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486   Key Indicators of Developing Asian and Pacific Countries




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                                                                                                      Appendix   487




TECHNICAL NOTES ON METHODS AND CONCEPTS

A set of brief notes on the basic concepts and methods underlying the indicators reported in this
volume are reproduced below. These notes, while not exhaustive, are designed to guide users.
Readers interested in obtaining further information and detail are encouraged to refer to both national
data sources and publications and to international guidelines and manuals that set out methods,
concepts and the classifications.
      The global statistical community has mandated various international organizations to develop
standards and methods covering fields for which these organizations have defined responsibilities.
These standards serve two broad purposes. They provide guidance to countries and additionally
contribute to data standardization to enhance international comparability of data. The international
agencies engaged in developing such standards conduct their work in close consultation with
national statistical authorities. Most draft standards are widely distributed before adoption by the
governing bodies of the agencies in question. The U.N. Statistical Commission, as the paramount
inter-governmental statistical body, reviews most major guidelines before their adoption.
      Illustrative of international cooperation in the development of new standards and guidelines,
was the joint work conducted by UN Statistical Office (UNSO), the World Bank (WB), the International
Monetary Fund (IMF), OECD and EUROSTAT in the 1980s in the context of the revision of the System
of National Accounts culminating in the adoption of the 1993 System of National Accounts (SNA)
by the UN Statistical Commission. The 1993 SNA represented a major effort to update, revise and
harmonize the national accounts with methods employed in the compilation of the balance of
payments, government finance statistics, and money and banking statistics. The IMF, which has a
mandate for these sub-systems, developed new standards. As an overall part of this effort, new or
revised classification schemes were also developed. The completion of the revised SNA was the
culmination of a decade long effort for the establishment a system of economic accounts. It has
emerged as an organizing framework for the compilation of economic statistics. The World Bank, the
IMF and OECD have similarly collaborated to develop common standards for the measurement of
external debt statistics.
      While the existence of international guidelines and methods has contributed substantially to
improving the international comparability of data, strict comparability remains elusive. Differences in
country circumstances, capabilities, and national data needs have continued to influence the extent
to which global standards are fully applied at the national levels. National deviations from such
standards are wide spread. Hence, full and strict comparability has yet to be achieved. Data users
are therefore urged to exercise due caution in making comparisons between countries based on
reported data. They are further urged to refer to accompanying technical notes incorporated in
national statistical publications in order to take account of divergences.
      The notes below are arranged in the same broad order as the listing of topics in the country
and comparative tables in the main part of this volume.


COUNTRY CLASSIFICATIONS

      The country classifications used in the analysis have been described in the analytical Chapter.
There are alternative classifications in use. These are described below for the benefit of readers
wishing to making comparisons with other ADB publications.
      ADB has, in the operational context, developed a country classification. The revised classification
system for ADB’s DMCs, incorporates two criteria, namely, per capita GNP and debt repayment
capacity. Borrowing DMCs are categorized into Groups A, B1, B2, and C. This classification system
determines the (i) degree of eligibility to borrow from Asian Development Fund; (ii) applicable ceiling
on ADB financing; and (iii) minimum share of government contribution to technical assistance costs.
488   Key Indicators of Developing Asian and Pacific Countries




                   The classification groups the 40 DMCs into four categories1 as follows:

                   •     Group A: Afghanistan, Bhutan, Cambodia, Kiribati, Kyrgyz Republic, Lao People’s Demo-
                         cratic Republic, Maldives, Mongolia, Myanmar, Nepal, Samoa, Solomon Islands, Tajikistan,
                         Tuvalu, and Vanuatu
                   •     Group B1: Bangladesh, Cook Islands, Marshall Islands, Federated States of Micronesia,
                         Pakistan, Sri Lanka, Tonga, and Viet Nam
                   •     Group B2: People’s Republic of China; India, Indonesia, Nauru and Papua New Guinea
                   •     Group C: Republic of the Fiji Islands, Kazakhstan, Malaysia, Philippines, Thailand, and
                         Uzbekistan

