Mesurer le Bien ‐ Être et le Progrès des Sociétés Présentation au Conseil Économique et Social et au Conseil Supérieur pour un Développement Durable Martine Durand Chef Statisticien and Directrice des Statistiques, OCDE Luxembourg, 18 Janvier 2012
Presentation outline • Need for better measures of well ‐ being and progress • OECD response and other initiatives • OECD Better Life Initiative • What’s next? 2
Need for better measures… 3
GDP is a key economic measure…. … for monitoring macro ‐ economic activity • Needed for macro ‐ economic policies • Output and productivity, capacity utilisation • Competitiveness • Demand for jobs 4
…. but not a metric of well ‐ being GDP is not a good measure of well ‐ being because: • It includes economic activities that either reduce well ‐ being or that remedy the costs of economic growth • It does not reflect households’ economic resources well • It excludes many of the dimensions that matter for well ‐ being (e.g. people’s attributes, non ‐ market activities) • It does not inform on whether well ‐ being can last over time 5
GDP is an imperfect proxy of household income 2009 or latest available year 1995 or first available year % of GDP 95 90 85 80 75 70 65 60 55 50 Source : OECD, National Accounts database 6
Higher tides do not necessarily lift all boats Point changes in Gini coefficient, from mid-1980s to late-2000s 7 Source : OECD Income distribution and poverty database
Money is not all that counts Average life evaluation and GDP per capita across countries 8.0 DNK CAN NOR SWE AUS NLD CHE 7.5 ISR FIN AUT IRL USA NZL LUX GBR 7.0 BEL BRA MEX FRA ISL OECD Average DEU CHL ITA 6.5 CZE ESP KOR SVK SVN JPN 6.0 POL GRC ‐ IDN TUR 5.5 RUS ZAF EST IND PRT 5.0 CHN HUN 4.5 4.0 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 GDP per capita 8
OECD response and other initiatives 9
The OECD response … • OECD has been leading the international reflection on Measuring Progress for nearly 10 years • We organised three World Fora on “Statistics, Knowledge and Policies” (Palermo, 2004; Istanbul , 2007; Busan, 2009) to advance discussions • We rallied support through the Istanbul Declaration and launched the Global Project in partnership with other organisations in 2007 10
Today: strong political support • President Sarkozy set up the Stiglitz ‐ Sen ‐ Fitoussi Commission (SSFC) in 2009 • EU Communication on “GDP and beyond” and EU 2020 Agenda (2009 and 2010) • G20 Leaders statements in 2009, 2010 and 2011 • Conclusions of OECD Ministerial Council (2010) • Many national initiatives in developed and developing countries 11
Regional and National Initiatives • National initiatives on well ‐ being, e.g.: – Japan growth strategy; Korea programme on measuring well ‐ being – Public consultations in Australia, Italy, Spain, UK, Luxembourg – Parliamentary Commissions in Denmark, Germany, Norway – Development of new indicators in France – China five ‐ year plan and “livelihood index” • International and Regional initiatives on well ‐ being – EU Statistical System: proposing 50 recommendations and actions following ‐ up on the SSFC and the “GDP and beyond” communication – Bhutan ‐ UN resolution on greater importance to well ‐ being when implementing measures on social and economic development 12
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The OECD Better Life Initiative Building on almost 10 years of OECD work under the Global Project Now moving to measuring what matters most in PEOPLE’s life OECD@50: Better policies for better lives
Focus • Households and people, not just GDP • Outcomes, not inputs or outputs • Assessing inequalities alongside averages • Including both objective and subjective aspects of well ‐ being
Scope • Well ‐ being here and now – Quality of Life – Material Living Conditions • Well ‐ being in the future – Sustainability
The OECD well ‐ being framework
Measurement approach • Relevance of indicators – face ‐ validity – easily understood, unambiguous interpretation – amenable to policy changes – possibility of disaggregation by population groups • Quality of supporting data – official and well ‐ established sources; non ‐ official data used as place ‐ holders in a few cases – comparable/standardised definitions – maximum country ‐ coverage – recurrent data collection • Significant documentation and testing • No Composite Index
