Economic Growth Rates of China and Selected Regions of the World, 1950 1976 (%)

Table 2.1 Economic Growth Rates of China and Selected Regions of the World, 1950—1976 (%)

GDP Per capita GDP

China (official) 6.7 4.5 China (Maddison) 4.7 2.6

Western Europe 4.5 3.8 Western Offshoots 3.8 2.3 Eastern Europe 4.6 3.3 Latin America 5.3 2.6 East and South Asia 4.6 2.2 West Asia 7.6 4.6 Africa 4.4 1.9 World 4.7 2.7

Sources: Angus Maddison, The World Economy: Historical Statistics, Paris: OECD (2003); State Statistical Bureau of China, Statistical Yearbook of China, Hong Kong: Economic Information & Agency (1985). Table 2.2 Life Expectancy at Birth in China and Selected Countries, 1960—2000 Life expectancy at birth (years) Changes in life expectancy 1960 1980 2000 1960-1980 1980-2000 China 36.3 66.8 70.3 30.5 3.5

Argentina 65.2 69.6 73.8 4.4 4.2 Australia 70.7 74.4 79.6 3.7 5.2 Brazil 54.8 62.6 69.7 7.8 7.1 Canada 71.1 74.7 79.2 3.6 4.5 France 70.2 74.2 78.9 3.9 4.7 India 44.3 54.2 62.9 9.8 8.7 Indonesia 41.5 54.8 65.8 13.3 11.0 Japan 67.7 76.1 81.1 8.4 5.0 South Korea 54.2 66.8 75.9 12.7 9.1 Malaysia 54.3 66.9 72.6 12.6 5.7 Mexico 57.3 66.8 74.0 9.4 7.2 Turkey 50.5 61.4 70.4 10.9 9.0 United States 69.8 73.7 77.0 3.9 3.3

East Asia/Pacific 38.8 64.3 69.1 25.5 4.8 High-income 68.9 73.8 78.0 4.8 4.2 Middle-income 44.9 65.6 69.1 20.7 3.5 Low-income 43.9 53.2 58.3 9.3 5.1 World 50.2 62.6 66.7 12.3 4.1 Source: World Bank, World Development Indicators Online. Website: (retrieved September 15, 2007). Table 2.3 Adult Illiteracy Rate in China and Selected Countries, 1970—2000 (As percentage of population that ages 15 and above) Illiteracy Rate (%) Changes in illiteracy rate 1970 1980 2000 1970-1980 1980-2000 China 47.1 32.9 9.1 -14.2 -23.8

Brazil 31.6 24.0 13.6 -7.6 -10.4 India 66.9 59.0 39.0 -7.9 -20.0 Indonesia 43.9 31.0 9.6 -13.0 -21.4 Malaysia 41.9 28.8 11.3 -13.1 -17.5

East Asia / Pacific 43.6 30.5 9.2 -13.1 -21.3 Middle-income 35.7 26.4 10.0 -9.3 -16.4 Low-income 60.8 53.2 39.2 -7.6 -14.0 Source: World Bank, World Development Indicators Online. Website: (retrieved September 15, 2007). Table 2.4 Primary School Enrollment in China and Selected Countries, 1970—2000 (As percentage of population at appropriate ages) Enrollment Rate (%) Changes in enrollment 1970 1980 2000 1970-1980 1980-2000 China 90.9 112.6 117.7 21.7 5.1

Australia 114.8 112.0 98.7 -2.7 -13.3 Brazil 119.2 97.8 150.7 -21.3 52.9 France 116.9 111.1 106.2 -5.8 -4.9 India 77.8 83.3 98.8 5.5 15.5 Indonesia 80.0 107.2 110.9 27.2 3.7 Japan 99.5 101.1 101.1 1.6 0.0 South Korea 103.4 109.9 98.0 6.5 -11.9 Malaysia 88.7 92.6 97.1 3.9 4.5 United States 87.6 99.3 100.5 11.7 1.2

East Asia / Pacific 89.4 110.6 113.6 21.2 3.0 High-income 99.9 102.4 101.3 2.5 -1.1 Middle-income 93.8 106.2 111.8 12.3 5.6 Low-income 66.0 82.9 89.5 16.9 6.6 World 85.4 96.9 100.9 11.5 4.0 Source: World Bank, World Development Indicators Online. Website: (retrieved September 15, 2007). Table 2.5 Secondary School Enrollment in China and Selected Countries, 1970—2000 (As percentage of population at appropriate ages) Enrollment Rate (%) Changes in enrollment 1970 1980 2000 1970-1980 1980-2000 China 24.3 45.9 62.9 21.6 17.0

