| indicator | year | richest_country | richest_value | poorest_country | poorest_value | ratio_richest_to_poorest |
|---|---|---|---|---|---|---|
| GDP per capita (current US\() | 2014|Monaco | 195693.6|Burundi | 250.54| 781.07| |GDP per capita (current US\)) | 2018 | Monaco | 188298.3 | Burundi | 245.66 | 766.49 |
| GDP per capita, PPP (current int\() | 2014|Qatar | 148389.2|Central African Republic | 698.96| 212.30| |GDP per capita, PPP (current int\)) | 2018 | Luxembourg | 116638.4 | Burundi | 823.01 | 141.72 |
Activity Term 1 – Development Economics
World Bank Indicators (2014 vs 2018)
1 Point 1 — Richest, Poorest, and Ratio (GDP per capita & PPP)
#Point 1 Richest, Poorest and Ratio GDP per capita and PPP
The objective of this exercise is to compare global inequality using two measures of income per capita, GDP per capita in current US dollars and GDP per capita adjusted by purchasing power parity PPP, for the years 2014 and 2018.
2014 GDP per capita current US dollars The richest country is Monaco with approximately 195693.6 dollars per capita. The poorest country is Burundi with approximately 250.54 dollars per capita. The ratio between the richest and the poorest country is approximately 781.07.
Interpretation In nominal terms, the income gap is extremely large. The richest country has an income per capita hundreds of times higher than the poorest country. This reflects extreme global inequality as well as differences in price levels, economic structure, productivity and access to capital.
2014 GDP per capita PPP current international dollars The richest country is Qatar with approximately 148389.2 international dollars per capita. The poorest country is the Central African Republic with approximately 698.96 international dollars per capita. The ratio between the richest and the poorest country is approximately 212.30.
Interpretation When adjusting for PPP, the gap decreases significantly compared to the nominal measure. This happens because prices in poorer countries are usually lower, so their real purchasing power is higher than what nominal income suggests. PPP therefore reduces the measured inequality but the gap remains very large.
2018 GDP per capita current US dollars The richest country remains Monaco. The poorest country remains Burundi.
Interpretation The pattern of global inequality remains persistent over time. Very high income small economies remain at the top, while fragile low income countries remain at the bottom.
2018 GDP per capita PPP current international dollars The richest country is Luxembourg.
Interpretation Under PPP, the richest countries are typically those with very high productivity, strong financial sectors, advanced services or large natural resource rents.
2 Point 2 — Complementary indicators (Best/Worst) + Composite score
| indicator | year | best_country | best_value | worst_country | worst_value | ratio_best_to_worst |
|---|---|---|---|---|---|---|
| Life expectancy at birth (years) | 2014 | Monaco | 85.093 | Central African Republic | 40.265 | 2.113 |
| Life expectancy at birth (years) | 2018 | Monaco | 86.084 | South Sudan | 51.905 | 1.658 |
| Literacy rate (% ages 15+) | 2014 | Uzbekistan | 99.980 | Niger | 28.970 | 3.451 |
| Literacy rate (% ages 15+) | 2018 | Uzbekistan | 99.990 | Niger | 33.050 | 3.025 |
| Poverty headcount at societal poverty line (%) | 2014 | Czechia | 7.600 | Mozambique | 74.400 | 0.102 |
| Poverty headcount at societal poverty line (%) | 2014 | Denmark | 7.600 | Mozambique | 74.400 | 0.102 |
| Poverty headcount at societal poverty line (%) | 2014 | Iceland | 7.600 | Mozambique | 74.400 | 0.102 |
| Poverty headcount at societal poverty line (%) | 2018 | Czechia | 6.200 | Niger | 59.000 | 0.105 |
| year | best_country | best_score | worst_country | worst_score |
|---|---|---|---|---|
| 2014 | Spain | 0.946 | Niger | 0.005 |
| 2018 | Spain | 0.994 | Niger | 0.012 |
#Point 2 Complementary indicators and composite score
Three additional indicators were selected to complement GDP measures Life expectancy at birth in years Literacy rate percent of population ages 15 and above Poverty headcount at societal poverty line percent of population
Life expectancy
2014 Best country Monaco 85.093 years Worst country Central African Republic 40.265 years Ratio approximately 2.113
2018 Best country Monaco 86.084 years Worst country South Sudan 51.905 years Ratio approximately 1.658
Interpretation There is a very large difference in years of life between the best and worst performing countries. Conflicts, weak institutions and poor health systems strongly affect life expectancy. Although there is slight improvement over time, large disparities persist.
