What is Misery Index?
Back in 1960s, distinguished American economist Arthur Okun defined misery index as sum of inflation and unemployment rates. America's high misery index was cited by candidate Jimmy Carter as a reason to elect him president in his 1976 presidential race against President Gerald R. Ford. The Cato Institute has now revived it by adding interest rates to the sum of inflation and unemployment rates and subtracting per capita GDP growth rate from it.
Source: Cato Institute |
Cato's 2013 Ranking:
According to the analysis published by the Cato Institute, Venezuela tops the list of 90 countries as the most miserable nation in the world. The countries listed in the misery index were selected based on data from the Economist Intelligence Unit and calculations from Steve Hanke, a professor of Applied Economics at Johns Hopkins University.
Venezuela's misery score of 79.4 is far above the second-ranked Iran (61.6) with the rest of the top 22 countries scoring above 25 on the index. Inflation is the major contributing factor plaguing three of the top four nations listed. The other countries are either hampered by high unemployment or interest rates.
Summary:
In spite of Pakistan's multiple crises including the economic crisis, Pakistanis can take some solace in the fact that they are not alone in their misery. There are at least 27 nations, including their neighbors India and Iran, where people are economically suffering more than they are.
Related Links:
Haq's Musings
Pakistanis Happier Than Neighbors
Farmers Suicides in India
World's Largest Population of Poor, Hungry and Illiterates
World Bank on Job Growth in South Asia
Pakistan Offers Higher Economic Mobility Than US and China
Upwardly Mobile Pakistan
4 comments:
There are at least 27 nations, including their neighbors India and Iran, where people are economically suffering more than they are.
People in Spain Portugal Turkey and many other OECD countries are NOT economically suffering more than Pakistan in any objective way you want to define it!
Anon:"People in Spain Portugal Turkey and many other OECD countries are NOT economically suffering more than Pakistan in any objective way you want to define it!"
Effects of unemployment in societies that depend on jobs and credit are devastating.
Unable to pay their mortgages, rents and other monthly bills, they are forced out of their homes and forced to live out on the streets. They lose access to credit which is necessary to maintain their lifestyles. Their standards of living suffer a major decline...the kind of sharp declines that I have seen in US and Europe but not in Pakistan.
The Cato Institute has now revived it by adding interest rates to the sum of inflation and unemployment rates and subtracting per capita GDP growth rate from it.
http://www.riazhaq.com/2014/04/pakistanis-better-off-than-neighbors-on.html
Pakistan ranks #42 (index 24.5) on world misery index 2014, better than India at #30 (index 21.3)
http://walizahid.com/2014/11/pakistan-42-on-world-misery-index/
Pew: Having a good day
#Nigeria 58%
#Brazil 51
#Pakistan 42
#US 41
#India 31
#China 19
http://www.pewresearch.org/fact-tank/2014/12/30/having-a-typical-day-in-2014-youre-not-alone/ …
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