In my last article for Talkmarkets, I promised to break down and explain the key factors used in my macro-Globanomics model to evaluate the overall performance of each of the 238 nations in the world.  As I explained earlier, my model is based upon Maslow’s Hierarchy of Needs and uses the Performance Evaluation Report Card (PERC) methodology to separate nations into peer groups and evaluate each country appropriately.

The output from my model is derived from the National Performance Analysis Database System (NPDAS) which includes national statistics on numerous indicators drawn from such entities as the Central Intelligence Agency (CIA), the World Health Organization (WHO), United Nations (including UNICEF), the Food and Agriculture Organization (FAO), the World Bank, and numerous other touted and recognized private and public entities.

The following five-major levels (or hierarchies) in succeeding order are used in my model: (1) Primary Essentials; (2) Secondary Essentials; (3) Primary Growth Factors; (4) Secondary Growth Factors; and (5) Creative Development.  I will now discuss each in turn, breaking them down one sub-level further and explaining the weight placed on each hierarchical and sub-hierarchical level.  Weights will be identified with a number in parenthesis (e.g. 8.0%) reflecting the percentage weight to the total overall rating.

Primary Essentials (25%)

Primary essentials, which account for 25% of a nation’s overall evaluation, are further broken down into three sub-hierarchical levels: (1) Food; (2) Water; and (3) Shelter.   Every effort is made to evaluate each of these performance categories fairly by using several criteria from different reliable sources for cross-referencing purposes.   Overall Food (12%), Water (5%), and Shelter or Housing (8%) account for the overall Primary Essentials evaluation.

Although most developed nations score well in this primary essentials category, it is worth noting that 2.2 billion people in the world lack access to safely managed drinking water services (WHO/UNICEF 2019) and an increasing number of people world-wide, 821 million, are facing chronic food deprivation.

Secondary Essentials (25%)

The Secondary Essentials hierarchy is further broken down into the following sublevels: Health (15%); Sanitation (5%); and Personal Safety (5%).  Again, several criteria are used to measure each of these sub-hierarchical levels.  As anyone can easily see, when combined, Primary and Secondary Essentials account for half (50%) of a nation’s overall evaluation.

At this point, I think it is important to reiterate that under the PERC methodology used in NPDAS that nations are evaluated only against those countries within their own specific peer group.  In other words, the evaluation of the sub-hierarchical level for Food in the United States is only measured against that of other large, developed nations as explained in earlier TalkMarkets articles of mine.  In total, NPDAS, evaluates each criterion separately under five different country peer groups: (1) large developed countries; (2) medium sized developed countries; (3) medium-sized underdeveloped countries; (4) small developed countries; and (5) small underdeveloped countries.  Population is used as a measure of size and GDP(PPP) per capita is used as a measurement for development. 

Primary Growth Factors (35%)

The following sub-hierarchical levels are used to measure Primary Growth Factors: Business/Economic Development (15%); Energy Production, Use, and Dependency (7%); Infrastructure, such as highways, railways, airports, waterways (8%); and Education (5%).  It should be noted that the Primary Growth Factor lies in the middle of my five-major-hierarchical model, yet it is weighted heavier (35%) than any of the other individual hierarchical levels.

I believe it is worth mentioning at this time that although criterion totals are sometimes used for measuring purposes (e.g., GDP, electrical production), in many cases, the criteria are adjusted and evaluated on a per capita measurement in order to get a better sense for what the criteria means in terms of an average individual within a given country.

Secondary Growth Factors (10%)

The Secondary Growth Factor category is broken down into the following two sub-categories: Freedom (7%) and Status (3%).  Higher levels of Freedom are associated with higher levels of personal prosperity.  The Freedom category includes the evaluation of economic, political, personal freedom along with other measurements of civil liberties.  The Status category measures both how well the people of a country feel about their country and how well the people outside the country feel about a country. 

Both Freedom and Status are broad-based terms, however, because of their association with prosperity and personal development they are important factors to consider in a country’s overall development. 

Creative Development (5%)

Although weighted less than any of the other four major hierarchical levels, Creative Development is still considered the highest of all the hierarchical levels in my model.  At this level NPADS evaluates a country’s contribution in two sub-hierarchical levels: Basic Research (3%) and Artistic Creativity (2%).

Basic research reflects a country’s commitment to the future.  Basic research includes the scientific effort to advance the boundaries of currently known principles in order to expand human capabilities in the future. 

Artistic Creativity recognizes a country’s contribution to the arts and sciences, including music, literature, art, photography, drama, etc.  It is often through Artistic Creativity humankind gains its greatest insights.

Overall Evaluation

As mentioned earlier, nations are measured on peer group levels in NPADS.  To obtain a national score of 100 would mean a country would have to score the highest in each category, sub-category, and sub-category criterion within its peer group.  No individual country does this and that is one of the reasons the PERC methodology is considered such a strong tool.

Under the PERC methodology used in NPADS, even the best of countries when measured against its peers can identify areas to improve performance.  For example, such is the case in the area of Health performance in the United States, but that will have to wait until my next promised article for Talkmarkets and my followers.

Stay tuned.  The real meat from my globanomics analysis is soon to come.