The document compares productivity, standard of living, and other economic indicators between developed and developing countries using data about the UK, Mexico, India, and Mali. Productivity is higher in developed countries due to greater investments in technology, education, infrastructure, and other factors. As a result, standards of living are significantly higher in developed nations as measured by GDP per capita, life expectancy, literacy rates, and other quality of life metrics. Improving productivity through investments in physical and human capital can raise standards of living overall.

1. Productivity and
Standard of Living
Prepared by:
Rabin Bhandari

2. A typical family with all their possessions in
the U.K., an advanced economy
Real GDP per capita: $36,600
Life expectancy: 80.7 years
Adult literacy: 99%

3. A typical family with all their possessions in
Mexico, a middle income country
Real GDP per capita: $14,800
Life expectancy: 76 years
Adult literacy: 86%

4. A typical family with all their possessions
in India
Real GDP per capita: $3830
Life expectancy: 65.5 years
Adult literacy: 74.04%

5. A typical family with all their
possessions in Mali, a poor country
Real GDP per capita: $1,100
Life expectancy: 53 years
Adult literacy: 31%

6. Productivity
• Productivity: Output/Input
• Efficiency in industrial production.
• Ratio of amount produced and the amount of any resources used.
Productivity
1. Technology
2. Capital deepening
3. Educated and skilled workers
4. Training
5. Others: Loyalty to work,
motivation
Resources used
1. Land
2. Material
3. Plant and machine tools
4. Human Capital

7. Developing Countries
• Low standard of living
• Low productivity
• Less human capital
• Less physical capital
• Traditional economies
(subsistence farming-not
to trade)
• Human Resources( less
skilled workers, education
and literacy rates)

8. Developed countries
International Monitory fund(2010-2012)
What factors improve
productivity?
Investments in physical
capital, human capital
(education, health and
training) and technology all
improve productivity and
ultimately raise a nation’s
standard of living.

9. Standard of Living
• Meaning: Degree of material well being available to a person
or class or community which is necessary for sustaining and
enjoying life.
• Requirements:
Standard of Living
1. Food
2. Clothing
3. Shelter
4. Security
5. Essential Services
Productivity
1. Technology
2. Capital deepening
3. Educated and skilled workers
4. Training
5. Others: Loyalty to work, motivation

10. Standard of Living
• More and cheaper food by increasing the productivity
of agriculture.
• More and cheaper clothing and shelter by increasing
the productivity of industry.
• More security and essential services by increasing all
productivity and earning power, leaving more from which to
pay for them.
Production Vs Productivity?

11. Human Development Index
Source: http://lifestyle9.com/worlds-best-country-to-live-in-2013/
World’s Best Countries To Live
Countries with best
quality of life
1. Norway
2. Australia
3. USA
4. Netherlands
5. Germany
6. New Zealand
7. Ireland
8. Sweden
9. Switzerland
10. Japan
11.Canada
12.South Korea
13.Hong Kong
source: insidermonkey.com

12. Facts
• China is still not a great place to be born.
• Inequality plus poverty is much worse than just plain
poverty.
• Poverty, violence and/or lack of freedom define the worst
countries to be born into.
• The best countries to be born in are
small, peaceful, homogenous, liberal democracies.
• Money can't buy you happiness, though it will get you 2/3 of
the way.

13. References
 Production and Operations Management, Chunawalla & Patel,
Himalaya Publishing House
 http://www.jstor.org/discover/10.2307/2519196?uid=373825
6&uid=2&uid=4&sid=21102728138713
• CSLS-Industry Canada Conference on Canada in the 21st
Century: Richard G. Harris Simon Fraser University and CIAR
• http://lifestyle9.com/worlds-best-country-to-live-in-
2013/
• www.insidermonkey.com
Thank