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professor in one of the business classes I took in college once said that there are two types of millionaires. One type knows how money works, and if she were to go broke today, and have nothing left but a dollar, she would know how to use that dollar to become a millionaire again. The other type doesn't know about money, and could start with a whole pile of money and always be in financial trouble. If you are prepared for the unexpected, you will be more likely to recover and get back on track [4].
List of reference links
1. URL: http://blog.hotelclub.com/billionaires/
2. URL: http://www.forbes.com/billionaires/
3. URL: http://en.wikipedia.org/wiki/Russian_oligarch
4. URL: http://www.moolanomy.com/4250/how-to-become-a-millionaire-mmarquit01/ УДК 330.59
LIFE QUALITY INDEXES SYSTEM O. В. Сальникова
В статье рассматривается система показателей, характеризующих уровень и качество жизни населения. Особое внимание уделяется отсутствию агрегированного показателя качества жизни в российской экономической практике и приводится пример комплексного показателя американских экономистов.
Indicator system, which characterizes living standard and population life quality, is considered in the article. The special attention is given to absence of the aggregated life quality indicator in Russian economic practice and example of American complex indicator is resulted.
Living standard characterizes access to resources necessary for existence, including healthy way of life, maintenance of territorial and social mobility, information interchange and participation in society life. Living standard, unlike longevity and education, only opens the possibilities which are available for person, but does not define their use.
The choice of base indicator adequately reflecting the given direction of human development is a serious problem. The ideal indicator of living standard should consider numerous factors:
- personal income;
- distribution of incomes between social classes;
- stored capital; individual style of life;
- size and structure of family;
- goods made in housekeeping etc.
Big number of factors which are accounted, absence of regularly collected information, complexity of calculation - all it breaks a principle of integrated indicator and does practically impossible an estimation of living standard by means of any direct indicator.
Therefore for estimation of living standard - gross national product per capita is used as indirect base indicator. For cross-country comparisons real GNP per capita is calculated according to purchasing power parity. It is shown in table 1 [1].
GDP per capita in 2010
Rang Country GDP per capita PPP, doll. Rang on GDP PPP
1 Qatar 88221,507 58
2 Luxembourg 78906,289 95
3 Singapore 56708,21 40
4 Norway 52164,773 46
5 Brunei Darussalam 48621,412 121
53 Argentina 15901,237 22
54 St. Kitts and Nevis 15870,969 179
55 Russia 15657,027 6
56 Gabon 15197,372 116
57 Botswana 15179,74 106
180 Eritrea 683,076 160
181 Burundi 589,022 155
182 Zimbabwe 436,354 153
183 Liberia 430,977 171
184 Democratic Republic of Congo 328,346 114
In the table 10 countries with the highest level of GDP per capita and 10 countries with the lowest are shown, thus the difference between the first place and the last place makes more than 250 times that speaks about the big differentiation of the countries in the world. GDP per capita in some countries is at high level (for example, to Gabon, Botswana), however on set of other indicators (branch structure of economy, manufacture of principal production per capita, etc.) such countries cannot be carried to category with a high living standard. Russian feature is a big difference in GDP rating (6 place) and GDP per capita rating (55 place), Russia is impossible to name the country with a high living standard on this indicator, despite high gross national product at whole.
Quality of human life is wider, than purely material support and it provides participation in an estimation not only objective factors, as quality of air, availability of medical and establishments, but also subjective factors, as, individuals satisfactions of life. Life quality in Russian statistics is defined by indicators:
1. Health and life expectancy;
2. Availability of social establishments;
3. Education;
4. Ecology.
For measurement of health level demographic indicators are used, such as:
- life expectancy at birth (for men and women);
- birth rate (general and private);
- age death rate (men and women);
- mortality indexes of and its reason.
All indicators should be considered in dynamics for a long time, than it was possible to catch change of tendencies, to reveal steady characteristics of dynamics, to choose period of forecast and calculation method of indicators.
