Social responsibility indexes
When I was studying in Australia back in the 60’s, the term to measure the success of an economic system was mostly Gross National Product or GNP. It is the total dollar value of all final goods and services produced for consumption in society during a particular time period. In the financial world, the term to measure the financial liquidity was generally quick ratio which is obtained by subtracting inventories from current assets and then dividing by current liabilities. The performance of an Air Line was derived from the load factor calculated by dividing available seat miles by revenue passenger miles.
Public sector index
Some of these rates are rarely used now as new rates have popped up to measure things. For the 10 full months this year, I have heard of the term GDP almost everyday either on the radio, television, or newspaper for a total of not less than few thousand times. I have heard of GNP only once or twice in the same period. Well GDP is simply GNP less goods and services produced offshore by all multi-national firms. There was no need for the term GDP so much in 1960 as there were not many multi national companies around the globe and their national contribution value were small.
Not only have I witnessed the change of GNP to GDP in measuring economic growth, I also see a new measuring rate catered to do the job, viz. GNH. Well, GNH or Gross National Happiness is an index derived from both qualitative and quantitative measures to reflect the economic well being of the citizen. The term was coined by Bhutan‘s King Jigme Singye Wangchuck in 1972.
In the year 2002, His Majesty King Bhumibol Adulyadej of Thailand introduced the concept of sufficient economy. It emphasizes the economic success in terms of the sufficiency of the people not in the GDP growth. The new government set up by COUP D’ETAT in 2006 pronounced that the economic policy would be conducted on a sufficiency base.
This, perhaps, is why the GNH rate has been being a new rate of talk in economic for the past 12 months since the taking over of the military. Thailand will now host the 3rd international conference on Gross National Happiness "Towards Global Transformation – World Views Make A Difference" on 22-28 November 2007. It seems GNH is determined to stay hand in hand with GDP to rate the economic well being of the country.
Private sector index
The airline industry is also coming up with a new rate to challenge the load factor. Buget airline, low cost air line, chartered flight have alll been booming making even giant national carriers to have to set up secondary liners of cheap airfair to counter the intruders. In Thailand, we have a fully owned, Nok-Air, by the national carrier Thai Internaional. The Singapore has the Tiger Air under Singapore national airline to compete head on with the low cost.
The Oasis Airline in Hong Kong has come up with the world’s first long – haul budget flight flying some 400,000 passengers since it’s inauguration in late 2006. The airline’s load factor is about 80 % which is condidered very high in this throat cutting competitive industry.
But it is not only the impressed figures or the traditional rate measurement that matters this airline. They have come up with new standard of valuation. It is no longer the load factor but the mission factor. The mission, as the airline puts it, is not just to see how full the passengers is in a single flight, but to see that how good it makes to the society too.
The good is to make traveling affordable to all. This will help in people meeting, culture exchanging, better understanding, etc. The tandem that follows is the world with less squabbling, fighting and even war preventing.
Like GNH, the Mission factor is more to the qualitative measure than the scientific quantitative approach. Both are still in the initial stages and need time to enhance and improve for acceptance and practice. This is similar to the qualitative research method when it was being suspicious, questioned, and even condemned as to it’s accuracy by her earlier quantifying research sister. Their success will again cause rates to change.