Thomas Vietorisz

The Meaning of Social Efficiency

Abstract Policy implementation calls for efficiency. But because policy concerns range over broad social and political-economic areas, the efficient pursuit of one particular goal may conflict with the realization of some other, equally important social interest. Hence, efficiency for its own sake cannot be a policy goal. Giving special attention to the development process, the paper discusses the problems and contradictions that arise when policymakers working in a framework of neoclassical economic theory attempt to deal with issues of equity, stabilization, markets and trade. Starting with the limitations of market efficiency when conventional requirements of social welfare as well as social and environmental sustainability are taken into account, it is argued that a more meaningful concept of social efficiency can be obtained with the help of the human development indicators elaborated by the United Nations Development Program, augmented by the sustainability indicators developed by the European Union and others during the last decade.

Full Employment at Living Wages

The theme of this article is true full employ ment : the opportunity for all to work for living wages. Under the heading of a full employment policy, we reject the creation of substandard jobs, no matter how many. A policy of guaranteed employment that fails to provide for living wage levels could easily turn into a device for forcing reluctant workers into substandard jobs. A true full employment policy must rest on three principles: (1) a guarantee of the right to useful job opportunities for all workers; (2) the creation of standards for family living wages, at least for principal wage earners, since a pure employment policy with no proper wage standards will merely succeed in reproducing poverty; and (3) a com prehensive framework of manpower, production and capac ity planning. Without this, a job guarantee at living wages is sure to fail, because the task of full employment policy is enormous. It must not merely create millions of jobs; it must upgrade tens of millions.

Operation Bootstrap, Industrial Autonomy, and a Parallel Economy for Puerto Rico

Puerto Ricos Operation Bootstrap began to stagnate around 1970, leaving high unemployment. Structural weakness of the economy will continue to inhibit growth, and the historical strategy appears unlikely to succeed. This paper proposes a policy for the development of autonomous exports and import substitution entailing moderate structural reorganization of the economy. However, this policy, in line with international development experience, is frought with difficulty. Therefore, the development of a parallel economy is proposed in order to reduce unemployment, increase productivity, and encourage a restructuring of the economy.