In September 2015, leaders of 193 countries agreed on a set of 17 Sustainable Development Goals to guide global action over the next 15 years. Set out in the 2030 Agenda for Sustainable Development, the Sustainable Development Goals take over where the Millennium Development Goals before them left off – and in many cases aim to finish the job. Eradicating poverty, an objective shared by the World Bank Group, is a key element of this unfinished business. It remains the world’s greatest challenge.

World Development Indicators will report on progress toward the Sustainable Development Goals, as it did with the Millennium Development Goals. The Sustainable Development Goals cover a broader range of issues, and this edition expands coverage in the World view section. For each of the 17 goals, key indicators have been selected to identify important trends and challenges and elicit discussion on measurement issues.

Implementing the Sustainable Development Goals and measuring and monitoring progress toward them will require much more data than are currently available, with more accuracy, better timeliness, greater disaggregation, and higher frequency. The institutions fundamental to this effort should be supported through strong and renewed global partnerships. A new Global Partnership for Sustainable Development Data was launched alongside Agenda 2030 in September 2015. A key aim is to bring different groups together to ignite a data revolution for development.

From the MDGs to the SDGs with expanded data and illustrations of trends

Where possible, this edition of World Development Indicators includes new indicators to reflect the 169 targets of the Sustainable Development Goals, but the structure of the book remains the same as in previous editions: World view, People, Environment, Economy, States and markets, and Global links. Each section includes a brief introduction, a global map of a key indicator, a table, a section about the data, and an index of other indicators accessible online. World view retains the two tables showing progress toward the World Bank Group’s goals of eradicating poverty and promoting shared prosperity.

No distinction between “developing” and “developed” countries

Motivated by the universal agenda of the Sustainable Development Goals, this edition of World Development Indicators also introduces a change in the way that global and regional aggregates are presented in tables and figures. Unless otherwise noted, there is no longer a distinction between developing countries (defined in previous editions as low- and middle-income countries) and developed countries (defined in previous editions as high-income countries). Regional groupings are based on geographical coverage rather than a subset of countries that were previously referred to as developing. Two implications of this change are that a new aggregate for North America has been included in tables, and aggregates for Europe and Central Asia include countries of the European Union. Aggregates restricted to low- and middle-income countries are still available in the World Development Indicators database.

The WDI is part of a global effort to produce a global public good

Producing WDI is only possible with the help of over 50 international organizations, more than 200 national statistical offices and the experts in the country offices, Global Practices and Cross Cutting Solution Areas of the World Bank.  

But we have a global challenge: only a few of the 169 targets in the Sustainable Development Goals can currently be tracked and measured completely. Both governments and development partners will need to continue investing in national statistical systems and other public institutions, where much of the data will continue to originate. At the same time, the statistical community needs to strengthen partnerships with the private sector and other emerging actors for advancing new techniques for data collection, analysis, and use.

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World View

On September 25, 2015, the United Nations General Assembly formally adopted the 2030 Agenda for Sustainable Development, which sets out a new set of global goals, known as the Sustainable Development Goals. This is the first edition of World Development Indicators to include a discussion of the Sustainable Development Goals, which replaces the assessment of progress toward the Millennium Development Goals in previous editions.

The 17 Sustainable Development Goals and 169 associated targets build on the 8 goals and 18 targets of the Millennium Development Goals but are far wider in scope and far more ambitious. They focus on five themes: people, planet, prosperity, peace, and partnership. Countries have resolved to end poverty and hunger and ensure that all people can fulfill their potential in dignity and equality and in a healthy environment; to protect the planet from degradation and take urgent action on climate change; to ensure that all people can enjoy prosperous and fulfilling lives and that progress takes place in harmony with nature; to foster peaceful, just, and inclusive societies free from fear and violence; and to mobilize the means to implement Agenda 2030, focused on the poorest and most vulnerable, through strong global partnership.

Along with the goals and targets, a global monitoring framework with more than 200 indicators is being developed by UN member states, working closely with UN agencies and other stakeholders. For each goal, World view presents recent trends and baselines against key targets, largely using indicators available in the World Development Indicators database and drawing on the specialist knowledge of World Bank staff. Some indicators have been added, and in some cases data have been used from published studies or reports. An interactive presentation of key indicators for assessing the Sustainable Development Goals is available at http://data.worldbank.org/sdgs.

As in previous editions, World view also presents indicators that measure progress toward the World Bank Group’s twin goals of ending extreme poverty by 2030 and enhancing shared prosperity in every country, which are also central elements of Sustainable Development Goals 1 (end poverty in all its forms everywhere) and 10 (reduce inequality within and among countries). A major change is that the estimates of global and national extreme poverty rates have been updated to the international poverty line of $1.90 a day per person, in 2011 purchasing power parity terms. Estimates of indicators of shared prosperity for 94 countries, including the growth rates of the average income of the bottom 40 percent, are also included.

