8,0
8,0
8,0
7,6
7,4
7,4
7,3
7,2
7,0
7,0
Up to 2%
7% and beyond
Country Name
Equatorial
Guinea
Azerbaijan
Turkmenistan
Qatar
Myanmar
Macao SAR,
China
Afghanistan
Angola
Tuvalu
China
Sierra Leone
Kazakhstan
Bhutan
Tajikistan
Ethiopia
Cambodia
Chad
Armenia
Rwanda
India
Belarus
Mozambique
Vietnam
Kuwait
Uganda
Channel Islands
Tonga
Brunei Darussalam; France
Jamaica; Guyana
Central African Republic
Germany
St. Lucia
Japan; Portugal; Denmark
Fiji
Iraq
Cote d'Ivoire
Italy; Palau
Aruba; Micronesia, Fed. Sts.; Bahamas, The
Haiti
Barbados
Eritrea
West Bank and Gaza
Zimbabwe
Source: World Bank, 2011
1,9
1,8
1,8
1,8
1,8
1,8
1,8
1,7
1,7
1,7
1,7
1,7
1,7
1,7
1,6
1,5
1,5
1,4
1,2
1,1
1,1
1,1
1,0
0,8
0,7
0,7
0,6
0,5
0,2
0,1
-0,3
-2,0
-4,2
GNI vs GDP
For example, the profits of a US-owned company operating in the UK will only
count towards US GNI and UK GDP. If a country becomes heavily indebted, and
pays large amounts of interest to service this debt, this will be reflected in a
decreased GNI but not a decreased GDP. If a country sells off its resources to
entities outside their country this will also be reflected over time in decreased
GNI, but not decreased GDP. Therefore, the GDP appears more attractive for
countries with increasing national debt and decreasing assets.
GNI vs GNP
GNP is a concept that goes hand in hand with GNI, GDP, and NNI. In contrast to
the GNI, the GNP does not account for the balance of cross-country income, such
as interest and dividends. In contrast to the GDP, the GNP account for the values
of products and services based on citizenship of the owners rather than the
territory of the activity
Net national income (NNI) is an economics term used in national income
accounting. It can be defined as the net national product (NNP) minus indirec
taxes. Net national income encompasses the income of households, businesses,
and the government.
It can be expressed as:
NNI = Consumption + Investment + Government spending + (Net eXports) + net
foreign factor income - indirect taxes - depreciation
GNI per capita (US$)
Luxembourg
Norway
Singapore
Switzerland
Hong Kong SAR,
China
United States
Netherlands
Denmark
Sweden
Austria
Germany
Belgium
Finland
United Kingdom
Japan
France
Ireland
Spain
Italy
Korea, Rep.
2010
Country Name
63.950
57.100
55.380
48.960
47.130
47.120
42.610
40.290
39.660
39.390
38.140
37.800
37.180
36.590
34.780
34.440
32.520
31.640
31.130
29.010
Last 20
First 20
Country Name
PPP GNI is gross national income (GNI) converted to
international dollars using purchasing power parity rates.
Source: World Bank, 2011
Chad
Nepal
Guinea-Bissau
Rwanda
Haiti
Comoros
Ethiopia
Guinea
Mali
Madagascar
Mozambique
Togo
Malawi
Sierra Leone
Central African
Republic
Niger
Eritrea
Burundi
Liberia
Congo, Dem. Rep.
2010
1.210
1.200
1.180
1.150
1.110
1.080
1.030
1.020
1.020
950
920
890
850
820
780
720
540
400
340
320
Gini coefficient, 2013
The Gini coefficient is a measure of the inequality of a distribution, a value of 0
expressing total equality and a value of 1 maximal inequality.
Source: CIA Factbook 2013 (from World Bank data)
Income share held by lowest 20%, 2010
Source: World Bank, 2011
Income share held by highest 20%, 2010
Source: World Bank, 2011
Human Development Index (HDI)
The Human Development Index (HDI) is a composite
statistic used to rank countries by level of "human
development" and separate "very high human
development", "high human development", "medium
human development", and "low human development"
countries. The Human Development Index (HDI) is a
comparative measure of life expectancy, literacy,
education and standards of living for countries
worldwide. It is a standard means of measuring wellbeing, especially child welfare. It is used to distinguish
whether the country is a developed, a developing or an
under-developed country, and also to measure the
impact of economic policies on quality of life. There are
also HDI for states, cities, villages, etc. by local
organizations or companies.
