Showing posts with label GNI per capita. Show all posts
Showing posts with label GNI per capita. Show all posts

2016-01-15

Why English Dominates the Web: Native & Non-Native English Speakers

Almost 55 percent of the top 10 million websites on the web are in English (chart below). The English language clearly dominates the internet. Globally, although Chinese has the most first language speakers, only 2.2% of the top 10 million websites in the world are in Chinese. Why? 
(1) There are more English speakers in the world than Chinese (see text further below);
(2) China lags behind most of the developed world in (a) internet freedom, and (b) GNI per capita--see text further below chart: 

Infographic: Languages Most Used On the Web vs. IRL | Statista
Source: Statista.

1. Note the chart above gives only first-language speaker totals, which is misleading--see Domain Mondo: Countries With Best Non-native English Speakers: "Linguist David Crystal estimates that non-native English speakers now outnumber native [first language] speakers by a ratio of 3 to 1 in the world"--applying Crystal's ratio to the data above, first (native) and second (non-native) language English speakers together total 1.44 billion people, which exceeds all Chinese (first and second language) speakers globally according to the data available.

2. See on Domain Mondo: Domain Name Registrations and the Global Internet Population: "There is a significant positive correlation between a nation’s rank in Gross National Income (GNI) per capita, and the number of domain names per Internet user. A nation’s ranked position by GNI per capita explains about 50% of the variance in its ranking by number of domain names per Internet user. Another correlating factor is the absence or prevalence of internet censorship or internet freedom in each nation" (emphasis added).  In both internet freedom and GNI per capita, China lags behind most of the developed world.

With India (where English is an official language) having the most people who read or speak English (native and non-native) of any nation in the world, and China having the largest number of students studying English as a second language in the world, expect the continuing pre-eminence of English globally, and on the internet, well into the 21st Century.

See also: Countries With Best Non-native English Speakers



DISCLAIMER

2015-08-16

Investing, Jack Bogle, Warren Buffett, S&P 500 Index, US, China

S&P 500 Index graphic (from $83.30 on 12 Sep 1975 to over $2000 today)
S&P 500 Index (source:google.com) from $83.30 (12 Sep 1975) to over $2000 today
"As I have said before, the daily machinations of the stock market are like a tale told by an idiot, full of sound and fury, signifying nothing. One of my favorite rules is 'Don't peek.' Don't let all the noise drown out your common sense and your wisdom. Just try not to pay that much attention, because it will have no effect whatsoever, categorically, on your lifetime investment returns."--Jack Bogle, Vanguard Group (domain name: vanguard.com) (quote source: Marketwatch)

"Put 10% of the cash in short-term government bonds and 90% in very low-cost S&P 500 index fund. (I suggest Vanguard's [VFINX].) I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers."--Warren Buffett, source: instructions to Trustee for his wife (pdf)

“Returns are created not by the stock market, they are created by U.S. business, our corporations ... If you go back and look at the history of American business over the last century, you will find the [price/earnings] effect of stocks is zero. All of the returns are created as investment returns, dividend yields and earnings growth." -- Jack Bogle, Marketwatch, supra.

S&P 500 Index chart (via google.com)

S&P 500® - S&P Dow Jones Indices: "The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 7.8 trillion benchmarked to the index, with index assets comprising approximately USD 2.2 trillion of this total. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization." (more info at the link above) TICKER : SPX

S&P 500 Index month-end ten largest holdings 
(18.0% of total net assets) as of 06/30/2015
1 Apple Inc.
2 Microsoft Corp.
3 Exxon Mobil Corp.
4 Google Inc.
5 Johnson & Johnson
6 General Electric Co.
7 Wells Fargo & Co.
8 JPMorgan Chase & Co.
9 Berkshire Hathaway Inc.
10 Procter & Gamble Co.

The success of Silicon Valley is attributable, in large part, to the capital markets of the United States. How did Apple, Google, et al become among the most valuable corporations in the world with total market capitalization values of hundreds of billions (USD) dollars each? Why did Alibaba Group, a Chinese internet company, select the NYSE for its IPO?

Take a real good look at this map.
The world's free-float market capitalization (USD$ billions) by nation:
1. United States 19,731
2. Japan 3,006
3. United Kingdom 2,691
China? 889.

Bank of America: These Five Maps Show the Major Global Trends Investors Need to Know - Bloomberg Business: "American Equity Exceptionalism: As of July 31 (2015), the market capitalization of U.S. stocks totaled nearly $20 trillion (as measured by MSCI), marking the reemergence of America's dominance among global stock markets."The U.S. currently represents 52 percent of world market capitalization, the highest since the 1980s," says BofAML.America's hefty share of global equity-market capitalization has been buoyed this year by a continuation of the U.S. dollar's appreciation against other major currencies."