                  The ADB has also developed an alternative classification of countries for analytical purposes.
            The latter classification has underpinned the analysis of economic performance and prospects
            contained in the annual Asian Development Outlook (ADO). The classification groups the 40 DMCs
            into six groupings:

                   •     Newly Industrialized Economies
                   •     Central Asian Republics, Azerbaijan, and Mongolia
                   •     People’s Republic of China
                   •     Southeast Asia
                   •     South Asia
                   •     The Pacific

                   The operational guidelines emphasize country eligibility and access to ADB’s resources and do
            not fully reflect the multi-faceted diversity of the countries in question. Use of this classification limits
            the scope for analyzing development trends or the impact of the policies pursued by countries that
            are similar in size, share common attributes, and face similar development challenges. The second
            classification, used in the ADO, emphasizes geographic proximity and location. While this classification
            does introduce a degree of homogeneity, it is difficult to factor in the stage of development,
            measured in terms of per capita income levels or some other defining indicator.
                   In the analysis of key trends in the DMCs, the fact that other multinational financial institutions
            have adopted a variety of classification schemes in their analysis of development performance was
            explicitly taken into account. The analysis also took into account that in many instances a single
            institution has chosen different classifications to further their analysis. To the extent that size,
            geography, the economic system have influenced development outcomes and performance, countries
            need to be grouped in a manner that emphasizes these attributes to enrich the analysis.


            POPULATION

                  Total population of an economy includes all residents regardless of legal status or citizenship-
            except for refugees not permanently settled in the country of asylum, who are generally considered
            part of the population of their country of origin. The indicators shown are midyear estimates. These
            are based on censuses of population, updated to reflect births and deaths and net external migration.




            1
                In addition, criteria for graduation from regular Bank assistance have been established. Four members Republic of
                Korea; Hong Kong,China; Singapore; and Taipei,China have graduated from regular Bank assistance. Indonesia is
                on the watch list for graduation from ADF. For the Cook Islands, limited OCR eligibility will be applied only after the
                external debt position improves. The Republic of Korea has graduated from regular Bank assistance but is under
                emergency assistance until normalcy is restored.
                                                                                                       Appendix   489




LABOR FORCE

      Total labor force as defined by the ILO comprises people who are part of the economically
active population: all people who supply labor for the production of goods and services during a
specified period. It includes both the employed and the unemployed. While national practices vary
in the treatment of the armed forces and seasonal or part-time workers, in general the labor force
includes the employed, the unemployed, and first-time job-seekers, but excludes homemakers and
other unpaid workers in the informal sector.

        Employed and unemployed refers to data on employment and unemployment which are
drawn from labor force surveys, establishment censuses and surveys, and administrative records of
social insurance schemes. The concept of employment generally refers to people above a certain
age who worked, or who held a job, during a reference period. Employment data include both full-
time and part-time workers. There are, however, many differences in how countries define and
measure employment status. Where data are obtained from establishment surveys, they cover only
employees; thus the self-employed and family workers are excluded. In such cases the employment
share of the agricultural sector is underreported. Unemployment refers to the share of the labor
force without work but available for and seeking employment. Definitions of labor force and
unemployment differ by country. In most countries the unemployed with previous job experience are
classified according to their last job. But in some countries the unemployed and people seeking their
first job are not classified by economic activity. Because of these differences, the size and distribution
of employment by economic activity may not be fully comparable across countries (ILO, Yearbook of
Labor Statistics 1996, p. 64).
        The ISIC classification (Rev 2) forms the basis for employment by sector.


NATIONAL ACCOUNTS

       The current methodology for computation of the national accounts is contained in the international
standards embodied in the 1993 System of National Accounts(SNA). However, many countries have
yet to adopt this latest system and continue to compile their national accounts in accordance with
the methods contained in the 1968 version of the SNA. The transition economies, during the period
prior to the abandonment of central planning, compiled their national accounts in accordance with
the methods and concepts prescribed in the Material Product System (MPS). The MPS system
differed from the SNA in a number of ways, more particularly by excluding a large number of services
considered “non-productive”. The transition countries have in recent years endeavored to implement
the SNA.

