Economy:What is GDP

• Diaspora


  Amount of migrants of the same nationality residing abroad, can help origin Countries through financial and non-financial transfer of new idea, technology,...
• Shortcomings of GNP include not taking into account where money belonging to nationals is spent and if income from national abroad is remitted
• GNI (Gross National Income) partly overcomes the above shortcomings
• GNI includes the earnings from abroad even if they don't flow back into the country
• Remittances count for close to 6% of lower-income countries' GDP (World Bank, 2022)
• GNI reports how much is earned by the country's citizens spent where the production takes place, no matter where it is spent in the world
• GNI omits the income from earnings of all foreigners living in the country, even if they are spent within the country
• GDP per capita

  Total GDP ÷ total population = living standards in a country
• Macro indicators

  One value per country every time you measure it.

  Total GDP: nominal and real, ppp official exhange rate (financial transactions)

  Total GNP: nationality matters

  Total GNI: real Amount of money getting back

  Per capita: living standards, average

  +gini coefficient: distribution of income
• Nominal GDP

  Inflation not taken into account
• Real GDP

  Inflation is considered = better, once we have isolated every change on prices we can assess if the economy has grown or not.
• Gini coefficient

  Gini coefficient, G1 = 0 = perfect equality

  G2 > 0  = unequal

  G3 > G2 = more unequal

  G4 = 1 = total inequality
• The lorenz curve

  The lorenz curve is the graphical representation of the gini coefficient
• Gini index

  Gini index = area A ÷ area A +B

  A + B = 50
• Income distribution

  Income distribution :Inequality, how many portions of national population enjoy national income
• HDI accounts for GDP per capita and tries to take into account people's conditions and capabilities beside living standards by looking at levels of health, education, and quality of life for countries worldwide
• There is no single "good" measure to define a wealthy economy
• Real GDP per capita gives an impression of average incomes in a country taking into account the population size and inflation
• Total GDP in PPP takes into account the different costs of living in countries but population size is not accounted for
• Nominal total GDP shows the actual final market value of GDP produced in the economy without taking into account inflation and deflation
• Measures of a wealthy economy

  • Total GDP in PPP
  • Nominal total GDP
  • Real GDP per capita
  • Human Development Index (HDI)
• Shortcoming of Real GDP per capita: how two countries with the same level of real GDP per capita can end up with different development outcomes
• United Nations

  Maintain international peace + security

  Protect human rights

  Deliver humanitarian aid

  Uphold international law

  Support sustainable développment+climate actions
• UNDP

  Helping achieve éradication of poverty + inequalities + exclusion

  Achievement MDG's

  Démocratic governance

  Crisis prevention + recovery

  Sustainable développment + energy

  Turkije project
• Dimensions of the Human Development Index (HDI)

  • A long and healthy life
  • Access to education
  • A decent standard of living
• Access to education

  Measured by expected years of schooling of children at school-entry age and mean years of schooling of the adult population
• A long and healthy life

  Measured by life expectancy
• A decent standard of living

  Measured by the real GNI per capita
• Human Development Index (HDI)

  A composite index measuring average achievement in three basic dimensions of human development: a long and healthy life, access to education, and a decent standard of living
• Holistic

  Takes into account economic and non-economic dimensions
• GNH index

  Gross national happiness index