world in numbers

8/8/2019 World in Numbers

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HAND BOOK

TheWorldIn


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CONTENTS

Agriculture 4

Banking And Markets 8

Business Environment12

Economy 16

Human Development 28

Industry And R&D 46

Environment 50

Population And Employment 54

Power, Transport And Communication 60

Quality Of Life 66

Resources 72

Trade And Investment 76

CONTENTS

Project EditorDesign

GraphicsCover Design

Thomas P AbrahamManish MarwahPinaki PaulArindam


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THE GLOBAL economy is chang-ingas never beore. And the

chie harbinger o this changehas been the advent o glo-

balisation. It has unleashed a wave oprosperity in countries, which a decadeago, stood at the pithead o economic

despondency and national despair.And the greatest beneiciary o this

wave o prosperity has been the devel-oping countries, including India, China

and Brazil.

Data rom the study shows that the

march o developing countries to-wards attaining the tag o developed

countries is marked by certain defningdevelopments. These include a shit in

employment patterns in developingeconomiesrom the agriculturalsector to manuacturing and services;

and cost competitiveness (o develop-ing countries vis--vis the developed

ones). However, compared to devel-oped countries, developing countries

continue to suer rom low (abysmal,

in some instances) penetration o tele-

2

OUTLOOK BUSINESS & WFOREWORD

com, inormation technology, automo-biles, banking credit and medical acili-

ties, despite great strides being madein these ields by some. The study

shows that people living in developedcountries enjoy 100% or near-100% ac-cess to amenities such as piped water

and toilet acilities, both in the rural aswell as urban areasa ar cry rom the

prevailing conditions in a majority odeveloping countries.

This handbook is a joint eort byOutlook Business and the World Bank

to bring to our reading and relevant ac

concise and reader-o the scores o cou

the World Bank repthe spotlight on keand quality o lie nu

countries including(Figures in italics ind

pertain to the next

product, we believe

thing o interest to o

walks o lie .


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OUTLOOK BUSINESS & W

WITH ECONOMIC growth,

the share o agriculture inthe global economy has

declined. Even so, agricul-

ture remains important in many de-

veloping economies and the source o

income or many poor people around

the world. On average, agriculture con-tributes more than 20% to value added

in the low-income economies.

Globally, about 40% o the active

labour orce is employed in the agri-

cultural sector, but in the Sub-Saha-

ran Arica, Asia and the Pacifc, about60% o the population is dependent

on it. Compare that with 18% in Latin

America, and our percent in the high-

income economies.

Agriculture is asso

wealth, particularlyeconomies. A recen

estimates that routhe natural wealth in

tries is embodied inpasturelands o the

Bank 2006).

Agricultures chan

scored by the rapidtion. The United Natin 2007, or the frst

o the global populsiding in urban are

Population Division 2

tion Prospects, 2004

expected to continu

Urban populatio

grow at 1.8% a yeamost twice as ast as

tion. Productivity mso that the shrinkin

can provide more ucts or a rising urba

higher incomes.In recent years, th

mand or ood haveer productivity throtensifcation, techn

mechanisation and However, continu

degradation o natconstitute the ag

main inputswate

slow the growth o t

The Changing Face Of Global Agriculture

GREEN REVOLUTION: Output must rise to beable to feed a growing urban population

AGRICULTURE

AP

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AGRICULTURE OUTLOOK BUSINESS & W

Feeding The World Better

One o the biggest changes that have come about in the agricultural sector across the world is the rising

yield o cereals per hectare over the years. While in developing countries like India, this rise has been

steady, it has been nothing short o spectacular in the developed countries. This is the efect o wide-

spread use o ertilisers and high-yielding crop varieties developed through exhaustive R&D.

Agriculture Comes Of Age

Over the last decade, agricultural land as a percentage o total land area has e

stagnant. Also, over this period, employment in agriculture as a percentage o tota

Yet, global agricultural productivity has risen by leaps and bounds. This is clearly

age o ertilisers and the mechanisation o agriculture. The percentage o land be

however, has remained largely unchanged.

