The Global Finance magazine published late last year a ranking of the world’s poorest countries based on a measurement of the standard of living (or, on the other side of the same coin, how rich or poor is a country).
At the international level, the standard of living is usually measured on the basis of per capita income, which is simply the total market value of goods and services produced in an economy (the Gross Domestic Product, abbreviated to GDP) in a year divided by the average population at the time. This is in itself not a measure of personal income but provides an indication or estimate of the spending capacity of the average consumer in a country.
The measure allows for the comparison of the relative performance of countries.
To allow for comparisons across countries, the per capita income levels of countries are converted to a common currency, usually the United States dollar, the world’s most widely used currency. The computation is done by using the corresponding bilateral nominal exchange rate between the United States dollar and the other country’s currency. There are problems, however, in using the nominal market exchange rate. The main one is that the movements or changes in the exchange rate affect the size of the GDP and hence the per capita income. Increases in GDP may reflect increases in prices (inflation) rather than actual growth in production volumes. Another problem is that the prices differ across countries. A United State dollar can purchase a lot more in India than in the United States because prices are lower in India.
To overcome these problems, international organizations like the World Bank and the IMF based per capita income on Purchasing Power Parity (PPP). It takes into account the relative cost of living and inflation rates of countries. PPP is the exchange rate that equalizes the price of a basket of identical goods and services in different countries, the so-called Law of One Price. So, for example, if a basket of identical goods is sold for US$100 in the United States and 10,000 rupees in India, the PPP is 100 rupees per U.S. dollar. There are, of course, certain complications with this theory.
Consumption baskets differ across the world. Transportation and information costs may prevent the prices of traded goods from being equalized in different countries. Nevertheless, the research shows that PPP is valid in the long run. Exchange rates between countries at similar level of economic development tend to fluctuate around levels that lead to similar prices for a given basket of goods.
The Global Finance magazine, drawing on an IMF’s database, ranked the poorest countries in 2015 based on their GDP PPP per capita. Countries were arranged in ascending order, starting with the country with the lowest per capita income. Dominica was ranked number 84 out of a total number of 185 countries. Dominica’s per capita income was gauged at $11,029 (international dollars), which is 7.3 per cent less than the median average income of $11,897 of the distribution. Dominica is in the 45th percentile, which means that 55 per cent of countries, including the other OECS countries, had a higher standard of living.
The highest ranked OECS country was Antigua and Barbuda, which was at number 132 and had an income level 52.2 per cent higher than that of Dominica. In comparison with the rest of the Windward Islands, Dominica was not too far from Saint Lucia and St. Vincent and the Grenadines which were ranked 89 and 88, respectively. In the case of the former, Dominica’s income lagged by 3.5 per cent and was 3.1 per cent behind the latter. The difference with Grenada was much higher at 8.8 per cent.
Trinidad and Tobago emerged as the wealthiest Caribbean country at 151, which put the oil-rich country in the 82nd percentile. Haiti, unsurprisingly, was rated the poorest Caribbean country at number 20, just above the 10th percentile, on the list. The top five countries with the highest standards of living were Qatar, Luxembourg, Singapore, Brunei and Kuwait. The five poorest were The Central Africa Republic, The Democratic Republic of the Congo, Malawi, Liberia and Burundi.
Any country with no oil, gold or silver is regarded as poor
People who own land are not poor.they may be spiritually poor lacking the knowledge how to use that land to improve the quality of their material assistance.
We need to stop allowing these experts to instruct us about poverty.what we need is from them is to teach us how to utilize our resources.we as a people also need to understand that development is about building your infrastructure (physical capital),establish our social development framework and mobilize our national development capacity.
Very poor….poor Dominica…my people shake off the binding chains and smell the coffee
Haiti and Dominican Republic. One island two countries. Haiti bottom place 20 and Dominican Republic up in place 100. Haiti independent before their neighbour and they even occupied it one time. What is the difference? Dominican Republic even ranked above Dominica, we come at place 84 of most poor countries in the world. So who is driving BMW and Mercedes in this place? Same with Guyana at 66 and Suriname at 115. Two neighbours, same resources both in Caricom, change that to Howcome. What is Caricom doing for these countries anyway if it can not improve their standard of living?
