The Standard of living is the level of material goods, wealth, necessities, and comfort available to a particular socioeconomic group, mostly a nation. It includes factors like poverty rate, income, employment availability, and quality, Gross Domestic Product, political and economic stability, national economic growth, house affordability and quality, the expectancy of life, quality of education and whether available (International Labour Organization. “Global Employment Trends for Youth 2013.”). Living standards are linked to the quality of life. It is signified by the (GDP) Gross Domestic Product per capita that is the division country’s gross domestic product by its entire population. GDP is the sum of output services and goods generated in one year by everybody in that country. In this paper am going to describe the levels of economic growth of various countries regarding its living standards and policies responsible for that growth (The World Bank. “World DataBank).
Classification of Countries According to Their Level of Economic Growth and Living Standards.
GDP per capita is the key element in quantifying the living standards of different countries. It enables us to classify nations into low-, middle-, or high-income groups (Nobelprize.org. “The Prize in Economics 1987).
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Growth Policies for Low-Income Countries
Most of these economies don’t have legal, economic stability and market-orientated organizations necessary for a productive ground for their growth in the domestic economy and attraction of foreign investment. World Bank is set to fight poverty and increase levels of income of these countries by 2030, however political instability hinders this achievement. The low-income economies are at a downside since any income received is immediately spent on basic needs like food (Nobelprize.org. “The Prize in Economics 1987). Failure to save leads to a lack of accumulation of capital and funds that can be loaned for investment in human and physical capital.
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