No country performs best in all dimensions Average country performance by dimension Number of green lights out of 22 headline indicators 60% Number of red lights out of 22 headline indicators Source : OECD calculations
Strengths and weaknesses differ among countries Source : OECD calculations
Inequalities in well ‐ being : income Large income inequalities in many OECD countries… 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Gini coefficient, 2008 or latest year available Source : OECD Income distribution and poverty database
Inequalities in well ‐ being: health Low ‐ income people report lower health status 100 Highest income quintile 90 Lowest income quintile 80 70 60 50 40 30 20 10 0 Source : OECD Health Data; EU ‐ SILC
Inequalities in well ‐ being: social connections Lower ‐ educated and lower ‐ income people also have…. .…weaker social ties ….lower trust in others 95 40 35 90 30 85 25 80 20 15 75 10 70 5 0 65 Primary Secondary Tertiary 1 2 3 4 5 Primary Secondary Tertiary 1 2 3 4 5 Axis Title Education Income quintile Education Income quintile Percentage of people reporting that Percentage of people reporting they have someone to count on in trusting others, 2010 times of need, 2010 Source : Gallup World Poll
Well-being is both objective and subjective For every person assaulted there are ten who feel unsafe 90 80 self-reported victimisation feelings of insecurity 70 60 50 40 30 20 10 0 Percentage of the population, 2010 Source : UNODC and Gallup World Poll
Other people matter for one’s subjective well ‐ being Life satisfaction goes up with social ties 8 With friends to count on Without friends to count on 7 6 5 4 3 2 Source: Gallup World Poll
Environmental sustainability Demand ‐ based CO2 emissions grew faster than production ‐ based emissions in the OECD area Production Demand 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 OECD Other major economies Production ‐ based and demand ‐ based CO2 emissions, Rate of change per year, 1995 ‐ 2005 Source : OECD, Towards Green Growth: Monitoring Progress – OECD Indicators
An evolutionary process • Now: – Evidence based on existing data; all indicators reviewed by National Statistical Offices not all indicators satisfy all quality criteria equally well – But How’s Life? identifies the statistical agenda ahead • In future: – New and improved indicators as results from OECD work, research and other initiatives become available – More than just environmental sustainability (economic, human and social)
OECD research on well ‐ being • OECD committed to deliver on measurement agenda – Developing guidelines on subjective well ‐ being – Integrating inequalities in National Accounts – Developing standards for measuring household wealth and joint distribution of income, consumption and wealth – Measures of household non ‐ market production – Green Growth Indicators; Human and social capital • In collaboration with National Statistical Offices and other international organisations
Involving the public • Engaging with civil society has been one of the goals of the OECD ‐ hosted Global Project • How’s Life? is accompanied by interactive web tool ( Your Better Life Index) aimed at involving the public
Your Better Life Index
What matters most to people ? Source : OECD calculations
Age makes a difference Health, Governance and Environment While income, jobs and work ‐ life become more important with age balance become less important 1 Housing Housing Income Income 10.5 % 10.5% Jobs Jobs 10.0% 10.0% Community Community Education Education 9.5% 9.5% Environment Environment Governance Governance 9.0% 9.0% Health Health 8.5% 8.5% Life satisfaction Life satisfaction Safety Safety 8.0% 8.0% Work and Life Work and Life balance balance 7.5% 7.5% 15 ‐ 24 25 ‐ 34 35 ‐ 44 45 ‐ 54 55 ‐ 64 >=65 15 ‐ 24 25 ‐ 34 35 ‐ 44 45 ‐ 54 55 ‐ 64 >=65 Source : OECD calculations
What’s next? 33
What’s next? • Extending the well ‐ being agenda to developing countries as part of the new OECD Development Strategy • Promoting effective use of new measures for policy ‐ making • Continued engagement with civil society
What’s next? Preparatory Regional Conferences for Latin America, Asia ‐ Pacific, Africa and Europe in 2011 and 2012 4th OECD World Forum on Measuring and Fostering the Progress of Societies, New Delhi, October 2012 Consultation with a wide range of stakeholders 35
Thank you http:/ / www.oecdbetterlifeinitiative.org/ http:/ / www.oecdbetterlifeindex.org/ 36
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