       Gross domestic product (GDP) is the sum of the gross value added by all resident producers
in the economy plus any taxes and minus any subsidies not included in the value of the products.
It is calculated without making deductions for depreciation of fabricated assets or for depletion and
degradation of natural resources. Value added is the net output of an industry after adding up all
outputs and subtracting intermediate inputs. The industrial origin of value added is determined by
the International Standard Industrial Classification (ISIC) revision 3. Thus Agriculture corresponds
to ISIC divisions 1-5 and includes forestry and fishing, Industry comprises value added in mining,
manufacturing (also reported as a separate subgroup), construction, electricity, water, and gas (ISIC
divisions 10-45), Manufacturing refers to industries belonging to divisions 15-37, Services correspond
to ISIC divisions 50-99.

     Expenditure on GDP is made up of private (or household) consumption expenditure, general
government consumption expenditure, gross fixed capital formation (private and public investment),
changes in inventories, and net exports (exports minus imports) of goods and services. Such
expenditures are generally recorded in purchaser prices and so include net indirect taxes.
490   Key Indicators of Developing Asian and Pacific Countries




                  Private consumption is the market value of all goods and services, including durable products
            (such as cars, washing machines, and home computers), purchased or received as income in kind
            by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied
            dwellings. It also includes payments and fees to governments to obtain permits and licenses. The
            expenditures of nonprofit institutions are also recorded as the consumption of households. In
            practice, private consumption may include any statistical discrepancy in the use of resources relative
            to the supply of resources.

                  General government consumption includes all current outlays on purchases of goods and
            services (including wages and salaries). It also includes most expenditures on national defense and
            security, but excludes government military expenditures that are part of public investment.

                  Gross fixed capital formation covers outlays on additions to the fixed assets of the economy.
            Fixed assets include land improvements; plant, machinery, and equipment, and the construction of
            roads, railways, and the like, including commercial and industrial buildings, offices, schools, hospitals,
            and private residential dwellings. Net acquisitions of valuables are also considered capital formation.

                  Increase in stocks refers to goods held by firms to meet temporary or unexpected fluctuations
            in production or sales represent assets. Changes reflect investment/disinvestments.

                  Net exports and imports of goods and services represent the value of all goods and other
            market services provided to or received from the rest of the world. Included is the value of
            merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such
            as communication, construction, financial, information, business, personal, and government services.
            Labor and property income (formerly called factor services) is also included. Transfer payments are
            excluded from the calculation of GDP.

                Gross domestic savings are calculated as the difference between GDP and total consumption,
            made up of private household consumption and general government consumption.


            MONEY AND BANKING

                    Money and the financial accounts record the supply of money in a country’s financial system.
            There are several commonly used definitions of the money supply. The narrowest, M1, encompasses
            currency held by the public and demand deposits with banks. Money and quasi-money comprise
            the sum of currency outside banks, demand deposits other than those of the central government,
            and the time, savings, and foreign currency deposits of resident sectors other than the central
            government. M2 includes M1 plus time and savings deposits with banks that require a notice for
            withdrawal. The change in money supply is measured as the difference in end-of-year totals relative
            to the level of M2 in the preceding year. M3 includes M2 as well as various money market
            instruments, such as certificates of deposit issued by banks, bank deposits denominated in foreign
            currency, and deposits with financial institutions other than banks. However defined, money is a
            liability of the banking system, distinguished from other bank liabilities by the special role it plays as
            a medium of exchange, a unit of account, and a store of value.

