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Beyond GDP: New Measures of Wellbeing and Progress Jānis Brizga Pasaules dabas fonds

Beyond Gdp 2

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Page 1: Beyond Gdp 2

Bey

on

d G

DP

: New

Me

as

ure

s

of W

ellb

ein

g a

nd

Pro

gre

ss

Jānis

Briz

ga

Pasaule

s d

abas

fonds

Page 2: Beyond Gdp 2

Co

nte

nt o

f pre

sen

tatio

n

•M

yth

ab

ou

t gro

wth

•A

ltern

ativ

e m

easu

res

•E

xam

ple

of e

co

log

ical fo

otp

rint

Wo

rld p

op

ula

tion

map

Page 3: Beyond Gdp 2

Myth

ab

ou

t Eco

no

mic

Gro

wth

•R

eso

urc

e d

ep

letio

n–

next g

enera

tions

•M

ore

co

nsu

mp

tion

, energ

y u

se, g

reenhouse

gas e

mis

sio

ns, m

ake e

conom

y g

row

, but a

re

we b

ette

r off?

•E

xte

rnal c

osts

•C

rime, s

ickness, p

ollu

tion, a

ccid

ents

make

econom

y g

row

—ju

st b

ecause m

oney is

bein

g

spent.

Page 4: Beyond Gdp 2

Wro

ng

messag

es

•G

DP

can g

row

even a

s p

overty

and

inequality

incre

ase;

•M

ore

work

hours

make e

conom

y g

row

-fre

e

time h

as n

o v

alu

e –

affe

cts

health

(stre

ss);

•G

DP

ignore

s w

ork

that c

ontrib

ute

s d

irectly

to

com

munity

health

(volu

nte

ers

, work

at

hom

e).V

alu

es, e

lem

en

ts o

f wellb

ein

g•

Health

•S

ecurity

•K

now

ledge

•C

om

munity

•F

reedom

•E

colo

gic

al in

tegrity

•E

quity

Page 5: Beyond Gdp 2

Exp

an

ded

defin

ition

of c

ap

ital

Diffe

ren

t SD

I ap

pro

ach

es

gro

up

ed

aro

un

d a

po

licy c

ycle

Page 6: Beyond Gdp 2

Diffe

ren

t SD

I ap

pro

ac

he

s g

rou

pe

d a

rou

nd

a p

olic

y

cy

cle

(So

urc

e o

f po

licy

cy

cle

: de

Rid

de

re

t al., 2

00

6)

Th

e G

en

uin

e P

rog

res

s In

dex

(US

, Au

stra

liao

nly

)

or In

de

x o

f Su

sta

inab

le W

elfa

re

or M

ea

su

ro

f Do

mes

tic P

rog

res

s (U

K o

nly

)

GP

I is c

alc

ula

ted b

y a

dju

stin

g G

DP

by s

ubtra

ctin

g s

ocia

l an

d e

nviro

nm

en

tal

co

sts

, and a

ddin

g in

the v

alu

e o

f no

n-m

ark

et p

rod

uctiv

e a

ctiv

ity, s

uch a

s

volu

nte

er w

ork

and c

hild

rearin

g.

Calc

ula

ted

by N

GO

sand th

ink ta

nks -

Redefin

ing P

rogre

ss (G

PI, 2

006, U

.S.

only

); New

econom

ics fo

undatio

n (M

DP

, 2004; U

K o

nly

); Frie

nds o

fth

e E

arth

U

K a

nd N

ew

econom

ics fo

undatio

n (IS

EW

)

Page 7: Beyond Gdp 2

Ad

juste

d N

et S

avin

gs (G

en

uin

e

Savin

gs) –

World

Bank

AN

S =

Net s

avin

gs -

reso

urc

e d

ep

letio

n &

en

viro

nm

en

tal

deg

rad

atio

n +

the v

alu

e o

f investm

en

t in h

um

an

cap

ital.

Negativ

ely

ad

juste

d n

et s

avin

g ra

tes

imply

a to

tal w

ealth

in d

eclin

e. T

he b

asic

ide

a

behin

d th

is c

on

cept is

that o

nly

net s

avin

gs in

cre

ase

we

alth

. While

the s

tandard

natio

nal

accounts

sole

ly s

ho

w c

han

ge

in p

hysic

al c

apita

l, i.e. m

an-m

ade

assets

like m

achin

ery

and in

frastru

ctu

re, 'g

enuin

e s

avin

gs' s

trive to

inclu

de th

e n

atu

ral,

enviro

nm

enta

l an

d

hum

an c

apita

l as a

sourc

e o

f we

alth

.

Ad

juste

d N

et S

avin

g

rate

s b

y re

gio

n (%

of

GN

I)

Hu

man

Develo

pm

en

t Ind

ex

(UN

DP

)

The H

DI w

as d

esig

ne

d a

s a

measure

for p

rogre

ss in

de

velo

pin

g

countrie

s b

eyon

dsim

ple

incom

e fig

ure

s s

uch a

s G

DP

. A lo

ng a

nd

hea

lthy life

, know

ledg

e a

nd a

decent s

tandard

of

livin

g a

re

consid

ere

d a

s th

e th

ree k

ey e

lem

ents

of d

evelo

pm

ent. T

here

fore

, data

on life

exp

ecta

ncy, a

du

lt litera

cy, s

chool e

nro

lme

nt a

nd G

DP

are

com

bin

ed to

calc

ula

te th

e in

dex.

