| << Chapter < Page | Chapter >> Page > |
| Country | Human K | Natural K | Physical K | Total K |
|---|---|---|---|---|
| Japan | 300 | 1 | 115 | 416 |
| U.S. | 290 | 10 | 90 | 390 |
| Canada | 175 | 99 | 40 | 314 |
| Norway | 200 | 40 | 80 | 320 |
| Saudi Arabia | 70 | 105 | 20 | 200 |
| Venezuela | 50 | 45 | 10 | 105 |
The relative shares of human capital in total wealth come as a surprise to many (see [link] ).
In Japan, per capita human capital in 2000 was 72%. For the U.S., the relative share of human capital was 74%. The figures for Canada and Norway (both relatively rich in natural resources) was 79% and 62.5.
Per capita total wealth in resource-rich Saudi Arabia and Venezuela was substantially less than in Japan, the U.S., Canada and Norway. And the share of human capital in both nations is also much lower: 3.5% for Saudi Arabia and 48% in Venezuela.
By the time we finish this course, we will have covered three types of capital plus intangible capital. Before, let us examine the growth record worldwide from 1975-2000, and then the years from 2000-2008 the economic record was:
Briefly, for 1975-2000 we had:
| World Economic Growth | 2.8% |
| Low Income Nations | 3.7% |
So, growth was pretty good from 1975-2000. If we were to believe all the naysayers in the 90s and the early part of this century, we would expect that growth would have declined, as the fruits of liberalization of economies allegedly became sour (as some argue). Those fruits did not turn sour in the first years of the new century.
If growth rates were good in 1975-2000, they were even better from 2000-2008, before the economic meltdown of 2008-2010.
| Growth Rate (% per year) | |||
|---|---|---|---|
| Population | GDP per Capita | Total GDP | |
| World | 1.2 | 1.8 | 3.0 |
| High income | 0.7 | 1.5 | 2.3 |
| High income non-OECD | 1.5 | 3.0 | 4.5 |
| High income OECD | 0.6 | 1.5 | 2.1 |
| Middle income | 1.2 | 4.8 | 5.9 |
| Low income | 2.1 | 3.4 | 5.5 |
| Least developed countries: UN classification | 2.4 | 3.8 | 6.2 |
| Heavily indebted poor countries (HIPC) | 2.6 | 2.2 | 4.8 |
| East Asia&Pacific | 0.8 | 7.8 | 8.7 |
| Euro area | 0.5 | 1.4 | 2.0 |
| Europe&Central Asia | 0.1 | 5.7 | 5.8 |
| Latin America&Caribbean | 1.3 | 2.3 | 3.6 |
| Middle East&North Africa | 1.9 | 2.6 | 4.5 |
| South Asia | 1.6 | 5.0 | 6.6 |
| Sub-Saharan Africa | 2.5 | 2.3 | 4.8 |
| Population
2008 |
Population | GDP per Capita | Total GDP* | |
|---|---|---|---|---|
| China | 1,324.7 | 0.6 | 9.3 | 9.9 |
| India | 1,140.0 | 1.5 | 5.5 | 7.0 |
| United States | 304.1 | 1.0 | 1.3 | 2.3 |
| Indonesia | 227.3 | 1.3 | 3.8 | 5.1 |
| Brazil | 192.0 | 1.2 | 2.4 | 3.6 |
| Pakistan | 166.1 | 2.3 | 2.4 | 4.7 |
| Bangladesh | 160.0 | 1.6 | 4.1 | 5.7 |
| Nigeria | 151.2 | 2.4 | 3.6 | 6.0 |
| Russian Federation | 142.0 | 0.3 | 7.3 | 6.9 |
| Japan | 127.7 | 0.1 | 1.4 | 1.5 |
| Total or Average | 3,935.0 | 1.2 | 4.1 | 5.3 |
| Excluding China | 2,610.3 | 1.2 | 3.5 | 4.7 |
| World | 6,697.3 | 1.2 | 1.8 | 3.0 |
Overall growth of total GDP from 2000-2008 was a hefty 4.7% if we include China (3.0% excluding China).
So, in the early years of the new century, the pace of economic growth not only accelerated, but spread more widely among nations. This occurred after the first years of globalization, when barriers to international trade as well as income tax rates were declining worldwide. In the process, many emerging nations were steadily moving toward convergence with North America, Europe and Japan.
Notification Switch
Would you like to follow the 'Economic development for the 21st century' conversation and receive update notifications?
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|