Equity, Public Resources and National Accounts

Abstract

Social equity is as important a policy goal as economic efficiency. Equity considerations are particularly critical when public resources are used by private business. Public natural resources are owned equally by all citizens and are managed on their behalf by governments. Sale or lease of public resources to private interests at discounted or subsidised rates is poor resource management and is inequitable. This is of particular concern when profits accrue to overseas interests at the expense of domestic taxpayers. This appears to have occurred in the woodchip industry, for example. One reason is that conflicts between domestic lobby groups weaken our national negotiating position in international trade. In addition, governments rely on national economic statistics such as GDP which measure activity but not asset depletion.