Kruse Kronicle

World Social Indicators: Global Per Capita Income

We have seen that life expectancy has been improving all across the planet. It is one of the most important measures of well-being. Yet most people think of income when they think of prosperity. Rightly so. Income is correlated with other factors that allow us to move beyond surviving to thriving.

The common refrain we hear today is “The rich are getting richer and the poor are getting poorer." It is widely repeated. It is a sentiment that often finds its way into the unison prayers of confession in congregations of my tradition. N. T. Wright, a theologian whose work I’ve found very helpful, writes:

And now we have the new global evils: rampant, uncaring, and irresponsible materialism and capitalism on the one hand; raging unthinking religious fundamentalism on the other. As one famous book puts it, we have ‘Jihad versus McWorld.” (Whether there is such a thing as caring capitalism, or for that matter thoughtful fundamentalism, isn’t the point at the moment.) …. It doesn’t take a Ph.D in macroeconomics to know that if the rich are getting richer by the minute, and the poor poorer, there is something badly wrong. (Simply Christian, 8)

It also doesn’t take a Ph.D. in macroeconomics to verify such claims either. ;-) The truth is much more complicated than this declaration and certainly is not true if we take the long view of multiple generations. What can we say about per capita income on an historic basis?

Comparing income across eras is difficult. Inflation and other variables make direct comparison impossible. Furthermore, comparing contemporary currency-based economies to barter economies will not do. Economic historians have developed a concept called “purchasing power parity” (PPP) to aid in this process. The value of a dollar at a fixed point in time is chosen and the value of income at all other points in time is pegged to the purchasing power of the fixed dollar. For our purposes, we will be using a PPP measure of “2011 International Dollars” (I$). Annual per capita Gross Domestic Product (the total market value of all final goods and services produced within a given country in a given period of time, usually a year) will be used as a proxy for income.

Not all economists agree on how to achieve parity between the present and more distant eras. Angus Maddison, one of the foremost authorities on this topic, suggested that about I$1,000 per capita (using 2011 dollars) is a subsistence level of income and was typical of subsistence living prior to the industrial revolution. However, economist Brad Delong, who has done his own analysis, claims:

“A large proportion of our high standard of living today derives not just from our ability to more cheaply and productively manufacture the commodities of 1800, but from our ability to manufacture whole new types of commodities, some of which do a better job of meeting needs that we knew we had back in 1800, and some of which meet needs that were unimagined back in 1800.” (Brad DeLong)

Therefore, DeLong puts historic subsistence living at a lower level, but both scholars end up with similar income estimates in recent eras. Here is the change over the last 2,000 years using Maddison's estimates.

 

The following chart shows their estimates between 1700 and 2015:

You can see that the growth accelerates beginning in the early nineteenth century. Many have suggested that the industrial revolution began not long after 1750 and it is true that many inventions came into being not long after that time. However, there was a lag time of a few decades between the advent of various technologies and the placement of them into productive use. Maddison argues for a beginning point of 1820 (as do other economic historians.) Whichever the case, keep in mind that the world population grew more than sixfold from less than 1 billion to more than 6.6 billion from 1750 to 2000 during this explosion in per capita income.

So in the aggregate, we can see that growth in worldwide per capita income is astounding. But how broadly spread is the economic expansion?

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World Social Indicators: Child Mortality

Alongside life expectancy, a second measure of prosperity demographers frequently use is the child mortality rate. The child mortality rate is the number of children that die between birth and their fifth birthday, per 1,000 live births. Because the first years of life are when human beings are most vulnerable, their ability to survive the first years of life says a lot about the state of their society; thus the significance of the child mortality rate.

So what can we say about this measure of prosperity throughout human history? Here are estimates of the infant mortality rate (deaths by age one) typical of social scientists and economists who study these issues:

In the year 1000, the average infant could expect to live about 24 years. A third died in the first year of life. Hunger and epidemic disease ravaged the survivors. By 1820, life expectation had risen to 36 years in the west, with only marginal improvement elsewhere. (Angus Maddison, Contours of the World Economy, 1-2030 AD, 69)

Before industrialization, at least one out of every five children died before reaching his or her first birth day; that is infant mortality measured as the number of children dying before the age of one, typically exceeded 200 per 1,000 live births. … In the United States, as late as 1900, infant mortality was 160; …” (Indur Goklany, The Improving State of the World, 27)

Estimates are that child mortality were over 40% prior to 1800.