                  Claims on governments and other public entities usually comprise direct credit for specific
            purposes such as financing the government budget deficit, loans to state enterprises, advances
            against future credit authorizations, and purchases of treasury bills and bonds, net of deposits by the
            public sector. Public sector deposits with the banking system also include sinking funds for the service
            of debt and temporary deposits of government revenues.
                                                                                                       Appendix   491




       Claims on private sector include gross credit from the financial system to individuals,
enterprises, non-financial public entities not included under net domestic credit, and financial
institutions not included elsewhere.


GOVERNMENT FINANCE

      Government expenditures include all non-repayable payments, whether current or capital,
requited or unrequited. Total central government expenditure as presented in the International
Monetary Fund’s (IMF) Government Finance Statistics Yearbook is a more limited measure of general
government consumption than that shown in the national accounts because it excludes consumption
expenditures by state and local governments. At the same time, the IMF’s concept of central
government expenditure is broader than the national accounts definition because it includes
government gross domestic investment and transfer payments.
      Expenditures can be measured either by function (education, health, defense) or by economic
type (wages and salaries, interest payments, purchases of goods and services). In the classification
of expenditures by economic type the distinction between current and capital expenditure can be
arbitrary, and subsidies to state-owned enterprises or banks may be disguised as capital financing.
Subsidies may also be hidden in special contractual pricing for goods and services.

      Total expenditure of the central government, which covers all agencies of the central
government including departmental enterprises and non-profit institutions, includes both current and
capital (development) expenditures and excludes lending minus repayments. Goods and services
include all government payments in exchange for goods and services, whether in the form of wages
and salaries to employees or other purchases of goods and services. Wages and salaries consist
of all payments in cash, but not in kind, to employees in return for services rendered, before
deduction of withholding taxes and employee contributions to social security and pension funds.
Interest payments are payments made to domestic sectors and to nonresidents for the use of
borrowed money. (Repayment of principal is shown as a financing item, and commission charges are
shown as purchases of services.) Interest payments do not include payments by government as
guarantor or surety of interest on the defaulted debts of others, which are classified as government
lending. Subsidies and other current transfers include all unrequited, non-reimbursable transfers
on current account to private and public enterprises, and the cost to the public of covering the cash
operating deficits on sales to the public by departmental enterprises.

      Capital expenditure is spending to acquire fixed capital assets, land improvements, intangible
assets, government stocks, and nonmilitary, non-financial assets. Also included are capital grants to
other entities.

      Current revenue is made up of tax and non-tax receipts.

      Taxes on income, profit, and capital gains are levied on the actual or presumptive net income
of individuals, on the profits of enterprises, and on capital gains, whether realized on land, securities,
or other assets. Social security taxes include employer and employee social security contributions
and those of self-employed and unemployed people. Taxes on goods and services include general
sales and turnover or value added taxes, selective excises on goods, selective taxes on services, taxes
on the use of goods or property, and profits of fiscal monopolies. Taxes on international trade
include import duties, export duties, profits of export or import monopolies, exchange profits, and
exchange taxes. Other taxes include employer payroll or labor taxes, taxes on property, and taxes
not allocable to other categories.
      Non-tax revenue includes requited, non-refundable by the government for public purposes,
such as fines, administrative fees, or entrepreneurial income from government ownership of property,
and voluntary, unrequited receipts in the form of grants and donations.
492   Key Indicators of Developing Asian and Pacific Countries




            EXTERNAL TRADE

                  Exports, fob and imports CIF are classified in accordance with the classification of commodity
            groups based on the Standard International Trade Classification (SITC) revision 1. Most countries now
            report using later revisions of the SITC or the Harmonized System. Concordance tables are used to
            convert data reported in one system of nomenclature to another.

                  Growth rates of export and import volumes are average annual growth rates calculated for
            low- and middle-income economies from UNCTAD’s quantum index series or from export and import
            data deflated by the IMF’s trade price deflators.

                  Net terms of trade are the ratio of the export price index to the corresponding import price
            index measured relative to a base year.


            BALANCE OF PAYMENTS

                  The Balance of Payments record transactions between residents of an economy with the rest
            of the world. They cover payments and receipts for goods, services, income, unrequited transfers,
            and capital flows.

