International Financial Organizations France & Poland
International Financial Organizations France & Poland
France and Poland are found within the Northern hemisphere of the globe. Both countries engage in trade of manufactured commodities, agricultural products and other items. Before either can be selected as a preferred exporting country, the economic status should be evaluated. In measuring the economic development of these two countries, France and Poland, the two reliable measurement strategies that will be relevant will be using the Human Development Index (HDI) and the Gross National Product (GNP).
Gross National Product (GNP)
Gross National Product (GNP) refers to the market value of the goods and services that were produced by the labour force of a country. GNP relates to the allocation of production according to ownership. It covers both the increase in the quantity of goods and services as well as the improvements in the quality of these products.
The estimated Gross National Product of France as at 1 June 2012 was US $2,749,821. The GNP per capita as at 2010 stood at 35854 dollars. The country engages in trade with her neighbors as well as other foreign locations. France is part of the European Union (EU), the supranational organization that controls free trade within Europe. France has a mixed economy that consists of a balance between the states’ corporations and private businesses with the state controlling the vital sectors like transport, telecommunications and electricity. France also takes part in international trade (Friedman, 2006).
In the global ranking, France is rated as the sixth largest exporter and the fourth largest importer of processed goods. A huge chunk of the country’s economy is held by financial institutions particularly banks, financial services and insurance firms. France also contributes greatly to the world food reserves and distribution. Within most of rural France in Bordeaux and other area, wheat is planted in large tracts of fertile lands. Some of the agricultural products exported by France include poultry, wheat, beef and pork. France is also famous for its wine production. In this regard, the EU gives the country agricultural subsidies that assist the French commercial farmers who make up about 3.5% of the total population (Brezina, 2012).
Poland’s economy has been ranked as one of the healthiest in the world. Poland has very little private debts, strong local market as well as having multiple export sectors. In fact, Poland was one of the states that did not go through the global recession completely. In terms of financial institutions, Poland contains numerous banks that have dominated most of Eastern and Central Europe. Poland is also involved in agricultural promotion for export purposes. The advantageous position in which Poland’s economy is makes it a good example of a successful economic story (Lazear, 1997).
Human Development Index (HDI)
Human Development Index is a measure used to categorize states according to their levels of human development. This approach at analyzing a country’s economic development came up in the late 19th century when many economists realized that economic growth was not the only criteria by which states could be assessed. The main issue for economists stemmed not from the degree of growth but from what type of growth was taking place in states. The main components of the Human Development Index include life expectancy, literacy and real GDP per person. The other components included urbanization levels, nutrition, mortality rates and general living standards.
Currently France has been ranked at 20 in the HDI international ranking of all states globally. In terms of health, France has a very low child mortality rate of four that signifies the high maternal health standards maintained by the state. The life expectancy of the normal French citizen is currently 81 that again show the state’s concern for the aged population. Overall, the government has contributed greatly to the public spending on the health sector with about 8.7% of the Gross Domestic Product (GDP) going to public health. Globally, this amount of contribution towards health is significant as France lies in the 20th position as one of the states that allocates huge amounts to public hospitals and institutions.
The education levels in France are high with the country having a high adult literacy rate, The combined enrolment of males and females into schools stood at 94.5% and which was again gender sensitive. Just like Poland, France has ensured that none of her citizens lives below the poverty line of $1.25 per day. France passed the multidimensional poverty index by ensuring that no one was impoverished. The deprivation rate of French citizens is similarly zero (Salkind, 2011).
Poland also exhibits a high level of concern on public health. The state has provided about 4.6 % of its GDP towards improving and maintaining public health facilities. This may be lower than that of France even with Polish citizens having an average life expectancy of 76 and a child mortality of seven. Overall, Poland also has high health standards. The literacy levels in Poland are also very high with about 99.5 % of the population passing the literacy criteria. This population includes both males and females. The gender equality is also reflected in the 88% enrolment of people in the education system.
The poverty levels in Poland are also very surprising. The government has ensured that there are absolutely no citizens living below the poverty line that was set by UN at $ 1.25 per day (Salkind, 2011).
Brezina, C. (2012). Understanding the gross domestic product and the gross national product. New York, NY: Rosen Pub.
Friedman, B. M. (2006). The moral consequences of economic growth. New York: Knopf.
Lazear, E. P. (1997). Economic transition in Eastern Europe and Russia: Realities of reform. Stanford, Calif: Hoover Institution Press.
Salkind, N. J. (2011). Encyclopedia of human development. Thousand Oaks, Calif: Sage Publications.