Let's look at the change in the child morality rate for the last 200 years:

Globally, that is drop from 40 children per 1,000 to 4 children per 1,000. This graphic compares various nations at 1800, 1950, 1990, and 2013.

Note that the 2013 child mortality rate for all but a few small lagging countries is lower than the rate for all but a few of the wealthiest countries in 1950. The worst country in 2013 has a rate half that of the best country in 1800.

This is not to say that every nation, or every region within a nation, or every subgroup within in a nation, have prospered equally well. Still, there is dramatic improvement in all regions of the world.

During the 1990s, there was a small increase in the rate for the former Soviet nations but that trend has turned positive again. There are disparities between Anglos and non-Anglos in the United States. The African AIDS epidemic has been harmful. Other regions face other challenges. Yet the overall trend is dramatically downward.

Using child mortality as measures of prosperity, the world is far more prosperous than it has ever been and the gap is narrowing between the top and bottom rungs of the global social ladder. Again, most of this change has occurred over a time when the total world population grew sixfold, from less than 1 billion in 1800 to about 6.6 billion today!

So as we look at the trajectory of change in the world, we find an unprecedented rise in prosperity. It is uneven improvement but every corner of the planet has improved and the gap between top and bottom nations is closing.

Next we we will look at economic issues.

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World Social Indicators: Life Expectancy

Demographers commonly use life expectancy rates as a measure of societal well-being. Life expectancy is the number of years someone is expected to live at the time they are born based on actuarial science. Long life is a universal indicator of prosperity across cultures and time. It is an important measure to demographers because achieving it requires a complex mix of variables, like a sustained nutritious food supply, a sanitary and safe environment, relatively little disease, absence of war, and a stable society.

So what can we say about this measure of prosperity throughout human history? Here are estimates of two social scientists and economists typical of those who study these issues:

For most of its existence, homo sapiens lived in far-flung hunter-and-gathering communities, each of which was quite small and barely able to reproduce itself. Life expectancy at birth was hardly twenty-five years on average, and those persons who survived childhood often died violently, in combat with other hunters, at relatively young ages. (Robert William Fogel, The Fourth Great Awakening and the Future of Egalitarianism, 48)

For much of human history, average life expectancy used to be 20-30 years. By 1900, it had climbed to about 31 years … By 2003 it was 66.8 years. (Indur Goklany, The Improving State of the World, 31)

To put the last statement by Goklany in perspective lets graph the estimated life expectancy on a chart:

If we show only the last 250 years we get a clearer picture of what has happened:

Source

Using life expectancy as a measure of prosperity, the world is far more prosperous than it has ever been. The gap is narrowing between the top and bottomof the global community. More amazing, most of this change occurred over a time when the total world population grew sixfold, from less than 1 billion in 1800 to about 6.6 billion today!

This is not to say that every nation, or every region within a nation, or every subgroup within in a nation, has prospered equally well. AIDS has been devastating in regions of Africa. War and discord has harmed some nations. Yet over the past forty years, we see broad improvement in the world. Keep in mind that the global population nearly doubled during this time:

Interactive Source

The trajectory of change is an unprecedented rise in prosperity. It is uneven growth but every corner of the planet has improved and the gap between top and bottom nations is closing.

Next we look at infant mortality rates.

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World Social Indicators: Introduction

Is the state of world getting better or getting worse? How would you answer that question? What indicators would you use?

For Christians, our mission is to seek the greatest shalom possible in the world, always cognizant that shalom in its fullness will only be recognized at the consummation of the new creation. But how would we measure shalom?

Isaiah 65:17-25 is a statement of what the ancient Hebrews understood to be the fullness of shalom.

