The experts – both members of the School of Economic Sciences in the Faculty of Economic and Management Sciences, found that previous attempts to measure economic development made use of a single and limited composite indices, such as the Human Development Index (HDI). These indices were found to be very limited and as such failed to capture important aspects of development.
According to Prof Meyer the primary drive to develop a new index was the need to construct a multi-dimensional composite regional index that would measure most dimensions of development. The new index includes 18 quantifiable socio-economic variables, consisting of four sub-dimensions and weightings for individual indicators.
Putting theory into practice
The two experts went about testing their newly developed index by applying it to all nine provinces in the country. The findings indicated that regions are at different stages of development and development occurs at a different pace across regions.
Based on the findings of the pilot project, the index will provide economic development practitioners with detailed insights regarding the socio-economic strengths and weaknesses of the provinces in South Africa. This will also help to indicated where interventions are required.
It is the two experts’ opinion that the implications of this alternative index are that it could be successfully utilised as a tool for analysis and measurement of global regional efforts, as well as to compare different economics regions vis-à-vis the level of economic development.
Prof Danie Meyer.
Mr Jacques de Jongh.
