Why Buy Pinoy, Part 3: Development Beyond GDP and GNP

Development can be seen, it is argued here, as a process of expanding the real freedoms that people enjoy.

(Italics mine, from Development as Freedom, by Amartya Sen)

One of the most common reasons that I hear for buying Pinoy products is that it supports local businesses and the local economy. Which is true, but it’s sometimes not a reason compelling enough for me. After all, “supporting local business” and “supporting local economy” sounds great, but what does that really mean? On top of that, I certainly don’t want to support local businesses that take advantage and abuse its laborers; nor do I want my (okay, I’ll say it) patriotic stand to result in just some sort of jump in the GNP or GDP numbers.

After all, GNP and GDP are not the best measure of development. Sure, it measures how much an economy has grown on a macro scale, but does it really show us if there is a positive change in the lives of people? And, to be honest, looking at the numbers on a marcro level doesn’t really show me, doesn’t show us, what kind of impact we make as individuals making choices every time we purchase something at the supermarket, or the mall, or the department store.

For me, what is more compelling is an argument that I’m just starting to understand, from the economist Amartya Sen. (Forgive me for going a bit “academic” here–I’m no economic expert though, so please bear with me!) He wants us to consider that real development is not about GNP or GDP, but about human freedom and quality of life.

It’s important for me to emphasize the word “real” in the quote above. Why?

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