MEASURES OF A NATION'S ECONOMIC STRENGTH

1. Gross Domestic Product (GDP)

A nation’s strength is measured by the strength of its economy. In simplistic terms the economy refers to all the means that ensure the producing and using of goods and services that satisfy human wants. There are two measures of a nation’s economic wealth: the Gross Domestic Product (GDP) and the individual well-being of the citizens. The GDP is the total market value of all goods and services produced in a country in a year. Richer nations have higher GDPs than poorer ones. From year to year the GDPs of the countries of the world are compared, and these comparisons provide a measure of some economic success.

Ranked at 131st in terms of Gross National Product (GNP), Zambia is one of the poorest nations of the world with declining social indicators. For example, the standard of living is far lower than at independence and life expectancy at birth is only below forty years!

2. Individual Well-Being

A second measure of a nation’s wealth is the individual well-being of its citizens. While GDP figures are helpful in judging the overall growth of an economy, such figures by themselves tell little about the economic worth of the citizens.

The single most important measure of an individual well-being is the increased levels of income. And this is directly related to employment generation. To see whether individuals are well taken care of, simply look at the unemployment rate. For Zambia this is about 50 per cent, which pauses a big challenge. A good life in terms of individual well-being will generally lead to home-ownership, property ownership and a relatively acceptable level of luxurious living. When these factors are good people will naturally invest more in their future.

Basic things like refrigerators, colour televisions, microwave ovens, clothes washers, cordless phones, answering machines, personal computers and cars; can be general indicators of individual well-being. Coupled with these are the individuals’ access to good health care, education and life-enriching activities.