Social accounting matrices : a basis for planning

The established technique for capturing the details of disaggregated national accounts is the social accounting matrix, or SAM, in which data are displayed in single-entry matrix format, rather than in the traditional form of double-entry bookkeeping. The data base embodied in the SAM can then serve as a statement of initial conditions in an economy and as a starting point for theoretical analysis of the mechanics of growth or the likely effects of policies. A particular feature of this approach is that the SAM structure graphically demonstrates the interconnection between the distribution of living standards and the structure of production in an economy. This report covers three broad areas of concern in social accounting. First it describes the methodology of SAMs as a discipline within economic statistics and gives a comprehensive, nontechnical introduction to the subject. Then it recounts the experiences of Sri Lanka, Swaziland, and Botswana in constructing, maintaining, and using SAMs. Finally, it illustrates the step from data systems to models in a SAM context.