Wawasan Brunei or Brunei Vision , inaugurated by the Government of His Majesty the Sultan in , aims to transform Brunei Darussalam to be. Wawasan Brunei (Vision Brunei ) is a plan to reduce Brunei’s dependence on oil and gas sectors, diversify its economy, and develop public service. Brunei Vision (Wawasan Brunei ) is a developmental framework that was first formulated in by the country’s monarch, Sultan Hassanal Bolkiah.

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Bryane Michael, University of Hong Kong. In this paper, we look at the role HDI-rank targets play on economic and fiscal policy. We show that such a headline target much like a profit target in a private company setting automatically sets targets for growth in various economic sectors and fiscal policy targets. As such, HDI-rank brujei may provide a useful mechanism for co-ordinating development policies and for monitoring progress against a wide range development goals using only one number.

F63, O11, L74, C Brunei Darussalam or simply Brunei is a very rich country — and very poor country at the same time. Yet, after removing the effect of oil revenues, Brunei ranks in 38 th place — between Greece and Oman.

Will the Wawasan eawasan What can other countries, looking to push up their Human Development Index rankings, learn from Brunei? We could have looked at vrunei sectors.

Our argument proceeds roughly as follows. The first section looks at the way countries like Brunei use HDI-rank targets and how these targets translate into real GDP growth targets.

We look at what the literature says about the relationship changes in human development as proxied by HDI scores and rankings and economic growth as proxies by real GDP growth however defined.

Construction sector growth in particular bruneu help promote growth in the other sectors — helping to ensure fast aggregate GDP growth.

The third section wwasan concretely how construction sector growth would contribute to overall economic growth — by restructuring the economy and helping to provide the hospitals, schools and other infrastructure needed for rapid HDI rank improvements.

Brjnei governments have explicitly defined increases their Human Development Index HDI scores as a key policy objective.

Many of these countries include oil rich economies looking to convert oil revenues into longer-term bases of sustainable economic growth. Qatar National Vision We do not list all the roughly 40 countries we reviewed, in order to keep the figure readable.

Commentators looking at the relationship between economic growth and increases in human development usually talk changes about real per capita GDP growth on a purchasing power parity basis as compared with changes in the UNDP Human Development Index. Figure 2 provides a cursory overview of this extensive literature. Overview of the literature about the relation between economic growth and human development indicators.

Effect and representative authors. RanisSuri Looking at disaggregated data and when taking other factors into account, the relationship between HDI scores and GDP growth rates is far weaker than simple bi-variate correlation implies. Effect of government spending. Government spending has an important role to play in changing human development and economic growth outcomes.

Economic growth ignores how gains distribute to the population.

HDI scores also fail to measure and addressthese disparities. Davies and QuinlivanGhulam et al. Trade brings human development as well as economic growth. CahillRanis et al. The search for a link is misguided.

Human development encompasses other things that economic growth like environmental protection and happiness. The figure provides some of the authors writing in each school of thought. We do not try to provide a complete list. According to the strong relationship school, we expect to observe a strong relationship between economic growth and HDI-rank growth in Brunei and other countries. If the Bruneian economy and society reflects this school of thought, Bruneian policymakers need only increase GDP growth rates.


Increases in HDI rankings will take care of themselves. The effect of government spending school indicates that government spending does more than just increase economic growth and push a country up an HDI ranking list. Investments in school, hospitals, and other elements of health and education can dramatically change the way the private sector crowd-in investments in health and education. Authors writing in this school admonish us to play attention to income inequality — even if we do not explicitly include it as a policy instrument.

Authors writing in trade channel school tradition argue that openness to trade can accomplish both goals increases in economic growth and human development. Under this approach, Bruneian policymakers need not worry so much about economic and social policy. Development represents a complex phenomenon involving environmental protection, well-being, happiness, adherence to Muslim values and other factors.

Figure 3a shows the basic model underlying much of the academic work in this area. Most scholars see economic development and human development as a circular chain; human development leads to economic growth — which begets human development. These studies tend to define abstract concepts with data and then look for a relationship — ignoring the structure of the economies and populations these studies supposedly focus on.

Even a quick glance at an actual economy shows how simplistic Figure 3a is. Figure 3b shows some of the diversity of these economies — using the US as an example. Exports of basic materials drive economic growth — and provide the inputs needed to provide educational, health and other services. We can not understand the relationship between the HDI and GDP growth per capita without unpacking the specifics of the economy.

