Tuesday 1 July 2014

GDP Growth Rate

GDP (Gross Domestic Product) is the market value of all recognised final goods and services produced within a country in a year or over a given period, (Wikipedia).
                GDP growth rate of some countries for 2013 are:
                                     U.S.A.                            1.9%
                                     U.K.                               1.8%
                                     Canada.                          1.6%
                                     New Zealand.                 2.5%
                                     Australia.                        2.5%
                                     China.                             7.6%
                                     India.                              4.7%
               A lot of effort is taken globally to calculate and publish the GDP Growth rate for all countries every year. If the rate shows an increase,leaders of the country take pride in it and consider it a big achievement.
How should the people of the country react to this?
Country means the people and people means the ordinary poor and middle class people who constitute the vast majority of the population.
Do these people benefit if their country records an increase in the GDP growth rate?
               If a few millionaires in a country become multimillionaires or some billionaires become multibillionaires the country may show an upward trend in the GDP growth rate.This may not necessarily mean any improvement in the standard of living of the ordinary people.Though the economies of many countries are growing year after year,the general report is a widening gap between the rich and the poor.
               So,GDP growth is not all what ordinary people are interested in. Of great importance to the ordinary people is how increasing wealth is distributed among the people.
Does the increasing wealth reach the ordinary people?
How fair is the distribution of the wealth among the total population?
Though GDP growth rate is given great prominence in global publications,practically nothing is said about the fairness or otherwise of the distribution.
                Distribution is the ordinary peoples concern. This is always ignored.
This is, 'Ordinary peoples concern does not count' attitude.
An increase in GDP growth rate is not necessarily a matter for ordinary people to celebrate.
Ordinary people should STOP from getting mesmerised if political leaders claim that under their regime GDP has grown at a higher rate.
Ordinary people should demand for proof of a fair distribution.



                                   
                 

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