Measuring and monitoring progress against the Millennium Development Goals were major challenges and required substantial efforts on the part of national statistical agencies and others to improve the quality, frequency, and availability of relevant statistics. With a new, broader set of goals, targets, and indicators, the data requirements are even greater. Baselines and progress for few Sustainable Development Goal targets can be measured completely. Both governments and development partners will need to continue investing in national statistical systems and other relevant public institutions, where much of the data will continue to originate. At the same time, the statistical community needs to strengthen partnerships with the private sector and other emerging actors for advancing new techniques of data collection, analysis, and use.

Economy

The Economy section provides a picture of the global economy and the economic activity of more than 200 countries and territories. It includes measures of macroeconomic performance and stability as well as broader measures of income and savings adjusted for pollution, depreciation, and resource depletion.

Global real gross domestic product grew 2.4 percent in 2015, to about $74 trillion in current prices, and is projected to grow 2.9 percent in 2016. Low- and middle-income economies accounted for 33 percent of the global economy in 2015, an increase of 1 percentage point. They grew an estimated 4.3 percent in 2015 and are projected to grow 4.8 percent in 2016. Expected growth in high-income economies has been revised from earlier forecasts to 1.6 percent in 2015 and 2.1 percent in 2016.

The adjusted net savings indicator has been updated this year with new data on the health impacts of air pollution from the Global Burden of Disease 2013, an international scientific effort led by the Institute for Health Metrics and Evaluation at the University of Washington, Seattle. Damages include the costs of premature mortality due to exposure to ambient particulate matter, household air pollution due to cooking with solid fuels, and ambient ozone pollution.

In August 2015 the International Monetary Fund began using the Government Finance Statistics Manual (GFSM) 2014 framework for its Government Finance Statistics Yearbook and database. Affected series have been adjusted from 1990 onward. Historical series based on the previous (2001) framework, with data up to 2012, can be accessed through the World Development Indicators archives.

GFSM 2014 provides comprehensive fiscal data through accrual reporting and allows data inconsistencies to be detected and fiscal transparency to be improved. In turn, fiscal analyses by end-users will be more detailed and robust. The new framework emphasizes economically meaningful fiscal indicators and allows for the phased implementation of accrual accounting while supporting needed improvements in the compilation of cash-based fiscal statistics for the public and general government sectors and subsectors. It also harmonizes the system used to report fiscal statistics with other macroeconomic statistical systems – most notably the System of National Accounts and the European System of Accounts.

A key feature of GFSM 2014 is its distinction between transactions and other economic flows. Transactions cover all exchanges or transfers that take place by mutual agreement and the consumption of fixed capital (the economic equivalent of “depreciation”). Mutual agreement does not mean that transactions have to be entered into voluntarily (the payment of taxes is treated as a transaction despite being compulsory). Additionally, transactions cover monetary exchanges and in-kind activity (such as the receipt of commodity grants and non-cash remuneration). Other economic flows are the result of events that affect the value of non-financial assets, financial assets, and liabilities but that are not exchanges or transfers. These flows can reflect either price changes (including exchange rate movements) or volume changes due to one-off events (such as mineral discoveries or natural disasters).

Economic growth reduces poverty. As a result, fast-growing middle-income economies are closing the income gap with high-income economies. But growth must be sustained over the long term, and gains must be shared to make lasting improvements to the well-being of all people. The 2007 financial crisis spread from high-income to low-income economies in 2008. A year later it became the most severe global recession in 50 years and affected sustained development around the world. Average annual per capita GDP growth in low- and middle-income countries slowed from 5 percent over 2000-09 (the pre-crisis period) to 4.3 percent over 2009-14 (the post-crisis period), which was still faster than in high-income countries. High-income countries grew an average of 1.2  percent a year after the crisis, down from 1.5 percent before the crisis. The low- and middle-income countries in Middle East and North Africa saw the largest drop: Average annual per capita GDP growth fell 3.4 percentage points, from 3.1 percent in the pre-crisis period to –0.3 percent in the post-crisis period.

States and Markets

States and markets indicators encompass private investment and performance, the public sector’s role in nurturing investment and growth, and the quality and availability of infrastructure essential for growth. These indicators measure the business environment, government functions, financial system development, infrastructure, information and communication technology, science and technology, government and policy performance, and conditions in fragile countries with weak institutions.

This year, stock market data from the World Federation of Exchanges replaces estimates from Standard and Poor’s, which discontinued the Global Stock Markets Factbook in 2013, for indicators of listed companies, market capitalization, the value of shares traded, and the turnover ratio. Time series go back to 1975 where available; additional data, including indicators on fixed income and derivatives and equity markets can be found on the World Federation of Exchanges website.

Stock market size can be measured in various ways, and each produces a different ranking of countries. Both number of listed companies and market capitalization measure market size and are positively correlated with the ability to mobilize capital and diversify risk. Market liquidity is measured by the value of shares traded, which represents the transfer of ownership effected automatically through the exchange’s electronic order book. Finally, turnover velocity is the ratio between the electronic order book turnover of domestic shares, and their market capitalization; only domestic shares are used in order to be consistent between exchanges.