While a range of sectors contribute to both economic and human development, construction probably represents the most important for economies like Brunei and its peers like QatarUAE, Malaysia and other developing countries. Construction obviously represents an important component of GDP.

However, construction likely serves as a basis for human development as measured by the HDI as well. Figure 4 shows the correlation between construction as a percent of overall economic value added and HDI scores for a range of countries. Usually, countries with higher HDI scores need to pay for building the hospitals, schools and other amenities which promote human development. Brunei and Kuwait appear as the outliers. These countries appear to invest too little in their construction sectors.

Brunei is diversifying its energy sources in line with Wawasan Brunei | The ASEAN Post

Bruneii data clearly point to an important role for the construction sector in both economic development namely GDP growth and human development as measured by HDI scores. What do we know about the way construction sector growth leads to changes in economic and human development? The literature, while accepting a close link between construction and GDP, has a hard time deciding if construction leads to economic growth or visa versa.

He presents evidence for, what other authors eventually describe as, the Bon Curve. The Bon Curve represents inverted-U curve when comparing construction activity with economic development. Construction activity lags overall economic growth for low income incomes, surpassing such growth as an economy enters the medium-income category and again lags overall economic activity once the economy enters upper-income status. Many authors find that construction plays an important role in economic development, particularly for already developed economies Ruddock and Bruneo, Yet, a brnei range of studies focusing on a range of diverse economies like Trinidad and Tobago, Hong Kong, and Sri Lanka all suggest that economic development precedes any construction boom Hosein and Lewis,Yiu et al.

Using evidence from IndiaMallick and Mahalik find that construction promotes development — not through increasing amenities like roads, hospitals and so forth — but by supplying wawasqn jobs. Authors like Agarwal et al. What do these findings from other countries mean from Brunei? wqwasan


Wawasan Brunei 2035

Wawaxan, by looking at the rate of growth of the Bruneian economy and particularly the non-oil part of the brnueiwe can guess how much growth Brunei will need to achieve a top 10 HDI ranking. We estimate how much growth Brunei needs to achieve such an HDI ranking in the next section. Such construction would likely need to provide the basis for completely reorganising the Bruneian economy — rather than simply scaling it up.

We discuss the role of such a restructuring in the third section. The literature also suggests that Brunei requires a massive construction boom in order to achieve a top 10 HDI ranking.

We analyse the data to assess the extent to which such a building spree would translate into HDI ranking change. In simple terms, high incomes need to pay for high levels of education and health provision. Yet, policies aimed at keeping Brunei in the top 10 on income-per-capita terms must focus on broader development for three reasons. Income-per-capita needs to focus on non-petrol income per capita — Brunei will run out of oil.

Even now, many Bruneians without connections to the oil-industry have very low incomes — making any income-per-capita measure meaningless. Bruneians may be rich on average, even if the average Bruneian is not rich. The only way to do that is by expanding the sectors which measure health and educational attainment like the health care sector and the range of training sectors present in a modern economy.

Income generation requires broader human development — workers can not develop goods and services for a fast growing economy without education and health. Bruneian workers can not achieve high incomes-per-capita without simultaneously achieving top-ranking education and health rankings as well. If the Wawasan wanted to focus only on incomes, the rest of the decree would only have wawaasan income-specific goals.

The HDI — by definition — represents a composite of income, health and education rankings. Thus, achieving the Wawasan goals clearly requires achieving a top 10 HDI ranking. Such a ranking also requires a top 10 income-per-capita ranking.

Figure 6 provides an extremely simplistic yet illuminating illustration of the challenge of obtaining a top 10 HDI ranking. Reflecting the way geometric growth compounds over time, these wawxsan differences translate into very large differences over time. Both jurisdictions have started out at relatively similar levels of human development as defined by the UNDP. Eventually far lesser developed jurisdictions like Malaysia will catch up with Brunei on human development terms. Achieving the top 10 will be harder than the framers of Wawasan might have imagined.

Bruneian policies must accelerate HDI growth beyond its current 0. Yet, only 11 of the roughly 28 countries able to increase the rate of change of wawsaan HDI scores in recent years come from outside of Sub-Saharan Africa.

Moreover, Bruneian policies must increase HDI growth rates by more than just a little. For example, if Bruneian manpower development policies lead to an extra 0.

Out of the roughly countries the UNDP tracks, only about one-quarter of them 43 countries increased their HDI growth rates during the previous decade. Under the crazy assumption that all other countries stop developing, Brunei would still need to increase its human development index score growth rate from 0.