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FINANCIAL SECTOR develop-

ments have a positive impact oneconomic growth and poverty.

The size o the sector determinesthe amount o resources mobilised or

investment. Access to fnance can ex-pand opportunities or all, with higher

levels o access and use o banking ser-

vices associated with lower fnancingobstacles or people and businesses. A

stable fnancial system that promotes

e cient savings and investment is alsocrucial or a thriving democracy and

market economy. The banking system

is the largest sector in the fnancial sys-tem in most countries.

The development o credit marketsdepend on access to timely, reliable

and accurate data on borrowers credithistories. One way to improve access to

credit is to increase inormation aboutpotential borrowers credit-worthiness

and make it easy to create and enorcecollateral agreements.

The size and mobility o international

capital ows have made it importantto monitor the strength o inancial

systems. Robust fnancial systems helpincrease economic activity and welare,

but instability in the fnancial system

can disrupt inancial activity and im-

pose huge costs on the economy.

The stock market indicators includemeasures o size (market capitalisa-

tion, number o listed domestic com-panies) and liquidity (value traded as

a percentage o the gross domesticproduct, value o shares traded as a

percentage o market capitalisation).

The comparability o such indicators

between countries may be limited byconceptual and statistical weaknesses.

The percentage change in stock marketprices in US dollars, rom the Standard

& Poors Emerging Markets Data Base(S&P/EMDB) indices, is an important

measure o overall perormance. Regu-

latory and institutio

aect investor conftry and exit restrict

o a securities and esion, and the qual

tect investors, mayunctioning o stock

however, not includ

Robust Financial Sector Driv e Economic Activity

VITAL PARAMETER

credit histories is keKEDARBHAT

BANKING & MARKETS

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Development Matters

There is a direct correlation between economic development and banking credit coverage. The rate in

developed economies is higher than that o the others. Also, banks in developed economies have lesser

non-perorming loans than their counterparts in other economies.

Private Afair

During the period 2000-06, the market capitalisation o countries as a percentage

product (GDP) has shot up signifcantly. This is an indication o the increasing le

liberalisation sweeping across the globe. But interestingly, the number o listed co

as signifcantly. This probably is the result o the high levels o mergers and acqui

BANKING & MARKETS

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AVIBRANT PRIVATE sector iscentral to promoting growth

and expanding opportunitiesor poor people. But encour-

aging frms to invest, improve produc-tivity and create jobs requires a legal

and regulatory environment that os-

ters access to credit, protects property

rights, and supports e cient judicial,taxation, and customs systems.

When entrepreneurs start a business,the frst obstacles they ace are the ad-

ministrative and legal procedures re-quired to register the new frm. Coun-

tries dier widely in how they regulate

the entry o new businesses. In some

countries the process is straightor-ward and aordable. But in others the

procedures are so burdensome thatentrepreneurs may opt to run their

business inormally.Property registries were irst devel-

oped to help raise tax revenue, but

they have benefted entrepreneurs as

well. Securing rights

ings, a major sourcecountries, strengthe

vest and acilitates trprocedures to regist

sociated with less peproperty rights, mo

more corruption.

Lack o access to biggest barriers ent

starting and operatiThere are many t

censes required, anbalance between

business and consu

continuous reorm.Since constructio

in most economie

required or a contrcritical to enable bu

with new borrowWithout good cont

trade and credit wismall community o

developed relationpeated dealings or

assets they hold. The institution t

tracts between deb

and suppliers andcourt. And the ei

enorcement is reetors: the number o

to resolve a disput

takes to enorce a co

Laying TheGroundworkFor Growth

VIVAN MEHRA

BUSINESS ENVIRONMENT

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DOING BUSINESS INDICATORS

Testing Patience

It could be a big challenge for businesses from the developed world to set up

countries. This is borne out by the numbers in this chart, which clearly indicate t

business to closing it down, time taken and procedures involved are far greater in

mies. Clearly, this is another issue the economies need to address.

