Bahrain Income Distribution - PowerPoint by qxx16293

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Bahrain Income Distribution document sample

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									 Diverse Structures and
Common Characteristics
   Study of Developing Nations




                                 1
             Classification of Economies
   World Bank classifies 208 economies
    (population=/> 30,000) based on gross
    national income per capita, 2000

       LIC                              =/< $755
       LMC                              =$756-$2995
       UMC                              =$2996-$9265
       High- income OECD                =/>$9226
       Other high-income countries
       Different classification of other-high income
        countries

                                                        2
        Classification of Economies
   Gross National Income is the total final
    output of goods and services produced by the
    economy, plus net factor income from the rest
    of the world, minus sales taxes

   Gross domestic product (GDP) + net factor
    payments = Gross national product (GNP)

   GNP- sales taxes = Gross national income




                                                3
4
      Classification of Economies
East Asia and the Pacific:
Korea, Rep                   UMC
China                        LMC
Indonesia                    LIC
Europe and Central Asia:
Czech Republic               UMC
Lithuania                    LMC
Armenia                      LIC
Latin America and the
Caribbean:
Brazil                       UMC
Cuba                         LMC
Nicaragua                    LIC    5
     Classification of Economies
Middle East and North
Africa:
Bahrain                 UMC
Iraq                    LMC
Yemen, Rep              LIC
South Asia:
Sri Lanka               LMC
India                   LIC
Sub-Saharan Africa:
South Africa            UMC
Namibia                 LMC
Ethiopia                LIC
                                   6
          Classification of Economies
High Income OECD:
Australia
Canada
USA
Japan
Denmark
France
Switzerland
UK
Other high income countries:
The Bahamas
Kuwait
Hong Kong, China                        7
       Structural Diversity of Developing
                  Economies
   Size (geographical, population) and income of the
    country
   Historical and colonial background
   Physical and HR endowments
   Ethnic and religious composition
   Relative importance of public and private sectors
   Nature of its industrial structure
   Degree of dependence on external economic and
    political forces
   Distribution of power, institutional and political
    structures
                                                   8
9
      Structural Diversity of Developing
     Economies: Population and Income
                         Population   GNP per
                         (mill)       capita (USD)
Most Populous
1. China                 1,261        840
2. India                 1,016        460
3. USA                   282          34,260
10. Japan                127          34,210
Least Populous
1. St Kitts-Nevis        41           6,660
2. Antigua and Barbuda   68           9,190
3. Dominica              73           3,260
                                                 10
      Structural Diversity of Developing
       Economies: Industrial structure
Country    % of L Force         % of GDP
           Agriculture Industry Agriculture   Industry
Nigeria    54         5         43            25

Bangladesh 64         14        30            18
Brazil     31         27        14            36
All        60         17        20            38
Developing
USA        2          25        2             29


                                                     11
     Structural Diversity of Developing
    Economies: Important observations
   There is no necessary relation among a
    country’s size, per capita income, and degree
    of equality/ inequality
   Colonialism exposed African and Asian
    countries to new forms of potential
    exploitation and have resulted in different
    institutional and social patterns
   Except for the Persian Gulf oil states, most
    developing countries have minimal
    endowments of raw materials and minerals

                                                    12
     Structural Diversity of Developing
    Economies: Important observations
   Ethnic and religious conflicts have become
    frequent post cold war. Indigenous
    populations continue to be discriminated
    against in Latin American countries. Malaysia
    and Mauritius are exceptions
   Most developing economies have mixed
    economic systems and the degree of
    corruption differs widely across countries
   Majority of developing countries are agrarian
    and agriculture is a way of life for the people.

                                                   13
     Structural Diversity of Developing
    Economies: Important observations
   The various interest and power groups among
    different segments of the populations in a
    developing country is a result of their
    economic, social, and political history
   Case Study of Brazil and Costa Rica




                                              14
Common Characteristics of Developing
            Nations:
 Low levels of living and income inequality
 Extent of Poverty
 Health characterized by high IMRs and malnutrition
 Low levels of education and literacy
 Low levels of labor productivity
 High rates of population growth and dependency burdens
 Substantial dependence on agricultural production and
  primary product exports
 Prevalence of Imperfect markets and incomplete
  information
 Dominance, dependence, and vulnerability in
  international relations


                                                    15
Income inequality: Per Capita Gross National
Product in Selected Countries, 1997 (in U.S. dollars
at official exchange rates)




                                                   16
     Income: Comparison of GNP Per Capita
                      GNP Per Capita (US $)

Country         Exchange rate    PPP
UK              24,500           23,550
USA             34,260           34,260
Zimbabwe        480              2,590
Bangladesh      380              1,650
China           840              3,940
India           460              2,390
Sri Lanka       870              3,470
                                              17
   Income gaps: growth rates of real
    GNP per capita (avg annual growth)
Country            1980-90    1990-2000
Africa:
Kenya              0.3        -0.3
Nigeria            -3.0       -0.4
Asia:
India              3.2        4.2
South Korea        8.9        4.7
Latin America:
Brazil             0.6        1.5
Mexico             -0.9       1.5
                                          18
Distribution of Income




                         19
  Poverty: Share of population living on < $1/ day

Region                               1990   1998
East Asia and Pacific                27.6   15.3
Europe and Central Asia              1.6    5.1
Latin America and the     16.8              15.6
Caribbean*
Middle East and N. Africa 2.4               1.9
South Asia*                          44     40
Sub-Saharan Africa*                  47.7   46.3
Total                                29     24

* Increase in absolute number of people              20
Health: Infant Mortality Rates in Selected
Countries, 1998 (per 1,00 live births)




                                             21
Health and Education: Indicators




                                   22
HDI and GDP Ranks




                    23
   HDI variations for similar incomes,
                  1999
Country                HDI     HDI rank
GNP per cap~ PPP $1000
Kenya                  0.514   123
Uganda                 0.435   141
GNP per cap~ PPP $2000
Vietnam                0.682   101
Pakistan               0.498   127
GNP per cap~ PPP $3000
Sri Lanka              0.735   81
Indonesia              0.677   102
                                          24
Population and Labor Force




                             25
Composition of World Exports (percentages
of primary and manufactured products)




                                            26
 Composition of World Exports (percentages
 of primary and manufactured products)
Markets are imperfect in developing countries
 due to:
     Economies of scale
     Thin markets for many products due to limited
      demand
     Widespread externalities (good and bad)
     Prevalence of common property resources
     Incomplete information
     Information is costly to obtain

                                                      27

								
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