World Development Report 1984

example. Between 1955 and 1980 income per per- Such comparisons raise several statistical diffison
in the United States grew at an average 2.0 culties. They exaggerate differences between poor
percent a year. In 1980 dollars, average income and rich countries because not only incomes but
increased from $7,030 to $11,560. Meanwhile, in also prices, especially for services, are lower in
India, income per person grew at about 1.7 percent poor countries, and this is not reflected in official
a year-but only from $170 to $260 (in 1980 dol- exchange rates. But even with appropriate adjustlars).
What had been a $6,860 income gap between ments (based on the UN International Comparison
Americans and Indians in 1955 had almost dou- Project), the income gap between India and the
bled to $11,300 in 1980; America's average income, United States is still estimated to have increased
some forty-one times India's in 1955, had become from almost $5,000 to almost $8,000 between 1955
forty-four times larger by 1980. Large absolute dif- and 1980. The general conclusion is inescapable:
ferences in average income between developed much of the world's output is produced and conand
developing countries have persisted and have sumed by relatively few of its people.
even increased since 1950 (see Figure 1.3). Among
and within developing countries, differences in The demograplicfiituire
education and life expectancy also persist.
By 1980, 79 percent of the world's total output World Bank population projections are shown in
was produced in the developed countries, where Table 19 of the World Development Indicators at
about 25 percent of the world's people live. The the back of this Report. These, and alternative proremaining
21 percent was shared by the other 75 jections prepared for this Report and shown in the
percent of people. Only 5 percent was shared Population Data Supplement, are explained in
among the 47 percent living in low-income coun- Chapter 4. The projections should not be treated as
tries such as Bangladesh, China, India, Pakistan, predictions, but as illustrations of what can hapand
most countries of tropical Africa. pen given reasonable assumptions. If the assump-
FIGURE 1.3
Developing countries' share of population and production, 1800-1980
Total world $11,720 billion
production
$230 billion
Developing countries' 19
share-44 percent percent
share
Total world 1,673 million
population
944 millon
$970 billion $2,630 billion
I,
2,417 million
1800 1900 1930 1980
Source: McGreevey, 1984.