The Evolution of the World Economy: A Visual Journey Through Time

Understanding the global economy, one chart at a time

Step into our virtual time machine and brace yourself for a thrilling ride through the evolution of the world economy. Using stunning visualizations and engaging storytelling, we'll explore the complex relationships between critical sectors like education, health, trade, industrialization, and conflict. Inspired by the legendary Hans Rosling and his captivating TED talks, we're here to challenge assumptions, debunk myths, and offer fresh perspectives on how the world economy has changed over decades. Join us on this exciting journey as we travel through the ages, discovering the impact of the global economy on our daily lives. Buckle up and get ready to explore the fascinating world of the global economy, one chart at a time!

A Look at Poverty: Percentages of Those In and Out of Extreme Poverty by Region

What does it mean to live in extreme poverty? Imagine not having access to clean water, proper sanitation, or adequate food. For many people around the world, this is a reality. However, in the past century, the world has made tremendous progress in reducing extreme poverty. How did we achieve this progress, and what challenges still remain? Join us as we explore the story of extreme poverty in the world and the ongoing efforts to create a more just and equitable future for all.

The past century has seen remarkable progress in reducing extreme poverty. In 1820, 94% of the world's population lived in extreme poverty. But by 2018, this number had dropped to less than 10%. In 2022, Africa is the only region where a small chunk of the population lives in extreme poverty.

Source: GNI per capita

From Large Families to Small: How the World's Demographics and Economies Are Changing

The scatter plot shows how the family size and economic growth have changed over time. In the early 1800s, countries had large families and comparable income per person.

By the late 1800s and early 1900s, the US began reducing family size, while European countries showed a trend of smaller families and higher incomes.

Post-independence, Asian and African countries saw a decrease in family size and improved economies, with rapid growth in the 1990s for most Asian economies and a few African countries.

The effects of World Wars 1 and 2 are evident with fluctuations in economies and family size of the involved countries. China's fertility rate fluctuated due to political and economic factors, with the One-Child Policy causing social and economic issues in the 1950s and late 70s.

The scatter plot highlights how history and politics impact the family size and economic growth over time. Projections indicate in three decades the world will form a cluster in the bottom right with high-income and small family sizes.

Interestingly, the scatter plot shows that family size and economic growth are not necessarily directly related. Some countries have large families but strong economies, while others have smaller families and weaker economies. As the world transforms and ideologies evolve, it's fascinating to note how this relationship has changed over time.

The number of children per woman, also known as the fertility rate, and life expectancy are two important demographic indicators that are closely related. Generally, as the fertility rate decreases, life expectancy tends to increase. This is because a lower fertility rate often indicates improved access to education and healthcare, and increased economic opportunities, which in turn can lead to improved health outcomes and higher life expectancies. Additionally, a lower fertility rate can also lead to a reduction in the burden of caring for children, allowing for more resources to be allocated towards healthcare and other areas that can improve the overall quality of life.

The scatter chart indicates that over the past few decades, income per capita and life expectancy have increased and formed a strong positive correlation. Projections for the future also suggest that the trend will continue, with the majority of countries expected to have a life expectancy of over 70 years in the coming decades. This is a positive development and indicates that countries are investing in healthcare, resulting in a healthier and wealthier world overall.

From Poor Health to Wealth: How Healthcare Affects Economic Growth

Once upon a time, people believed that wealth was the key to good health. But what if it was the other way around? What if healthcare played a crucial role in driving economic growth? This is exactly what we discovered when we delved into the relationship between healthcare and economic growth.

We analyzed countries based on their income category using GNI per capita, a measure of economic health. We found that higher-income countries spent more on healthcare (12-13% GDP) compared to middle-income (10-11%) and lower-income countries (7-8%). Surprisingly, lower-income countries experienced a sudden spike in healthcare spending from 2001-2005.

Investigating further by region may explain this trend. Investing in healthcare leads to a better quality of life and economic growth. Policymakers should prioritize healthcare to create a virtuous cycle of better health and prosperity.

