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Sectoral Structure by GDP for Some Country Groups in 2005

a) Comparison price (fixed price)

It is a price determined based on the level of a base year. That is the year in which the national economy has few major fluctuations and the time gap between the base year and the current year is not too far.

b) Current price: is the price determined according to the level of the calculation year.

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c) Purchasing power parity price: is the price determined according to the average

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international and is now calculated at US price levels.

- Application and meaning of price types:

+ Fixed prices reflect real income, are often used to calculate economic growth rates between periods and have comparative significance between periods.

+ Current price: Reflects nominal income, income achieved at the time of calculation, often used in determining indicators related to investment capital, economic structure, budget, and trade.

To convert real GDP to nominal GDP and vice versa, information on the GDP deflator is needed.

+ Purchasing power parity: used for spatial comparison, used to compare average living standards between countries, is the basis for international organizations to consider lending capital and loan terms, and determine the capital contribution level of countries.

1.2.2. Assessment of economic structure

- Economic structure is the correlation between parts in the overall economy, showing the organic relationship and interaction in both quantity and quality between the parts.

- These relationships are formed under certain socio-economic conditions and always operate according to specific goals.

- If the growth measure reflects the quantitative change, the trend of economic structural change reflects the qualitative aspect of the economy in the development process. Therefore, when evaluating economic development, it is necessary to consider comprehensively all aspects of economic structure.

1.2.2.1. Economic sector structure

- The economic structure shows both quantitative and qualitative aspects.

+ Quantitative aspect: is the scale and proportion of GDP, labor, and capital of each industry in the overall national economy.

+ Qualitative aspect: shows the position and importance of each industry in the national economic system.

For example: In developing countries, the economy is mainly based on agriculture, the proportion of agriculture accounts for 20 - 30%.

Developed countries: this ratio is 1 – 7%.

- In the development process, the economic structure of each country changes according to the general trend: the proportion of agriculture gradually decreases, industry and services gradually increase.

Table 1: Industry structure by GDP for some groups of countries in 2005


Source: World Development Report 2005 – World Bank

Table 2: GDP structure by industry of some countries in the region (1990-1999) ( Unit: %)

1.2.2.2. Economic regional structure

- Economic development is reflected in the economic structure from an urban and rural perspective.

- In developing countries, the rural economy accounts for a very large proportion.

High.


65%.


For example, the 90s:

+ 45 low-income countries: rural population ratio is 72%.

+ 63 countries with next income level: rural population ratio is


+ Developed countries: urban population ratio is 80%.

- The common trend in developing countries is that there is always a flow of immigrants.

people from rural to urban areas to escape poverty. This growing migration creates great pressure on the Government.

- The implementation of policies on rural industrialization, urbanization, development of rural industrial and service systems has increased the proportion of urban economy in developing countries, and the urban population growth rate has increased compared to the general population growth rate. This is a reasonable trend in the development process.

1.2.2.3. Economic structure

- It is a structural form that reflects the socialized nature of means of production and assets of the national economy, it is expressed in two forms of ownership: public ownership and private ownership.

- In developed countries and the trend in developing countries is that the private economic sector often accounts for a high proportion, and the economy develops in the direction of privatization.

- In our country today there are 6 economic sectors:

+ State economy + Private capitalist economy

+ Collective economy + State capitalist economy

+ Individual and smallholder economy + Economy with foreign investment capital The above economic components all have the environment and conditions for development.

equally developed, in which the state economy plays a leading role. Over the past many years, the non-state economic sector and the foreign-invested sector have tended to develop well.

1.2.2.4. Institutional sector structure

- It is a structural form that reflects the economy divided based on the role of the constituent parts in production and business, thereby assessing the position of each region as well as the relationship between them in the process of development.

- Permanent institutional units in the economy include 5 areas:

Government sector: includes all activities carried out with the state budget, ensuring public activities, creating equal conditions for institutional sectors and implementing social justice.

Financial sector: aims to maximize profits in the financial market.

Non-financial sector: performs the function of producing goods and services with the goal of maximizing profits in the market of goods and services.

Households: their function and behavior is consumption, in addition they can also participate in production activities in the form of providing labor for businesses or production in the form of individual production units.

Non-profit organizations: serve households with voluntary financial resources such as charities, relief organizations, helping the disabled... they operate not for profit.

1.2.2.5. Reproduction structure

- Is the economic structure understood from the perspective of dividing the total income of the economy according to accumulation - consumption.

- The consumption portion for accumulation increases and accounts for a high proportion, which is a condition for providing capital for the expanded reproduction process of the economy. This is a suitable trend in the economic development process.

- Increasing the proportion of income devoted to reinvestment must have the effect of leading to an increase in the level of income devoted to consumption.

