An analysis of alternative objective measures of economic performance and social development.
- Authors: Hlanti, Msawenkosi Madoda
- Date: 2014
- Subjects: National income -- Economic aspects -- South Africa -- Evaluation , Economic development -- Social aspects -- South Africa -- Evaluation , Gross domestic product -- South Africa , Sustainable development -- South Africa , Social planning -- South Africa , Economic policy , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1099 , http://hdl.handle.net/10962/d1013144
- Description: The measurement of economic performance and social development has become increasingly important as societies have evolved and become more complex. At present nations do not only seek to improve economic performance but are also compelled to improve social development through improvements in socially and environmentally sustainable initiatives. Traditional measures such as Gross Domestic Product (GDP) which is derived from United Nations’ System of National Accounts (SNA) have been criticised given the inability to adequately account for these social and environmental aspects of social development. Given these perceived deficiencies in the conventional measures, several alternative objective measures have been proposed in an attempt to address these shortcomings. Therefore the primary aim of this study is to analyse, via a literature survey, these alternative objective measures of economic performance and social development. The alternative measures that constitute the survey are the Index of Sustainable Economic Welfare (ISEW), the Genuine Savings (GS), and the United Nations’ Human Development Index (HDI). Upon the completion of the literature survey, sustainable development theory is used to evaluate the extent to which the National Accounts and the alternative objective measures are consistent with Hicksian and Fisherian definitions of income and capital, which embody the concepts of sustainability and sustainable development. The evaluation reveals that the National Accounts neither conform to the Hicksian nor the Fisherian definitions of income, thus could not be viewed as a measure of sustainable income. It is found that the ISEW is consistent with the Fisherian definition of income and is also a partial indicator of sustainable development. The evaluation of the GS measure reveals that it is consistent with the Hicksian definition but not the Fisherian definition. In terms of overall sustainability, it is argued that GS is a partial measure of weak sustainability. The HDI is similar to the National Accounts, in that it is neither consistent with the Hicksian nor the Fisherian definitions of income and is also not a measure of sustainability. In summary, the study demonstrates that despite GDP's shortcomings as a measure of economic performance and social development, currently, there is no alternative approach which simultaneously addresses every flaw in GDP. However, all the alternatives yield a much better approximation of social development than GDP.
- Full Text:
- Authors: Hlanti, Msawenkosi Madoda
- Date: 2014
- Subjects: National income -- Economic aspects -- South Africa -- Evaluation , Economic development -- Social aspects -- South Africa -- Evaluation , Gross domestic product -- South Africa , Sustainable development -- South Africa , Social planning -- South Africa , Economic policy , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1099 , http://hdl.handle.net/10962/d1013144
- Description: The measurement of economic performance and social development has become increasingly important as societies have evolved and become more complex. At present nations do not only seek to improve economic performance but are also compelled to improve social development through improvements in socially and environmentally sustainable initiatives. Traditional measures such as Gross Domestic Product (GDP) which is derived from United Nations’ System of National Accounts (SNA) have been criticised given the inability to adequately account for these social and environmental aspects of social development. Given these perceived deficiencies in the conventional measures, several alternative objective measures have been proposed in an attempt to address these shortcomings. Therefore the primary aim of this study is to analyse, via a literature survey, these alternative objective measures of economic performance and social development. The alternative measures that constitute the survey are the Index of Sustainable Economic Welfare (ISEW), the Genuine Savings (GS), and the United Nations’ Human Development Index (HDI). Upon the completion of the literature survey, sustainable development theory is used to evaluate the extent to which the National Accounts and the alternative objective measures are consistent with Hicksian and Fisherian definitions of income and capital, which embody the concepts of sustainability and sustainable development. The evaluation reveals that the National Accounts neither conform to the Hicksian nor the Fisherian definitions of income, thus could not be viewed as a measure of sustainable income. It is found that the ISEW is consistent with the Fisherian definition of income and is also a partial indicator of sustainable development. The evaluation of the GS measure reveals that it is consistent with the Hicksian definition but not the Fisherian definition. In terms of overall sustainability, it is argued that GS is a partial measure of weak sustainability. The HDI is similar to the National Accounts, in that it is neither consistent with the Hicksian nor the Fisherian definitions of income and is also not a measure of sustainability. In summary, the study demonstrates that despite GDP's shortcomings as a measure of economic performance and social development, currently, there is no alternative approach which simultaneously addresses every flaw in GDP. However, all the alternatives yield a much better approximation of social development than GDP.
- Full Text:
The developmental state, social policy and social compacts: a comparative policy analysis of the South African case
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
- Authors: Gwaindepi, Abel
- Date: 2014
- Subjects: Economic development -- Political aspects -- South Africa , Income distribution -- South Africa , Democracy -- South Africa , Industrial policy -- Developing countries , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1101 , http://hdl.handle.net/10962/d1013278
- Description: The history of economic thought is ‘flooded’ with neo-classical accounts despite the fact that neoclassical economics did not occupy history alone. This has caused the discourses on ‘lost alternatives’ to be relegated as the deterministic ‘straight line’ neo-classical historical discourses are elevated. Globally hegemonic neo-classical discourse aided this phenomenon as it served to subordinate any counterhegemonic local discursive processes towards alternatives. This study is premised on the theme of non-neoclassical ‘lost alternatives’ using the post-apartheid South Africa as a case study. Emerging from the apartheid regime, the impetus towards non-neoclassical redistributive policies was strong in South Africa but this did not gain traction as the ANC’s ‘growth through redistribution’ was replaced by globally hegemonic discourse which favoured ‘redistribution through growth’. This thesis postulates the idea of two waves of ‘internal’ discursive formations; capturing the transition to democracy up to 1996 as the first wave and the period from 2005 to about 2009 as the second wave. The developmental state paradigm (DSP) emerged as the central heterodox paradigm with ideas such as industrial policy, welfare, and social dialogue/compacts being main elements. The DSP was expressly chosen in the early 1990s, the first period of strong internal discursive formation, but faded as neo-classical policies, epitomised through GEAR, dominated the policy space. The DSP discourse gained vitality in the second wave of internal discursive formation (2005-2009) and it was associated with the subsequent Zuma’s administration. The study illustrates that the DSP has failed to be fully developed into a practical framework but remained only at rhetorical level with the phrase ‘developmental state’ inserted into government policy documents and documents of ANC as a ruling party. The thesis further illustrates that the DSP fared well ideologically because of its inclination to the ideology of ‘developmentalism’ tended to trump any socialist inclined policies such as a generous welfare regime. The thesis rebuts the notion of the DSP in South Africa which has only been amorphously developed with the phrase ‘developmental state’ becoming a mere buzzword. The thesis argues that the DSP in the 21st century is much more complex and the growing ‘tertiarisation’ of the economy makes the Social Democratic Paradigm SDP’s capability centric approach much more relevant for South Africa. The study goes further to argue that a (SDP) is much more suitable alternative for addressing South African colonial/apartheid legacies and consolidation of democracy.
- Full Text:
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