We observe that Oceania and European regions do not have any low-income countries. Higher-income countries in these regions spend a higher percentage of their total budget on healthcare compared to middle-income countries, and this trend is more consistent and evident in Europe.

The Americas and Asia regions also show a similar trend to Europe and Oceania, with the Americas having no low-income countries and all Asian countries coming out of the low-income bracket in 2002. However, in contrast to Europe, the difference in the percentage spend on healthcare between high-income and middle-income countries in these regions is relatively smaller and comparable.

From 2001 to 2006, low-income countries in Africa had a marked increase in their government spending on healthcare. The rise in healthcare spending is believed to be a result of the devastating impact of the HIV/AIDS epidemic on the continent, which prompted these countries to prioritize healthcare expenditure. In contrast, higher and middle-income countries did not experience a significant increase in government spending on health during the same period, potentially because they may have already been allocating a considerable portion of their budget to healthcare. Additionally, these countries may have had more established healthcare systems in place, requiring less immediate investment during this period.

Exploring the Wealth-Health-Happiness Nexus: A Global Journey

Once upon a time, a wise person said, "money can't buy happiness." But is that really true? Let's embark on a journey to explore the relationship between wealth and happiness. We'll delve into the Human Development Index (HDI) and the Sustainability Development Index (SDI) to see how economic prosperity correlates with overall well-being. So, sit back, relax, and join us as we uncover the secrets to a truly happy and prosperous society.

What is HDI?

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices. It measures the overall well-being and development of a country's people, rather than just the economic growth of the country. HDI is a good measure because it considers a range of factors, including health, education, and income, which are important for human development. It's often used as a measure of a country's standard of living and level of development.

The race charts show that countries such as Niger, Afghanistan, Chad, Burundi, and the Central African Republic, with some of the lowest Income per Person values from 1989-2018, also tend to have some of the lowest HDI scores. On the other hand, countries with high economies like Switzerland, Denmark, the United States, and Ireland tend to have some of the highest HDI scores. It is interesting to note that over the years, Asian countries such as Qatar, the United Arab Emirates, and Singapore have consistently had some of the highest GDP/capita values but have never ranked highest on the HDI scores.

This analysis highlights the positive correlation between a country's Human Development Index (HDI) score and its economic status. As countries invest in health, education, and living conditions, their HDI scores improve, leading to an increase in their GDP per capita (Inflation adjusted) percentile. The top countries consistently score above the 90th percentile, while the bottom countries mostly score around or below the 5th percentile in terms of GDP/capita. This suggests that investing in areas such as health, education, and living conditions can lead to overall improvements in a country's economic status.

What is Sustainability Development Index (SDI) ?

SDI is a measure of how well a country is achieving sustainable development goals by balancing economic, social, and environmental priorities. It considers factors such as income, education, health, and environmental quality, providing a more comprehensive view of a country's overall well-being. The Sustainable Development Solutions Network (SDSN) and Bertelsmann Stiftung developed the SDI to complement GDP as a more holistic indicator.

The quest to find the link between happiness and economic growth is a fascinating one. Have you ever wondered whether the happiest countries in the world are also the most well-off? Or how the sustainability development index affects a country's economy? Well, we did too, and we decided to investigate further.

After analyzing available data, including income per person and SDI, we found that happier countries (Denmark, United States) tend to have a higher income per person than less happy countries (India, Georgia). But it's not all straightforward - many factors come into play. We also observed that less happy nations and rapidly developing ones have positive SDI growth, whereas established and happier nations have seen a decline over the years.

There could be multiple reasons for this behavior. One possible explanation could be that countries with lower levels of happiness may be putting more emphasis on economic growth and development to improve the well-being of their citizens, while countries with higher levels of happiness may be more focused on maintaining their quality of life rather than solely on economic growth. Additionally, some countries may have unique economic or social conditions that impact both their level of happiness and their economic growth.

Page updated

Google Sites

Report abuse