Woche 2

The Gini coefficient varies between 0 and 1, where 0 represents absolute equality (everyone has the same income) and 1 absolute inequality (one person has all the income, everyone else has none).

• Gini shows income inequality in a society
• Gini can also be used to measure the distriution of wealth or life expectancy
• In development Countries and LDC's (Least developed countrys) where income is often hard to guess, looking at consumption might be better indicator

• Production (for example manufacturing)

- Advanced economies: 10-20%

- Emerging economies: 30-35%

- CIS countries (Commonwealth of Independent States); An alliance of former Soviet republics:  40% or more

• Biggest informal sector is helping someone else out

• GDP (BIP) measures output -Production inside the country  
• GNI (Bruttonationaleinkommen): Measures Income. Is defined as "GPD plus net receipts from abroad of compensation of employees, property income and net taxes less subsidies on production"

• Nations with substantial FDI, foreign corporate presence, foreign aid (ODA-Official Development Assistance) or remittances (Geldüberweisungen)

1. Health: Life expexpectancy at birth
2. Education: Mean of schooling for adults aged 25 and more and expected years of schooling for children of school entering age
3. Standard of living: GNI per capita

• No healt insurance / No acess to hospitals/medicine / bad nutrition / War

The Better Life Index contains a range of metrics that better reflect well-being: (Interview)

• Housing costs
• Time with family and friends
• Financial insecurities
• Life Satisfaction
• Satisfaction on how spend time

• The wellbeing or health of a country
• Costs of economic growth (z.B evironmental degradation / climate change) is not reflected
• It does not tell how the income from economic activity is distributed
• Income may not even stay in the economy and goes to investors abroad (For example Apple in Ireland)

No, advanced economies are usually defined as having :

1. A high level of per capita income
2. Varied export base
3. A financial sector thats integrated into the global finance system

1. Developed country members
2. Developing country members
3. Least developed country members

Problem: The countries announce forthemselves wether they are "devel0ped" or "developing"