Abstract
Comparison of levels of development among countries is usually done by reducing values in national currencies with a common denominator, using the official exchange rate. Because of its unreality, the values calculated in this way do not illustrate real relations between compared countries. That brings about the launching of the UN International Comparison Project (latter Programme) with two fold aims: developing a method for international comparison of real domestic product which could be applied to a number of very heterogeneous countries, and the comparison of growing number of very different countries. Until now six phases of comparisons are finished. Taking into consideration problems that appeared in the realization of the VI ICP phase as well as quality improvement proposals, a decision has been made to launch a new, global round for 2003-2006. Comparison will cover 150 countries (the widest coverage ever). This will give global character to the comparison, which was the end cause of the ICP.
Highlights
The beginning of the 21st century features fast development of the world economy and the only permanent characteristics probably are changes, mostly for the better
The initial and development phase of ICP analyses was concluded with the end of the third phase. It resulted in a new method of international comparison of real Gross Domestic Product (GDP) and the purchasing power parity which can be applied to numerous and heterogeneous countries
The initiation of the UN programme on international comparison, at the end of the 1960s, represents a very important undertaking, in the domain of statistics. This is reaffirmed as it has continued to the present, with a continuous advance and efforts to overcome problems defined in a previous phase, as well as to increase the country coverage
Summary
The beginning of the 21st century features fast development of the world economy and the only permanent characteristics probably are changes, mostly for the better. Zora Prekajac though its objectivity is being questioned, under the conditions of its frequent changes As it does not reflect the purchasing parity of national currencies, neither the values calculated in this way illustrate real relations between countries under comparison. It is inadequate to use this rate when the structure of Gross Domestic Product (GDP) is to be compared This has motivated a number of individuals and organizations (national, regional and international ones) to develop new methods of comparison, in order to achieve a more realistic picture of the development levels of the countries concerned. A new version, permanently under revision, was published in 1993, as a joint effort of the UN, the EU Commission, IMF, OECD and the World Bank Such an empirically proved inadequacy of using official exchange rate in international comparisons The aim of the paper is to present the methodology development, comparison results and the problems which appeared, while attempting to offer solutions to overcome the problems within the present round of the ICP
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