BRIGHT PROSPECT:Doing business in developedcountries is far easier than in developing ones

OUTLOOK BUSINESS & WBUSINESS ENVIRONMENT

AP


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ECONOMY OUTLOOK BUSINESS & W

Further integration into world mar-

kets, better unctioning internal mar-kets, and rising demand or manycommodities all contributed to theacceleration o growth in developingcountries. Past periods o growth wereoten interrupted by inancial or bal-ance o payments crises. But recovery

rom such crises ha

and durable. Deveare running lower defcits, accumulatiand adopting more and inancial policmake economies shocks and less volaconidence o inveeconomies are expethan high-income eprise is that they odecade brought a The average growtdle-income economo high-income eco

The high growth developing world w

panding trade and aclimate. The very rapo large countries sIndia also beneiteprimary commoditiminerals, and agricu

Macroeconomic stSince the high ina

crises o the 1970siscal, monetary, apolicies have broudown in most deve

Trade surpluses aers remittances hadeveloping countrlarge holdings o rthe past fve years.

DEVELOPING ECONOMIES

grew aster over the last de-cade (19952005) than in thetwo previous decades and

aster than high-income countries.World output in 2005 amounted toabout $61 trillion, measured in pur-chasing power parities. This was a 45%

increase over 1995, when the world

output was $42.3 trillion. The share odeveloping economies in global out-put rose rom 39% to 46%. Developingeconomies in the East Asia and the Pa-cifc regions grew the most, doublingtheir output and increasing their shareo global output rom 13% to 19%.

Emergence OfA New Order

BRISK PACE: Developing economies

are charting a fast growth path

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AP


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Growing Muscle

During 1995-2005, despite expanding trade and commerce, revenue as a percentage o gross domestic

product (GDP) has remained more or less constant in many developed economies. Interestingly, while it

remained nearly constant in India, in China it nearly doubled. Expense as a percentage o GDP, however, has

risen in most cases. In the case o debt and interest payments, while the amounts have allen signifcantly

in developed countries, it has allen quite sharply in the case o some developing countries such as India.

Thats The Way To Live

Compared to developing countries, developed countries have, generally, succeede

in their consumer price index low, allowing their populations to indulge in more

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Trade Patterns

During 1990-2000 and 2000-2005, percentage growth o gross capital ormation showed a mixed trend

or the developed and developing economiesrising and alling across countries with no tangible pat-

tern. However, in the case o exports and imports, there is a clear pattern visiblethat o alling exports

and rising imports in the developed economies. For the developing economies, it is again a mixed bag.

Services Take Centrestage

Rising economic prosperity in developing economies is marked by rising contribu

to average annual growth. This corresponds with a drop in average annual grow

economies. While average industrial growth picked up steam in India and Russia,

erably in high-cost economies such as the US and UK.

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Infrastructure All The Way

Investment in inrastructure projects with private participation has risen by leaps and bounds in the de-

veloping countries over the period 1995-00 to 2000-05. This has ostered greater development in these

countries. While underlining the act that inrastructure is key to economic development, it also shows that

ultimately private participation is important or the development o inrastructure. And o course, domestic

credit plays a major part in this und-ow to the inrastructure sector.

Flavour Of The Season

Emerging markets (developing countries) were the toast o the world during 2005

age percentage growth in gross domestic product (GDP) zoomed to double-dig

years. India and Russia ollow closely.

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REUTERS


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Too Many Mouths To Feed

Though India ranks No 10 on the gross national income parameter, it stands a poor 158 on the gross na-

tional income per capita, thanks to its huge population, which dilutes the benefts o economic growth.

Saving For A Rainy Day

During the years 1990 to 2005, compared to developed countries, gross savings i

in the developing countries on the back o lower expenditure on household cons

such as India managed to keep government consumption in control, the rising res

to productive usedirected towards gross capital ormation.

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Taxing Times

In the developing countries, tax revenue collections by the government, as a perc

product, has generally risen. However, the time required to prepare, fle and pay

countries remain signifcantly higher than in the developed ones. Interestingly, s

ginal tax rates are seen in the developed countries.

