Transcript well-being
Measures of progress and well-being 15th Jan 2010, Epiphany House, Cornwall Nicola Steuer & Saamah Abdallah Centre for Well-being nef (the new economics foundation) Outline • The need for new measures • Growing momentum • The purposes of measurement • New approaches to measuring progress About nef An independent UK think-and-do-tank (founded 1986). Inspired by 3 principles Sustainable development Social justice People’s well-being Aim of the centre for well-being: “Enhance individual and collective well-being in ways that are environmentally sustainable and socially just” Outline • The need for new measures • Growing momentum • The purposes of measurement • New approaches to measuring progress The need for new measures • National • Regional • Local The problem with GDP ‘The Gross National1968 Product counts air pollution and cigarette Robert Kennedy, advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them… It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl… Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials… it measures everything, in short, except that which makes life worthwhile.’ Gaps in the GDP Economic depreciation Defensive costs Income distribution Non-market benefits (e.g. household labour) Environment capital and degradation WELL-BEING ≠ WEALTH Mis-conceptions “UK standard of living drops below 2005 level” The Guardian, 31st Dec 2009 • GDP keyword in over 1200 articles per month, before the recession began • Main headline indicator The need for new measures • Regional – GVA plays same role – Sub-national review tasks RDAs with GVA growth as central goal The need for new measures • Local National Indicator Set 198 indicators, on a range of domains, including subjective and objective indicators But… Big list of indicators Not enough in terms of outcomes Not enough subjective measures Does not help determine trade-offs No overall sense of progress What is well-being? Foresight Mental Capital and Well-Being Project e.g. to be autonomous, competent, and connected to others Enabling conditions e.g. material conditions, opportunities, social norms Experience of life e.g. happiness, satisfaction, interest, boredom and distress Functioning well and satisfaction of needs Personal resources e.g. resilience, optimism, self-esteem, personality Outline • The need for new measures • Growing momentum • The purposes of measurement • New approaches to measuring progress Well-being matters • UK Local Government Act of 2000: “the power to promote social, economic and environmental wellbeing” • Every Child Matters • Securing the Future • Sub-National Review: “The purpose of local government is to take responsibility for the wellbeing of an area and the people who live there” • HM Treasury Departmental Strategic Objective for 2008-2011: “Ensuring high and sustainable levels of economic growth, well being and prosperity for all”. Measurement momentum • • • • • • Defra sustainable development indicators Office of National Statistics Eurostat Beyond GDP, Well-being 2030 OECD Stiglitz Commission: – “a shift of emphasis from a ‘production-oriented’ measurement system to one focused on the wellbeing of current and future generations” OECD framework Global project for Measuring Progress of Societies Democratic mandate • International survey found 75% believe that environmental, health and social indicators should be given as much weight as economic ones • 81% in Britain think that government’s prime objective should be to ‘greatest happiness’ rather than ‘greatest wealth’ Outline • The need for new measures • Growing momentum • The purposes of measurement • New approaches to measuring progress Why measure? Identify problems Knowledge base Formulate policy & shape delivery Resolve trade-offs Evaluate policy Assess overall progress Compare Why measure? Identify problems Knowledge base Formulate policy & shape delivery Change understandings of progress Resolve trade-offs Evaluate policy Stiglitz Commission: “new political narratives are necessary to identify where our societies should go” Assess overall progress Compare Results from the questionnaire 0 track progress compare understand problems identify groups allow trade-offs evaluate policy 1 Importance 2 3 4 5 Outline • The need for new measures • Growing momentum • The purposes of measurement • New approaches to measuring progress R-ISEW (Regional) Index of Sustainable Economic WellBeing Adjusted GDP measure “The sum of net service flows and the net change in capital stocks, resulting from the productive activity in a given period” First ISEW in 1989 R-ISEWs calculated for English regions for 1994-2007 R-ISEW • R-ISEW = Personal consumer expenditure - adjustment for income inequality + public expenditures (non-defensive) + value of domestic labour & volunteering +/- economic adjustments - defensive private expenditures - costs of environmental degradation - depreciation of natural capital R-ISEW & GVA by region: 2007 Well below mean Below mean Above mean Well above mean GVA R-ISEW R-ISEWs 180 North East 160 Indexed against England 1994 North West 140 Yorkshire & Humber East Midlands 120 West Midlands Eastern 100 London South East 80 South West 60 England 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 R-ISEW by component – for South West South West vs. South East Consumer expenditure Long-term environment Capital growth 4.00 Resource depletion International position Farmland & habitats Consumer durables 0.00 Noise pollution Public expenditure -4.00 Air pollution Household labour Water pollution Income equality Pollution control Industrial accidents Car accidents Family breakdown Crime Commuting R-ISEW Assessment Track progress Compare Understand problems Identify problem groups Assess trade-offs Evaluate policies ~ National Accounts of Well-Being • Based on data from European Social Survey, 2006 • c. 40,000 respondents in 22 countries • Over 50 questions on well-being National Accounts of well-being: a structure Personal well-being Country well-being profiles Low income groups +ve feelings 7.00 trust & belonging 6.00 -ve feelings 5.00 4.00 supportive relationships 3.00 postiive functioning satisfying life vitality resilience & self-esteem Spain UK European average National Accounts Assessment Track progress Compare Understand problems Identify problem groups Assess trade-offs ~ Evaluate policies ~ Happy Planet Index • First report published 2006 • European HPI, 2007 • HPI 2.0, 2009 • Caerphilly and Torfaen Sustainability Indicators Keeping it simple WELL-BEING Keeping it simple What the numbers say The HPI • Combined into an efficiency index: HLY HPI Footprint What the numbers say HPI Assessment Track progress Compare Understand problems Identify problem groups ~ Assess trade-offs ~ Evaluate policies Local well-being • Published in 2008 • Collaboration with Young Foundation and Audit Commission • Based on work in 3 LAs: • Hertfordshire • Manchester City • South Tyneside Choosing a level universal level domain level targeted level for enabling local authorities and their partners to measure the overall subjective wellbeing of the local population for obtaining a more detailed understanding of how people feel about/experience different aspects of life at the local level, and to enable comparison between population groups and neighbourhoods for measuring wellbeing in terms of how people feel and function, particularly specific groups of residents or service users targeted through local initiatives and services Personal-social-place framework Health and mental wellbeing Personal Material and financial wellbeing Engaging activities and achievements wellbeing Access and opportunities Family and relationships Social Social support and engagement Place Sense of belonging and community cohesion Safety and security Quality of local area and environment Local WB Framework Assessment Track progress Compare ~ Understand problems Identify problem groups Assess trade-offs Evaluate policies Key issues • • • • Aggregation / Substitution Subjective indicators Communication Short-term / long-term Thank you! 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