Literacy rate
2014 Best country Uzbekistan 99.980 percent Worst country Niger 28.970 percent Ratio approximately 3.451
2018 Best country Uzbekistan 99.990 percent Worst country Niger 33.050 percent Ratio approximately 3.025
Interpretation Basic education shows persistent inequality. Some countries have almost universal literacy, while others remain far behind. There is slight improvement for the worst performing country between 2014 and 2018, but the gap remains large.
Poverty headcount
2014 Lowest poverty rate 7.6 percent Highest poverty rate Mozambique 74.4 percent Ratio approximately 0.102
2018 Lowest poverty rate Czechia 6.2 percent Highest poverty rate Niger 59.0 percent Ratio approximately 0.105
Interpretation Some countries have very low poverty rates while others have more than half of their population living in poverty. Although there are improvements in some cases, poverty remains highly concentrated in certain low income countries.
Composite score
2014 Best country Spain 0.946 Worst country Niger 0.005
2018 Best country Spain 0.994 Worst country Niger 0.012
Interpretation The composite index confirms that development is multidimensional. Countries with strong performance in health, education and low poverty rank higher even if they are not the richest in GDP terms. Niger remains consistently at the bottom due to multiple structural disadvantages.
3 Point 3 — Distributions (PDF and CDF)
#Point 3 Distribution analysis PDF and CDF
GDP per capita nominal
The probability density function shows a highly right skewed distribution. Most countries are concentrated at low and middle income levels, while a few countries have extremely high incomes. The cumulative distribution functions for 2014 and 2018 are very similar, suggesting that the overall global distribution does not change dramatically in this short period.
GDP per capita PPP
When adjusted by PPP, the distribution becomes slightly less extreme. The inequality is somewhat compressed compared to nominal GDP, but the right tail remains visible. The cumulative distributions suggest small improvements but persistent inequality.
Literacy rate
The density is concentrated at high values, meaning that many countries have literacy rates above 80 percent. However, a group of countries still shows very low literacy levels. Between 2014 and 2018 there is a small shift toward higher literacy.
Poverty headcount
The density shows that many countries have moderate to low poverty, but a group remains with extremely high poverty levels. The cumulative distributions suggest limited changes over time.
Life expectancy
The distribution is concentrated between 70 and 80 years for many countries. However, a small group of fragile countries remains at much lower levels. There is a slight improvement between 2014 and 2018 but large gaps persist.
4 Point 4 — PPP Price Level Index (5 countries)
| year | country_name | nominal | ppp | ppp_price_level_index |
|---|---|---|---|---|
| 2014 | United States | 54973.421 | 55153.394 | 0.9967 |
| 2014 | Germany | 48959.599 | 47938.797 | 1.0213 |
| 2014 | Japan | 38475.395 | 39555.412 | 0.9727 |
| 2014 | China | 7781.066 | 12941.596 | 0.6012 |
| 2014 | India | 1553.884 | 5191.592 | 0.2993 |
| 2018 | United States | 62499.874 | 62875.666 | 0.9940 |
| 2018 | Germany | 48916.169 | 56273.041 | 0.8693 |
| 2018 | Japan | 39751.133 | 42141.935 | 0.9433 |
| 2018 | China | 10085.664 | 16298.205 | 0.6188 |
| 2018 | India | 1966.255 | 6714.966 | 0.2928 |
#Point 4 PPP price level index
The PPP price level index was calculated for the United States, Germany, Japan, China and India for 2014 and 2018.
