Foreword v
acknowledgments vi
Preface vii
Partners xii
Users guide xx
1. World view
Introduction 1
Millennium Development Goals,
targets, and indicators 18
Tables
1.1 Size
of the economy 20
1.2 Millennium
Development Goals: eradicating poverty and improving lives 24
1.3 Millennium
Development Goals: protecting our common environment 28
1.4 Millennium
Development Goals: overcoming obstacles 32
1.5 Women
in development 34
1.6 Key
indicators for other economies 38
Text figures, tables, and boxes
goal 1 Poverty
rates are falling, but progress has been uneven 2
Country by country progress on
poverty 3
Malnutrition rates are predicted to
fall everywhere—except in Sub-Saharan Africa 3
Malnutrition—a persistent problem
3
goal 2 More
children everywhere are completing primary school 4
Country by country progress toward
universal primary education 5
A long march to literacy 5
Patterns of school attendance 5
goal 3 More
girls in school, but many countries have missed the 2005 target 6
Country by country progress toward
equal enrollment 7
Degrees of difference 7
Wealth, gender, and location make a
difference 7
goal 4 Improving
the odds for children 8
Country by country progress toward
reduced child mortality 9
Prevention comes first 9
Cruel differences 9
goal 5 Mothers
at risk in Africa and South Asia 10
Country by country progress in
providing skilled care at births 11
Decreasing risk of young motherhood
11
Poor women need reproductive health
services 11
goal 6 As
the hiv/aids epidemic matures, the death toll keeps rising 12
The hiv epidemic can be reversed 13
Tuberculosis rates on the rise or
falling slowly 13
Malaria is a leading killer in Africa 13
Poor children bear the burden of
malaria 13
goal 7 Water
and sanitation—basic services needed by all 14
Country by country progress toward
access to water . . . 15
. . . and to sanitation 15
Forests falling 15
Fuel for climate change—high
carbon dioxide emitters 15
goal 8 Many
sources and many patterns 16
Official development assistance is
rising, but still too little 17
Tariffs remain high on poor
countries’ exports 17
Debt service is falling, but more
relief is needed 17
New technologies are spreading
quickly 17
1.1a Developing
countries produce slightly less than half the world’s output 23
1.2a Location
of indicators for Millennium Development Goals 1–5 27
1.3a Location
of indicators for Millennium Development Goals 6–7 31
1.4a Location
of indicators for Millennium Development Goal 8 33
2. People
Introduction 41
Tables
2.1 Population
dynamics 46
2.2 Labor
force structure 50
2.3 Employment
by economic activity 54
2.4 Child
labor 58
2.5 Unemployment
62
2.6 Wages
and productivity 66
2.7 Poverty
70
2.8 Distribution
of income or consumption 76
2.9 Assessing
vulnerability and security 80
2.10 Education
inputs 84
2.11 Participation
in education 88
2.12 Education
efficiency 92
2.13 Education
completion and outcomes 96
2.14 Health
expenditure, services, and use 100
2.15 Disease
prevention coverage and quality 104
2.16 Reproductive
health 108
2.17 Nutrition
112
2.18 Death
risk factors and public health challenges 116
2.19 Mortality
120
Text figures, tables, and boxes
2a total
fertility rates by region, 1970, 1980, and 2004 42
2b Family
planning and the fertility transition 42
2c Population
growth rates by region (%) 42
2d Total
fertility rates in selected Sub-Saharan countries, 2004 42
2e Desired
family size in selected countries in Sub-Saharan Africa and South
Asia, latest year
available 43
2f Contraceptive
method mix, selected countries, 2000–04 43
2g Sub-Saharan Africa’s delayed demographic transition 44
2h Projected
fertility rates in selected African regions 44
2i Population
projections—trends and uncertainty 45
2j The
demographic divide: Nigeria and Japan 45
2.4a Of
children who work, some combine work and schooling 61
2.7a Regional
poverty estimates 73
2.10a Estimated
impact of hiv/aids on education in three Sub-Saharan countries, 2005 87
2.14a In
Uganda most births in rural areas take place at home 103
2.15a Deaths
from diarrhea can be sharply reduced with improvements in drinking water and
sanitation 107
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3. Environment
Introduction 125
Tables
3.1 Rural
population and land use 130
3.2 Agricultural
inputs 134
3.3 Agricultural
output and productivity 138
3.4 Deforestation
and biodiversity 142
3.5 Freshwater
146
3.6 Water
pollution 150
3.7 Energy
production and use 154
3.8 Energy
efficiency and emissions 158
3.9 Sources
of electricity 162
3.10 Urbanization
166
3.11 Urban
housing conditions 170
3.12 Traffic
and congestion 174
3.13 Air
pollution 178
3.14 Government
commitment 180
3.15 Toward
a broader measure of savings 184
Text figures, tables, and boxes
3a More
than three-fourths of the 1.4 billion people living on fragile lands are in Asia and Africa 126
3b Water
withdrawal is skewed toward agriculture in every developing region 126
3c Many
more people lack access to an improved water source in rural than in urban areas 127
3d Sustainable
management of forests is spreading 128
3e Use
of fossil fuels continues to rise faster than that of other sources of energy 128
3f High-income
countries are the leading source of carbon dioxide emissions 128
3g Sub-Sarahan Africa has the highest death rate from
respiratory disease 129
3h More
efficient use of traditional biomass is improving the lives of women 129
3i Use
of renewable sources of energy is growing, but is still small 129
3.1a Ten
countries with the largest forest area, 2005 133
3.1b Five
countries had more than half the world’s forest in 2005 133
3.2a Irrigated
lands have increased in all income groups and most regions, putting further pressure on
water resources 137
3.3a The
10 countries with the highest cereal yield in 2002–04—and the 10 with the
lowest 141
3.5a Agriculture
uses 70 percent of freshwater globally 149
3.6a Emission
of organic water pollutants declined in most countries from 1990 to 2003 153
3.7a In
2003 high-income economies, with 15 percent of world population, used 52 percent of world
energy—and produced 41 percent 157
3.8a The
five largest producers of carbon dioxide . . . 161
3.8b .
