The Science of Everything Podcast Episode 103: Introduction to Economic Growth and Global Poverty
Mar 31, 2020
An eight-part series kickoff covering absolute versus relative poverty and how international poverty lines work. Discussion of GDP measurement, PPP, and the limits of GDP as a welfare metric. Comparison of urban slum poverty with rural subsistence living and a regional tour showing where extreme poverty is concentrated. Overview of development theories, modelling challenges, and evaluation methods like RCTs and regressions.
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Sustainability Adds Environmental And Equality Constraints
- Sustainable development adds environmental limits and equality, defining progress as meeting present needs without compromising future generations.
- Fodor notes many low-income countries prioritise basic needs over environmental policies until reaching higher development levels.
Why GDP Per Capita Is The Main Development Metric
- GDP is a monetary measure of value added in goods and services and correlates strongly with life expectancy and education.
- Fodor explains GDP per capita is computed via value added or income approaches and used as a proxy for productivity and living standards.
Always Use Real PPP Dollars For Cross Country GDP
- Use real GDP in PPP-adjusted international dollars to compare countries, because market exchange rates miss non-traded goods and local price differences.
- Fodor says most figures in the series use 2011 US international dollars (real, inflation-adjusted).