SMOOTH RIDE:Tax revenues must drive thecreation of modern infrastructure facilities

OUTLOOK BUSINESS & WECONOMY

SHOMEBASU


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ADVANCES IN technology andknowledge o health and hy-

giene have transormed lieover the past 50 years. In 1960

more than 20% o children in devel-oping countries died beore reaching

their ith birthday; by 2005 this had

allen to just over 8%. The declines are

large, even or the poorest countries.But this reassuring picture, painted by

rising global averages, obscures sub-stantial disparities among the worlds

regions and among the poor withincountries. For millions o people health

services and modern medicines are still

out o reach, and many die prematurely

rom diseases that are easily preventedor cured. More than 25 years ater the

Health or All declaration, improvingthe health o the poorest in developing

countries remains a challenge.What can improve all this? There is

no consensus on which determinants

are most important across countries.

But there is agreem

reduce extreme incmajor risk or poor

ture death. The Wosation (WHO) conc

poverty-oriented hquires complement

sectors (WHO 2003)

proving access to eing the position o

marginalised groupment policies in ag

development, andand participatory go

Priorities in health

ocus on health prothat aect the poo

quire directing pro

ward the poor and and availability o he

cially where they areDiferences in the

poor countries remsome case are incr

mortality ell by ovcome countries rom

only 20% in developreventable diseasea toll on the world

But more importanin proportion are t

ive mortality is ivmiddle-income cou

income countries a

in lower-income cou

Healthcare WoesRemain A Concern

EXPENSIVE: Quality healthcare

remains out of reach for millionsin lower-income countries

HUMAN DEVELOPMENT

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PRIYAM DHAR


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Pension Woes

In the developed economies, the percentage o labour orce contributing to pension und, is very high

running into the 90s in the US, UK and France. The system in these countries ensures that maximum num-

ber o employees are brought under the pension net, enabling them to enjoy pension benefts during their

retired lie. Compared to this, in the developing economies, the percentage o labour orce contributing to

the pension und is low, indicating a system unable to bring most o the labour orce under the pension

net. Also, public expenditure on pensions in developed economies is higher than in the developing ones.

Literally Growing

In the developed countries, rom 1991 to 2005, the percentage o people complet

tion has risen to the highest levels. Within this segment, males and emales con

age, indicating equal status to both the sexes. As or literacy rates or youth wit

to 24, while the percentage in the developed countries hovers around 100%, t

developing economies too. However, in the developing economies, youth (age g

rates are higher among male youth than emale youth. This is especially true in

despite a rise in emale literacy ratios, the actual fgure remains quite low. Also, a

very high in the developed economies compared to the developing countries.

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HUMAN DEVELOPMENT


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Mass Education

In developing countries, public expenditure per student in the primary stage is ar lesser than in developed

countries. Also, public expenditure on education, as a percentage o the gross domestic product, in devel-

oping countries is lesser than in the developed ones. The number o pupils per teacher, too, is ar higher in

the developing countries compared to the developed ones.

Hardly Healthy

Expenditure on health, as a percentage o gross domestic product, is signifcantly

countries than in the developed ones. Even the per capita expenditure on healthc

oping countries than in the developed countries. Worse, the out-o-pocket compo

is ar higher in the case o developing countries than in the developed ones.

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HUMAN DEVELOPMENT


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Rising Expectations

Developed economies boast o a higher lie expectancy at birth compared to deve

vital indicator o good living conditions enjoyed by people living in developed eco

o emales is much higher across the board except in India where it is higher only m

more women representatives in the seats o power o developed economies com

economies. However, it is worth noting that during the period 1990 to 2005, th

representatives in developing countries rose, albeit at a lower rate than that in the

LIFES A LAUGH:Better healthcare facility isincreasing the life expectancy of global populations

OUTLOOK BUSINESS & WHUMAN DEVELOPMENT

AP


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INDUSTRY AND R&D OUTLOOK BUSINESS & W

Investing In Tomorrow

For India, which spends a paltry 0.85% o its gross domestic product on research and development, hightechnology exports constitute a respectable fve percent. The number o patent applications fled by India

too is a healthy 10,671 compared with 10,905 by Germany and 11,138 by the UK.