Human Development Index (HDI) value, 2011
Source: United Nations Development Programme (UNDP), 2011
First 20 countries
Human Development Index (HDI) trends: 1980 - 2011
Source: United Nations Development Programme (UNDP), 2011
Last 20 countries
Human Development Index (HDI) trends: 1980 - 2011
Source: United Nations Development Programme (UNDP), 2011
Global Competitiveness Index
Since 2004, the report ranks the world's nations
according to the Global Competitiveness Index.
The report states that it is based on the latest
theoretical and empirical research. It is made up of
over 110 variables, of which two thirds come from the
Executive Opinion Survey, and one third comes from
publicly available sources such as the United Nations.
The variables are organized into twelve pillars, with
each pillar representing an area considered as an
important determinant of competitiveness.
The Global Competitiveness Index 2011-2012 rankings
© 2011 World Economic Forum | www.weforum.org/gcr
First 30
Country/Economy
Switzerland
Singapore
Sweden
Finland
United States
Germany
Netherlands
Denmark
Japan
United Kingdom
Hong Kong SAR
Canada
Taiwan, China
Qatar
Belgium
Norway
Saudi Arabia
France
Austria
Australia
Malaysia
Israel
Luxembourg
Korea, Rep.
New Zealand
China
United Arab Emirates
Brunei Darussalam
Ireland
Iceland
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
GCI 2010-2011
Score
5,74
5,63
5,61
5,47
5,43
5,41
5,41
5,40
5,40
5,39
5,36
5,33
5,26
5,24
5,20
5,18
5,17
5,14
5,14
5,11
5,08
5,07
5,03
5,02
4,93
4,90
4,89
4,78
4,77
4,75
Rank
Change
1
0
3
1
2
-1
7
3
4
-1
5
-1
8
1
9
1
6
-3
12
2
11
0
10
-2
13
0
17
3
19
4
14
-2
21
4
15
-3
18
-1
16
-4
26
5
24
2
20
-3
22
-2
23
-2
27
1
25
-2
28
0
29
0
31
1
Last 30
GCI 2011-2012
Zambia
Ghana
Nicaragua
Cameroon
Malawi
Pakistan
Cape Verde
Tanzania
Uganda
Paraguay
Belize
Venezuela
Nepal
Kyrgyz Republic
Nigeria
Mali
Côte d'Ivoire
Madagascar
Timor-Leste
Zimbabwe
Mozambique
Swaziland
Lesotho
Burkina Faso
Mauritania
Yemen
Angola
Burundi
Haiti
Chad
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
3,67
115
2
3,65
114
0
3,61
112
-3
3,61
111
-5
3,58
125
8
3,58
123
5
3,58
117
-2
3,56
113
-7
3,56
118
-3
3,53
120
-2
3,52
n/a
n/a
3,51
122
-2
3,47
130
5
3,45
121
-5
3,45
127
0
3,39
132
4
3,37
129
0
3,36
124
-6
3,35
133
2
3,33
136
4
3,31
131
-2
3,30
126
-8
3,26
128
-7
3,25
134
-2
3,20
135
-2
3,06
n/a
n/a
2,96
138
-1
2,95
137
-3
2,90
n/a
n/a
2,87
139
-3
Big Mac Index
Source: The Economist, 2011
Environmental Performance Index (EPI)
The 2010 Environmental Performance Index (EPI) ranks 163 countries on 25
performance indicators tracked across ten policy categories covering both
environmental public health and ecosystem vitality. These indicators provide a
gauge at a national government scale of how close countries are to established
environmental policy goals
Last 20 country
First 20 country
Environmental Performance Index (EPI) 2012, selected countries
Source: Yale/CIESIN, 2013, 2012 Environmental Performance Index