ASi" kUCTURE FlOR DEVELOPMENT

.;~~3
Lion for Economic Cooperation and Development stiU be using the recommendations of Revision 3 for
(OECD).
the next few years. Estimates are obtained from na-
The ICP figures reported in Table 30 are prelimi- tional sources, sometimes reaching the World Bank
nary and may be revised. The United Nations and -thrugh other international agencies but more often
its regional economic comnuissions, as well as other collected during World Bank staff missions.
international agencies, such as the European Com- World Bank staff review the quality of national
mission (EC), the OECD, and the World Bank, are accounts data and in some instances, through misworking
to improve the methodology and to extend sion work or technical assistance, help adjust naannual
purrhasing power comparisons to all coun- tional series. Because of the sometimes linited
tries. However, exchange rates remain the only gen- capabilities of statistical offices and basic data prob
erally available means of converting CGNP from na- lems, strict international comparability cannot be
tional currencies to US. dollars.
achieved, especially in economic activities that are
Avenige annul rnte of inflation is measured by the difficult to measure, such as parallel market transacgrowth
rate of the GDP implicit deflator for each of tions, the informal sector, or subsistence agriculhtre
the periods showrL The CDP deflator is first calcu- GDP measures the total output of goods and serlated
by dividing, for each year of the period, the vices for final use produced by residents and nonvalue
of GDP at current values by the value of GDP residents, regardless of the allocation to domestic
at constant values, both in national currncy. The and foreign claims. It is calculated without maling
least-squares method is then used to calculate the deductions for'depredation of "manmade" assets or
growth rate of the GDP deflator for the periodL This depletion and degadation of natural resources. Almeasure
of inflation, like any other, has limitations. though the SNA envisages estimates of GDP by in-
For some purposes, however, it is used as an indica- dustrial origin to be at producer prices, many countor
of inflation because it is the most broadly based tries stil report such details at factor cost
measure, showing annual price movements for all International comparability of the estimates is afgoods
and services produced in an economy.
fected by differing country practices in valuation
Life expectancy at birth indicates the number of systems for reporting value added by production
years a newborn infant would live if prevailing pat- sectors. As a partial solution, GDP estimates are
tens of mortality at the time of its birth were to stay shown at purchaser values if the components are on
the same throughout its life Figures are World Bank this basis, and such instances are footnoted Howesnmates
based on data from the U.N. Population ever, for a few countriesin Tables 2 and 3, GDP at
Division, the U.N. Statistical Office, and national purchaser values has been replaced by GDP at facstatistical
offices.
tor cost.
Adult illiteracy is defined here as the proportion The figures for GDP are U.S. dollar values conof
the population over the age of fifteen who cannot, verted from domestic currencies using single-year
with understanding, read and write a short;, simple official exchange rates. For a few countries where
statement on their everyday life- This is only one of the official exchange rate does not reflect the rate efthree
widely accepted definitions, and its applica- fectively applied to actual foreign exchange ransaction
is subject to qualifiers in a number of countries. tions, an alternative conversion factor is used (and
The data are from the illiteracy estimates and projec- reported in the World Tables). Note that this table
tions prepared in 1989 by the UN. Educational, Sci- does not use the tree-year averaging technique apentific,
and Cultural Organization (UNESCO). plied to GN- per capita in Table 1.
The summary measures for GNP per capita, life Agriculettnr covers forestry, hunting, and fishing
expectancy, and adult illiteracy in this table are as well as agriculture In developing countries with
weighted by population. Those for average annual high levels of subsistence farming, much agriculrates
of inflation are weighted by the 1987 share of tural production is either not exchanged or not excountry
GDP valued in current US. dollars
changed for money. This increases the difficulty of
measuring the contribution of agriculture to GDP
Tables 2 and 3. Growth and structure of
and reduces the reliability and comparability of
production
such numbers.
Indistry comprises value added in mining; manu-
Most of the definitions used are those of the U.NJ's facturng (also reported as a separate subgroup);
A System of National.Accounts (SNA), Series F, No.2, construction; and electricity, water, and gas. Value
Revision 3. Revision 4 of the SNA wtas completed. added in all other branches of economic activity, inonly
in 1993, and itis liely that many countnes will duding imputed bank service charges, import du-