sahr2001 - Health Systems Trust

Socio-Economic Indicators
The basic indicators of low socio-economic development are illiteracy,
unemployment and lower education. Measured at the national level, this can
be expressed by the gross domestic product (GDP) per capita. However,
comparison between countries requires that incomes first be converted to a
common currency. International practice is to do so using ‘purchasing power
parities’ (PPPs) rather than exchange rates. A summary measure of human
development is the Human Development Index (HDI) - this measures
achievements in three basic areas: longevity, knowledge and income [HDR
2001].
A South African version of the Human Development Report has also been
produced [HDR 2000 SA]. It seeks to track progress in the transformation
of South African society, to one characterised by ‘substantive democracy and
people-centred development’. The relevance of the socio-economic indicators
reflected here can be seen in their use as the goals of overall government
economic policy, which include:
◆ Creating productive employment opportunities for all citizens at a living
wage
◆ Alleviating poverty, low wages and extreme inequalities in wages and
wealth
◆ Meeting basic needs and ensuring that every citizen enjoys a decent
living standard and economic security.
However, even though the indicators reveal considerable inter-provincial
differences (e.g. in HDI), the fact that these conceal even greater inequities
should be remembered. As South Africa’s Human Development Report notes
(drawing on the Poverty and Inequality Report), “although South Africa is
an upper-middle-income country in per capita terms, most households
experience outright poverty or vulnerability to poverty”.
Definitions:
General Socio-Economic:
GDP per capita (PPP US$): Gross Domestic Product (GDP) - the total output
of goods and services for final use produced by an economy, by both residents
and non-residents, regardless of the allocation to domestic and foreign claims.
It does not include deductions for depreciation of physical capital or depletion
and degradation of natural resources.
Purchasing Power Parity (PPP) - A rate of exchange that accounts for price
differences across countries allowing international comparisons of real output
and incomes. At the PPP US$ rate, PPP US$1 has the same purchasing power
in the domestic economy as $1 has in the United States.
Human Development Index: The HDI is a summary measure of human
development. It measures the average achievements in a country in three
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