Woche 2

• 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"

In CH:

• Service Sector: 74%
• Industry: 25%
• Agriculture: 1%

Nr. 1

• in Digital Transformation of the Public Sector
• ICT Infrastructure
• Households with Internet access

• Beacause of the poor countries bigges constraint: The shortfall of high productivity level human skills often needed in services
• Because manufactures are much more freely traded in the world than services

<the global market in manufactures also constitutes the natural conduit for a quick technological learning process

Step 1, 1962-66: Export strategy - Low value-added and labor intensive products (textiles and shoes)

Step 2, 1967-71: Shipt into heavy industry (steel, macchine tools and shipbuilding)

Step 3-4, 1972-81: Investment in hig value industries (seel, automobiles, machine tools, shipbuilding, electronics, construction)

Step 5-7, 1982-96: Investment in even higher value-added industries (electronics, precision machinery, bioengineering and IT)

Step 8, 1996-today: Investment in service sectors (music, film, tourism, medicine) and in. high-end consumer goods

• Platform of exchange without immediate impact (informal) such as G7(USA, Kanada, Frankreich, Deutschland, Italien, UK, Japan) some of the biggest Industry nations), G20, BRICS (Brazil, Russia, India, China, and South Africa), European political community
• EU has always 2 represantatives
• G20: Key place that shapes the global environment 
• Switzerland is not directliy involved: Usually invited to the finance meetings
• Lower middle Income G-20 Counties: India / Indonesia

Established methods:

• GDP (Gross Domestic Product)
• GNI (Gross National Icome)
• Gini coefficient

Newer approaches:

• Human Development Index
• Better Life Index
• Ecosystem Accounting

purchaising power parity: Considers the actual prices of goods and services in the individual countries.

Population:

1. India
2. China
3. USA

GDP:

1. USA
2. China
3. India

GDP PPP:

1. China
2. USA
3. India

GDP per capita:

1. Switzerland
2. USA
3. Russia

GDP per capita PPP

1. Switzerland
2. USA
3. Russia

1. China
2. USA
3. India
4. Indonesia
5. Germany

• Helping someone out (no money payed, no reseit, nothing registrated)

• Irelands GDP grew rapidly because Apple shifted to the country (headquarters in Cork, Ireland, key location for Apple's operations, including manufacturing, distribution, and various business functions.

• GNI: Calculates income
• GDP: Measures output

• Only nations with substantial FDI, foreign corporate presence, foreign aid (ODA), or remittances

1. OECD (Organisation for Economic Co-operation and Developmen) Better Life Index
2. Human Development Index
3. Eco System Accounting (Growth compaired to Sustainability)

• Per capita nominal GDP divides the total economic output by the population without adjusting for price differences 
• Per capita PPP GDP, on the other hand, adjusts for the relative cost of living and currency exchange rates, providing a more accurate comparison of living standards among different countries.

1. Agriculture
2. Industry
3. Service Sector

1. Productivity increase in the 1st sector
2. Shift of workers from the 1st to the 2nd sector
3. Export driven growth strategy 
4. Work up from the bottom to the top of the value chain
5. Shift labor force from the 2nd to the 3 rd sector

Porductivity - A countrys ability to improve its standard of living over time depends almost entirely on its ability to rais its output per worker (Paul Krugman)

Three-Sector-Hypothesis - When economies develop and mature, there is a shift of three sectors to climb up the value chain. Acriculture - Industry - Service. With each step productivity/Wealth ioncreases. (Colin Clark and Jean Fourastié)

• 33 in Africa
• 9 in Asia
• 1 in Carribean
• 3 in Pacific

- 41 advanced / 155 emerging and developing economies

• EU calcultaes member state contribution via GNI
• HDI is based ond GNI figures
• World Band (Classification by income levels based on GNI per capita)