No you hear jet run way.
My take on this. Notice the richest continent, Africa, makes up the bulk of the poorest countries, along with Hati. We black folks have to ask ourselves a question. The Caribbean is like a child from a bad parent who was adopted by Europe. We behaved like our adopted parents by force or by choice. As soon as we get to adulthood our suppressed genes start kicking in and we start behaving like our real parents but every time running to our adopted parents get some money when we in trouble. My philosophy will always be ” we are our worst Enemy “. I am proud of my roots but not afraid to say we F ING up and can do Better.
That’s a general skewed opinionated statement based purely on debasing a race. The source of which stems from your own ignorance. The adopted parents you talk about were kidnappers, murderers, rapist and enslavers. The children you speak of even though these islands were not their original countries, revolted got their freedom and kicked out the kidnappers from all the Islands they were brought to. Now we run these countries. Germany which has the strongest economy in Europe has the most debt in Europe, US which has the strongest economy in the world has the most debt in the world. how can that be? yet the African countries with abundant resources & cheap labor are poor? This is a game you cannot win because it’s fixed! the sooner you realize the better off we’ll be. Caribbean and African countries need their own way to measure and plan growth.
You have just help seal my point in your last few lines. I will wait for the day Caribbean and African countries start to measure and plan thier growth. It will be a great day indeed. I am not debasing a race. Facts don’t lie. What has our leader been doing all these years? Begging!! While estates lie unused. Now Chinese colonizing these countries. Get yourself informed. You cannot fix a problem if you don’t see any.
Shaka, your raise some very valid, though sensitive questions. Take Nigeria for example, a net exporter of oil. However, there is a chronic shortage of fuel with motorists having to line up for up to 24 hrs. this week to fill up their tanks. The country has hardly any functioning refining capacity of its own. Yet, at the same time it also boasts some of the richest individuals in Africa, if not in the world. It is time we are honest with ourselves instead of constantly looking for scapegoats to blame for our misfortunes (…or should we say mismanagement?). By the way, I think the author of this article got his maths wrong. Antigua & Barbuda shows a disposable income of $23,071.33which is 109.2% higher than that of Dominica at $11,029.40.
You are correct, Titiwi. Antigua and Barbuda’s per capita is 109.2 per cent higher (or more than twice) that of Dominica. There was error in the typing.
That’s spending and wage power. Most Dominicans are self employed in some way or form. Most Dominicans own land and grow food. This also does not take into account monies from abroad. These other countries, most of their businesses and properties are owned by foreigners who take the profits and spend it in their foreign nations yet their income counts as income for the countries in question. Its as clear as day, Antigua, Trinidad etc Antigua doesn’t even have 1 river, EC dollar is worth twice that of the Trinidadian TT which is why Dominicans going to Trinidad and St Lucia to do their shopping.
That’s another thing every dollar leaving Dominica that is sent to the US to buy this & that or to Trinidad or St Lucia or St Marteen is making those countries richer and your own country poorer. Dominicans are in fact unknowingly making Dominica poor. Whomever in government that manages ports should take steps to reduce the imports of goods that are already produced in the…
Excuses, excuses and false pride that don’t get us anywhere. Look in the mirror instead and start with the person you see first.
You really doh ready yet………your last paragraph is one of ignorance of how commerce etc functions.
Dominica is Not producing anything substantial indicating that we are a growing economy. This government operates a fast food begging economy that if not Venezuela, it is China or Morocco who will take care of us. What is our major export that really brings in money into the treasury? Passports is questionable because there appears to be no transparency and accountability. It is the same way Hon. Linton caught them with their pants down when they tried to deny the Bin Bobol fiasco. They lied, told untruths and as the evidence came out they admitted in shame. Has that money been paid back..??// your answer is as good as mine.
