Gross National Income (GNI)
• Formerly k/a Gross National Product (GNP)
– Gross income generated within the country PLUS
– Net income received from abroad
• It is expressed as ‘at current prices’ (at prices prevailing during the period to which the figure refers)
– The figures are influenced by inflation but are more useful for international comparison for the same period
• or
• ‘At constant prices’ (at prices prevailing during a fixed base period in the past, irrespective of the period to which the figures refer )
– This discounts the effect of inflation after the base period and measures the changes in real terms
• The national currency is converted to current US Dollars using the Work Bank Atlas Method (which uses the 3 yr. average exchange rates)
• Net National Product/Income (NNP or NNI) = GNP minus capital we consume (e.g. machinery, equipment etc.) in production
• ‘Per Capita income’ is derived by dividing the GNP by the total population
– It measures the standard of living
• Gross Domestic Product (GDP) on the other hand is the gross income generated within a country (i.e. excluding the net income received from abroad)
• Net Domestic Product (NDP) = GDP minus value of depreciation on fixed assets
• Depreciation = decline in the market value of fixed capital assets buildings, machinery, transport equipment, such as physical infrastructure, software, etc. - through wear and tear and obsolescence
Purchasing Power Parity (PPP)
– Number of units of a country’s currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the USA
– India is among the lowest per capita income BUT
– When recalculated based on PPP it became the fourth largest country in terms of GNP (PPP) after USA, China and Japan
References:
• Park’s Textbook of Preventive and Social Medicine; 23rd ed.
acculturation: http://www.ihatepsm.com/blog/acculturation
Social security: http://www.ihatepsm.com/blog/social-security
Operational research: http://www.ihatepsm.com/blog/operational-research
Gross National Income (GNI) and Purchasing Power Parity (PPP): http://www.ihatepsm.com/blog/gross-national-income-gni-and-purchasing-po...
Global Hunger Index (GHI: http://www.ihatepsm.com/blog/global-hunger-index-ghi
Hidden Hunger: http://www.ihatepsm.com/blog/hidden-hunger
International Health Regulations 2005: http://www.ihatepsm.com/blog/international-health-regulations-ihr