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Definitions
1. Gross National Product (GNP)
The Gross National Product (GNP) is an estimate of the total value of goods and services
produced in any specified country in a given year.
GNP can be reported for a country as
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a total amount, or
as an amount per capita
(LinguaLinks 2000).
Out-of-date name for gross domestic product (GDP). GDP is a key indicator of an economy’s
health; it’s the value of all the goods and services produced by a country in a given period of time
(ABCNews 2000).
The Gross National Product (GNP) is the total dollar value of all final goods and services
produced for consumption in society during a particular time period. Its rise or fall measures
economic activity based on the labor and production output within a country. The figures used to
assemble data include the manufacture of tangible goods such as cars, furniture, and bread, and
the provision of services used in daily living such as education, health care, and auto repair.
Intermediate services used in the production of the final product are not separated since they are
reflected in the final price of the goods or service. The GNP does include allowances for
depreciation and indirect business taxes such as those on sales and property (BrainBank 2000).
2. Gross Domestic Product (GDP)
Key indicator of an economy’s health, this is the value of all the goods and services produced by
a country in a given period of time. Used to be called Gross National Product, or GNP (ABCNews
2000).
The Gross Domestic Product (GDP) measures output generated through production by labor and
property, which is physically located within the confines of a country. It excludes such factors as
income earned by U.S. citizens working overseas, but does include factors such as the rental
value of owner-occupied housing. In December 1991, the Bureau of Economic Analysis began
using the GDP rather than the GNP as the primary measure of United States production. This
figure facilitates comparisons between the United States and other countries, since it is the
standard used in international guidelines for economic accounting (BrainBank 2000).
3. The Spatial Development Initiative (SDI)
The SDI programme is a short-term investment strategy that aims to unlock inherent economic
potential in specific spatial locations in southern Africa. The programme uses public resources to
promote private sector investment in regions with a high potential for economic growth. There are
currently 10 SDI's in southern Africa of which 8 are listed below.
1. The Lubombo SDI (named after the Lubombo Mountains, which run through an area of
south-east Africa that includes eastern Swaziland, southern Mozambique and the
northern part of South African province of KwaZulu/Natal)
2. The West Coast SDI
3. The Fish River SDI (includes the coastal cities of Port Elizabeth and East London)
4. The Maputo Corridor (spans Gauteng and Mozambique, includes the transport
infrastructure, investments in industry, agriculture and tourism)
5. The Wild Coast SDI (a 280 kilometre stretch of stunningly beautiful Indian Ocean
coastline in South Africa's Eastern Cape province)
6. The Platinum SDI (includes South Africa (northern Gauteng province and North-West
7.
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Province) and Botswana (the town of Lobatse)
Phalaborwa SDI (create better access between the Port of Maputo and mining potential
in and around Phalaborwa and the agricultural projects near Xenon in South Africa's
Northern Province)
The Richard's Bay SDI (the Richards Bay-Empangeni area in northern KwaZulu/Natal)
These SDI's have 518 potential investment opportunities valued at R115.4 billion and which will
create 118 000 new jobs.
4. The Industrial Development Zones (IDZ's)
IDZ’s forms part of the Spatial Development Initiative (SDI) programme. Its aim is to make South
Africa a top investment destination by providing the facilities and services needed for exportoriented industries. The programme is spearheaded by the Department of Trade and Industry
(DTI), which has prepared an enabling framework for South African zones, drawing on
international best practice of export oriented zone development. The programme will see the
building of industrial estates linked to an international port or airport containing a controlled duty
free area. Benefits for businesses associated with these sites include speedy decision-making,
attractive benefits, high quality inputs at competitive rates and standards for labor and the
environment that give easy access to work markets. These initiatives will also have to comply
with environmental standards through environmental management plans, as required by national
legislation. Labor legislation will provide the framework for human resource development (through
co-ordination of recruitment and training services) and proactive dispute resolution, which will
create a stable and productive industrial relations environment.
IDZ's will target mainly strategic resource intensive industries and related industries. In South
Africa, this will include light manufacturing and assembly through to capital intensive natural
resource based industries. This will require links to made between domestic industries and those
located in zones so as to optimize the use of existing infrastructure, generate employment and
achieve transfers of technology.
The feasibility of 5 IDZ's are currently assessed, namely, at
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Richards Bay
East London
Coega near Port Elizabeth
Saldanha Bay
Johannesburg International Airport.