Important demographic indicator is life expectancy at birth. Life expectancy of concrete person depends on in what country and during what historical period he
was born. Life expectancy at birth is average future life time of newborn under condition of death rate preservation which has developed at the moment of indicator definition. Dynamics of life expectancy at birth in some developed countries is shown in the table 2 [1].
Life expectancy at birth is appreciably defined by a population living standard of country. It is high (more than 75 years) in countries with GDP per capita from 25 thousand dollars and low when level is below 800 dollars. Though Russia with medial GDP per capita has the lowest life expectancy as men, and women, even in comparison with the nearest neighbors.
Table 2
Life expectancy at birth in some developed countries
Country Sex Year
1960 1970 1980 1990 2000 2003 2004 2005 2006 2007 2008 2009 2010
Belarus male 67,9 67,9 66,0 66,2 63,3 62,6 63,1 62,8 63,5 64,5 64,6 64,7 64,6
female 74,8 76,0 75,6 75,8 74,7 74,7 75,0 75,0 75,5 76,1 76,4 76,4 76,5
Canada male 68,2 69,3 71,6 74,2 76,6 77,3 77,7 77,9 78,3 78,4 78,7 78,2 78,2
female 74,2 76,3 78,7 80,6 81,8 82,2 82,5 82,5 82,9 83,0 83,8 82,8 82,8
Finland male 65,4 66,2 69,2 70,9 74,2 75,1 75,3 75,5 75,8 75,9 76,3 76,5 76,7
female 72,4 74,4 77,9 78,9 81,0 81,8 82,3 82,3 82,8 82,9 83,0 83,1 83,6
France male 67,0 68,4 70,2 72,7 75,2 75,8 76,7 76,7 77,2 77,4 77,6 77,8 77,5
female 73,6 75,8 78,4 81,0 82,8 83,0 83,9 83,9 84,2 84,4 84,4 84,5 84,3
Germany male 67,4 67,5 69,6 71,9 75,0 75,7 76,3 76,5 76,9 77,1 77,3 77,5 77,2
female 72,9 73,5 76,1 78,4 81,0 81,4 81,9 82,0 82,3 82,4 82,4 82,5 82,4
Italy male 66,7 68,7 70,7 73,6 76,6 77,4 78,1 78,2 78,6 78,8 79,0 79,1 78,6
female 71,7 74,6 77,4 80,3 82,5 82,9 83,8 83,7 84,1 84,1 84,2 84,5 84,0
Japan male 65,3 69,3 73,4 75,9 77,7 78,4 78,7 78,6 79,0 79,2 79,3 79,6 79,6
female 70,1 74,7 78,8 81,9 84,6 85,3 85,6 85,5 85,8 86,0 86,0 86,4 86,4
Norway male 71,3 71,0 72,3 73,2 76,0 77,0 77,5 77,7 78,1 78,3 78,3 78,6 78,9
female 75,9 77,3 79,1 79,6 81,4 81,9 82,3 82,5 82,7 82,7 83,0 83,1 83,4
Russia male 63,7 63,1 61,4 63,8 59,0 58,5 58,9 58,9 60,3 61,3 61,8 62,7 63,0
female 72,3 73,4 73,0 74,3 72,3 71,8 72,3 72,4 73,2 73,9 74,2 74,7 74,8
Switzerland male 68,7 70,0 72,2 73,9 77,0 77,9 78,5 78,7 79,1 79,3 79,7 79,7 79,3
female 74,1 76,2 78,9 80,7 82,6 83,1 83,6 83,8 84,0 84,1 84,3 84,3 84,1
Ukraine male 67,4 66,5 64,6 65,6 62,1 62,2 62,0 61,5 62,3 61,8 62,3 64,4 64,4
female 73,8 74,4 74,1 74,9 73,5 73,5 73,6 73,4 73,8 73,7 73,9 74,8 74,9
United Kingdom male 68,1 68,7 70,5 72,8 75,4 76,1 76,7 77,0 77,2 77,4 77,6 78,1 78,4
female 73,9 75,0 76,6 78,5 80,2 80,5 81,1 81,3 81,5 81,7 81,7 82,3 82,6
United States male 66,6 67,0 70,0 71,9 74,2 74,6 75,1 75,1 75,4 75,6 75,3 75,4 75,4
female 73,3 74,7 77,5 78,9 79,5 79,8 80,2 80,2 80,5 80,8 81,1 80,5 80,5
Natural increase is the change of the population over time and it is difference between the number of live births and the number of deaths during the year. The natural increase (or natural decrease) is negative when the number of deaths exceeds the number of births. Rate of natural increase is birth rate minus the rate of a population. It is shown in table 3 [2].