. . differ significantly in per capita emissions 161
3.9a Electricity
sources have shifted since 1990 . . . 165
3.9b .
. . with a more profound shift in low-income countries 165
3.10a The
urban population in developing countries has increased substantially since 1990 169
3.11a Selected
housing indicators for smaller economies 173
3.12a The
15 countries with the fewest passenger cars per 1,000 people in 2003—and the 15 with the
most 177
4. Economy
Introduction 189
Tables
4.a Recent
economic performance 192
4.1 Growth
of output 194
4.2 Structure
of output 198
4.3 Structure
of manufacturing 202
4.4 Structure
of merchandise exports 206
4.5 Structure
of merchandise imports 210
4.6 Structure
of service exports 214
4.7 Structure
of service imports 218
4.8 Structure
of demand 222
4.9 Growth
of consumption investment, and trade 226
4.10 Central
government finances 230
4.11 Central
government expenses 234
4.12 Central
government revenues 238
4.13 Monetary
indicators 242
4.14 Exchange
rates and prices 246
4.15 Balance
of payments current account 250
4.16 External
debt 254
4.17 Debt
ratios 258
Text figures, tables, and boxes
4a Fast
growing—and backsliding—economies in 2004 190
4b Inflation,
median annual growth of GDP deflator (%) 190
4c Real
interest rates (%) 190
4d Accelerating
regional growth 190
4e Raising
demand for energy supplies 191
4f China’s
data revision 191
4.3a Manufacturing
growth trends for selected Sub-Saharan countries 205
4.4a Developing
economies’ share of world merchandise exports continues to increase 209
4.5a Top
10 exporters in Sub-Saharan Africa in 2004 213
4.6a Top
10 developing country exporters of commercial services in 2004 217
4.7a The
mix of commercial service imports is changing 221
4.9a Gross
capital formation and government consumption are both on the rise in Sub-Saharan Africa 229
4.10a Selected
developing countries with large cash deficits 233
4.11a Interest
payments are a large part of government expenditure for some developing
economies 237
4.12a Rich
countries rely more on direct taxes 241
4.15a Top
15 countries with the largest current account surplus, and top 15 countries with the
largest current account deficit in 2003 253
4.16a GDP
is outpacing external debt in Sub-Saharan countries 257
4.17a The
debt burden of Sub-Saharan countries has been falling since 1995 261
5. States and Markets
Introduction 263
Tables
5.1 Private
sector in the economy 266
5.2 Investment
climate 270
5.3 Business
environment 274
5.4 Stock
markets 278
5.5 Financial
access, stability, and efficiency 282
5.6 Tax
policies 286
5.7 Defense
expenditures and arms transfers 290
5.8 Transport
services 294
5.9 Power
and communications 298
5.10 The
information age 302
5.11 Science
and technology 306
Text figures, tables, and boxes
5a Africa had the lowest business environment reform intensity
in 2004 264
5b Rural
access index for selected low-income countries (% of rural population) 265
5.6a Excessive
paperwork adds to the time that businesses spend complying with taxes 289
5.10a Europe
and Central Asia had the highest Internet use among developing country regions in
2004 305
6. Global links
Introduction 311
Tables
6.1 Integration
with the global economy 316
6.2 Growth
of merchandise trade 320
6.3 Direction
and growth of merchandise trade 324
6.4 High-income
trade with low- and middle-income economies 327
6.5 Primary
commodity prices 330
6.6 Regional
trade blocs 332
6.7 Tariff
barriers 336
6.8 Global
private financial flows 340
6.9 Net
financial flows from Development assistance Committee members 344
6.10 Aid
flows from Development assistance Committee members 346
6.11 Aid
dependency 348
6.12 Distribution
of net aid by Development assistance Committee members 352
6.13 Net
financial flows from multilateral institutions 356
6.14 Movement
of people 360
6.15 Travel
and tourism 364
Text figures, tables, and boxes
6a Trade
spurs growth and growth spurs trade 312
6b Foreign
direct investment is the largest source of external finance for developing countries 313
6c Aid
is the largest source of external finance for Sub-Saharan Africa
313
6d New
promises of aid and debt relief 314
6e Immigrant
populations are expanding in high-income economies 315
6f Immigrants
in oeCD countries are better educated 315
6.1a Trade
in services is becoming increasingly important 319
6.2a Exports
are growing in developing countries 323
6.3a Triangular
trade in manufactures between China, selected other large east Asian economies,
and the United States and Japan 326
6.4a Growing
trade between developing countries 329
6.6a Regional
trade agreements are proliferating 335
6.8a Which
developing countries received the most net inflows of foreign direct investment in 2004?
343
6.9a Who
were the largest donors in 2004? 345
6.10a Official
development assistance from non-DaC donors, 2000–04 ($ millions) 347
6.11a More
aid flows to developing countries 351
6.12a The
flow of bilateral aid from DaC members reflects global events and priorities 355
6.13a Maintaining
financial flows from the world Bank to developing countries 359
6.14a Officially
recorded remittance flows are surging 363
6.15a International
tourist arrivals reached an all-time high in 2004 367
Documents
Primary data documentation 369
Statistical methods 378
Credits 380
Bibliography 382
Index of indicators 389
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