Page 8: Beyond Gdp 2

Gro

ss N

atio

nal H

ap

pin

ess

(Kin

gdom

of B

huta

n)

•T

he fo

ur p

illars

of G

NH

are

: •

susta

inable

and e

quita

ble

socio

-econom

ic d

evelo

pm

ent;

•pre

serv

atio

n a

nd p

rom

otio

n o

f cultu

ralvalu

es;

•conserv

atio

n o

f the e

nviro

nm

ent; a

nd

•esta

blis

hm

ent o

f good g

overn

ance.

•A

pp

licatio

n: G

NH

is n

ot a

quantifie

d m

easure

. Rath

er, h

appin

ess is

the

guid

ing fra

mew

ork

for th

ecountry

’s fiv

e-y

ear p

lannin

g p

rocesses.

•A

ssessm

en

t: Afte

r two in

tern

atio

nal c

onfe

rences a

bout th

e c

oncept o

f G

NH

, the c

urre

nt fo

cus is

todevelo

p in

dic

ato

rs to

measure

GN

H. A

targ

et

date

to c

om

ple

te a

first s

et o

f indic

ato

rs is

2008,w

hen th

e firs

t dem

ocra

tic

ele

ctio

ns in

Bhuta

n w

ill be h

eld

.

Hap

py P

lan

et In

dex

(Th

e n

ew

eco

no

mic

s fo

un

da

tion

)H

PI =

(Life

satis

factio

n x

Life

exp

ecta

ncy) / E

colo

gic

al F

ootp

rint.

Qu

ality

of life

ind

ices (g

en

era

lly): R

esearc

h o

n q

ua

lity o

f life

goes b

eyo

nd e

con

om

ic a

nd

enviro

nm

enta

lsta

tistic

s a

nd in

clu

des

surv

eys to

get in

form

atio

n d

irectly

from

the in

div

idua

l. Vario

us

inde

xes fo

rquality

of life

have b

een d

eve

lop

ed b

y d

iffere

nt

researc

h te

am

s. T

he a

im is

to m

onito

r the s

tate

and

de

velo

pm

ent

of q

uality

of life

for d

iffere

nt c

ountrie

s a

nd v

ario

us s

ocia

l gro

ups.

More

over, th

ese

stu

die

s s

eek to

find c

orre

latio

ns w

ith s

ocio

-

econ

om

ic d

ata

to id

entify

driv

ers

for w

ell-b

ein

g a

nd

ha

pp

iness.

Page 9: Beyond Gdp 2

Eco

log

icalfo

otp

rint

EF

measure

s th

e a

mount o

f natu

ral re

sourc

es a

n in

div

idual, a

com

munity

, or a

country

consum

es in

a g

iven y

ear.

To u

nders

tand th

e h

um

anity

’s fo

otp

rint w

e n

eed to

know

two k

ey th

ings:

-E

co

log

ical S

up

ply

(the a

vaila

ble

bio

capacity

/ ecolo

gic

al c

apacity

)

-E

co

log

ical D

em

an

d(o

ur u

se o

f bio

logic

al re

sourc

es / th

e fo

otp

rint).

�C

om

pare

s h

um

an c

onsum

ptio

n o

f natu

ral re

sourc

es w

ith th

e p

lanet’s

ecolo

gic

al c

apacity

to re

genera

te th

em

�A

ssum

es c

urre

nt te

chnolo

gy le

vels

, and lo

oks a

t the a

mount o

f are

a n

eeded

to g

enera

te a

nd to

dis

pose o

f waste

.

Lan

d u

se c

ate

go

ries

To

tal te

rritory

of th

e W

orld

is 5

1 b

il. ha.

Ou

t of th

at:

•36,6

bil. h

a is

wate

r;

•14,4

bil. h

a is

terre

stria

l lan

d;

•11,2

bil. h

a a

re b

iolo

gic

ally

pro

du

ctiv

ete

rritory

Cro

pla

nd

–1

,5b

il. ha

Pastu

re –

3,4

bil. h

a

Fo

rest –

3,7

bil. h

a

Sea s

pace

–2,4

bil. h

a

Bu

ilt-up

lan

d –

0,2

bil. h

a

Carb

on

sto

rag

e a

reas

Need

s o

f oth

er

sp

ecie

s –

12

%

Wo

rld p

op

ula

tion

: Sep

tem

ber 2

007 –

6,6

mil.

Ava

ilab

le p

rod

uctiv

e la

nd

per c

ap

ita 1

,7h

a

Page 10: Beyond Gdp 2
Page 11: Beyond Gdp 2

Measu

ring

(un

)su

sta

inab

ility•

Euro

pea

n fo

otp

rint –

4,8

ha

•U

S fo

otp

rint –

9,6

ha

•A

vera

ge E

uro

pe

an n

eeds 3

pla

nets

•A

vera

ge A

meric

an n

eeds 5

pla

nets

EF

an

d G

row

th in

EU

Page 12: Beyond Gdp 2

20

years

ag

o

an

d

no

wL

V

LT

EE

Page 13: Beyond Gdp 2

Eco

log

ical d

ep

t

Fu

ture

scen

ario

s1) In

erc

e(4

0 p

lanēta

sbio

kap

acitā

tes

gadi

līdz

2050.g

);

2) n

eskārti

50

% n

o e

kosis

tēmām

3) n

eskārti

67

% n

o e

kosis

tēmām

4) n

eskārti

88

% n

o e

kosis

tēmām

Page 14: Beyond Gdp 2

Solu

tions