The report still shows that Dominica is the poorest of the windward isl…but some will tell u that we are doing well…look we were sending morning for Antiguans but they are number 132, much richer than us…lord Dominicans…wake up from ur slumber, put country first
The report is flawed dude! If you’re waiting on other to tell you how you doing so you can fell sorry for yourself then you doomed.
Honestly man, your thinking is seriously flawed . You should change your name to
UNOTREADYYET.
This is to say what. Why then is Dominica not able to rehabilitate/ maintain its infrastructure. Why is the presentation of the government headquarters like that. Why does Roseau have the poorest presentation of all the capitals in the English Caribbean. It either lack of funds of or poor governance. I was of the opinion that it was lack of funds, maybe I was wrong.
Per Capita Income can be misleading,because it’s an average…It’s biggest flaw is that it does not show how the income is distributed among the population.Example if per capita income figure is $25 and the country has 4 people,ONE person could have the entire $100 which is the NATIONAL INCOME, and the three other people $0.00…In Dominica a few corrupt,wicked and greedy souls have all, and the vast majority are poor…Per capita income tells us nothing about the pervasiveness of the underground economy,drug trafficking,prostitution,human trafficking,money laundering,etc….The anecdotally evidence on the growound points to a Dominica that is very poor and a country where the majority begs!!!!
anecdotal. ground.
Development economists call this the Gini coefficient. And Dominica’s is actually pretty high, meaning that there’s a significant divide between the wealthy and the poor. But that seems to be common throughout the region, since Grenada, St. Lucia, St. Kitts, and Belize all have the same level of inequality.
Sort by the rightmost column: https://en.wikipedia.org/wiki/List_of_countries_by_distribution_of_wealth
The Laborites will see this as great encouragement. They think that as long as we are not last we are doing very well. Sometimes these stats can be very misleading as they do not always point to the detailed issues that are battering one’s country. A labor clown said to me the other day that Dominica is well off because we are not like certain countries in Africa where children have big heads as a result of malnutrition. Another one said that there is nothing wrong with the mass prostitution that is going on on the island because prostitution is one of the oldest professions in existence and a woman selling her kitty cat to make ends meet should be looked at as a form of survival and not nastiness. As a half Trinidadian I have been down there a lot of times so I urge Dominicans to take a trip down there to see a real island with real people with real leadership with real development. The women down there sell their bodies because they WANT to not because they HAVE to.
When last did you visit Dominica ?
The last time visited Dominica was when we observe the begging bowl of the red clinic, an insult to our people.
Does this answer your question
Show me your company I’ll tell you who you are! like your literate leader you are calling women prostitutes Again. If men like you were not animals there wouldn’t be prostitution. Dominica NICE BOY!
good one
Floridian diaspora why do so many so called poor Dominicans own vehicles, live in mansions and carry two or more expensive cell phones in their pockets. Why does almost every home has computer, internet, TV, electricity and water. How in heaven’s name do they pay their so many numerous utility bills at the end of the month. How comes farmers, fishermen and laborers build houses costing over $500 000. 000. You know you mad and insane all in one.
You ever hear about the black economy? We are experts at that.
you are such a moron
none of your comments are ever positive, or uplifting, you must be a mean, cynical, sadistic and pessimistic man
with no one to love, broke and alone, living in a basement to scared to come home because you are just a bloody failure
Were you watching a movie and talking about what you saw? Or are you detailing your pathetic private life? “No one to love, alone”? I’m sure I got company. “Broke and too scared to come back home”? I was in Dominica lately and the kind of deposit I made in the bank more than what you make in a year. “Living in a basement”? Let me ask you a question, at what age did you leave your parents’ house (IF THEY EVEN HAD ONE)? If your dumb self would read the above post properly you would realize that I was talking about a Laborite that was encouraging prostitution. I never called anyone a prostitute. Read it again and make sense out of it if you have any.
You are a dam liar.
Lets make it better for Dominica, do i hear International Airport.