Revenge of the Communists, Part II

Posted by: Michael Mandel on June 01

Here’s a look at the growth performance of the twenty largest global economies over the past ten years. The number after each country is the increase in real GDP per capita, 1995-2005, based on IMF data.

China		108.5%
Russia		52.7%
India		50.4%
Iran		47.8%
Korea		42.6%
Taiwan 		39.3%
Spain		30.5%
United Kingdom	26.7%
Canada		25.9%
Australia       25.7%
United States	25.6%
Mexico		24.5%
Turkey		22.9%
Thailand        19.6%
France		19.0%
Brazil		16.9%
Italy		14.7%
Indonesia       13.5%
Germany		11.2%
Japan		9.5%

The top 5 on this list: China, Russia, India, Iran, Korea. The U.S. places only #11, just behind Australia and just ahead of Mexico.

Time to learn HTML tables…

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Reader Comments

Tim Iacono

June 1, 2005 10:03 AM

This explains a lot of the growth:

http://themessthatgreenspanmade.blogspot.com/2005/06/wealth-effect-on-steroids.html

Carol Anne Ogdin

June 1, 2005 10:52 AM

Comparing economic size and growth rates is bogus. It's a heck of a lot easier to grow near zero, and the larger the economy, the harder it is to double in size.

China, growing at 108.5% in the past decade, starts from a base that was artifically suppressed for decades by Communism. Despite the label, the recent regimes understand the value of trade and capital.

It's always easier to show phenomenal growth from a point near zero (gee, we went from $1 million to $2 million; that's 100% growth!); it's much harder as you grow the economy (to achieve 100% growth over an economy of, say, $1 Trillion requires you add $1 Trillion to that economy...a much harder task.

Kartik

June 1, 2005 12:20 PM

You're right as on growth rate indexed against size.

My net worth increased by a factor of 10 in my first 12 months after college graduation (due to starting a job + stopping tuition payments). I have no chance of duplicating that feat again today :).

China probably will not do 108% again from 2005 to 2015. India might do more than 50% from 2005 to 2015, however. The US will probably do the same 25% again.

Jack Krupansky

June 1, 2005 12:23 PM

Thank you for continuing to remind us that China is a communist country. With an economic performance so much better than our own, it's so easy to forget that they're suffering under the burden of a backwards social, political, and economic ideology. Or, does this data suggest that economics has no "loyalty" to political ideology?

-- Jack Krupansky

Kartik

June 1, 2005 12:28 PM

Mexico in particular is a pathetic country. It grew slower than the US and vastly slower than China or India, even though :

1) It does not have hostile, warlike neighbors (like India does)
2) It does not have communism (like China does) or centuries of cultural baggage (like both India and China).
3) It has the ability to export its entire unskilled underclass of 15 million out of the country and into the US, who in turn later send back $50 billion/year (no other country has this special privelege).
4) It has been doing trade with the US and Europe for MUCH longer than India and China have.
5) It has tremendous natural resources.

Given all these advantages, it's failure to be more than 1.8% of the world economy (with a population similar to that of Japan) is nothing short of pathetic.

able to identify a commun

June 4, 2005 07:26 PM

in reference to "economics has no loyalty to any certain political ideology",so are you pro-immigration and pro-communism?

Michael Mandel

June 5, 2005 10:01 PM

Yes, I'm pro-immigration. No, I'm not pro-communist. In fact, I think China's (communist) government is going to have trouble dealing with the country's next big (capitalist) crisis.

Marry

January 2, 2006 04:17 AM

Given all these advantages, it's failure to be more than 1.8% of the world economy (with a population similar to that of Japan) is nothing short of pathetic.

swingcalss

January 2, 2006 11:16 PM

the rapidality economics start from scrach is easier. however. the difficulity may be occured due to the
structure and ownership shift from fully state control to the semi- prviate dominated. the wave of purchasing of private automobil and private housing will be the key events in the folowing decade. the income gap between rich and pool will widening . the FDI and venture capital funded firms will change the feature of the chinese economics for sure. the living style and culture may also will upgrade to new phases.

laura

April 18, 2006 06:28 PM

per capita

Thank you for your interest. This blog is no longer active.

 

About

Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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