Australia 82.1 71.2 158.8 -11.0 87.6 Brazil 25.9 33.5 104.2 7.6 70.7 France 73.4 84.6 110.0 11.1 25.4 India 24.2 29.9 47.9 5.7 18.0 Indonesia 16.1 29.0 54.9 12.9 25.9 Japan 86.6 93.2 102.1 6.6 8.9 South Korea 41.6 78.1 97.6 36.5 19.5 Malaysia 34.2 47.7 69.3 13.5 21.6 United States 83.7 91.2 94.0 7.5 2.8

East Asia / Pacific 23.8 43.3 62.0 19.5 18.7 High-income 75.1 86.3 100.7 11.2 14.4 Middle-income 27.4 51.1 71.0 23.7 19.9 Low-income 17.6 28.7 40.2 11.1 11.5 World 34.1 48.9 61.0 14.7 12.1 Source: World Bank, World Development Indicators Online. Website: (retrieved September 15, 2007). Figure 2.1 Share of World GDP, 1820-2000

0 0 0 0 0 0 0 0 0 0 0 2 4 6 8 0 2 4 6 8 0 8 8 8 8 9 9 9 9 9 0 1 1 1 1 1 1 1 1 1 2

W estern Europe W estern Offshoots Eastern Europe Latin America Africa China Rest of Asia

Source: Angus Maddison, The World Economy: Historical Statistics, Paris: OECD (2003). Figure 2.2 Index of Per Capita GDP, 1820-2000 World Average = 100 500

0 0 0 0 0 0 0 0 0 0 0 2 4 6 8 0 2 4 6 8 0 8 8 8 8 9 9 9 9 9 0 1 1 1 1 1 1 1 1 1 2 W estern Europe W estern Offshoots Eastern Europe Latin America Africa China Rest of Asia

Source: Angus Maddison, The World Economy: Historical Statistics, Paris: OECD (2003). Figure 2.3 China's Crude Death Rate, 1936-1980 Per thousand

0 0 5 0 5 0 5 0 5 0 5 0 3 3 4 4 5 5 6 6 7 7 8 9 9 9 9 9 9 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1

Old China New China Old Normal New Normal

Sources: The Nationalist Government reported that the nation-wide crude death rate was 27.6 per thousand in 1936 and 28.2 per thousand in 1938. See Tang Taiqing, “Renkou Zaishengchan Leixing de Liangci Zhongda Zhuanbian (Two Major Transformations in the Pattern of Demographic Reproduction).” Website: (retrieved September 1, 2007). The post-1949 data are from State Statistical Bureau of China, Statistical Yearbook of China, p. 83; Hong Kong: Economic Information & Agency (1984). Figure 2.4 China's Natural Disasters, 1950-1980 Million hectares of covered and affected areas 70

0 0 5 0 5 0 5 0 5 5 6 6 7 7 8 9 9 9 9 9 9 9 1 1 1 1 1 1 1

Covered Areas Affected Areas

Source: State Statistical Bureau of China, Statistical Yearbook of China, p. 190; Hong Kong: Economic Information & Agency (1984). Table 3.1 Distribution of Value Added in the Global Commodity Chain of a Talking Model of Globe for Children’s Study

Stages of the commodity chain Sale price at Value added at each Share of the total

each stage stage value added

(US $) (US $) (%)

U.S. retail company 88 16 21.1

U.S. manufacturing company 72 32 42.1

Hong Kong trade company 40 20 26.3

Guangdong trade company 20 5 6.6

Jiangsu / Guangdong producers 15 3 3.9

Primary costs 12 N.A. N.A.

Source: Ma Jiantang’s speech at the “Strategic Forum of Transnational Corporations in China.” Ma was the Deputy General Secretary of China’s State Economic and Trade

Commission (Shijie Ribao or The World Journal, December 15, 2002, p. A9). Table 3.2 Share of the World’s Total Current Account Surpluses or Deficits 1995—2006 (%)

1995-2000 2001-2005 2006

United States -77.8 -94.1 -89.1 Euro Area 14.9 5.9 0.8 Japan 37.6 22.9 17.8 United Kingdom -6.1 -5.9 -8.3 Other OECD 2.7 9.2 7.2 China 6.5 10.1 26.0 Asia (ex. China and Japan) 4.3 13.1 10.6 Africa and Middle East 0.9 15.4 24.9 Central and South America -16.1 0.6 5.4 Central and Eastern Europe 1.8 6.4 7.3

