Measuring the Productivity of Nations

Abstract

The importance of the reproduction of manpower as a vital part of the overall production system was emphasized by Andrew Bródy already in his book Proportions, Prices and Planning (1970). As an illustration he refers to the circumstances in the developing countries. How time consuming a process it indeed is to build a system of education for training teachers to teach engineers, who can teach technicians to train skilled workers. In a developed system of education these tasks are performed simultaneously, but still all of them have to be performed. All this affects both output proportions and prices and accordingly has to be taken into account in any complete representation of the overall production system. Thinking of the quantities of the funds fixed in reproducing manpower it becomes obvious that these effects can be quite remarkable. According to the estimates cited by Andrew Bródy the resources tied up in reproducing manpower are about 5–10 years’ national income, while the total physical wealth of a society seldom exceeds 3–4 years’ income.