Economic Growth and Measurement Reconsidered in Botswana, Kenya, Tanzania, and Zambia, 1965-1995

How do we measure African economic performance? This volume studies how growth is measured in Botswana, Kenya, Tanzania and Zambia and challenges commonly held beliefs of African economic performance. The volume offers a reconsideration of economic growth in Africa in three respects. First, it shows that the focus has been on average economic growth and that there has been no failure of economic growth. In particular the gains made in the 1960s and 1970s have been neglected. Second, it emphasizes that for many countries the decline in economic growth in the 1980s was overstated, as was the improvement in economic growth in the 1990s. The coverage of economic activities in GDP measures is incomplete. In the 1980s many economic activities were increasingly missed in the official records thus the decline in the 1980s was overestimated (resulting from declining coverage) and the increase in the 1990s was overestimated (resulting from increasing coverage). The third important reconsideration is that there is no clear association between economic growth and orthodox economic policies. This is counter to the mainstream interpretation, and suggests that the importance of sound economic policies has been overstated, and that the importance of the external economic conditions have been understated in the prevailing explanation of African economic performance.-- Provided by Publisher How do we measure African economic performance? This question is fully explored through this pioneering study of how growth is measured in Botswana, Kenya, Tanzania, and Zambia; many widely held beliefs about African economic performance are radically challenged. The book offers a reconsideration of economic growth in Africa from three points of view. First, the emphasis in studies of economic growth in Africa has been on average economic growth. The book shows that there has in fact been no lack of economic growth, and that, in particular, the gains made in the 1960s and 1970s have been neglected. Second, it shows how, for many countries, the decline in economic growth in the 1980s has been overstated, as has the improved growth that took place during the 1990s. In addition, GDP measures are incomplete in their coverage of economic activities. In the 1980s, increasing areas of economic activity were absent from the official records, thus overestimating the decline (because of declining coverage); as a consequence, the increase that took place in the 1990s was overestimated (because of increasing coverage). Third, the book shows that there is no clear link between economic growth and orthodox economic policies. This goes counter to the mainstream interpretation, suggesting that the importance of economic policies has been overstated, and the importance of external economic conditions understated, in the dominant explanation of African economic performance Annotation How do we measure African economic performance? This volume studies how growth is measured in Botswana, Kenya, Tanzania and Zambia and challenges commonly held beliefs of African economic performance. The volume offers a reconsideration of economic growth in Africa in three respects. First, it shows that the focus has been on average economic growth and that there has been no failure of economic growth. In particular the gains made in the 1960s and 1970s have been neglected. Second, it emphasizes that for many countries the decline in economic growth in the 1980s was overstated, as was the improvement in economic growth in the 1990s. The coverage of economic activities in GDP measures is incomplete. In the 1980s many economic activities were increasingly missed in the official records thus the decline in the 1980s was overestimated (resulting from declining coverage) and the increase in the 1990s was overestimated (resulting from increasing coverage). The third important reconsideration is that there is no clear association between economic growth and orthodox economic policies. This is counter to the mainstream interpretation, and suggests that the importance of sound economic policies has been overstated, and that the importance of the external economic conditions have been understated in the prevailing explanation of African economic performance Cover 1 Economic Growth and Measurement Reconsidered in Botswana, Kenya, Tanzania, and Zambia, 1965–1995 2 Copyright 5 Acknowledgments 6 Table of Contents 8 List of Figures 10 List of Tables 12 Introduction 14 1 African Economic Growth Reconsidered 19 2 Measuring African Economic Growth 41 3 Measurement in Botswana, Kenya, Tanzania, and Zambia, 1965–95 53 4 Economic Growth and Measurement Reconsidered: Botswana 88 5 Economic Growth and Measurement Reconsidered: Kenya 116 6 Economic Growth and Measurement Reconsidered: Tanzania 137 7 Economic Growth and Measurement Reconsidered: Zambia 163 8 Economic Growth in Botswana, Kenya, Tanzania, and Zambia Reconsidered 188 Conclusion: Reflections on Measurement and Performance 197 Bibliography 206 Index 222 A study of how growth is measured in Botswana, Kenya, Tanzania, and Zambia. It looks at average economic growth, GDP measurements, and the association, or lack thereof, between economic growth and orthodox economic policies