                  Current account balance is the sum of net exports of goods, services, net income, and net
            current transfers.

                  Exports and imports of goods comprise all transactions between residents of a country and
            the rest of the world involving a change in ownership of general merchandise, goods sent for
            processing and repairs, and non-monetary gold.

                 Services and income refers to receipts and payments of employee compensation to nonresident
            workers, and investment income (receipts and payments on direct investment, portfolio investment,
            and other investments, and receipts on reserve assets). Income derived from the use of intangible
            assets is recorded under business services. These also include the purchase or sale of services such
            as shipping, travel, royalties etc.

                  Current transfers are recorded in the balance of payments whenever an economy provides
            or receives goods, services, income, or financial items without a quid pro quo. All transfers not
            considered to be capital are current.

                  The Capital and Financial accounts incorporate all financial transactions covering transactions
            in assets and liabilities, loans and investment flows.

                  Foreign direct investment represents inflows of investment to acquire a lasting management
            interest (10 percent or more of voting stock) in an enterprise operating in an economy other than
            that of the investor. It is the sum of equity capital, reinvestment of earnings, and other long-term
            and short-term capital, as shown in the balance of payments.

                  Portfolio investment flows include non-debt-creating portfolio equity flows (the sum of
            country funds, depository receipts, and direct purchases of shares by foreign investors) and portfolio
            debt flows (bond issues purchased by foreign investors).
                                                                                                   Appendix   493




INTERNATIONAL RESERVES

      Gross international reserves comprise holdings of monetary gold, special drawing rights,
reserves of IMF members held by the IMF, and holdings of foreign exchange under the control of
monetary authorities. The gold component of these reserves is valued at year-end (31 December)
London prices ($589.50 an ounce in 1980 and $287.80 an ounce in 1998).


EXTERNAL INDEBTEDNESS

      Total debt outstanding and disbursed represents the total external debt owed to nonresidents
repayable in foreign currency, goods, or services. It is the sum of public, publicly guaranteed, and
private non-guaranteed long-term debt, use of IMF credit, and short-term debt. Short-term debt
includes all debt having an original maturity of one year or less and interest in arrears on long-term
debt.

     Long-term debt is debt that has an original or extended maturity of more than one year. It
has three components: public, publicly guaranteed, and private non-guaranteed debt.

     Public and publicly guaranteed debt comprises long-term external obligations of public
debtors, including the national government and political subdivisions (or an agency of either) and
autonomous public bodies, and external obligations of private debtors that are guaranteed for
repayment by a public entity.

     Private non-guaranteed debt comprises long-term external obligations of private debtors that
are not guaranteed for repayment by a public entity.

      Short-term debt includes all debt having an original maturity of one year or less and interest
in arrears on long-term debt.

      Use of IMF credit denotes repurchase obligations to the IMF for all uses of IMF resources
(excluding those resulting from drawings on the reserve tranche). These obligations, shown for the
end of the year specified, comprise purchases outstanding under the credit tranches, including
enlarged access resources, and all special facilities (the buffer stock, compensatory financing,
extended fund, and oil facilities), trust fund loans, and operations under the structural adjustment
and enhanced structural adjustment facilities.

      Debt service transactions during the year cover both repayments of principal repayments
and interest actually paid in foreign currency, goods, or services on long-term debt, interest paid on
short-term debt, and repayments (repurchases and charges) to the IMF.


PRICE INDICES AND DEFLATORS

     Consumer price indices reflect changes in the cost to the average consumer of acquiring a
basket of goods and services that may be fixed or change at specified intervals. The indices are a
measure of inflation in an economy. The Laspeyres formula is generally used.

     Food price index is a sub-index of the consumer price index.

     GDP implicit deflator measures the average annual rate of price change in the economy as
a whole for the periods shown.
494   Key Indicators of Developing Asian and Pacific Countries




            DEMOGRAPHIC INDICATORS

                  Mid-year population is based on the de facto definition of population, which counts all
            residents regardless of legal status or citizenship-except for refugees not permanently settled in the
            country of asylum, who are generally considered part of the population of their country of origin. The
            values shown are midyear estimates. Population estimates are generally based on extrapolations
            from the most recent national census.