Towards Higher Value Add

One o the hallmarks o economic growth is the higher levels o value addition masector. Comparative fgures or 1990 and 2003 indicate a signifcant rise in the

value added, both in the developed and the developing economies. Among t

while India witnessed a strong 74% rise in manuacturing value addition, it jump

China (though Chinas fgures during 1990 to 1993 are not strictly comparable w

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used or comparison purposes here

may not refect the quality o water inspecic locations.

Unlike estimates rom earlier stud-ies based on engineering or economic

models, these estimates are basedon actual measurements o plant-

level water pollutio

organic water poorganic waste, mea

biochemical oxygebecause the data o

the most plentiul able or cross-coun

emissions. BOD mea

o an organic wasteoxygen consumed i

A sewage overloadexhausts the water

content. Wastewacontrast, reduces BO

Indoor and outd

place a major burdeMore than hal o t

tion rely on dung, w

coal to meet their bCooking and heati

uels on open ireschimneys leads to in

Every year indoor sponsible or the de

peopleone deathIn many urban are

pollution is the ma

threat to human hexposure to soot a

in the air contributeo health eects, in

diseases, lung canease. Particulate po

or in combination

ide, leads to the bur

No SolutionIn Sight ToPollution Woes

E

MISSIONS OF organic pollutants

rom industrial activities are amajor cause o degradation o

water quality. Water quality andpollution levels are generally measured

in terms o concentration or loadtherate o occurrence o a substance in an

aqueous solution. Polluting substances

include organic matter, metals, miner-als, sediment, bacteria, and toxic chem-

icals. We ocus on organic water pollu-tion resulting rom industrial activities.

Because water pollution is sensitive tolocal conditions, the national-level data

BREATHTAKING: Carbon emissions

threaten to kill the worlds tomorrow

ENVIRONMENT

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AP


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Gas For Your Lungs

The world is becoming a more polluted place to live in. In 2003, while the US, one of the most developedcountries, topped the charts of polluting countriestotal carbon dioxide emission by the US was higher

than the combined lot of Brazil, France, Germany, India, Italy, Republic of Korea, Mexico, Thailand, South

Africa and UKChina, a developing country, is fast catching up with the worlds top polluters.

Water, Water Everywhere

For rural and urban populations in developed economies such as the US, UK, Au

and Japan, access to improved water sources stands at an enviable 100%, far ab

China, South Africa and the Republic of South Korea. This, despite no dearth of r

water resources for any of these countries.

ENVIRONMENT

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POPULATION AND EMPLOYMENT OUTLOOK BUSINESS & W

POPULATION ESTIMATES are usu-ally based on national popula-

tion censuses, but the requencyand quality vary by country.

Most countries conduct a complete

enumeration no more than once a de-cade. Estimates or the years beore and

ater the censuses are interpolations or

extrapolations based on demographicmodels. Errors and undercounting oc-

cur even in high-income countries; indeveloping countries such errors may

be substantial because o limits in thetransport, communications, and other

resources required to conduct andanalyse a ull census.

The quality and reliability o of cial

demographic data are also aected bythe public trust in the government, the

governments commitment to ull andaccurate enumeration, the coniden-

tiality and protection against misuseaccorded to census data, and the in-

dependence o census agencies rom

undue political inluence. Moreover,

the international co

ulation indicators iences in the concep

collection procedurmethods used by n

agencies and othercollect population d

Unemployment

ment in an economest indicators o ec

reected by the labunemployment is u

time some workerunemployedbet

ployers look or the

workers search Changes in un

time may rele

demand or anbut they may a

in reporting practiunemployment ra

guise substantial powhile high unemp

occur in countries weconomic developm

dence o poverty. In

unemployment orpeople eke out a liv

sector. In countrieoped saety nets, w

to wait or suitableBut high and sustain

indicates serious in

allocation o resourc

DynamicsOf RisingNumbers

COUNTLESS:Toomany mouths to eeddilute the benefts o

economic growth

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FOTOCORP


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..