World (statistical discrepancy) 31.3 16.4 -2.5

Source: OECD, OECD Economic Outlook Database. Website: (retrieved October 15, 2007). Figure 3.1 World Economic Growth Annual Growth Rate (3 Year Averages), 1951-2006 0.07

0.06 0.05

0.02 0.01

0 0 5 0 0 5 0 0 5 5 5 0 5 0 6 6 7 8 9 0 5 5 7 8 9 0 1 9 9 9 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2

PPP Constant US$

Sources: Data for 1960—2006 are from World Bank, World Development Indicators Online. Website: (retrieved October 1, 2007). World economic growth rates measured by purchasing power parity are extended back to 1950 using data from Angus Maddison, The World Economy: Historical Statistics, Paris:

OECD (2003). Figure 3.2 Corporate Profitability Pretax Profit Rate, US 1950-2006 / China 1980-2005 0.25

0 0 5 0 5 0 5 0 5 0 5 0 5 0 5 6 7 8 8 0 5 6 7 9 9 0 1 9 9 9 9 9 0 9 9 9 9 9 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2

US China (industrial)

Sources: The US corporate profit rates are calculated using data from the US National Income and Product Accounts. Website: (retrieved October 15, 2007). The Chinese industrial profit rates are calculated using data from National Bureau of Statistics of China. Website: Website: (retrieved October 15, 2007). Figure 3.3 Property Income as Share of GDP Europe and Japan, 1960-2006 0.45

0.05 0 0 5 5 0 5 0 5 0 5 0 6 6 7 7 8 8 9 9 0 0 1 9 9 9 0 0 9 9 9 9 9 0 1 1 1 1 1 1 1 1 2 2 2 Japan Germany France Italy UK

Source: OECD, OECD Economic Outlook Database. Website: (retrieved October 15, 2007). Figure 3.4 Contribution to World Economic Growth (PPP) 3 Year Averages, 1976/1978-2006 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 5 5 0 0 0 0 5 5 7 8 9 0 1 8 9 0 9 9 9 9 9 0 0 0 1 1 1 1 1 2 2 2

US Eurozone China India

Source: World Bank, World Development Indicators Online. Website: (retrieved October 1, 2007). Figure 3.5 Contribution to World Economic Growth (Current US $) 10 Year Averages, 1966/1975-2006 0.5

0 5 0 5 0 5 0 5 0 7 8 9 1 8 9 0 0 9 9 9 0 9 9 0 0 1 1 1 1 1 2 2 2

US Eurozone China India

Source: World Bank, World Development Indicators Online. Website: (retrieved October 1, 2007).

Figure 3.6 US Foreign Debt and the World's Foreign Exchange Reserves (as Ratios to World Nominal GDP) 1980-2006 0.12

-0.04 0 5 0 5 0 5 0 8 8 9 9 0 0 1 9 9 9 9 0 0 0 1 1 1 1 2 2 2 US Net Debt World Reserves Low and Middle Income Res.

Source: World Bank, World Development Indicators Online. Website: (retrieved October 1, 2007). Figure 3.7 Real Oil Price and World Economic Growth 1950-2006 0.08 80 0.07 70 0.06 60 0.05 50 0.04 40 0.03 30 0.02 20 0.01 10 0 0 0 5 0 5 0 5 0 5 0 5 0 5 0 5 6 7 7 8 0 5 6 8 9 9 0 1 9 9 9 9 9 0 9 9 9 9 9 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2

World Economic Growth Real Oil Price (2006$ per barrel, right hand scale)

Sources: Data for world economic growth are from World Bank (see Figure 3.1) and data for oil prices are from The BP Statistical Review of World Energy 2007. Website: (retrieved December 15, 2007). Figure 3.8 Long-Term Variations of US Stock Prices S&P 500 Index Deflated by US GDP Deflator, 1871-2006 3

0 1870 1890 1910 1930 1950 1970 1990 2010

Stock Price Variation (Trend = 1)

Sources: Data for stock prices for the period 1949—2006 are from the US Economic Report of the President (2007). Website: (retrieved October 15, 2007). Stock prices from 1871 to 1949 are from Susan B. Carter et al., Historical Statistics of the United States: Earliest Times to the Present, Millennial Edition. New York: Cambridge University Press (2006). Figure 3.9 Macroeconomic Structure of the US Economy Share of GDP, 1960-2006 0.8

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

-0.1 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Private Consumption Private Investment Government Spending Net Exports

Source: The US National Income and Product Accounts. Website: (retrieved October 15, 2007). Figure 3.10 US Real Wage and Real Median Family Income Indices, 1964-2006/1977-2005

50 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Real Weekly Earnings Real Median Family Income

