3 - Measuring Wealth and Human Wellbeing NGE

Definition of Wellbeing:
- The ability of human beings to access the necessities for happy and healthy lives, which includes food, water, education, safety, and security.

Definition:
- Measure wellbeing using numerical data, statistics, and objective figures.
Characteristics:
- Provide measurable and comparable information.
Examples of Quantitative Indicators:
- GDP per capita
- Life expectancy
- Literacy rates
- Unemployment rates

Definition:
- Measure wellbeing using subjective, descriptive, and non-numerical data.
Characteristics:
- Focus on people's experiences, opinions, and perceptions.
Examples of Qualitative Indicators:
- Happiness and life satisfaction surveys (self-reported happiness)
- Access to cultural and recreational activities
- Social cohesion and sense of belonging

Advantages:
- Easy to measure and compare across populations.
- Provides clear, statistical evidence for trends.
- Useful for making policy and economic decisions.
Disadvantages:
- May not capture people's actual quality of life or happiness.
- Reductionist—simplifies wellbeing into numbers, missing important human experiences and social contexts.
- Data can be misinterpreted without proper context.

Advantages:
- Provides an in-depth understanding of people's experiences.
- Captures emotional aspects of wellbeing.
- Highlights issues beyond quantitative data.
Disadvantages:
- Difficult to measure and compare accurately.
- Subjective—dependent on personal opinions.
- Harder to utilize for policy decisions.

Social:
- Measures demographic, social, and health indicators (e.g., population growth, literacy, life expectancy).
Technological:
- Examines the impact of technology on wellbeing (e.g., access to electricity and the internet).
Environmental:
- Assesses natural and man-made factors affecting wellbeing (e.g., CO₂ emissions, access to fresh water).
Economic:
- Quantifies living standards through income and employment indicators (e.g., GDP).
Political:
- Evaluates effective governance and safety in living and working conditions (e.g., defence spending, female political representation).

Concerns about Labels:
- What might be problematic about these classifications?

NICs:
- Nations such as China, India, and Brazil that are modernizing and experience rapid economic growth.
EEs:
- Countries also undergoing economic growth but facing political, monetary, or social challenges (e.g., China, India, Saudi Arabia).

Gross Domestic Product (GDP):
- Total monetary value of all goods and services produced in a country over a specific time period.
Literacy Rates:
- Statistical measures indicating the percentage of adults who can read and write, generally over the age of 15.

Definition and Calculation:
- GDP measures the total value of all goods and services produced in a year, divided by the population to obtain GDP per capita.
- Example: In 2012, Qatar's GDP per capita was $103,900, while the Democratic Republic of the Congo's was $272; Australia's was $42,000.

Global Wealth Distribution:
- The richest 1% of the global population holds about the same wealth as the poorest 56%, which equates to approximately 3.5 billion individuals.
- Notably, all 10 of the world’s poorest countries are located in Africa.

What does GDP per capita measure, and how is it calculated?
- GDP per capita measures the average economic output per person. It is calculated by dividing a country’s total GDP by its population.
Why might similar GDP per capita between two countries not reflect identical living standards?
- Factors include income distribution inequalities, differences in the cost of living, and disparity in public services and infrastructure.
How can GDP per capita be misleading as an economic well-being indicator?
- It may overlook income inequality, non-market activities, environmental degradation, and informal economy transactions.