World Economic Report: 1960-2018

Executive Summary:

• From 1960 to 2018, global GDP grew exponentially while population grew linearly.
• Higher GDP per capita is linked to longer life expectancy.
• North America and Europe & Central Asia have the highest Human Development Index (HDI) scores, while Sub-Saharan Africa lags.
• Electricity consumption strongly correlates with economic prosperity.
• Policy recommendations: promote economic growth, manage population growth, and expand access to reliable energy/electricity.

Analysis:

From 1960 to 2018, global economic development has been marked by exponential growth in GDP and significant population increases. The world's GDP has surged past 80 trillion USD, while the population has expanded from 2 billion to 7.5 billion. This growth, however, has been uneven across regions.

Notably, life expectancy positively correlates with wealth, as countries with higher GDP per capita tend to have longer life expectancies. Larger populations are typically found in countries with lower GDP per capita, emphasizing disparities in wealth distribution.

The Human Development Index (HDI) varies widely, with North America and Europe & Central Asia achieving the highest scores, and Sub-Saharan Africa lagging behind. A critical driver of this development is electricity consumption; there is a strong correlation between electric power consumption per capita and GDP per capita, highlighting the role of energy access in economic prosperity. Additionally, higher HDI scores are associated with greater electricity consumption and higher GDP per capita.

These insights illustrate how economic growth, population dynamics, energy consumption, and human development interact to shape the progress of nations over the past several decades.

Policy recommendations:

These insights suggest the following policy recommendations:

Promote economic growth to promote well-being: Implement policies that encourage innovation, entrepreneurship, and investment to sustain and accelerate GDP growth, which, in turn, may lead to longer lives.

Address population growth: Develop strategies to manage population growth, including family planning and education programs, especially in regions with rapidly increasing populations.

Expand access to reliable and affordable electricity to raise both economic growth and standard of living: Prioritizing energy investments may lead to higher GDP per capita and higher HDI.