South Korea’s economy is not 45 times Kenya’s, as Raila Odinga claims

How large is South Korea's economy compared to Kenya's ?

“…. When we were attaining independence, Kenya’s economy was at the same level as that of South Korea, in terms of development, incomes, education, agriculture and industrialisation. Fifty four years later, South Korea’s economy is 45 times bigger than that of Kenya…”

-     Nasa flag-bearer Raila Odinga at a rally in Baringo County on July 12

South Korea's economy is 20 times as large as Kenya’s not, 45 times.

In 1963, Kenya's gross national income (GNI) per capita stood at about $100 while South Korea’s stood at $120.

Today, economies with a GNI per capita of $1,025 or less, are categorised by the World Bank as low-income economies.

In 1987, South Korea was classified as an upper middle income country with a GNI per capita of $3,480, while Kenya was classified low income with a GNI per capita of $380.

According to World Bank data, last year South Korea’s GNI per capita stood at $27,600 while Kenya’s was $1,380.

This means that Kenya is now a lower middle-income economy while South Korea is a high income economy. The atlas conversion factor reduced the impact of exchange rate fluctuations in the cross-country comparison of national incomes unlike simple exchange rates.

As of 1 July 2016, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,025 or less.

53 YEARS LATER

Lower middle-income economies are those with a GNI per capita between $1,026 and $4,035, while upper middle-income economies are those with a GNI per capita between $4,036 and $12,475.

High-income economies are those with a GNI per capita of $12,476 or more according to the Word Bank.

The disparity in the two countries’ GDP, measure of economic activity within a country, and GNI, the sum of a nation’s GDP plus net income received from overseas, have grown at the same rate in favour of South Korea.

In 1963 South Korea’s gross domestic product was US$4 billion which was four times that of Kenya’s US$927 million. Fifty-three years later South Korea’s GDP was US$14 trillion, which was 20 times that of Kenya’s US$70.5 billion.

At independence, the East Asian country’s GNI stood at US$4 billion while East Africa largest economy’s was US$898 million. Last year South Korea’s GNI stood at US$1.4 trillion, while Kenya stood at US$69 billion.

The two countries are now poles apart but South Korea economy is 20 times as large as Kenya’s not, 45 times.