Wednesday, March 25, 2009

Growth Rate Numbers Have Serious Limitations

And so do people who keep on using them in isolation. Take the 4.79% average GDP growth rate of Sithanen from July 2005 till December 2008 for example. What does that number mean? Nothing much besides the fact that the national pie got bigger by that amount on average. It doesn't say a single word about how that pie has been divided.

For instance, both graphics above have an average growth rate of 4.79% but the distribution, unless you're wearing Bretton-Woods goggles, is not exactly the same. We know for sure we didn't get equally-distributed growth because otherwise Ramgoolam would have presented a candidate in the last bye-election. We also have additional clues that's telling us that the growth while benefiting only a few people has sent a majority of the population into an 'L-shape' type of recession since July 2006: a very robust average inflation rate of 8.53%, elimination of a progressive tax structure, FDI flows in speculative real-estate projects and depreciation of the rupee to name just a few.

And now more and more people are taking to the streets to say no to Sithanen.


akagugo said...

"very robust average inflation rate of 8.53%"
:-D This is what I call first-class humour!! Quand ou penser lepok Navin ti pe enkor tik-tiké pou faire durer le plaisir, non, le suspense, lors cas Rama, ti ena 2-3 dimounes inn telephone radio privée pou dire ki Rama ena l'étoffe enn PM ou bien ki li ti bizin poz candidat en indépendent, ena enn gros travail education bizin faire pou faire zot comprend ki enn boug ki faire l'étallaz so self-proclaimed talent et content prononce bann technical jargon pas nécessairement compétent...

Sanjay Jagatsingh said...

Eski nun avanse 2 banane apre dan nu travay dedikasyon?
Bon, 2-3 dimunn telefone la kav form parti enn ti manipilasyon, non?