38.7

17.2

62

64

5.7

56

73

43

22.6

..

..

17

73

71

2003

1997

1996

2003

2003

2003

2003

2003

2003

2004

2003

2003

52.4

..

..

65

71.8

..

88.8

59.1

43.3

45.1

..

..

..

47.6

51

2002

2002

2002

2002

2002

2002

2002

2002

2002

Nothing Informal About It

Figures for the urban informal sector employment are interestingclearly indicating the absence of thiscategory in the developed economies. However, India thrives on inputs by this category. Also, youth em-

ployment as a percentage of labour force is higher in developed economies than in the developing ones.

A Hard Days Work

As economies move up the development ladder, the participation of labour forceincrease. This is clearly evident from the charts that show the rising percentage of

the labour force over the years 1990 to 2005. However, the rise in percentage of fe

labour bandwagon in the developing economies is lesser than in the developed e

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Labour Pains

While in the US and UK, the percentage of unemployed males and female has fallen, in the other coun-triesdeveloped and developingthe trend is pretty mixed. However, as a percentage of the total

unemployed labour force, the segment least vulnerable to unemploymentin both the developed and

developing economies is the one that has completed the tertiary level of education.

Moving Home To Town

From 1990 to 2005, populations in cities with over one million people have increthe rise in urban population has been higher in developing countries than in the de

of people moving away from jobs in the agriculture sector to those in manufact

ever, growth in access to sanitation facilities has not kept pace for those living in d

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POWER, TRANSPORT AND COMMUNICATION OUTLOOK BUSINESS & W

U

SE OF energy is important

in improving peoples stan-dard o living. But electricity

generation also can damagethe environment. Whether such dam-

age occurs depends largely on howelectricity is generated. For example,

burning coal releases twice as much

carbon dioxidea major contributor

to global warmingas does burning

an equivalent amount o natural gas.Nuclear energy does not generate car-

bon dioxide emissions, but it producesother dangerous waste products.

The quality o an economys inra-structure, including power and com-

munications, is an important element in

investment decisions or both domes-

tic and oreign investors. Government

eort alone is not enough to meetthe need or investments in modern

inrastructure; public-private partner-ships, especially those involving local

providers and fnanciers, are critical orlowering costs and delivering value or

money. In telecommunications, com-

petition in the marketplace, along with

sound regulation, is

improving the qualservices around the

Over the past decand technology, alo

tion and liberalisathave spurred dram

telecommunicatio

countries. With the ro mobile telephony

pansion o the Inteand communicatio

increasingly being retial tools o develop

to global integratio

public sector eectand transparency.

Globally, there ha

provements in accenications, driven ma

o mobile telephonymobiles outpaced t

line telephones in tries, and rural area

with urban areas.Transport inrastr

railways, ports and w

ports and air tra cand the services th

crucial to the activiproducers and gov

perormance indiccantly by transport

highly specialised a

fed indicators are re

Economic Growth And The U se Of PowerSPEED OF LIGHT:Better accessto power and telecom arecrucial for economic growth

AP


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Empowering Populations

Transmission and distribution (T&D) losses are lesser in the developed countries than in the developingones. Also, the ormer boasts o a higher percentage o population covered by mobile phones.

Electric Rise

The increase in production o electricity in China during 1990 to 2004 is indeed 621.2 billion kilowatt hours to 2,199.6 billion kilowatt hours. The call or clean

resulted in increasing use o gas as a source o electric power. Nuclear power too

signifcant extent by the developed countrieschiey Francewhich meets

total electricity requirements rom nuclear power.