17 For I am about to create new heavens
and a new earth;
the former things shall not be remembered
or come to mind.
18 But be glad and rejoice forever
in what I am creating;
for I am about to create Jerusalem as a joy,
and its people as a delight.
19 I will rejoice in Jerusalem,
and delight in my people;
no more shall the sound of weeping be heard in it,
or the cry of distress.
20 No more shall there be in it
an infant that lives but a few days,
or an old person who does not live out a lifetime;
for one who dies at a hundred years will be considered a youth,
and one who falls short of a hundred will be considered accursed.
21 They shall build houses and inhabit them;
they shall plant vineyards and eat their fruit.
22 They shall not build and another inhabit;
they shall not plant and another eat;
for like the days of a tree shall the days of my people be,
and my chosen shall long enjoy the work of their hands.
23 They shall not labor in vain,
or bear children for calamity;
for they shall be offspring blessed by the LORD --
and their descendants as well.
24 Before they call I will answer,
while they are yet speaking I will hear.
25 The wolf and the lamb shall feed together,
the lion shall eat straw like the ox;
but the serpent -- its food shall be dust!
They shall not hurt or destroy
on all my holy mountain, (NRSV)

Several themes jump out from this characterization of a world restored to shalom. There are some very practical and specific features:

• God will delight in his people and be attentive to them. (18-19, 24)
• Safety will prevail. (19)
• Infant mortality will cease. (20)
• Life expectancy will increase beyond 100 years. (20)
• There will be a just and prosperous order in society (absence of war and oppression.) (21-24)
• Nature itself will be altered into a more peaceful order. (25)

The New Testament version of the new creation expands this vision even further. In the New Testament, God makes his dwelling with humankind and there is eternal life. But it seems to me that if we look at the features of shalom in this Isaiah, we can get a good sense of whether or not the world is moving in the right direction.

Especially interesting about this Isaiah passage is the direct reference to infant mortality rates and life expectancy. Social scientists frequently turn to these measures for an overall sense of societal welfare. Why? These two indicators serve as indirect indicators of other societal realities. Many other social variables (i.e., adequate food, health care, environment, social stability, healthy social institutions, low crime) must be positive in order for these two variables to be positive as well.

What is particularly interesting is that every time I hear sermons on this passage, the emphasis is on the declining state of shalom in our world. One sermon I heard a few years back lamented rising inequality, AIDS, poverty in Africa, wars in Iraq and Afghanistan, and polar bears drowning due to melting ice (the last one was in the prayer of confession.) In my Presbyterian tradition, the prayers of confession frequently include lament of our greed and threatened destruction of the plant. I routinely read theologians on social media who decry "neoliberalism" and the deepening dystopia into which it is leading our planet. Public theologian Brian McLaren characterizes the present world order as a “suicide machine.” Is this an accurate assessment?

The most common trait I find in these assessments is that they are usually thoroughly subjective. They are without context and without awareness of empirical realities. Do not misread me here. I am not saying we are without need of confession. Evil is at work in the world and within us. But what if we collectively found a way to double life expectancy, make infant mortality rare, virtually eliminate extreme poverty, reduce global income inequality, and radically reduce the number of deaths due to war. Would we not celebrate? Yes. The historically reality is that all things have happened or are on the way to happening! Yet I do not believe I have ever heard a sermon extolling and celebrating the profound and unprecedented improvements we have seen in global well-being.

I want to offer some thoughts on how we might measure shalom, at least from the perspective of physical and material well-being. I'll write several posts in the coming days that look at key indicators. As you will see, my conclusion is that are we are living in an era of unprecedented expansion of global shalom.

That is in not say we are at some Francis Fukuyama-like “End of History” moment, but the idea that global well-being is in decline is indefensible. Unprecedented positive change is underway and has been for some time. Yet there are still more than billion barely touched by these world events. There is so much more that needs to happen. We have learned a great deal and need to learn a great deal more. In my estimation, the biggest threats to continuation of these advances are radical populist movements from the right and left, disconnected from facts and history. We need to be informed about the true state of the world before we go about joining movements to "fix" it. We need to lift up achievements as morale builders and learn lessons from successes as we press ahead on the journey.

I hope you will join me for some conversation.

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