Economic growth<\/p>\n
Regarding the seven percent growth predicted for 1996 (The
\nJakarta Post, Nov. 8, 1995), I would like to ask the economists:
\nDid they include the informal economy? Evaluating economic growth
\nbased on traditional economic tools may not tell the whole story.
\nOverlook the informal sector and you would be barking up the
\nwrong tree.<\/p>\n
The economy that concerns economists -- the current account
\ndeficit, non-oil exports, currency depreciation, and so on -- is
\nnot the one in which people thrive. I rent cars at airports from
\nprivate entrepreneurs. If I were renting them from Hertz, it
\nwould contribute to the GDP.<\/p>\n
We pay orang jaga (watchmen), gardeners, parking men. If they
\nwere employed by a security company their output would be
\naccounted for in the GDP. If all the people who sell prepared
\nfood on the streets were from a fast-food chain, it would be
\nincluded in the GDP. All the above, plus the men who collect card
\nboard for sale and operators of traditional means of transport do
\nnot exist as far as economics is concerned.<\/p>\n
One may argue that this is small fry. It is not. In 1983, the
\nU.S. informal economy was put at between US$400 billion and $700
\nbillion. At that time, bigger than England's GNP. Italy's
\nsubmerged economy was put at 30 percent of the total GNP and
\nCommunist Russia at 20 percent.<\/p>\n
This year, Brazil's most conservative evaluation of the
\ninformal economy is $200 billion. Three times Portugal's GNP, or
\none time Sweden's. Statisticians use electricity consumption to
\ngauge industrial activity. Brazil's electricity consumption is
\nalways increasing, regardless what economic indicators say.<\/p>\n
I do not believe all the unemployed in developed countries sit
\nat home. In France they travailleau noir (black work) and in
\nGermany, they make up part of the Schattenwirtschaft (shadow
\neconomy).<\/p>\n
The informal economy has a huge impact both on developed and
\ndeveloping countries. If statisticians and economists looked at
\nthe Indonesian informal sector they would be very surprised.
\nEconomics, if not correctly evaluated, cannot be called: science.<\/p>\n
OSVALDO COELHO<\/p>\n
Bandung, West Java<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economic-growth-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }