Transcript BLI Presentation for Visits and Seminars Programme

Discussion of
“Beyond SNA- A Broader Approach to Well-Being” by Albert
Braakmann (Federal Statistical Office, Germany)
“Quality of Life: Issues and Challenges in Measurement” by
Suresh Chand Aggarwal (University of Delhi)
Romina Boarini
OECD Statistics Directorate
What the 2 papers have in common
• They start from a similar background (i.e. the SSF
Commission, the “GDP and Beyond” movement)
• They review various national and international initiatives on
measuring QoL/Wellbeing/Progress
• They conclude that efforts on “GDP and beyond” are
interesting but insufficient and thus…
• … the SNA could be (partly) of help to advance this agenda
Insights from the paper “Beyond SNA – A Broader
Approach to Well-Being” (i)
• Focus on measures of social progress in Germany:
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–
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The Franco-German Dashboard
National Welfare Index
KfW- Sustainability Indicator
Prosperity Quintet
W3 Indicators of the German Federal Parliament
• German sustainability strategy: the “dominant male”
(interestingly, not GDP!)
•
How statisticians can help on well-being:
- Developing better metrics and new analysis
- Providing evidence to judge progress on political targets
Insights from the paper “Beyond SNA – A Broader
Approach to Well-Being” (ii)
• Ways forward to integrate WB in NA:
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Memorandum items: e.g. distributional measures
Additional accounts: HADI
Supplementary tables: environmental costs
Satellite Accounts: homework, parenting, volunteer labour
• But not for everything: “It is difficult to imagine an objective
way in which factors such as (social ones) could be quantified
and more difficult to imagine the usefulness of including them
in a system designed primarily to facilitate economic analysis”
Questions for the first paper
1. What would be really needed to make that integration happen?
better/new data, different mindset, clear policy demand (e.g. the Gut
leben in Deutschland - was uns wichtig ist?), anything else?
2. What is the experience of the Federal Statistical Office on
expanding the boundaries of NA? Future plans?
3. Do you (all) agree (I don’t!) with SNA statement that a) we cannot
quantify QoL factors; b) these factors do not matter for economic
analysis?
- a) OECD Guidelines on SWB
- b) The role of trust and cooperative norms
4. (The old question: isn’t it better to be imperfectly right than perfectly
wrong?)
Insights from the paper “Quality of Life: Issues and
Challenges in Measurement” (i)
• Comparing composite indices “Beyond GDP” against
their value-added to GDP
WHI
Top 15 rich countries by GDP
per capita ($ PPP>40000,
2012)
Middle 39 countries by GDP
per capita ($ PPP>11000 &
<40000, 2012)
Bottom 16 countries by GDP
per capita ($ PPP<11000,
2012)
HPI
HDI
SPI
QOL
-0.0571
0.0500
0.1055
-0.1357
-0.2341
0.3581
-0.1887
0.9378
0.7417
0.6530
0.0559
-0.1029
0.7794
0.5824
0.7290
• Indian efforts:
– Compendium on Environment Statistics (in line with FDES)
– Green National Accounts
– New focus on wealth, e.g. inclusive growth= inclusive growth
in wealth
Insights from the paper “Quality of Life: Issues and
Challenges in Measurement” (i)
• Measurement issues in Beyond GDP agenda:
– Concepts and definitions of QoL should be standardised;
– Lack of an internationally agreed framework for the capital stocks that
drive wellbeing/QoL over time: human, social and environmental
capital;
– SNA methodology not up to the herculean task;
– Use available indicators, fill data gaps otherwise
– Conduct studies to determine ALL shadow prices
• Challenges:
– Paucity of “physical” indicators of e.g. natural capital
– What to do with factors that are qualitative in nature and/or beyond
markets?
– How to compare over time? How to aggregate?
Questions for the second paper
1.
The paper states that the “best” indices/frameworks for measuring QoL are:
Inclusive Wealth Index, the Gross National Happiness and the OECD Better
Life Initiative (thanks!), why?
2.
But do or could they really fit the NA framework?
- e.g. Lot of the Beyond and GDP agenda has focused on measuring
inequalities in well-being outcomes, can NA do that?
3.
Can we really find shadow prices for all QoL dimensions? And should we?
- The example of the OECD Inclusive Growth project
4.
Yes we do need an agreed framework, but how to ensure that this is relevant
for all countries?
THANK YOU!
[email protected]
www.oecd.org/measuringprogress
www.oecdbetterlifeindex.org