Russian population had decreased from the middle 1990th to 2006, it was caused by socio-economic factors - a low living standard, backwardness of public health services system, low employment. And from 2007 it is increased, but the natural increase for present still remains negative.
Natural increase in Russia
Year All population On 1000 people
born died natural increase born died natural increase
1950 2745997 1031010 1714987 26,9 10,1 16,8
1960 2782353 886090 1896263 23,2 7,4 15,8
1970 1903713 1131183 772530 14,6 8,7 5,9
1980 2202779 1525755 677024 15,9 11,0 4,9
1990 1988858 1655993 332865 13,4 11,2 2,2
1995 1363806 2203811 -840005 9,3 15,0 -5,7
2000 1266800 2225332 -958532 8,7 15,3 -6,6
2001 1311604 2254856 -943252 9,0 15,6 -6,6
2002 1396967 2332272 -935305 9,7 16,2 -6,5
2003 1477301 2365826 -888525 10,2 16,4 -6,2
2004 1502477 2295402 -792925 10,4 16,0 -5,6
2005 1457376 2303935 -846559 10,2 16,1 -5,9
2006 1479637 2166703 -687066 10,4 15,2 -4,8
2007 1610122 2080445 -470323 11,3 14,6 -3,3
2008 1713947 2075954 -362007 12,1 14,6 -2,5
2009 1761687 2010543 -248856 12,4 14,2 -1,8
2010 1788948 2028516 -239568 12,5 14,2 -1,7
Maternal mortality, children and infant mortality are also important indicator of country development level and health.
Important indicator of life quality - is maintenance with objects of social infrastructure (hospital, kindergartens, schools, theatres, universities, communication etc.).
The following indicator of life quality is educational level. Usually a source of data is population census.
Ecology - is important indicator of life quality, the ecology and natural-climatic conditions influences on health and working capacity of the population.
Statistics of aggregated indicator of living standard in Russia is absent, but there are the foreign analogues of given indicator including [3]:
1. Cost of Living (20 % of the final ranking). Standard of living you're likely enjoying in country, country's national debt, poverty level.
2. Culture and Leisure (10 %). Literacy rates, education as a percentage of GDP, the number of UNESCO sites per square kilometer and subjective rating of the variety of cultural and recreational offerings.
3. Economy (15 %). GDP, GDP growth rate, GDP per capita and inflation
rate.
4. Environment (5 %). Environmental Performance Index (EPI) from Yale University, which ranks countries on 25 performance indicators tracked across ten policy categories covering both environmental public health and ecosystem vitality.
5. Freedom (10 %). Freedom House's survey is the main source for these scores, with an emphasis on a citizen's political rights and civil liberties.
6. Health (10 %). The number of people per doctor, the number of hospital beds per 1,000 people, the percentage of the population with access to safe water, the infant mortality rate, life expectancy, and public health expenditure.
7. Infrastructure (10 %). Length of railways, paved highways, and navigable waterways in country, number of airports, motor vehicles, telephones, Internet service providers, and cell phones per capita.
