I Hate PSM

Gross National Income (GNI) and Purchasing Power Parity (PPP)

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: Acculturation
Social security: Social Security
Operational research: Operational Research
Gross National Income (GNI) and Purchasing Power Parity (PPP): Gross National Income (GNI) and Purchasing Power Parity (PPP)
Global Hunger Index (GHI: Global Hunger Index (GHI)
Hidden Hunger: Hidden Hunger
International Health Regulations 2005: International Health Regulations (IHR)