Economic growth and economic development 23

80 90 Introduction to Modern Economic Growth life expectancy 2000 50 60 70 CRI GMB BEN KEN TZA 40 BDI MLI BFA TCD NGA GNB MOZ NER UGA MWI ETH LUX CHL URY PAN MEX HRV LKA SVK ALB POL ARG MKD VEN BLZ ECU MYS TUN JAM SYR LCA LTU BGR TTO MUS HUN COL GEO LBN ARM VCT LVA EST ROM PRY JOR CHN SLV DZA THA BRA PHLCPV PER IRNTUR BLR NIC MAR EGY HND UKR DOM MDA AZE RUS KGZ GTM IDN TJK KAZ BOL IND COM PAK NPLBGD ZAF GAB GHA YEM TGO MDG JPN HKG CHE ISL SWE MAC AUS CAN FRA ESP ITA NOR NLD GRCISR BEL NZLGBR AUT FIN USA IRL DNK PRT SVN BRB CZEKOR SEN COG GIN LSO CMR CIV GNQ ZWE SWZ ZMB RWA log gdp per capita 2000 10 11 Figure 1.6 The association between income per capita and life expectancy at birth in 2000 tables, while data on life expectancy at birth are available from the World Bank Development Indicators These figures document that income per capita differences are strongly associated with differences in consumption (thus likely associated with differences in living standards) and health as measured by life expectancy Recall also that these numbers refer to PPP-adjusted quantities, thus differences in consumption not (at least in principle) reflect the fact that the same bundle of consumption goods costs different amounts in different countries The PPP adjustment corrects for these differences and attempts to measure the variation in real consumption Therefore, the richest countries are not only producing more than thirty-fold as much as the poorest countries, but they are also consuming thirty-fold as much Similarly, crosscountry differences in health are nothing short of striking; while life expectancy at