311 Capital Consumption

Definition

This map shows the distribution of fixed capital consumption. ‘Capital consumption’ is defined by the World Bank as being where: "Consumption of fixed capital represents the replacement value of capital used up in the process of production". In other words, it is the cost of maintaining, and replacing when necessary, fixed assets. They are things like buildings and factories, vehicles and machines, and communication and transport infrastructures.

In the equation "Net National Savings equals Gross National Savings minus consumption of fixed capital" it is the amount that has not been spent yet to prevent the deterioration in the current value of fixed assets. Had it been spent there would have been no deterioration, and the amount already included in private or public expenditure. It is not offset against any capital gains. It is annual assessment. Damage due to war or natural disaster is only counted in the year in which it occurs, although the people may have to live with that damage for many years.

For a detailed methodological note see htp://www.worldbank.org/data

Data sources

See technical notes for worldmapper map 206, “National Income”.

Click here to view detailed data source references

The quotation that accompanies this map was sourced from the Education and Training Unit (ETU). This is a non-profit organization working with community organisations in South Africa . Their stated aims are to “deepen democracy and community involvement in development”. The quotation was sourced from the website below in January 2007:

http://www.etu.org.za/toolbox/docs/government/infrastructure.html

Excel sheets

Below is an explanation of each of the columns in the excel file:

Column A = Unique numerical territory (see 001).

Column B = Region and territory names (see 001).

Column C = Region code (see 001).

Column D = The ISO 3 code, or ISO ALPHA-3 (see 001).

Column E = Fixed capital consumption, in billions of US dollars in 2003. This is calculated by multiplying the percentage of Gross National Income that is fixed capital consumption where positive (Column H) by the Gross National Income in 2003 in billions of US dollars (Column I) (E = H * I). Where data were missing from column H, the regional average of capital consumption per person (Column F) is multiplied by the population of the territory to produce an estimate of the capital consumption there.

Column F = Fixed capital consumption, in thousands of US dollars in 2003, per person in 2002. This is calculated by dividing the fixed capital consumption in billions (Column E) by the population in millions in 2002 (Column G). (F = E / G).

Column G = Population in millions, for year 2002. For source data and derived estimates see 002, ‘Total Population’.

Column H = Fixed capital consumption as a percentage of Gross National Income in 2003. Where data are missing, ‘..’ is shown.

Column I = Gross national income, in billions of US dollars in 2003. For source data and derived estimates see 309, ‘National Income’.