Opinion 13
Jose I. Duarte
economist, Macau business Senior analyst
jid@macaubusiness.com
Questions and answers
P
eOPLe have a fascination with company as Portugal, New Zealand percentage, are twice or three times as
figures. Something that is quantified and the united Kingdom and also big as Macau’s.
gains an aura of fact, almost scientific azerbaijan, India and Latvia. The figure even the Scandinavians have
and undisputable. Not surprisingly, the makes us only slightly more unequal much higher indices before income
media and the public love indices and than Italy, australia or Spain and also redistribution; and tax burdens
rankings and one which has recently Tanzania, Vietnam and algeria. incomparably higher and a government
received some public attention is the What exactly it tells us, or whether economic weight floating somewhere
Gini coefficient, just published by the it can be meaningfully used without around half of the GDP.
government’s statistical department. reference to other indicators, is open
Without going into technical to debate. but that’s not the argument I Miracle
detail, this index purports to measure want to put forward here.
differences in income distribution. It The really interesting point is that It looks like we have achieved a result
may take values between zero and one. for the first time the index is publicly without parallel, almost a miracle. fast
Higher values reflect bigger income highlighted and announced. The aim growth, very high income per capita, very
inequality. of the announcement was clearly to low taxation and small government - and
as a reference, for countries in underline a significant improvement in all this in just five years.
medium to high bracket of per capita the figure over the last five years. Hopefully, the data obtained in the
income, the lowest values are found In fact, its value for the previous survey will be compared and tested for
among Scandinavian countries. These survey (2002/3) was 0.45. consistency with the data obtained from
are the more equalitarian, as far as Now, this is interesting. It is other sources, namely the census and
income is concerned. Typical values unexpected good news and it raises the income tax declarations.
will be, in their case, below 0.30 (some a few issues concerning the region’s We look forward to full disclosure of
relatively poor countries will appear to economy and policies. the results – due out in april – and to a
fare equally well, but certainly not for more detailed analysis by government
the same reasons, one can guess). Curiosity departments with an interest in the
The highest figures are found in subject. as it happens, the latest Gini
various less developed countries, It is curious that the index was result raises several questions that are
mostly in africa and South america, never previously made public, well relevant from a policy perspective. Two
with values in excess of 0.60. not conspicuously anyway. It was of them stand out.
also absent from the websites and first, we must note, they seem to
Mixed company publications of international institutions contradict the complaints of several
that carry this type of information charities involved in social work about
The latest Gini coefficient for Macau for most countries. The importance increasing inequalities and deepening
was announced in a note making now given to it is certainly warranted pockets of poverty. We should inquire
public the preliminary results from the because - and this is the second and into the causes of this apparent
household budget survey, an extensive more meaningful curiosity - the result is mismatch and what it means for social
exercise that takes place every five truly extraordinary. policies.
years. It was achieved in a boom period, Secondly, if we are getting (much)
based on information collected when one would expect actually richer and much more equal, income
during the period of one year starting in the reverse to happen. Periods of wise, what is the point of subsidising
September 2007, DSeC estimates that (extremely) rapid growth are usually electricity consumption or handing out
the index value for Macau is 0.37. periods of deepening income inequality. lai see to all residents?
using united Nations calculations, Developed countries achieve lower On closer inspection it may be
this figure would put Macau income indices only after redistribution of the case that this result raises more
distribution at levels in the same income, with public budgets that, in questions than answers.
february 2009
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140