The Adjusted Net National Income Per Capita significantly impacts the average pay that working citizens will receive as salary in a given working year in a country. It is basically the net national income divided by a country's total population number. Therefore, Adjusted Net National Income (ANNI) is actually just Gross National Income less the use of set capital and natural resource reductions. Finding the per capita income gives a picture of the standards of living and wealth of a country's populace. This set of data in turn could reveal a country's development stage. It also enables comparisons between the wealth of different nations.
What is Net National Income Per Capita?
Adjusted Net National Income takes into account natural resources and fixed capital depletion. In calculating for the lowest adjusted net national income per capita, several factors are included along the way in the process. The Gross Domestic Product (GDP) minus the factor incomes of foreign citizens results in the Gross National Income (GNI). In turn, GNI minus fixed capital and resources depletion yields an Adjusted Net National Income (ANNI). Net National Income (NNI) is derived from the Gross National Income (GNI) minus natural resources and fixed capital depletion. The low Adjusted Net National Income Per Capita of the population, a status of many developing countries, shows low standards of living and low purchasing power. Malawi's minuscule adjusted net national income per capita (ANNI) is $196 USD. One of the poorest countries in the world, Malawi is a place where a majority of its 16.70 million people live in poverty-stricken rural areas, and where drought, diseases, and poverty are rampant. The GDP of Malawi is $4.258 billion USD. Burundi's low ANNI is $204 USD. The year 1993 was a horrible year for Burundi, as political chaos set in, resulting in a huge economic crisis. Burundi's population is 10.16 million, and its GDP is $2.715 billion USD. Problems were worsened by high population growth and losses of agricultural land, which combined to make food scarce and resulted in food insecurity. The Democratic Republic of Congo's ANNI is $238 USD. Poverty and malnutrition are rampant in the rural areas, and half of its 67.51 million-person population lives below the poverty line. Orphans, as in the rest of Africa, have escalated in numbers, many due to the military conflicts. The DR Congo's GDP is $32.69 billion USD. Liberia's ANNI is $249 USD. It is still recovering from a 14-year-long civil war, and faces an epidemic of infectious diseases. About 1.3 million of the 4.294 million Liberians live in extreme impoverishment, and the nation's GDP is 1.951 billion USD. Gambia's AANI is $333 USD. It has a population of 1.928 million, and a GDP of $850.9 million USD. Though Gambia is a relatively stable country, poverty is still a problem, and its number one agricultural product, peanuts, is very susceptible to natural and economic influences. The Central African Republic's ANNI is $337 USD and its population is 4.804 million, of which 90% is in poverty. War orphans and displaced people from civil strife has become a recurring problem. The Central African Republic's GDP is $1.723 billion USD. Niger's ANNI is at $345 USD. The Nigerien population is 17.83 million, of which 84% live in poverty in rural areas, and 52% are under 15 years old. Niger's GDP is $7.407 billion USD. Guinea's ANNI stands at $352 USD. Guinea's population is about 11.75 million, of which 20% are in poverty in rural communities. Malnutrition and lack of food plagues the country. The GDP of Guinea is $6.144 billion USD. Madagascar's ANNI is currently at $378 USD. It has a population of 22.92 million, of which 68.7% live below the poverty line. Statistics show that for every 1,000 children born, 84 die before age reaching 5 years old. The Malagasy GDP is $462.97 billion USD. Guinea-Bissau's ANNI is at $445 USD, and its population is 1.704 million, of which 55% live in poverty in rural communities. Child labor is the norm, as it is a nation where 57% of those aged 5-14 years old work to supplement family income. Guinea-Bissau's GDP is $960.8 million USD. Ethiopia's ANNI is at $477 USD. The Ethiopian population is 94.1 million, of which 78% earn a daily income of less than US $2 a day. Agriculture is where 80% of its workforce are employed. Ethiopia's GDP is $132 billion USD. Togo's ANNI is at $494 USD, and its population is 6.817 million, of which 62% fall below the poverty line. Agriculture is its main thrust and hope, largely sourcing its GDP of $4.339 billion USD.
Weaknesses of Per Capita Income
A number of economists have put forward the prospective errors of using per capita income in determining a country's wealth. It does look into inflation, which distorts economic growth projections. When per capita income is used to compare standards of living between countries, purchasing power parity differences adjustments are more accurate. The same method only shows the mean value among all people, and does not consider income distribution. This means that in many of the countries discussed above, many people are far poorer than even these striking figures indicate. Components such as investments in the region are not factored into the method either.
12 Countries With The Lowest Adjusted Net National Income Per Capita
|Rank||Country||Adjusted Net National Income Per Capita In USD|
|6||Central African Republic||$337|