                  Population density persons (per sq km) is the surface area of a country or economy which
            includes inland bodies of water and some coastal waterways. Surface area thus differs from land
            area, which excludes bodies of water, and from gross area, which may include offshore territorial
            waters. Land area is particularly important for understanding the agricultural capacity of an economy
            and the effects of human activity on the environment. Surface area is a country’s total area,
            including areas under inland bodies of water and some coastal waterways. Population density is
            midyear population divided by land area in square kilometers.

                  Crude birth and death rates per 1,000 persons found in vital registers are the preferred
            source of these data, but in many developing countries, systems for registering births and deaths do
            not exist or are incomplete because of deficiencies in geographic coverage or coverage of events.
            Many developing countries carry out specialized household surveys that estimate vital rates by asking
            respondents about births and deaths in the recent past. Estimates derived in this way are subject
            to sampling errors and due to inaccurate recall by the respondents. Crude death rate and crude
            birth rates are the number of deaths and the number of live births occurring during the year, per
            1,000 population, estimated at midyear. Subtracting the crude death rate from the crude birth rate
            provides the rate of natural increase, which is equal to the population growth rate in the absence
            of net migration.

                    Total fertility rate is the number of children that would be born to a woman if she were to
            live to the end of her childbearing years and bear children in accordance with current age-specific
            fertility rates.

                  Contraceptive prevalence rate (% of married women 15-49 years) is the percentage of
            women who are practicing, or whose sexual partners are practicing, any form of contraception. It is
            usually measured for married women aged 15-49 only.

                 Life expectancy at birth is the number of years a newborn would live if prevailing patterns
            of mortality at the time of its birth were to stay the same throughout its life.

                  Infant mortality rate (per 1,000 live births) is the number of deaths of infants under one
            year of age during the indicated year per 1,000 live births in the same year. Life expectancy at birth
            and age-specific mortality rates are generally estimates based on vital registration or the most recent
            census or survey available. Extrapolations based on outdated surveys may not be reliable for
            monitoring changes in health status or for comparative analytical work.

                 Maternal mortality ratio per 100,000 live births is the number of women who die during
            pregnancy and childbirth, per 100,000 live births. Household demographic and health surveys
            attempt to measure maternal mortality by asking respondents about survivorship of sisters. The
            method tends to underestimate of maternal mortality. In addition, measurement of maternal
            mortality is subject to many types of errors. Even in high-income countries with vital registration
            systems, misclassification of maternal deaths has been found to lead to serious underestimation.

                  Human development index published by UNDP is a composite measure of development that
            incorporates three indicators that include per capita income, literacy levels and life expectancy.
                                                                                                      Appendix   495




     Age dependency ratio is the ratio of dependents-people younger than 15 years old and older
than 64-to the working-age population-those aged 15-64. Population aged 65 and above is the
percentage of the total population that is 65 or older.

      Urban Population - As % of total population is the share of the total population living in
areas defined as urban in each country. The estimates of the urban population are based on national
definitions of what constitutes a city or metropolitan area, thus cross-country comparisons should
be made with caution.


LABOR FORCE

      Economically active population as a percentage of working age population refers to the
population aged 15-64 defined as the working age population. But in many developing countries
children under age 15 work. And many workers postpone retirement past age 65 work as well. As
a result labor force participation rates calculated in this way may systematically over- or underestimate
actual rates. The economically active exclude the sick, home workers and fulltime students. The
economically active are thus made up of all persons aged 15-65 who are either employed or
unemployed.
      The economically active population in Agriculture, Industry and Services comprises the
number in the labor force that are engaged in these activities together with those currently
unemployed but previously engaged in the sector in question.


