Gdp .. Measure of Welfare ?

Powerful Essays
ENPC-EHTP-MBAXIV A

MA 1407 : Business Economics in a Global Market Individual Assignment GDP vs. Welfare The Moroccan Example

Othmane Bouzoubaa Student ID : MA14 - 016 April – May 2012

This paper emphasis on GDP as an inefficient measure of welfare using arguments from the Moroccan example.

MBAXIV A – MA 1407 – Business Economics in a Global Market GDP & Welfare – The Moroccan Example

Table of Contents
1. 2. 2.1 2.2 2.3 3. 3.1 3.2 4. 5. Introduction .................................................................................................................................... 3 From GDP to Welfare................................................................................................................... 3 GDP Purpose & Limitations .................................................................................................... 4 Some Initiatives towards Welfare Measurement ................................................................. 4 Happiness and Life Satisfaction ............................................................................................. 5 The Moroccan Example ............................................................................................................... 6 Morocco’s GDP & Economic Health ...................................................................................... 6 Morocco’s Welfare .................................................................................................................... 6 Conclusion ..................................................................................................................................... 9 References................................................................................................................................... 10

2

MBAXIV A – MA 1407 – Business Economics in a Global Market GDP & Welfare – The Moroccan Example

1. Introduction
GDP measures the market value of final goods and services produced within a



References: Numbers, figures and illustrations are from the following sources: Deutshe Bank Research, Measures of Well-being, There is more to it than GDP, September 8, 2006 http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000202587.PDF Global Gender Gap Report 2011, pages 182 & 183 http://www3.weforum.org/docs/WEF_GenderGap_Report_2011.pdf Mundi Index, Morocco GDP (purchase power parity) http://www.indexmundi.com/morocco/gdp_(purchasing_power_parity).html Sylvia I.Bergh, MENA Region Case-Study: Morocco. Presented at the conference on Globalization and Economic Success: Policy Option for Africa, Cairo, 13-14 November 2006. http://www.eip.gov.eg/Upload/ConferenceDocs/321/GlobalizationConferancePapers.pdf UNICEF Welfare Statistics for Morocco http://www.unicef.org/infobycountry/morocco_statistics.html#98 10

You May Also Find These Documents Helpful

  • Powerful Essays

    High Rates of Population Growth & Dependency Burdens: Morocco has very amazing crude birth rates of 4.76 deaths/1,000 population. For one, the country’s crude birth rate is very high and this increases the dependency rations. Additionally, those in the working age have a burden of supporting a larger proportion of dependents. This reduces the living standards of the citizens. The total population is 32 million and an area of 710,850 km². Population demographics include: 0-14 years: 27.8% (male 4,514,623/female 4,382,487), 15-64 years: 66.1% (male 10,335,931/female 10,785,380) and 65 years and over: 6.1% (male 881,622/female 1,068,318) (2011 est.). The population growth rate is .054% (2012 est). The life expectancy is total population: 76.11 years (CIA, 2012)…

    • 949 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Syllabus

    • 1314 Words
    • 9 Pages

    First semester of university-parallel sequence. Introduction to economic Macro-analysis, emphasizing gross national product, national income, consumption, investment, taxation, government and international trade.…

    • 1314 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Morocco and Globalization

    • 653 Words
    • 3 Pages

    Economically, Morocco is making the wrong choice when accepting to step into globalization. In fact, the country agreed on opening its borders gradually until the complete disappearance of taxes in 2010. At first sight, one can say that it will encourage investments in our economy, but what kind of investments will it be? Certainly not high technology. As a consequence, these incoming investments which will mainly use cheap manpower can end with the complete destruction of Morocco’s internal development. Moroccan companies are not ready yet to face international competition, since they are still stuck in primary industries and are hardly moving towards services. This shows the dangers of an evolution that is not emerging internally but is just imposed by the most powerful part in the negotiations.…

    • 653 Words
    • 3 Pages
    Good Essays
  • Better Essays

    GDP

    • 1430 Words
    • 5 Pages

    The Gross Domestic Product (GDP) has been the most widely used indicator of a nation’s welfare since 1944. For decades, people regard countries with higher GDP as stronger ones and whatever is good for the GDP is also good for the nation. But is that true? And what does GDP actually measure?…

    • 1430 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    2. Why is GDP considered a limited measure of societal well-being and progress and outline two alternative measures that have been developed to address some of the limitations of GDP?…

    • 249 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    “In 2003, according to estimates by the World Bank, Sudan’s gross national income, measured at average 2001-2003 prices, was US $ 16,372m., equivalent to $460 per head (or $1,880 on an international purchasing-power parity basis). Overall GDP increased, in real terms, at an average annual rate of 5.8% in 1990-2003; growth in 2003 was 6.0%. In 2003 the average exchange rate was US $1+$260.98 dinars.”…