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The Road To Prosperity

While many developed countries such as France, Germany and the UK have near-100% paved roadsinterestingly US and Japan have only 64.5% and 77.7% o their roads paveddeveloping countries lag However, at 6.43 million km, the US has the largest road network in the world. Signifcantly, it is ollowed closely by India with 3.38 million km. China, Brazil and Japan ollow. As per fgures available, the US l

passengers carried by roads ollowed by Germany and Japan. China, however, is ar ahead o other countr ies in the qu antum o port container tra c logged. In railways, the US has the largest rail line network in t

the largest number o people through rail lines. US is the leader in the air tra c segment too, with the largest number o carriers, passengers carried and air reight hauled.

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QUALITY OF LIFE OUTLOOK BUSINESS & W

INEQUALITY IN the distribution oincome is relected in the percent-

age shares o income or consumptionaccruing to portions o the popula-

tion ranked by income or consump-tion levels. The portions ranked low-

est by way o personal income receive

the smallest shares o total income. In

this regard, the Gini index provides aconvenient summary measure o the

degree o inequality.Data on the distribution o income or

consumption come rom nationally rep-resentative household surveys. Where

the original data rom the household

survey were available, these have been

used to directly calculate the income orconsumption shares by quintile. Other-

wise, shares have been estimated romthe best available grouped data.

The ratio o gross domestic product(GDP) to energy use provides a mea-

sure o energy eiciency. To produce

comparable and consistent estimates

o real GDP across c

physical inputs to Go energy useGD

2,000 constant intering the purchasing

rates. Dierences iperiod o time and

relect in part the s

in the economy, chaef ciency o particu

erences in uel mixBecause commerc

traded, it is necessbetween its produ

Net energy import

to which an econoits domestic produc

countries are net

while middle-incombeen their main sup

Among the chanmodern day are t

ormation revolutchanged the way

communicates, coand treats illnesses

tion and commun

gies oer vast oppopopulations or pro

o lie across variouprovide opportun

growth, improved service delivery, lea

tance education as

cultural advances.

EnergyThe New Growth Paradigm

CONSUMPTION: Economic growthkindles the desire to live the good life

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SHOMEBASU


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Equal Status

The Gini Index, which measures economic equality, throws up some interesting acts. Among the countrieseatured here, South Arica has the highest Gini Index, indicating high level o economic inequality, while

Japan, which has the lowest Gini Index, has the highest level o economic equality. Generally, the levels o

income inequality are highest among the developing countries, indicating low penetration o economic

growth to the general population o these countries.

High Octave

The ratio o GDP to energy use provides a measure o energy ef ciency. To producreal GDP across countries relative to physical inputs to GDP, that is, units o energ

to 2000 constant dollars using purchasing power parity (PPP). It is good to see t

risen in most countries during the period under consideration (1990 to 2004).

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Still A Far Cry

Despite the economic development that is sweeping India, the percentage o households with TV sets is apaltry 32%. This indicates that the country has miles to go beore development reaches the hinterlands.

Highway To Glory

Far ewer people living in developing economies are able to enjoy the comorts than those in developed countriesmore so, passenger cars. However, there has

ment in the numbers over the years 1990 to 2004. Yet, the developed economies

the particulate matter concentrations over these years.

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RESOURCES


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were designed or the collection o tax

revenue. Because taxes on land are nolonger a major source o government

revenue, the quality and coverage oland use data (except or cropland)

have declined. Data on orest area maybe unreliable because o diferences in

denitions and irregular surveys.

Population estimates are usuallybased on national population cen-

suses, but the requency and qualityvary by country. Most countries con-

duct a complete enumeration no morethan once a decade. The quality and

reliability o o cial demographic data

are also aected b

in the government,commitment to

enumeration, the cprotection against m

census data, and thcensus agencies ro

inuence. Moreove

comparability o ptors is limited by

concepts, deinitioprocedures, and es

used by national sand other organisa

population data.

T

HREE BILLION people, includ-

ing 70% o the worlds poorpeople, live in rural areas.

Thereore, adequate indicatorsto monitor progress in rural areas are

essential. However, indicators o ruraldevelopment are sparse, as ew indica-

tors are disaggregated between rural

and urban areas. Rural population isapproximated as the mid-year non-

urban population. It is the dierencebetween total and urban population,

which is calculated on the basis o theurban share reported by the United

Nations Population Division. However,

there is no universal standard or distin-guishing urban rom rural areas.