8. Safety and Risk (10 %). U.S. Department of State's hardship differentials and danger allowances, which are based on extraordinarily difficult, notably unhealthy, or dangerous living conditions.
9. Climate (10 %). Average annual rainfall and average temperature, risk for natural disasters.
Components are normalized in proportions and general index from 0 % to 100 % is formed. Quality of Life Index is shown in table 4 [3].
On the given indicator Russia is on 54th place from 192 countries, it is near with countries of southern Asia and Africa. In Russia it is low level of freedom, similar to underdeveloped countries of Africa, and it is considerably reduced the general rating of our country. Also it is low economic development, first of all because of low GDP per capita, and bad enough condition of environment, because of the big pollution of water and air. But high enough levels of culture and safety of the population are thus marked.
Table 4
Quality of Life Index 2011 (192 countries)
Country Cost of Living Leisure & Culture Economy Environment Freedom Health Infrastructure Risk & Safety Climate Final Score
United States 76 87 100 51 100 90 100 100 85 86
New Zealand 69 92 59 67 100 91 65 100 84 76
Malta 68 94 62 72 100 83 61 93 100 76
France 58 100 65 75 100 100 55 100 88 75
Monaco 47 73 96 45 92 68 90 100 90 75
Kuwait 46 74 75 31 50 70 46 79 18 54
Maldives 59 59 50 55 58 51 32 100 49 54
Russia 55 80 45 47 25 68 53 67 72 54
Zambia 79 52 58 24 58 23 8 68 90 54
Philippines 78 68 55 55 58 59 28 71 20 54
Angola 40 44 50 7 25 15 9 61 53 36
Sudan 65 52 55 24 0 29 33 29 7 36
Yemen 75 38 52 26 25 34 4 29 0 36
Chad 72 0 52 14 8 16 2 36 51 34
Somalia 78 5 21 45 0 8 30 36 16 28
Thus, in world practice there is the complex indicator of living standard, including health and life expectancy, coverage by social sphere objects, education and ecology, but Russian scientists use them only as separate indicators. But it is necessary to note bias of American economists concerning the country which is imitated and has the greatest rating on the given index.
List of reference links
1. URL: http://www.imf.org/external/ - International Monetary Found.
2. URL: http://www.gks.ru/ - Statistics State Committee of Russia.
3. URL: http://www.internationalliving.com/ - International Living.
УДК 330.146; 330.5.051
HUMAN DEVELOPMENT INDEX AND ITS OPPOSITION
O. В. Сальникова
В статье приведена система показателей, отражающих накопление человеческого капитала в современном обществе. Индекс развития человеческого потенциала противопоставляется Индексу развития человеческого потенциала, скорректированному с учетом неравенства, Индексу гендерного неравенства и Многомерному индексу бедности.
Indicator system, describes human capital accumulation in modern society, is gives in the article. Human development index is opposed to Inequality-adjusted human development index, Gender inequality index, Multidimensional poverty index.
Human development index as method of measurement of human development has been entered by United Nations Development Program (UNDP) in 1990 in Human development repor. Unlike previous theories, concept of human development is focused on the person and proclaims well-being of person as basic and unique purpose of development.
This system was created after numerous criticisms, such as HDI's education measure was especially bogus, because 2/3rds of the weight came from the literacy rate, but the other 1/3 came from the Gross Enrollment Index - the fraction of the population enrolled in primary, secondary, or tertiary education (to max out education score, you have to turn 100 % of population into students). Also this index underestimated the role of GDP per capita, which has grown fantastically during the last two centuries and there's plenty of room left for further improvement even in rich countries [1].
In 2010 Human Development Report, the UNDP began using a new method of calculating the HDI. The estimation of life quality with HDI is based on minimum set of indicators, which quantitatively represents one of basic directions of human development: longevity, education and standard of living (picture 1) [2].
Human Development Index (HDI) Picture 1. HDI system
