Transcript Document

Measuring
Real Wealth
in New
Zealand
David Kettle, Anew NZ
Progress Indicator
Action Group
2nd International Conference on
Sustainability Engineering and Science,
February 2007
OUTLINE
•Introduction
•Current Measures of Progress (GDP)
•Genuine Progress Indicators (GPI)
•Other Wellbeing Indicator Work
•Going Forward in New Zealand
INTRODUCTION
• Significant Current Indicators Work
• Challenge - Integrate and comparability,
- Misuse of GDP
• Key question
– “How can we create an integrated system of
indicators …….. global comparability…………
combines present well-being with long term
sustainability………. while challenging the
misuse of GDP as being the basic indicator of
societal well-being?”
Why we need measures to
complement GDP (Gross Domestic Product)
• Every expenditure as addition to well-being
(e.g. cyclones, war, etc.)
• Ignores functions that don’t involve money
(e.g. volunteers, open spaces, trees etc.)
• No regard for future
(e.g. depletion of natural resources as current income instead of
liquidation of an asset)
• Ignores distribution of income
(e.g. the gap between the haves and have-nots)
Average income & happiness in the US,
1957-2002
Things of personal importance to Kiwi’s
Growth & Innovation Advisory Council 2004
46
Quality of life
47
36
Quality of education
47
32
Quality of natural environment
Race relations
17
Employment prospects
16
Potential to increase personal w ealth
16
Level of w ages & salaries
15
10
57
8
0 is not important and 10
is very important
Very improtant 10
45
0%
40%
Important 7-9
Neutral 4-6
5
23
4
28
6
28
35
57
5
27
57
Level of economic grow th
Business opportunities
8
18
52
1
6
24
60
53
9
16
51
11
3
12
48
Provding a supportive business environment
Quality of artistic & cultural heritage
13
55
30
The public health system
7 0
4
10
29
5
80%
100%
Note important 0-3
Genuine Progress Indicators
(Example: Nova Scotia GPI, Ron Colman)
Time Use
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Economic Value of Civic and
Voluntary Work
Economic Value of Unpaid
Housework and Child Care
Work Hours
Value of Leisure Time
Environmental Quality
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Greenhouse Gas Emissions
Sustainable Transportation
Ecological Footprint Analysis
Air Quality
Water Quality
Solid Waste
Natural Capital
Socio-economic
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Soils and Agriculture
Forests
Marine Environment/Fisheries
Energy
Social Capital
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Population Health
Educational Attainment
Costs of Crime
Human Freedom Index
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Income Distribution
Debt, External Borrowing, and
Capital Movements
Valuations of Durability
Composite Livelihood Security Index
Canadian Index of Wellbeing (CIW)
• Living Standards – gap between rich & poor, food security,
affordable housing
• Time Allocation – balance between paid work, unpaid work &
free time
• Healthy Populations – self-rated health, infant mortality, rates
of suicide
• Ecosystem Health – air & water quality, healthy forests, soils
• Educated Populace – literacy, numeracy
• Community Vitality – safe communities, diversity, culture, arts
• Civic Engagement – meaningful participation
The 6 Capitals of Wellbeing
1. Produced (Built) Capital – machinery, equipment
2. Financial Capital – loans, financial savings
3. Natural Capital – renewable and non-renewable
natural resources
4. Social Capital – values and understanding within and
between groups
5. Human Capital – knowledge skills through life-long
learning
6. Cultural Capital – traditions and behaviours
At a Global Level
• United Nations Statistics Division – City Groups on
Statistical Methodologies
(http://unstats.un.org/unsd/methods/citygroup/index.htm).
• The European Social Survey (http://ess.nsd.uib.no).
• OECD 2006 Factbook (www.SourceOECD.org/factbook).
• June, 2006 Milan OECD ‘post conference’ on a
‘National Index of Wellbeing’ - developing a national
index of wellbeing model to be presented at:
– OECD Global Project – Measuring the Progress of
Societies, Second OECD World Forum on Statistics,
Knowledge and Policy, 27-30 June 2007, Instanbul, Turkey
Existing good work in NZ
• Quality of life in our
cities; now 12 largest
• Excellent MSD social reports
• Marilyn Waring’s pioneering
work; in assoc. with Dr. Colman
• Local Gov. Act 2002; LTCCP’s
A Pathway for Going Forward in
NZ
1. Support Local and Regional Governments in
developing wellbeing indicators
2. Resource Kit of best practice and
“standardisation”
3. Research and Resourcing
4. Develop international comparability model
5. New Zealand Measures of Wellbeing
The AnewNZ Initiative
“A National Index of Progress and
Wellbeing, Developing a Model for
Global Comparability”, November 2007
Six to Eight Countries, including OECD
Demonstrate viability of comparable set
Agree on wording and data bases
www.anewnz.org.nz
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David Kettle – [email protected]
Dave Breuer
Chris Ferkins
Gary Russell
John Shaw
Ray Skinner
Antony Vallyon