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INTRODUCTION. Classifying Countries. By per capita GNI (Gross National Income) World Development Report by World Bank ( http://www.worldbank.org/ ) By economic freedom Economic Freedom Survey by Heritage Foundation ( www.heritage.org ) By political freedom - PowerPoint PPT Presentation

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Page 1: INTRODUCTION

INTRODUCTION

Page 2: INTRODUCTION

Classifying Countries

By per capita GNI (Gross National Income)– World Development Report by World Bank

(http://www.worldbank.org/) By economic freedom

– Economic Freedom Survey by Heritage Foundation (www.heritage.org)

By political freedom– Freedom in the World by Freedom house

(http://www.freedomhouse.org/)

Page 3: INTRODUCTION

Per Capita GNI

Economies are divided according to 2000 GNI per capita, calculated using the World Bank Atlas method.

low income, $755 or less lower middle income, $756- $2,995 upper middle income, $2,996- $9,265 high income, $9,266 or more

http://www.worldbank.org/data/working/working-meth.html#World_Bank_Atlas_method
Page 4: INTRODUCTION

Political Freedom Countries are classified into free, partly free, and

not free. (www.freedomhouse.org) Two factors in evaluating political freedom:

– Political rights – civil liberties

Indicators for political rights– Fair and competitive elections– Power for elected representatives– Ability to organize political parties– Safeguards on rights of minorities

Page 5: INTRODUCTION

Political FreedomContinued

Indicators for civil liberties– Freedom of the press– Equal right under the law– Personal social freedom – Government corruption and indifference

192 countries are rated according to political rights and civil liberties.

The U.S. and many European countries are classified as “free”

The worst rated countries include Cuba, Iraq, Libya, and North Korea.

Page 6: INTRODUCTION

Economic Freedom

Two factors in evaluating economic freedom– Freedom from government restraints on economic

activities– Legal and institutional frameworks to safeguard

economic freedom 155 countries are ranked according to economic

freedom in 10 categories. (www.heritage.org) Categories:

– banking, capital flows, monetary policy, taxation, trade policy, wages and prices, government intervention, property rights, regulation,and black market activities

Page 7: INTRODUCTION

Economic FreedomContinued

Economic freedom and economic well-being (measured by per capita GDP) are highly correlated.

Hong Kong and Singapore rank first and second respectively.

The worst ranked countries are Iraq, Libya, and North Korea (#155).

Page 8: INTRODUCTION

Competitiveness

Competitiveness of a country is evaluated according to its economic performance, government efficiency, business efficiency and infrastructure. (www.imd.ch)

49 countries are rated and ranked. The U.S. ranks first and Singapore ranks

second.


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