1.2.2.6. International trade structure

- This structure reflects the foreign trade component in the economic development of each country.

- In developing countries: often export raw products with low value but import a large volume of input materials and final consumer goods, often leading to international trade deficit.

- According to the general trend, economies tend to open up during the development process, so the international trade deficit gradually decreases, the proportion of raw goods exports decreases, and goods with high economic value gradually increase.

1.2.3. Assessment of social development

Social progress with human development at its core is the ultimate goal of development. Social development is assessed in the following aspects:

1.2.3.1. Some indicators reflecting basic human needs

a) Indicators reflecting living standards

- The need for material living standards is expressed in the average minimum daily calorie intake of a person to ensure the ability to live and work normally, taking into account the male and female structure, body weight, climate and environmental conditions.

- To satisfy this need, people must have a certain amount of income to spend on food. Indicators reflecting this aspect include:

+ The GNI/capita indicator is the main measure showing the assurance of material consumption needs for the population of each country. The higher the GNI/capita, the higher the material living standard of the people.

+ In addition, there are also indicators: food level/person, ratio of imported food/person.

- In developed countries, the GNI/person target is very high: average 27,680 USD. USA: 37,610 USD, Switzerland: 32,030 USD, Norway: 37,300 USD.

- The group of 45 developing countries only reached 2190 USD. Vietnam: 1996: 1263 USD

2001: 2070 USD

2002: 2240 USD

2003: 2490 USD

This is higher than the average for low-income countries but lower than the world average ($7,570).

- Average income per capita is the basic material condition for human development.

b) Group of indicators reflecting education and intellectual level

According to the United Nations, the following targets are set:

Adult literacy rate ( 15 years old): by region, gender. Enrollment rate for primary, secondary and high schools

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Average years of schooling ( 7 years old).

The ratio of budget spent on education to total budget or GDP. The more developed the economy, the higher this ratio.

c) Group of indicators on average life expectancy and health care

Include:

Average life expectancy.

Child mortality rate (1 year,5 years).

Rate of maternal deaths due to childbirth.

The rate of malnourished children due to not meeting height and weight standards...

Percentage of budget expenditure on health.

d) Population and employment indicators.

Natural population growth rate.

Urban unemployment rate.

Ratio of labor time utilization in rural areas. Comments:

Developing countries have a higher population growth rate than the world average. According to the WB: the population increases by 92 million people each year, of which 82 million are from developing countries.

High population growth rate makes labor growth rate greater than job growth capacity leading to unemployment.

The above indicators depend on the level of economic development, population income, and government policies.

America, Japan: very good social indicators.

China, Vietnam: low income but the United Nations highly values ​​human development indicators.

e) Human Development Index – HDI

- Is an index to evaluate and classify the level of economic development.

– common society between countries or between localities.

- HDI contains 3 basic elements:

+ Average life expectancy.

+ Education level: assessed by literacy rate and school attendance rate at the right age.

+ Average income per capita calculated by GDP.

- HDI is calculated by the index method: 0 HDI 1. The larger the HDI, the higher the human development.

- HDI is calculated for each country and region.

- If we consider per capita income, industrialized countries are 6 times higher than developing countries, but if we consider HDI, it is only 1.6 times higher.

2002: + Norway: HDI = 0.958 max

+ Nigeria: HDI = 0.292 min

Vietnam: + 2001: The highest is Ba Ria Vung Tau HDI = 0.835. Hanoi 2nd: 0.798

Ho Chi Minh City 3rd: 0.796

+ 2002: HDI = 0.688

+ 2004: HDI = 0.691 ranked 109/177 countries

1.2.3.2. Poverty and inequality indicators

a) Poverty and economic inequality indicators

- This index depends on:

+ Gross national income.

+ Distribution and redistribution policies aim to regulate income among social classes in the direction of protecting the poor and solving social justice issues.

- The indicators include:

+ The poverty rate is divided by region and ethnicity.

+ The income gap coefficient determines the income gap between the rich and poor segments of the population in society.

- According to WB standard - 2002: determining the income ratio of the 40% of the population with the lowest income in society in the total income of the population shows that:

+ If this ratio is 17%: achieving a fairly high level of social equality; 12-17%: relatively unequal; 12%: large inequality.

+ Globally, about 10 years - the 90s of the 20th century showed that: the income of the poorest 40% of the population only accounted for about 15% of the total global income, while the income of the richest 20% of the world's population accounted for 50%, which is quite unequal. Currently, there is an improving trend.

b) Indicators for assessing social inequality

- Level of discrimination against women and domestic violence.

- Level of community democracy implementation: reflected in the position of the community in participating in decisions related to their lives.

- Transparency in the financial system at local levels.

- The level of national purity: corruption, negative phenomena of the government official class.

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