Angel funding,venture capital, deal flow, even the domain name industry (e.g., GoDaddy IPO), are, in large part, dependent upon free capital markets. China has the world's largest internet population, but as this past week showed, they are lacking in free capital markets, as well as free speech and high GNI per capita. These are big problems that China has yet to confront. In addition, China is no longer the "low-cost" producer of the world's goods--the one competitive advantage it had. However, China's present and future tribulations will likely have a big impact on the world economy for the foreseeable future.

Caveat Emptor!


DISCLAIMER

2015-08-06

China has more Internet users than US, India, and Japan combined (maps)

Map of Internet Users in the World by country and percentage of population online
Above: Map  of the Global Internet Community - source: The World Online | Geonet,  Ralph Straumann and Mark Graham,
 Oxford Internet Institute, University of Oxford, England. This work is licensed under CC BY-NC 3.0
The global Internet community: the above map shows the total number of Internet users in a country (size of the country) as well as the percentage of the population that has Internet access (shade of the country). It is an update of the Oxford Internet Institute 2011 visualization.

Data and Method: The map uses 2013 data on Internet users and population that was obtained from the World Bank. The World Bank has tracked the number of Internet users per country since the 1990s as part of its Worldwide Governance Indicators project. The data is visualized using a hexagonal cartogram (a distorted map). In this cartogram, the size of each country is drawn based on the absolute number of its Internet users, while keeping the countries’ and continents’ shapes as close to their true shape as possible. Each small hexagon accounts for about half a million people online. Countries with fewer Internet users do not show up in the cartogram. Note the small inset map showing the actual relative sizes of the continents. The shading of each country in the cartogram represents the share of the population that has Internet access (the so-called Internet penetration): darker shades indicate higher rates of Internet access among the population.

Findings:

1. The continued rise of Asia as a major home region to the world’s Internet population. At 1.24 billion users, 46% of the world’s Internet users live in Asia. That is roughly equal to the number of Internet users in Europe, Latin America & Caribbean, Middle East & North Africa, and North America combined.

2. China is home to the world’s largest Internet population of a country at 600 million people. The United States, India, and Japan then follow as the next most populous nations of Internet users with 270 million, 190 million, and 110 million people online, respectively. Even though a majority of Chinese people have never used the Internet, China has more Internet users than the US, India, and Japan combined.

India is projected to overtake China as the world's most populous country in 2028, according to the United Nations. At that point, both nations will number 1.45 billion people. Subsequently India's population will continue to grow until the middle of the century, while China's slowly declines. But India is lagging compared to China in its Internet infrastructure and Internet population. Why?--

A digital roadmap (eiu.com): "Growing numbers of India's 1.3 billion population are engaging with digital technology, using smartphones and tablets to access a range of internet-based services and applications. India is currently the fastest-growing smartphone market in the world, and yet its internet and broadband penetration rates are low when compared with its high-growing BRIC nation counterparts. The Economist Intelligence Unit expects the broadband penetration rate in India to rise only marginally, from 1.7% in 2014 to 3.3% in 2019. According to recently published government data, only 100 million people had broadband connections as of April 2015. Overall internet penetration will rise further, to 56.7% in 2019, from 19.7% in 2014. But for a country that is expected to become the world's second-largest internet market by 2019 in terms of users (totalling 755 million), its penetration rate will remain behind that of Russia (71%), China (66%) and Brazil (65%). Lagging average internet connection speeds—for which India has been ranked 115th worldwide, according to research by Akamai Technologies—will leave India further trailing rival emerging markets in the digital race." (emphasis added)

Meanwhile China's lack of internet freedom continues to hinder its population and economy:

China to Set Up ‘Security Offices’ Inside Internet Companies - Bloomberg Business: The Ministry of Public Security will add police officers at “critical” companies to help boost defenses against cyber-attacks and fight criminal activity, the state-run Xinhua News Agency reported, citing a ministry conference.

China to set up Internet police in tech firms | Seeking Alpha:
  • China is setting up cybersecurity police units at major Internet companies, a move aimed at strengthening the government's grip on the world's largest population of Web users.
  • The officers will be added to help boost defenses against crimes such as fraud and "spreading of rumors."
  • Beijing is also discussing a separate plan to build a national cyber safety net, enabling national and local governments to cut Internet access when needed.

As Domain Mondo has noted before (see: Domain Mondo: Domain Name Registrations and the Global Internet Population), there are three "must haves" which provide the foundation for a viable domain name industry in a given market or country:
  1. Internet access which is fast (broadband/4G) and affordable to the local population;
  2. Internet freedom (absence of censorship);
  3. High GDP (gross domestic product) per capita (see map below) or high GNI per capita.
Which is why the domain name industry (and most domain name registrations) are heavily concentrated in North America-Europe-Australia/New Zealand.

Global map of countries showing GDP per capita (nominal) 2014
"GDP per capita (nominal) 2014" by Sarah Biddle - Own work. Licensed under CC BY-SA 4.0
via 
Wikimedia Commons
See also Domain Mondo: Internet Broadband Affordability Map, A Global Digital Divide


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