Land use patterns are changing.

Countries use dierent deinitionso rural and urban population and

land use. The Food and AgricultureOrganisation, occasionally adjusts its

denitions o land use categories andsometimes revises earlier data. Because

the data relect changes in reporting

procedures as well as actual changesin land use, apparent trends should be

interpreted with caution.Satellite images show land use that

difer rom that given by ground-basedmeasures in both area under cultiva-

tion and type o land use. Moreover,

land use data in countries such as Indiaare based on reporting systems that

Great Urban-RuralDivide Shows


BRIDGING GAPS:Data on land use and

population spread are essential

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Galloping Numbers

Developing countries account or a major share o the worlds rising population. By 2015, while developingcountries will continue to add to population at a positive rate o growth, many developed countries will

see negative growth in population. And while many developing countries will beneft rom the addition to

their 15 to 64 years population, many developed countries will see rise in the 65+ age group population.

Home, Sweet Home

India is one o the ew countries where the rural population climbed during 1990triesboth developed and developingit ell. This is a sign o the population m

Also, during the period 1990 to 2005, many developed and developing countr

their orest coveran important step in the fght to prevent rising global warmi

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TRADE AND INVESTMENT


35/37


T

HE GROWING integration o

societies and economies hashelped reduce poverty in many

countries. One indication o in-creasing global economic integration

is the growing importance o trade inworld economy. Another is the rising

size and importance o private capi-

tal fows to developing countries thathave liberalised their nancial markets.

The numerators on trade and pri-vate capital fows are based on gross

fows that capture the two-way fow ogoods, services and capital. In conven-

tional balance o payments account-

ing, exports are recorded as a creditand imports as a debit. And in nancial

accounts, inward investment is a credit

and outward investment a debit. Thus,net fows, the sum o credits and deb-

its, represent a balance in which manytransactions are canceled out. Gross

fows are a better measure o integra-tion as they show the total value o -

nancial transactions during a period.Merchandise trade is an important

part o global trade. Trade in services

is an important element o global in-tegration. The dierence between

the growth o real trade in goods andservices and the growth o GDP helps

identiy economies that have integrat-ed with the global economy by liberal-

ising trade, lowering barriers to oreign

investment and harnessing their labor

to gain an advantage in labor-intensivemanuactures and services.

Foreign direct investment (FDI) maybe understated in many developing

countries. Some countries ail to report

reinvested earnings and the denition

o long-term loans diers among coun-tries. Under-reporting o FDI outfows

is more pervasive, particularly wheninvestors are attempting to avoid con-

trols on capital and oreign exchange

or high taxes on investment income.

Some countries dooutfows in their ba

statistics. However, terage o the data a

result o eorts by

national statistics ag

Global VillageADream Not TooDistant

STACKED UP:R

has helped redu


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AP



36/37

TRADE AND INVESTMENT OUTLOOK BUSINESS & W

Till Debt Do Us Apart

Among the countries or which data is availableincidentally all developing countriestotal externaldebt has tended to rise. (Comparative fgures or Russia and South Arica are however, not readily avail-

able.) Within this space, the rise in private non-guaranteed external debt, wherever available, has been the

sharpest. This is ollowed by long-term debt. However, it is interesting to note that the rise in public and

publicly guaranteed debt, which generally comes with many strings attached, has been the least during

this period (1990-2005).

Spend On A Good Life

The average rise in household consumption in many developing countries underscmade during 1990-2005. But the phenomenon was absent in many developed cou

ernment consumption ell in many developing countriesnations not known or



37/37

Exports Carry The Day

Within the scenario o rising global merchandise trade during 1990 to 2005, developing countries such asIndia and China witnessed sharp rise in merchandise exports. Though merchandise exports rom devel-

oped countries too moved northwards, the rate o growth was lesser than that in developing countries.

While export o agricultural raw materials rom India ell, export o ores and metals registered a rise.


80

world in numbers

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