Source: The US Economic Report of the President (2007). Website: (retrieved October 15, 2007). Figure 3.11 US Financial Balances Private, Government, and Foreign Sector, % of GDP, 1960-2006

-8 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Private Sector Government Sector Current Account

Source: The US National Income and Product Accounts. Website: (retrieved October 15, 2007). Figure 3.12 Macroeconomic Structure of the Chinese Economy Share of GDP, 1980-2006 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 -0.1 0 5 0 0 5 5 8 8 9 0 0 9 9 9 9 9 0 0 1 1 1 1 2 2 Consumption Investment Net Exports Exports

Source: National Bureau of Statistics of China. Website: (retrieved October 15, 2007). Figure 3.13 China: Labor Income and Household Consumption Share of GDP, 1980-2005 0.55

0.3 0 5 0 5 0 5 8 8 9 9 0 0 9 9 9 9 0 0 1 1 1 1 2 2 Household Consumption Labor Income

Source: National Bureau of Statistics of China. Website: (retrieved October 15, 2007). Table 5.1 Ecological Footprint of the World’s Major Regions, 2003 (Global Hectares per Person)

Regions (countries) Eco-Footprint Eco-Footprint Bio-Capacity (Total) (Non-Energy)

China 1.6 0.84 0.8 India 0.8 0.54 0.4 Africa 1.1 0.84 1.3 Middle East and Central Asia 2.2 0.85 1.0 Asia and Pacific 1.3 0.71 0.7 Latin America and the 2.0 1.4 5.4 Caribbean North America 9.4 3.35 5.7 European Union 4.8 1.91 2.2 Rest of Europe 3.8 1.47 4.6 World 2.23 1.09 1.78

Source: World Wildlife Fund in the USA and Canada, Zoological Society of London, and Global Footprint Network, Living Planet Report 2006, pp. 28-37. Website: (retrieved January 15, 2007). Figure 5.1 Long-Term Movement of Nominal Interest Rates UK 1756-2006 / US 1857-2006 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 7 7 8 8 8 9 9 7 8 8 9 9 9 0 1 1 1 1 1 1 1 1 1 1 1 1 1 2

UK Yield on Consols US Corporate Bond Rate

Sources: The yields on British Consols are from Brian R. Mitchell, British Historical Statistics, p. 678, Cambridge: Cambridge University Press (1988) and the UK National Statistics Online (, retrieved December 1, 2007). The US interest rates of corporate AAA bonds are from Susan B. Carter et al., Historical Statistics of the United States, Millennial Edition, New York: Cambridge University Press (2006) and the US Economic Report of the President (2007) (Website: , retrieved December 1, 2007). Figure 5.2 Long-Term Movement of the Profit Rate UK 1855-2006, 10 Year Averages 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 8 8 9 9 9 9 9 9 8 8 9 9 9 9 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 Domestic National

Sources: Author’s calculations (see Appendix of Chapter 5 for data sources and construction). Figure 5.3 Long-Term Movement of the Profit Rate US 1890-2006, 10 Year Averages 0.35

0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 0 2 4 5 7 9 0 1 1 3 6 8 8 9 9 9 9 9 9 0 0 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1 2 2 US Profit Rate

Sources: Author’s calculations (see Appendix of Chapter 5 for data sources and construction). Figure 5.4 Economic Growth and Real Interest Rate US 1960-2006 0.1

-0.02 0 0 0 0 0 5 0 5 5 5 5 8 9 0 1 6 6 7 7 8 9 0 9 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 1 2 2 2

Growth Rate of Real GDP Real Corporate AAA Rate

Source: The US Economic Report of the President (2007). Website: (retrieved November 1, 2007). Figure 5.5 Share of World GDP, 1975-2006 0.24

0 5 0 5 0 5 0 5 0 7 8 8 9 9 0 0 1 9 9 9 9 9 0 0 0 1 1 1 1 1 2 2 2 US Eurozone Japan Russia Brazil India China

Source: World Bank, World Development Indicators Online. Website: (retrieved November 1, 2007). Figure 5.6 Long-Term Movement of the Output-Capital Ratio UK 1855-2006 / US 1850-2006, 10 Year Averages 1.2

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 8 8 9 9 9 9 9 8 8 8 9 9 9 9 9 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 UK US

Sources: Author’s calculations (see Appendix of Chapter 5 for data sources and construction). Figure 5.7 Long-Term Movement of the Profit Share UK 1855-2006 / US 1890-2006, 10 Year Averages 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 8 8 8 8 9 9 9 9 0 9 9 9 9 9 9 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 UK US

Sources: Author’s calculations (see Appendix of Chapter 5 for data sources and construction).