Context:
Achieving the aspirational target of increasing per capita income to attain developed country status by 2047 requires the economy to grow at an average rate of more than 8 per cent per year over the next 23 years.
Per capita income (PCI)
Per capita income (PCI) is a measure of the average income earned per person in a specific area over a given period of time:
- Calculation
- PCI is calculated by dividing a country’s national income by its population.
- Purpose
- PCI is used to evaluate the standard of living and quality of life for a population or area.
Purchasing power parity (PPP)
- PPPs are currency conversion rates that eliminate price level differences between countries. They are calculated for individual goods and services, product groups, and other levels of aggregation, including GDP.
- Example
- If a hamburger costs £2 in London and $4 in New York, the PPP exchange rate would be 1 pound to 2 U.S. dollars.
Inclusive growth
Inclusive growth is a concept that aims to create a society that is free, equal, and wealthy, while also reducing poverty and preserving economic freedoms.
Capitalism
Capitalism is an economic system where private individuals or organizations own the means of production, and prices are determined by supply and demand in a free market. The main characteristics of capitalism include:
- Private ownership: Private individuals and organizations own the means of production.
Crony Capitalism
Crony capitalism is a term used to describe an economic system where businesses are able to profit due to their close ties with the government.
