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I don't think one necessarily has to redefine economic growth, but perhaps redefine what the kind of growth is that we want. Japan has not had much growth for
by mikorym 6y ago
I don't think one necessarily has to redefine economic growth, but perhaps redefine what the kind of growth is that we want.
Japan has not had much growth for 20 years now [1], and Japan is regarded generally as one of the most developed, safe and pleasant countries in the world.
In South Africa, economic growth is a problem in the sense that it needs to be much higher in the traditional sense for sure, but there are certain aspects of the country that have dramatically improved in the last 20 years (and many that have unfortunately declined). The economic indicators don't properly take into account the informal sector, and specifically cash transactions within the informal sector. So for example, many low wage workers now have good brick houses, where only 20 years ago they would have had huts or corrugated iron shacks. There is also now electricity in most places, with the side effect of tree coverage getting better in some rural areas as firewood is not necessary to make food.
I think the inability of the economic and financial sector in Johannesburg (considered the best in Africa) to properly quantify growth in rural areas certainly is a social problem as well, with the economy becoming an abstract concept further removed from many normal people's lives. I also think this is why populist movements gain traction as their vocalisations are easier to understand than the a more sober and reserved economist trying to explain carefully to a crowd why the informal sector isn't properly being quantified and that we need to develop new economic metrics.
[1] https://en.wikipedia.org/wiki/Economy_of_Japan#Macro-economic_trend https://en.wikipedia.org/wiki/Economy_of_Japan#Macro-economi...