He Oranga Hapori: A model for raising Maori ... - Te Puni Kokiri

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He Oranga Hapori: A model for raising Maori ... - Te Puni Kokiri

“Aotearoa New Zealand has a dual economy. There is the Mäori economy; there is the westerneconomy. The unemployment experience, the level of training, the age distribution, the healthexperience, the housing condition, the degree of diversification and liquidity of the assetbase and so on are quite different between the two economies. Each economy requires quitedifferent prescriptions to prosper.”The prescriptions of the Mäori economy maintain that Mäori will behave in one of two ways,they will:(a)strive to maximise financial returns subject to the expression of kaupapa tuku iho; or(b) seek to maximise the expression of kaupapa tuku iho subject to financial requirements.Quantitative economics - Gross Domestic Product (GDP)Governments, economists and economic development groups manage community wellbeing witheconomic indicators that reflect what the national economy requires to prosper. That is:• Gross Domestic Product (GDP) – market value of all goods and services made within a year;• number of business units – the ability to generate goods and services;• industry and sector activity – who and how money is generated;• number of car registrations – consumption of goods and services;• balance of trade – the difference between how much we import and export;• building consent numbers – an indication of market demand for construction activities;• occupancy rates in tourism – money brought into the local economy; and• retail sales figures – consumption rates.The saying “money makes the world go round” comes to mind because that’s exactly what theseindicators are measuring - money movements within a community, region or nation. Moneyis the form of measurement or ‘unit-of-account’ used by the western theory of economics tomeasure the wealth of regions and nations.GDP refers to the total market value of goods and services produced within a given period ina country. It is often used as a monetary or economic measure of a country’s performancein production over a given period. For example, an increase in GDP is celebrated as a sign ofeconomic progress.Clearly, GDP is essentially a measure of economic progress because it can capture onlyproduction or consumption of goods and services during a period of time. Hence, non-marketactivities such as volunteer or unpaid work, externalities such as pollution caused in the processof production, loss of leisure or family time due to extra hours of work done, the time spentdoing volunteer or community work and so on are not accounted for in GDP calculations.In order to challenge effectively the mistaken assumption that economic growth necessarilymakes us ‘better off’; the new measures must go beyond adding indicators to create a neweconomic accounting system that includes social and environmental benefits and costs. GDPbasedmeasures of progress are challenged on the grounds that they:• count the depletion of a country’s natural wealth as if it were economic gain;• make no qualitative distinctions, so that crime, sickness, accidents, pollution, disasters, warand other liabilities may spur economic growth and contribute to “progress”; exclude thevalue of unpaid voluntary and household work;• ignore the value of free time, leading to the anomaly that overwork and stress spureconomic growth and are therefore mistakenly counted as signs of progress; and9

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