POLB90H3 Lecture Notes - Lecture 3: Debt Relief, Marshall Plan, Millennium Development Goals
Document Summary
World bank has way of dividing countries by where they fall in poverty. Look at: gross national income (gni per capita) - the total economic output of a country divided by the total population (used to be gnp) Every economy classified into low/middle/high income - changes every year (july 1st) Does not show level of inequality in a country, all based on , income travels in different ways - cost of living. High income= +,276: purchasing power parity (ppp) - purchasing price of the same baskets of goods in different countries. Good way to compare standards of life in different contexts/countries. Difference between gni/ppp - china 7th place/2nd place: human development index (hdi) - includes health (measured by life expectancy) + educational attainment (measured by average years of schooling) + standard of living (gdp per capita) Can rank countries on 0 to 1 > closer to 1 is better level of development (higher is better)
