LIVING STANDARDS
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The standard of living is a measure of the material welfare of the citizens of a country. The measure of standards of living is real national output per head of population or real GDP per capita. This is the value of national output divided by the resident population. I am going to compare ten different countries based on eight data. They are: National Income Indicators, Income distribution, Population, Health Indicators, Energy and Environment, Education, Communication and Distribution of GDP by sector and by demand. In Ethiopia, Ghana, Indonesia, Pakistan, Colombia, Russian Federation, Czech Republic, New Zealand, UK and USA.
From the information provided in first data (National Income Indicators) we can say that the highest gross national income is in USA, UK and Russian Federation and the lowest in Ethiopia, Ghana and Colombia. Comparing the gross national income in Russia and New Zealand, we can say that in Russia it is much bigger, however the gross national income per capita in New Zealand is higher, therefore the purchasing power parity is bigger. It may be explained by size of population. In Russia it is much bigger than in New Zealand. The highest PPP estimate is in USA and the lowest is in Ethiopia.
Using the Income distribution data we can mention that maximum income distribution within people with lowest percentage of income falls on Czech Republic, when highest income distribution within the population with high income is in Colombia. However it is has very low percentage among people with low income.
The next table is about Population in these countries. The percentage of population growth in Russia and Czech Republic has declined to -0.3 and -0.1. It tells us that these two countries has high death rate. Therefore it exceeds the birth rate. It causes low percentage of population aged (0-14) comparing with Ethiopia, Pakistan and Ghana. And bigger part of population with age 65+. Also Ethiopia, Pakistan and Ghana has particularly high average annual % growth, thus the population aged 0-14 is much bigger than people aged 65+.
When I’ve seen the Health indicators data, I was terrified by the percentage of population who has the access to safe water in Ethiopia. Only 22% of all inhabitants can use safe water. We can see that the under-five mortality rate in Ethiopia and Ghana is extremely high. It may be consequence of low percentage of residence who has an access to safe water and sanitation facilities. Also the highest life expectancy is in New Zealand, USA and UK. And 100% of population has an access to safe water and sanitation facilities. It obviously tells us about standards of living in these countries, because a health indicator is very important factor of measuring standards of living.
Referring to next table about Energy and the environment we can see that Ethiopia, Ghana, Pakistan has very low energy use per capita, therefore carbon dioxide emission are particularly low too. However countries such USA, UK, New Zealand, Czech Republic and Russian Federation has high energy use per capita. It may be because of developed infrastructure.
Next table is Education. Education and Health are very important indicators of living standards. As presumed we can see that percentage of inhabitants with high education is much bigger in USA, UK, New Zealand, Czech Republic, and Russian Federation comparing with Ethiopia, Ghana, Indonesia and Pakistan. Percentage of children in the labour force in less developed countries which I mentioned before is bigger.
Next data is Communication. Also communication is significant factor of measuring the living standards. This table includes information about percentage of paved roads; telephone mainlines per 100 people, mobile users, televisions, personal computers and internet users. Ethiopia has very low showings comparing to developed countries.
Distribution of GDP by sector and by demand. The lowest distribution of GDP into agriculture is in UK. And the highest in Ethiopia, when the adverse information we can see in distribution in industry.
The National Income Statistics is not ideal way to compare the living standards between countries. There are some limitations such as:
-Errors in Measurement: Black Market and underground activities are not included when calculating GDP. This is because there is no way to accurately measure black market activity. In the United States, this is a relatively small percentage of the total GDP; however, in many other less developed countries, it can go as high as 70% of the country's total GDP.
-Subcategories that are Misrepresented: The various interpretations of what should be included in consumption or government spending plays a big part in the overall determination of GDP.
-Welfare is NOT Measured: GDP only measures the market activity and does not take welfare into account. The economic activity of a country could rise, while welfare could possibly have fallen. Different situations may occur that have a negative impact on the people which cause them to increase spending, therefore increasing the GDP.
-Imbalances between consumption and investment
-Innovation and the development of new products
From the information provided in first data (National Income Indicators) we can say that the highest gross national income is in USA, UK and Russian Federation and the lowest in Ethiopia, Ghana and Colombia. Comparing the gross national income in Russia and New Zealand, we can say that in Russia it is much bigger, however the gross national income per capita in New Zealand is higher, therefore the purchasing power parity is bigger. It may be explained by size of population. In Russia it is much bigger than in New Zealand. The highest PPP estimate is in USA and the lowest is in Ethiopia.
Using the Income distribution data we can mention that maximum income distribution within people with lowest percentage of income falls on Czech Republic, when highest income distribution within the population with high income is in Colombia. However it is has very low percentage among people with low income.
The next table is about Population in these countries. The percentage of population growth in Russia and Czech Republic has declined to -0.3 and -0.1. It tells us that these two countries has high death rate. Therefore it exceeds the birth rate. It causes low percentage of population aged (0-14) comparing with Ethiopia, Pakistan and Ghana. And bigger part of population with age 65+. Also Ethiopia, Pakistan and Ghana has particularly high average annual % growth, thus the population aged 0-14 is much bigger than people aged 65+.
When I’ve seen the Health indicators data, I was terrified by the percentage of population who has the access to safe water in Ethiopia. Only 22% of all inhabitants can use safe water. We can see that the under-five mortality rate in Ethiopia and Ghana is extremely high. It may be consequence of low percentage of residence who has an access to safe water and sanitation facilities. Also the highest life expectancy is in New Zealand, USA and UK. And 100% of population has an access to safe water and sanitation facilities. It obviously tells us about standards of living in these countries, because a health indicator is very important factor of measuring standards of living.
Referring to next table about Energy and the environment we can see that Ethiopia, Ghana, Pakistan has very low energy use per capita, therefore carbon dioxide emission are particularly low too. However countries such USA, UK, New Zealand, Czech Republic and Russian Federation has high energy use per capita. It may be because of developed infrastructure.
Next table is Education. Education and Health are very important indicators of living standards. As presumed we can see that percentage of inhabitants with high education is much bigger in USA, UK, New Zealand, Czech Republic, and Russian Federation comparing with Ethiopia, Ghana, Indonesia and Pakistan. Percentage of children in the labour force in less developed countries which I mentioned before is bigger.
Next data is Communication. Also communication is significant factor of measuring the living standards. This table includes information about percentage of paved roads; telephone mainlines per 100 people, mobile users, televisions, personal computers and internet users. Ethiopia has very low showings comparing to developed countries.
Distribution of GDP by sector and by demand. The lowest distribution of GDP into agriculture is in UK. And the highest in Ethiopia, when the adverse information we can see in distribution in industry.
The National Income Statistics is not ideal way to compare the living standards between countries. There are some limitations such as:
-Errors in Measurement: Black Market and underground activities are not included when calculating GDP. This is because there is no way to accurately measure black market activity. In the United States, this is a relatively small percentage of the total GDP; however, in many other less developed countries, it can go as high as 70% of the country's total GDP.
-Subcategories that are Misrepresented: The various interpretations of what should be included in consumption or government spending plays a big part in the overall determination of GDP.
-Welfare is NOT Measured: GDP only measures the market activity and does not take welfare into account. The economic activity of a country could rise, while welfare could possibly have fallen. Different situations may occur that have a negative impact on the people which cause them to increase spending, therefore increasing the GDP.
-Imbalances between consumption and investment
-Innovation and the development of new products
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