Glossary
Access to Healthcare
The availability and affordability of medical services, including doctors, hospitals, and essential medicines, for a country's population.
Example:
Universal access to healthcare in Canada means that citizens generally do not pay out-of-pocket for doctor visits or hospital stays, unlike in some other nations.
Environmental Performance Index (EPI)
An index that assesses a country's environmental health and sustainability across various categories like air quality, water resources, and biodiversity.
Example:
A country with strict pollution controls and extensive protected natural areas would likely score high on the EPI, indicating strong environmental stewardship.
Fertility Rates
The average number of children born to a woman during her lifetime, often indicating access to family planning and women's empowerment.
Example:
A country with a high fertility rate might face challenges in providing adequate education and healthcare for a rapidly growing young population.
Formal Economy
The sector of the economy that is organized, regulated, and taxed by the government, with activities typically included in official economic calculations like GDP.
Example:
Working as a software engineer for a registered tech company, paying taxes, and receiving a regular salary is part of the formal economy.
Gender Development Index (GDI)
Measures gender inequalities in life expectancy, education, and income, highlighting disparities even in countries with high overall development.
Example:
Even if a country has a high HDI, a low GDI might reveal that women have significantly less access to education or lower incomes compared to men.
Gross Domestic Product (GDP)
The total monetary value of all goods and services produced within a country’s borders in a year.
Example:
If the United States produces cars, software, and agricultural products worth $20 trillion in a year, that's its GDP.
Gross National Income (GNI)
The total monetary value of a country's GDP plus its net income from abroad (exports minus imports). It is considered a more accurate measure of a country's economic volume.
Example:
Japan's GNI would include the value of cars made in Japan plus the profits earned by Japanese companies operating factories in other countries, minus the profits sent out of Japan by foreign companies.
Human Development Index (HDI)
A composite score that measures a country's development based on life expectancy, education (mean and expected years of schooling), and income (GNI per capita).
Example:
Norway consistently ranks high on the HDI due to its long life expectancy, high education levels, and strong economy, indicating a high level of human well-being.
Infant Mortality Rates
The number of deaths of infants under one year of age per 1,000 live births, serving as a key indicator of a country's healthcare quality and living conditions.
Example:
A significant drop in a country's infant mortality rate often signals improvements in maternal healthcare, sanitation, and nutrition.
Informal Economy
The sector of the economy that is unregulated, untaxed, and often cash-based, including activities like street vending or unregistered businesses.
Example:
A street vendor selling handmade crafts without a business license or paying sales tax operates within the informal economy.
Life Expectancy
The average number of years a person is expected to live from birth, reflecting overall health, nutrition, and environmental conditions in a country.
Example:
Improvements in public health and medical advancements have led to a steady increase in global life expectancy over the past century.
Literacy Rates
The percentage of the population aged 15 and above who can read and write, indicating the general level of education and human capital within a country.
Example:
A high literacy rate is often correlated with economic development, as an educated workforce can contribute more effectively to a modern economy.
Multidimensional Poverty Index (MPI)
A measure that identifies poverty at the individual household level, looking at deprivations across health, education, and living standards.
Example:
A family lacking access to clean water, having no children enrolled in school, and experiencing high child mortality would be identified as multidimensionally poor by the MPI.
Per Capita Calculations
A method of dividing a total value by the population to get an average per person, used to compare countries with different population sizes.
Example:
To compare the average wealth between China and Luxembourg, economists use GDP per capita to account for their vast population differences.
Trade Deficits
Occurs when a country imports more goods and services than it exports, potentially indicating an over-reliance on foreign goods or a decline in domestic industries.
Example:
If the United States buys more cars, electronics, and clothing from other countries than it sells its own products abroad, it experiences a trade deficit.