POVERTY AND INCOME DISTRIBUTION

      Percentage of population in poverty - Total, Urban and Rural refers to headcount ratio or
proportion of the population falling below the poverty line, as defined by national authorities
(in each country) to total population. International comparisons of poverty entail both conceptual and
practical problems. Different countries have different definitions of poverty, and consistent comparisons
between countries are difficult. Local poverty lines tend to have higher purchasing power in rich
countries, where more generous standards are used than in poor countries. Problems also exist in
comparing poverty measures within countries. For instance, the cost of living is typically higher in
urban than in rural areas. Household survey questionnaires can differ widely, survey quality varies,
and even similar surveys may not be strictly comparable over time. Furthermore, comparisons across
countries at different levels of development also pose a potential problem, because of differences
in the relative importance of consumption of non-market goods.

      The ratio of the highest 20% to lowest 20% is the inequality in the distribution of income
reflected in the percentage shares of either income or consumption accruing to segments of the
population ranked by income or consumption levels. The segments ranked lowest by personal income
receive the smallest share of total income.
      The underlying household surveys differ in method and in the type of data collected. The
indicators of income distribution are not strictly comparable across countries.

       Gini index measures the extent to which the distribution of income (or, in some cases,
consumption expenditures) among individuals or households within an economy deviates from a
perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received
against the cumulative number of recipients, starting with the poorest individual or household. The
Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality,
expressed as a percentage of the maximum area under the line. Thus a Gini index of zero represents
perfect equality, while an index of 100 implies perfect inequality.
496   Key Indicators of Developing Asian and Pacific Countries




            EDUCATION

                 Adult illiteracy rate is the percentage of adults aged 15 and above who cannot, with
            understanding, read and write a short, simple statement.

                   Gross primary and secondary school enrolment ratios are the ratio of total enrollment,
            regardless of age, to the population of the age group that officially corresponds to the level of
            education shown.
                   These are useful measures of participation in education, but have significant limitations.
            Enrollment ratios are based on data collected during annual school surveys, which exaggerate
            enrollments. Overage or underage enrollments frequently occur. As an international indicator, there
            is an inherent weakness: the length of primary education differs significantly across countries. Other
            problems affecting cross-country comparisons of enrollment data stem from errors in estimates of
            school-age populations. In using enrollment data, it is also important to consider repetition rates,
            which are quite high in some developing countries, leading to a substantial number of overage
            children enrolled in each grade and raising the gross enrollment ratio.

                  Pupil-teacher ratio is the number of pupils enrolled in primary school divided by the number
            of teachers, regardless of their teaching assignment.
                  The comparability of pupil-teacher ratios is affected by the definition of teachers, by whether
            teachers are assigned non-teaching duties, and by differences in class size by grade and in the
            number of hours taught. Moreover, the underlying enrollment levels are subject to a variety of
            reporting errors.


            HEALTH AND NUTRITION

                  Persons per hospital bed and persons per physician are proxy measures for assessing the
            availability of health care. There is no internationally accepted definition of hospital beds. The number
            of physicians and hospital beds are indicators of availability, not of quality or use. They do not show
            the level of training of the physicians or how well equipped the hospitals or medical centers are.
            Because of urban concentration of both doctors and hospital beds, these indicators give only a partial
            view of health services available to the entire population.

                   Nutrition and caloric consumption are measured by indicators of Daily Per Capita Protein
            Supply (gms) and Daily Per Capita Calorie Supply (cal). A key indicator of malnutrition is represented
            by child malnutrition (the percentage children of under age 5). Estimates of child malnutrition,
            based on both weight for age (underweight) and height for age (stunting), are from national survey
            data. The proportion of children underweight is the most common indicator of malnutrition. Prevalence
            of child malnutrition is the percentage of children under five whose weight for age and height for age
            are less than minus two standard deviations from the median for the international reference
            population aged 0–59 months. For children up to two years of age, height is measured by recumbent
            length. For older children, height is measured by stature while standing. The reference population
            adopted by the WHO in 1983, is based data from the United States.

