Difference in High, Middle and Low Income Countries.
According the to World Bank a countries income level is determined by it’s Gross National Product (GNP) per capita, which is the value of all final goods and services produced in a country in one year (gross domestic product) plus income that residents have received from abroad, minus income claimed by nonresidents divided by its population.("How We Classify Countries,") This measure is an indication of how well the population in a country lives. When comparing country income levels there are several differences that can be found between each group, listed in order of examination they are GNP per capita, political stability, life expectancy, and access to education.
High income countries have a GNP per capita of $12,196 or higher, one way that high income countries are able to sustain GNP per capita at this level is the fact that these countries tend to have very stable political systems.(de Haan, 1996) Political stability allows countries to experience economic growth because these countries have strong capital and labor markets. Foreign and domestic investment is strong because of limited capital loss risk, additionally political stability allows for the creation of property rights.(de Haan, 1996) Political stability also affords a country the ability to dictate fiscal and monetary policy.
High income countries also have greater life expectancy than middle and low income countries. Life expectancy is defined as the number of years one can expect to live. In high income countries like Japan, Australia, and Switzerland life expectancy is 80 years.(Dwyer, 2005) This is caused by greater access to medical care, healthier diets, and better living conditions just to name a few. Educational attainment is greatest in high income countries, this is mainly true because of superior infrastructure and the political pressure placed on policy makers within these countries.(Abdellatif, 2003) The citizens of high income countries demand certain minimum standards, and as a
High income countries have a GNP per capita of $12,196 or higher, one way that high income countries are able to sustain GNP per capita at this level is the fact that these countries tend to have very stable political systems.(de Haan, 1996) Political stability allows countries to experience economic growth because these countries have strong capital and labor markets. Foreign and domestic investment is strong because of limited capital loss risk, additionally political stability allows for the creation of property rights.(de Haan, 1996) Political stability also affords a country the ability to dictate fiscal and monetary policy.
High income countries also have greater life expectancy than middle and low income countries. Life expectancy is defined as the number of years one can expect to live. In high income countries like Japan, Australia, and Switzerland life expectancy is 80 years.(Dwyer, 2005) This is caused by greater access to medical care, healthier diets, and better living conditions just to name a few. Educational attainment is greatest in high income countries, this is mainly true because of superior infrastructure and the political pressure placed on policy makers within these countries.(Abdellatif, 2003) The citizens of high income countries demand certain minimum standards, and as a
References: Abdellatif, A. M. (2003). Good Governance and Its Relationship to Democracy & Economic Development Retrieved January 9, 2011, from http://www.undp-pogar.org/publications/governance/aa/goodgov.pdf de Haan, J. (1996). Political instability, freedom, and economic growth. Some further evidence, 44(2), 339. Dwyer, J. (2005). GLOBAL HEALTH AND JUSTICE. Bioethics, 19(5/6), 460-475. Eberstadt, N. The Global Poverty Paradox. Commentary, 130(3), 16-23. How We Classify Countries. Retrieved January 9, 2011, from http://data.worldbank.org/about/country-classifications