    • 1319 Words
    • 6 Pages
    Good Essays
  • Good Essays

    The GDP per capita is frequently used as a pointer as the average of living for individuals in a specific area, and economic growth means the increase in the average standard of living. Though, there are a few struggles in using the GDP per capita to calculate the general well being. For example: 1- GDP does not provide any information relevant to the sharing of income in a country. 2- GDP doesn’t consider the negative externalities from pollution resultant to financial growth. 3- GDP doesn’t consider the positivity that may happened from services such as learning and health. 4- GDP keeps out the worth of all the actions that take place outside of the market place.…

    • 799 Words
    • 4 Pages
    Good Essays
  • Good Essays

    “Ideas of globalization are so broad, so diverse and so changeable that it sometimes seems possible to pronounce virtually anything on the subject" (Scholte 427). Indeed the broad concept of globalization is hard to define. However, globalization is known as the free circulation of goods, services and concepts. As Moroccans and citizens of the “third world “globalization has a socio-economical consequence: it increases class war. Before talking about what happened to us --as Moroccans-- after globalization, let’s see how this phenomenon found its way to modern Morocco. Historically speaking, the French colonization brought and imposed the concept of “the modern country” by creating industrial cities and changing the agriculture from a small activity to a business heading toward international marketing. And so we were introduced to free market policies, export-import trade and cross-border commerce. Building the Modern Morocco required opening its gates to international companies. We presented to foreign investors mouth-watering offers with low taxes, cheap manpower and an open market on the developed west. Thus globalization entered the kingdom trough the economical gates. From the cultural point of view, Morocco has hosted several civilizations, which made it culturally rich. Its geographic position and historical background made it a well-known touristic destination. With tourist bringing their cultural identities Morocco became a place of cultural exchange, which will enhance the cross-fertilization of ideas and cultures. No one can deny that Globalization have a positive effect on the economical prosperity of developed countries, but it has more downsides than one might think of for developing and underdeveloped countries. Let’s consider the fact that globalization is a standardization process that aims unifying all cultures in one dominating culture (which is the western culture) and killing any…

    • 738 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Gdp - Is It Misleading?

    • 1238 Words
    • 5 Pages

    But GDP’s broad dominion has long had its critics. It was never meant to be the measure of our well-being, but only the measure of our production—literally, the total value of the goods and services produced within the national borders in a given year. While the quest for some broader measure of progress has been going on for a while it may finally be gaining traction at a time when people understand, as never before, how easily GDP and well-being can diverge.…

    • 1238 Words
    • 5 Pages
    Better Essays
  • Good Essays

    GDP is the market value of all the goods and products produced or provided within a country at a given moment in time. There are three ways to determine the GDP of a country. One is the production method, which measures the value added summed across all firms. Second, is the income method, which is the sum of labor income, capital income, and government income. Third, is the expenditure method, which is the sum of spending by customers, spending by businesses, spending by government, and net spending by foreign income. Although, GDP is very important indicator in economy, in my opinion, its increase does not indicate increase in welfare.…

    • 818 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Devaluation Latin America

    • 5504 Words
    • 23 Pages

    Received: 02-09-2008; accepted: 19-06-2009 Associate Professor, Meliksah University, Faculty of Economics and Business Administration, Kaysery, Turkey. Scientific affiliation: international economics. Phone: +90352 2321375. Fax: +90352 2321322. E-mail: hkalyoncu@meliksah.edu.tr Senior Lecturer, Cag University, Faculty of Economics and Administrative Sciences, 33800, Yenice, Mersin, Turkey. Scientific affiliation: international economics. Phone: +903246514828. Fax: +903246514811. E-mail: ilhanozturk@cag.edu.tr (corresponding author). Assistant Professor, Karadeniz…

    • 5504 Words
    • 23 Pages
    Best Essays
  • Good Essays

    Explain why GDP is not a perfect measure of economic well being of a nation.…

    • 628 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Empowering Women

    • 79955 Words
    • 320 Pages

    content included in the work. The World Bank and the Agence Française de Développement therefore…

    • 79955 Words
    • 320 Pages
    Satisfactory Essays
  • Powerful Essays

    It is evident that Jordan was unable to catch up with the levels of income per-capita it had reached in the 1980s boom, which was then severely hit in 1989 by a financial crisis. During the 1990s -which was considered a period of adjustments-, and while trying to restore some constructive economic growth, the incomes per capita were swept by the high population growth. Thus unemployment and poverty became the most critical problems to be solved.…

    • 1803 Words
    • 8 Pages
    Powerful Essays