Data Visualization

Blog of the Data Visualization & Communication Course at OSB-AUB

“This is my favorite part about analytics: Taking boring flat data and bringing it to life through visualization” John Tukey

National Debt & Population Income

National Debt & Population Income

by | Apr 15, 2022 | Generic, Visualization

Does a Country’s Borrowing Policy Affect its Population’s Income level?

The Case of Lebanon

 

DOLLAR? LBP?       

WHAT’S THE EXCHANGE RATE TODAY?

DISCOUNTING CHECKS? AT WHAT RATE?

WHAT????     20%????

THIS MEANS I’M LOSING 80% OF MY MONEY!!!

I WAS DOING OK BUT NOW I CAN BARELY MAKE ENDS MEET…  

 

This has unfortunately been the sad reality that
theLebanese people have been living for since
October of 2019.

 

WHY?

 

Because a Banking | Financial | Currency | Crisis

Made a Huge Bubble Burst!                                             

 

 

BUT HOW DID WE GET HERE?

Lebanon has had a budget deficit for over 20 years
and has been borrowing from external parties
for as long as we can remember.

So, as Lebanese citizens, we are born indebted.

 

A country’s national debt affects its population’s income level:

  • Growing debt has a direct effect on economic opportunities

  • If high levels of debt crowd out private investments, workers would have less to jobs do and therefore earn lower wages

Countries with LOWER DEBT exhibit HIGHER INCOME levels per capita.

 

SO HOW HAS LEBANON’S DEBT BEEN CHANGING OVER TIME?

 

WHAT CAN WE DO TO MAKE THINGS BETTER?

Potential Solutions include but are not limited to:

  • Supporting Production and Services Sectors leading to more Job Creation and eventually More Wages

  • Improving Trade Agreements leads to more exports which would Reduce Budget Deficits and make the country economically healthier

  • Attracting Foreign Direct Investments by providing a healthy capital market (ex: improving Reporting Practices) which leads to More Investments & More economic opportunities, More Jobs and eventually More wages

 

IS THERE PROOF?

                                            

Countries with Open Trade Policies seem to have higher income levels

 

Countries with Updated Reporting Practices also have higher income levels

SO, WHAT ARE THE RECOMMENDATIONS?

STOP borrowing from international Agencies

CONTROL High National Debt Levels

 

Implement Policies to boost the economy

A Correlation between Share of Population that Use Internet and GDP per Capita (PPP, 2019)

A Correlation between Share of Population that Use Internet and GDP per Capita (PPP, 2019)

by | May 5, 2021 | Dashboard

It is important to continuously pursue equality among populations and improve standards of livings. However, the pandemic has hindered our progress towards a more sustainable standard of living. Approximately 150 million people will be pushed into poverty in 2021 due to the pandemic. The pandemic has already pushed 88 million to 115 million people into extreme poverty in 2020.

While short-term solutions are important, long-term solutions are key to continuous sustainability. There is a clear correlation between the share of a population that use internet and GDP per capita. Policy makers should consider providing easy accessibility to the internet for its benefits which include, easy access to free education, work and connections.

Although the relationship is a correlation and not a causality, there still remains a conceptual understanding that investing into people will allow them to grow and invest back into their country’s economy. Accessibility to the internet can be a long-term solution towards sustainability!