                  Population with access to safe water is an indicator of access to safe water defined in terms
            of the percentage of the population with reasonable access to an adequate amount of safe water
            (including treated surface water and untreated but uncontaminated water, such as from springs,
            sanitary wells, and protected bore-holes). In urban areas the source may be a public fountain or
            standpipe located not more than 200 meters away. In rural areas the definition implies that members
            of the household do not have to spend a disproportionate part of the day fetching water. An adequate
            amount of safe water refers to that needed quantity to satisfy metabolic, hygienic, and domestic
            requirements-usually about 20 liters a person a day. The definition of safe water has changed over
            time and is not standardized across countries.
                                                                                                       Appendix   497




      Population with access to sanitation is the share of the population with at least adequate
human waste disposal facilities that can effectively prevent human, animal, and insect contact with
excreta. Suitable facilities range from simple but protected pit latrines to flush toilets with a sewerage
connection.


ENVIRONMENT

       Average annual rate of deforestation refers to the permanent conversion of natural forests
to other uses, including shifting cultivation, permanent agriculture, ranching, settlements, and
infrastructure development. Deforested areas do not include areas logged but intended for regeneration
or areas degraded by fuel-wood gathering, acid precipitation, or forest fires. Negative numbers
indicate an increase in forest area.

      National protected areas as percentage of land area are totally or partially protected areas
of at least 1,000 hectares that are designated as national parks, natural monuments, nature
reserves or wildlife sanctuaries, protected landscapes and seascapes, or scientific reserves with
limited public access. The data do not include sites protected under local or provincial law.

      Carbon dioxide emissions (per capita metric tons) are those stemming from the burning
of carbon fuels and the manufacture of cement. They include carbon dioxide produced during
consumption of solid, liquid, and gas fuels and gas flaring. Carbon dioxide emissions, largely a
by-product of energy production and use account for the largest share of greenhouse gases, which
are associated with global warming.


LAND USE

      Total land area is a country’s total area, excluding inland water bodies, national claims to
continental shelf, and exclusive economic zones. In most cases the definition of inland water bodies
includes major rivers and lakes. Land use is broken into three categories. Arable land includes land
defined by the FAO as land under temporary crops (double-cropped areas are counted once),
temporary meadows for mowing or for pasture, land under market or kitchen gardens, and land
temporarily fallow. Land abandoned as a result of shifting cultivation is excluded. Permanent
cropland is land cultivated with tree crops that occupy the land for long periods and need not be
replanted after each harvest. This category includes land under flowering shrubs, fruit trees, nut
trees, and vines, but excludes land under trees grown for wood or timber. Other land includes forest
and woodland as well as logged-over areas to be reforested. Also included are uncultivated land,
grassland not used for pasture, wetlands, wastelands, and built-up areas— residential, recreational,
and industrial lands and areas covered by roads and other infrastructure.


ENERGY INDICATORS

       Per capita energy consumption (kgoe) refers to commercial energy use pertaining to the
utilization of domestic primary energy before transformation to other end-use fuels (such as electricity
and refined petroleum products). It includes energy from combustible renewables and waste, which
comprises solid biomass and animal products, gas and liquid from biomass, industrial waste, and
municipal waste.

     Energy intensity in GDP (toe/’000 1993 US$) shows the ratio of total primary commercial
energy consumed to GDP at constant prices.
498   Key Indicators of Developing Asian and Pacific Countries




                 Net oil import dependency measures the ratio of net oil imports (including bunkers) to total
            primary energy requirements. A minus sign indicates that the country is a net exporter.

                  Per capita electricity generation and consumption (kWh) indicators measure electric
            power consumption and production by power plants less transmission, distribution, and transformation
            losses and own use by power plants. Electric power production includes generation by private
            companies, cooperative organizations, local and regional authorities, government organizations, and
            self-producers.

                 Electricity intensity in GDP (kWh/1993 US$) is measured by the ratio of total electricity
            consumed to GDP at constant 1993 prices.

				
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