Economc policy advise for sustainable development-GIZ
economic policy advice for sustainable development aims at boosting
growth and employment. It is based on the principles of a social and
ecological market economy. Our focus is the strengthening of
institutions to safeguard macroeconomic stability and to provide a
framework conducive for private sector development.
Trade-Development
takes place within the context of globalisation. We help our partner
countries to enhance their competitiveness with strategies in trade
policy. On this basis, they are able to help shape international
agreements and provisions for their benefit. Thus we contribute to
improving entrepreneurial frameworks for potential export sectors.
Quality
infrastructure and consumer protection-Many developing countries and
emerging economies lack the organisational systems and structures
required to efficiently safeguard the quality of commercial products.
This infrastructure is of central importance to any modern economy. We
advise our partner countries on developing appropriate systems for
assuring the quality of their goods.
The
Green Economy-Historically, economic development processes went hand in
hand with substantial environmental pollution. Climate change,
environmental damage and the over-exploitation of natural resources are
the consequences of this development and are major challenges of our
times. We support our partner countries in addressing prosperity,
climate and environmental protection and social justice as overlapping
issues.
Regional
economic integration-Entering into regional economic communities can
bring numerous advantages for the countries concerned. However, in order
for this potential to translate profitably into economic growth and
national development, it is essential to first create conducive
conditions. We support our partners in these efforts at national and
regional level.
Variables
designed to apply monetary values to non-monetary aspects of the
economy. These variables fall into the following general categories:
Personal Consumption - As mentioned, this is the exact same data used to calculate GDP.
Personal
income is a measure of income received from wages and salaries,
dividends and interest, rental income, and the like. All are measured in
actual dollars and usually expressed in percentage terms. Wages and
salaries are the dominant contributor to the aggregate total.
Personal
outlays is made up of mostly personal consumption on goods and
services, but also includes interest payments made on non-mortgage debt
and transfer payments to government or social services.
Income
Distribution - GPI is adjusted upward when a greater percentage of the
nation's income goes to the poor because an income increase provides a
tangible benefit to the poor. GPI is adjusted downward when the majority
of a nation's increased income goes to the rich.
Housework,
Volunteering, Higher Education - GPI factors in the value of the labor
that goes into housework and volunteering. It also factors in the
benefit of an increasingly educated populace.
Service
of Consumer Durables and Infrastructure - Money spent on durable goods
is treated as a cost, while the value the purchases provide is treated
as a benefit. Long-lasting goods that provide benefits without having to
be frequently repurchased are viewed positively. Goods that wear out
quickly and drain consumers' wallets when they must be replaced are
viewed negatively. GDP, on the other hand, views all expenditures as
good news. Infrastructure spending by the government is treated in a
similar manner - if spending provides a long-lasting benefit, GPI views
it as a positive; if spending drains the government's coffers, GPI views
it as a negative. Again, GDP views all spending as positive.
Changes
in Leisure Time - Prosperity should lead to an increase in leisure
time. Most modern workers would disagree with this theory. GPI views an
increase in leisure as a positive and a decrease in leisure as a
negative.
Defensive
Expenditures - Defensive expenditures refer to medical insurance, auto
insurance, healthcare bills and other expenses that are required to
maintain quality of life. GPI views these as a negative. GDP views them
positively.
Dependence
on Foreign Assets - When a nation is forced to borrow from other
nations in order to finance consumption, GPI factors in the result as a
negative. If the borrowed money is used for investments and benefits the
country, it is viewed as a positive.
