Tue 25 Sep 2012
GDP versus State Accessible Product (SAP)?
Posted by Ed under Academia, Delivering Development, development, Development Institutions, Food Security, Livelihoods, research
[2] Comments
As I mentioned a few posts ago, I am working through James Scott’s The Art of Not Being Governed (my endorsement is in the linked post). In the course of my reading, I have been thinking about what Scott calls the State Accessible Product, which he sets in contrast to the Gross Domestic Product. To Scott’s thinking, the states/kingdoms he is discussing in Southeast Asia were motivated not to maximize the value of all goods and services in their realms, as such maximization might include the production of goods that could not be transported/taxed/otherwise used to enrich the state. Instead, it was in the state’s interest to maximize the production of things it could see, count and move – in other words, to push the growth of a State Accessible Product. Two things resonate for me about this idea:
1) It scales. Just as states pushed for the production of SAP, so too the households I I discuss in Delivering Development tend to divide up livelihoods roles and activities in a manner that maximizes not individual well-being, but activities that only make sense when bundled with the activities of other members of the household – a sort of Household Accessible Product. In an uncertain economy and environment, it makes no sense to focus one’s entire agricultural production on market sale, or to focus entirely on subsistence reproduction of the household. Yet this is just what we see men (playing the former role) and women (playing the latter) doing in some of the households I examined in Ghana. They do this for a lot of complex reasons, but certainly there is something to the idea that these roles force the members of the household into the production of a HAP that certainly does not maximize all possible production and income, but does a lot to reproduce social roles and social stability.
2) It explains why my argument that a lot of farmers on globalization’s shoreline strategically deglobalize was both surprising and, at least to some people, threatening: the opting in and out of global markets is exactly the sort of thing states fear, as it means that the production of these farmers goes in and out of legibility from year to year – making it hard to extract value from that production. In short, there is a GDP that is not coterminus with an SAP along most of globalization’s shoreline – and that non SAP production is critical to the well-being of those engaged in those activities.
It strikes me that a key question here is whether or not our focus on governance in development has led us to inadvertently emphasize activities, projects and programs that render greater and greater percentages of GDP as SAP – certainly, without access to the financial resources produced by the control of a SAP, states are in a weak position. But if many of the activities that actually keep people alive on a day-to-day basis are non-SAP activities, what are we to do? Are we to wipe out/make legible these activities so the state can profit from them? If we do, are we going to enhance the vulnerability of the populations whose livelihoods we alter? Is the enhancement of vulnerability an appropriate trade-off for the creation of a state-legible economy? Can addressing vulnerability and building a strong state be made to rhyme at all?

I think your (and Scott’s) analysis is broadly sound, but worth reflecting that GDP and SAP in practice strongly overlap, in the sense that production which does not reach the formal market does not count in GDP stats (there are some exceptions).
Also, this analysis applies equally to developed countries. Many policies (e.g. non-means-tested subsidised child care) make more sense when viewed from the perspective of maximising SAP/GDP, rather than welfare.
Neal:
But I think you miss my point a little – GDP and SAP in practice strongly overlap because states work hard to make all activity legible and therefore manageable…but having working in Africa for a long time, the fact is that there is a lot of activity going on outside the purview of the state – it can’t be seen, measured or taxed (i.e. subsistence agriculture). GDP sometimes tries to capture this through broad estimates, but that is why GDP figures are so deeply unreliable in sub-Saharan Africa. The point here is that a lot of activity is not yet SAP, but if states have their way they will try to compel people to work on the production of SAP…whether or not that is in the best interest of those who are compelled. For example, to get a greater SAP, it is in the interest of the state to push people into cash cropping, or at least into industrial agricultural production. This overlooks the fact that subsistence production, which is really non-SAP, is a key source of safety and certainty in most agricultural producer’s livelihoods. Im this case, the interest of the state runs directly contrary to the interests of the small producers, at least until such time that the negative impacts of lost subsistence production begin to negatively impact the agricultural component of SAP.
I do agree, though, that this GDP/SAP distinction can be applied anywhere there is a state…