Economics - THE FACTS

Notes: Figures missing are not available.
(a) Following UNICEF practice this selection of Countries is ranked in descending order of infant mortality rate, since this is one of the most sensitive indicators of welfare.
(b) Estimates of income distribution come from a wide variety of sources and are not necessarily comparable.
(c) That income below which a minimum nutritionally adequate diet plus essential non-food requirements is not affordable.
(d) Gross Domestic Product (GDP) is almost the same as GNP but does not include, for example, earnings by nationals from work overseas. Consumption and investment will not necessarily add up to 100% becausefor example, of imports of goods from other countries. Almost all figures for 1981. Others 1980.
(e) Separate private and public figures not available.

Chasing after money

The graph shows money supply in the United Kingdom — as a percentage change on the year earlier. It gives some indication of Mrs Thatcher’s difficulties in trying to control it. M1 and £M3 are different lists of what counts as money (see 'making money'). The aim was to reduce money supply in order to bring down inflation. But the most significant result was an increase in unemployment.

Photo: Jon Blau / Camera Press

Growing slower

The world in 1984 is suffering from the worst recession for over 40 years. The poor countries have been particularly hard hit. Needing to growfaster from their smaller base than the rich countries they are unlikely to increase by more than 3½ per cent in 1984. The rich countries do have an interest in their progress since they take about 28 per cent of developed country exports.

Current unemployment rates in the rich countries are: Australia 9.2%; Canada 11 .2%; West Germany 8.8%; Japan 2.6%; United Kingdom 12.5%; United States 8.0%.

Raw deals

The graph shows the prices of non-oil commodities expressed in terms of what manufactured goods can be bought with them. Poor countries can buy much less with their commodity exports nowadays. Commodity prices in 1982 were lower in these terms than at any time since World War II. (See 'trading terms').

Stately progress

At present 77 people in every thousand people are government employees in rich countries compared with 29 in poor countries. But public employment is growing in the developing world in response to an increasing demand for public services as the chart here shows. There is, however, a shortage of skilled manpower so the government of a poor country may employ already a majority of the technical personnel.

Balancing acts

This chart compares movements in balance of payments — the blocks — with the country’s exchange rate— the line. The balance is expressed as a percentage of GNP (right scale) while the exchange rate is an index against a collection of other currencies (left scale) taking 1975 as 100. (See 'trading terms').