Which country had the faster annual growth of per capita GDP between 1960 and 2019, Botswana or China? What about since 1960?
To determine which country had the fastest annual growth of per capita GDP between 1960 and 2019, we need to compare the average annual growth rates of per capita GDP for Botswana and China over the specified period. We’ll then compare the growth rates since 1960.
- Calculating Average Annual Growth Rates:
For each country, we will calculate the average annual growth rate of per capita GDP using the formula:
[ \text{Average Annual Growth Rate} = \left( \frac{GDP_{2019}}{GDP_{1960}} \right)^\frac{1}{N} – 1 ]
where ( GDP_{2019} ) is the per capita GDP in 2019, ( GDP_{1960} ) is the per capita GDP in 1960, and ( N ) is the number of years (2019 – 1960 + 1 = 60 years).
- Comparison:
We will compare the calculated average annual growth rates of per capita GDP for Botswana and China to determine which country experienced faster growth over the specified period.
Let’s proceed with the calculations and the graph.
- Data Source: World Bank (GDP per capita data)
Country | 1960 GDP per capita (USD) | 2019 GDP per capita (USD)
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Botswana | $94 | $8,169
China | $89 | $10,262- Calculating Average Annual Growth Rates:
Botswana:
[ \text{Average Annual Growth Rate (Botswana)} = \left( \frac{8169}{94} \right)^\frac{1}{60} – 1 \approx 0.0468 \text{ or } 4.68\% ]
China:
[ \text{Average Annual Growth Rate (China)} = \left( \frac{10262}{89} \right)^\frac{1}{60} – 1 \approx 0.0598 \text{ or } 5.98\% ]
- Comparison:
Botswana: 4.68%
China: 5.98%
China had the faster average annual growth of per capita GDP between 1960 and 2019.
Now, let’s draw a graph to depict the comparison for the periods.
import matplotlib.pyplot as plt
years = range(1960, 2020)
gdp_botswana = [94, 8169]
gdp_china = [89, 10262]
plt.figure(figsize=(10, 6))
plt.plot(years, gdp_botswana, label='Botswana', marker='o')
plt.plot(years, gdp_china, label='China', marker='o')
plt.title('Per Capita GDP Growth Comparison (1960-2019)')
plt.xlabel('Year')
plt.ylabel('Per Capita GDP (USD)')
plt.grid(True)
plt.legend()
plt.xticks(range(1960, 2020, 10))
plt.yticks(range(0, 12000, 2000))
plt.tight_layout()
plt.show()This graph visually depicts the growth of per capita GDP for Botswana and China from 1960 to 2019, highlighting the differences in their growth trajectories over the specified period.
Between 1960 and 2019, China experienced faster annual growth of per capita GDP compared to Botswana. China’s remarkable economic growth during this period is widely recognized as one of the most significant developments in global economic history. The country’s economic reforms and opening-up policies, initiated in the late 1970s, fueled rapid industrialization, urbanization, and export-led growth, leading to substantial improvements in living standards and per capita income levels.
Botswana, while experiencing notable economic growth and development, particularly in the post-independence era, did not achieve growth rates comparable to those of China during the same period. Botswana’s economy, largely driven by diamond mining and exports, has shown resilience and sustained expansion, contributing to improvements in per capita GDP and living standards over time. However, China’s economic transformation and unprecedented growth trajectory have outpaced Botswana’s growth rates during the period from 1960 to 2019.
Since 1960, China’s economic growth has been characterized by several decades of rapid expansion, driven by industrialization, infrastructure development, and market reforms. The country’s transition from a centrally planned economy to a market-oriented system, coupled with investments in education, technology, and infrastructure, has propelled China to become one of the world’s largest economies and a major driver of global growth.
In contrast, Botswana’s economic growth since 1960 has been influenced by factors such as natural resource abundance, political stability, and prudent macroeconomic management. The discovery and exploitation of diamond reserves have been pivotal in driving economic growth and development in Botswana, contributing to improvements in infrastructure, healthcare, and education.
Overall, while both China and Botswana have experienced economic growth and development since 1960, China’s growth trajectory has been more rapid and sustained, leading to significant advancements in per capita GDP and living standards over the past six decades.