United States approximately 0.997 in 2014 and 0.994 in 2018 Germany 1.021 in 2014 and 0.869 in 2018 Japan 0.973 in 2014 and 0.943 in 2018 China 0.601 in 2014 and 0.619 in 2018 India 0.299 in 2014 and 0.293 in 2018
Interpretation If the index is close to 1, domestic prices are similar to those in the United States. If the index is below 1, prices are lower than in the United States. This explains why PPP income is much higher than nominal income in developing countries such as China and India. In advanced economies the difference between nominal and PPP income is smaller.
5 Point 5 — 5 Poorest / 5 Richest (PPP) + Summary stats
| year | group | mean | median | min | max |
|---|---|---|---|---|---|
| 2014 | 5 Poorest (PPP) | 914.35 | 859.36 | 698.96 | 1161.33 |
| 2014 | 5 Richest (PPP) | 98290.96 | 84555.24 | 71988.54 | 148389.20 |
| 2018 | 5 Poorest (PPP) | 1075.86 | 1048.87 | 823.01 | 1325.59 |
| 2018 | 5 Richest (PPP) | 100582.44 | 103963.36 | 85978.22 | 116638.41 |
| country | ppp | year | group |
|---|---|---|---|
| Central African Republic | 698.96 | 2014 | 5 Poorest |
| Burundi | 724.37 | 2014 | 5 Poorest |
| Congo, Dem. Rep. | 859.36 | 2014 | 5 Poorest |
| Somalia, Fed. Rep. | 1127.72 | 2014 | 5 Poorest |
| Niger | 1161.33 | 2014 | 5 Poorest |
| Bermuda | 71988.54 | 2014 | 5 Richest |
| Brunei Darussalam | 81225.55 | 2014 | 5 Richest |
| Singapore | 84555.24 | 2014 | 5 Richest |
| Luxembourg | 105296.28 | 2014 | 5 Richest |
| Qatar | 148389.20 | 2014 | 5 Richest |
| Burundi | 823.01 | 2018 | 5 Poorest |
| Central African Republic | 905.82 | 2018 | 5 Poorest |
| Congo, Dem. Rep. | 1048.87 | 2018 | 5 Poorest |
| Niger | 1276.00 | 2018 | 5 Poorest |
| Mozambique | 1325.59 | 2018 | 5 Poorest |
| Bermuda | 85978.22 | 2018 | 5 Richest |
| Ireland | 86299.34 | 2018 | 5 Richest |
| Singapore | 103963.36 | 2018 | 5 Richest |
| Qatar | 110032.84 | 2018 | 5 Richest |
| Luxembourg | 116638.41 | 2018 | 5 Richest |
###Point 5 Five poorest and five richest countries PPP
2014
Five poorest PPP Mean 914.35 Median 859.36 Minimum 698.96 Maximum 1161.33
Five richest PPP Mean 98290.96 Median 84555.24 Minimum 71988.54 Maximum 148389.20
2018
Five poorest PPP Mean 1075.86 Median 1048.87 Minimum 823.01 Maximum 1325.59
Five richest PPP Mean 100582.44 Median 103963.36 Minimum 85978.22 Maximum 116638.41
Interpretation The poorest countries show slight improvement in average PPP income between 2014 and 2018, but the gap with the richest countries remains extremely large. The richest countries remain at very high levels of income per capita.
Main industries in the five poorest countries
The strongest industries are typically agriculture, subsistence farming, informal trade and low productivity services. Some countries also depend on primary resource extraction, but with limited value added and weak institutional capacity.
Main industries in the five richest countries
The strongest industries include financial services, advanced business services, global trade hubs and in some cases energy and natural resource extraction. These countries benefit from high productivity, strong institutions and integration into global markets.