The data for market capitalization and listed domestic companies are provided for each exchange, and World Development Indicators uses two approaches to calculate country-level estimates. When there is only one reported exchange in a country, its data was used to represent that country. When there are several exchanges in a country, care was taken to avoid double-counting; for example, where companies are listed on more than one exchange in the country, the exchange that provided the most comprehensive data set was used. When different companies are listed on the exchanges, the data for number of listed companies and domestic market capitalization have been aggregated to obtain country-level figures.

States and markets also includes the latest updates to data on business regulations and the business environment, from the Doing Business initiative and Enterprise Surveys. This year, there are new measures of regulatory quality in registering property, dealing with construction permits, obtaining electricity, and enforcing contracts.

A new indicator of public-private partnerships has also been added to complement existing data on private participation in telecommunications, energy, transport, and water and sanitation infrastructure projects. Public-private partnership projects refer to brownfield concessions, greenfield projects, and management and leases but excludes merchants where private parties assume the risks without government guarantee. Public-private partnership projects help determine the gap between infrastructure demand and available resources, thus making important contributions to improving the efficiency of public services in infrastructure and extending delivery to poor people. As in previous editions, the latest trend data on various indicators related to information and communications technology are also presented, including goods trade, telecommunications revenue, mobile subscriptions, and Internet use.

The digital and information revolution has changed the way the world learns, communicates, does business, and treats illnesses. Information and communication technologies offer vast opportunities for progress in all walks of life in all countries – opportunities for economic growth, improved health, better service delivery, learning through distance education, and social and cultural advances. The Internet delivers information to schools and hospitals, improves public and private services, and increases productivity and participation. Through mobile phones, Internet access is expanding in low- and middle-income countries. The mobility, ease of use, flexible deployment, and declining rollout costs of wireless technologies enable mobile communications to reach rural populations. According to the International Telecommunication Union, by the end of 2015 the number of Internet users worldwide reached 3.2 billion.

Global Links

The world economy is bound together by trade in goods and services, financial flows, and movements of people. As national economies develop, their links expand and grow more complex. The indicators in Global links measure the size and direction of these flows and document the effects of policy interventions, such as tariffs, trade facilitation, and aid flows, on the development of the world economy.

The accommodative monetary policy implemented by the major central banks in 2014 through unchanged interest rates lowered risk premiums, improved liquidity in financial markets, and supported economic growth. However, global markets remain surrounded by uncertainties related to geopolitical tension in some regions.

International lending to low- and middle-income economies fell 18 percent in 2014, driven by a sharp 60 percent contraction in short-term debt, reflecting fresh turbulence and uncertainty in the global economy. Just over half of long-term debt inflows went to non-guaranteed private sector borrowers, compared with 62 percent in 2013. Bond issuance by public and private entities remained an important source of external financing, totaling $242 billion in 2014. There was also an important shift in borrower composition: bond issuance by public sector borrowers rose 32 percent to $146 billion, equivalent to 60 percent of total bond issuance in 2014 (compared with 46 percent in 2013). A principal driver was the purchase of domestically issued bonds by nonresidents.

Global inflows of foreign direct investment (FDI) declined 20 percent in 2014, due mainly to a 30  percent decrease into high-income economies. FDI inflows to these economies amounted to $899 billion, only 36 percent of the levels prior to the financial crisis. FDI inflows into low- and middle-income countries proved more resilient and were about 4 percent higher than 2013 levels, accounting for more than 40 percent of global FDI. Investors continue to be attracted by improved business and regulatory environments, growth prospects, and buoyant and expanding domestic markets. Although many economies receive FDI, flows remain highly concentrated: Brazil, China, and India account for more than half.

Global portfolio equity flows rebounded substantially, with an overall annual increase of 41 percent at the end of 2014. Equity flows to high-income economies increased 42 percent, and equity flows to middle-income economies increased 27 percent. Investors sought emerging markets perceived as offering high returns, leading to some diversification in the destination of portfolio equity flows, but in general portfolio equity flows remained highly concentrated in only a handful of middle-income countries. China recorded a 58 percent increase in net portfolio equity flows, to $52 billion; India recorded a 40 percent decline, to $12 billion; and Brazil’s net inflows remained unchanged, at $12 billion.

In 2014 inflows of international personal remittances totaled $528 billion, a 6 percent increase over 2013. Personal remittances are calculated in balance of payments statistics as the sum of personal transfers (payments between resident and nonresident individuals) and compensation of employees (the income of short-term nonresident workers and of residents employed by nonresident entities). Some 72 percent ($378 billion) of personal remittances were received by low- and middle-income economies. High-income economies received $150 billion, mostly as compensation of employees; the three top receivers, with about 37 percent, were Belgium, France, and Germany.

Over the past decade flows of foreign direct investment (FDI) to low- and middle-income economies have increased substantially. It has long been recognized that FDI flows can carry the benefits of knowledge and technology transfer to domestic firms and the labor force, productivity spillover, enhanced competition, and improved access for exports abroad. Moreover, they are the preferred source of capital for financing a current account deficit because FDI is non-debt-creating. Global inflows of FDI declined 20  percent in 2014, to $1.6 trillion, due mainly to a 30 percent decrease into high-income economies. Low- and middle-income economies continued to prove more resilient, with FDI inflows decreasing only 1.4 percent.