Mesurer le Bien tre et le Progrs des Socits Prsentation au Conseil - - PowerPoint PPT Presentation

Martine Durand Chef Statisticien and Directrice des Statistiques, OCDE Luxembourg, 18 Janvier 2012

Mesurer le Bien‐Être et le Progrès des Sociétés

Présentation au Conseil Économique et Social et au Conseil Supérieur pour un Développement Durable

Presentation outline

• Need for better measures of well‐being

and progress

• OECD response and other initiatives
• OECD Better Life Initiative
• What’s next?

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Need for better measures…

3

… for monitoring macro‐economic activity

• Needed for macro‐economic policies
• Output and productivity, capacity utilisation
• Competitiveness
• Demand for jobs

GDP is a key economic measure….

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GDP is not a good measure of well‐being because:

• It includes economic activities that either reduce well‐being
• r 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

…. but not a metric of well‐being

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GDP is an imperfect proxy of household income

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50 55 60 65 70 75 80 85 90 95 2009 or latest available year 1995 or first available year

% of GDP

Source : OECD, National Accounts database

Higher tides do not necessarily lift all boats

7 Point changes in Gini coefficient, from mid-1980s to late-2000s Source : OECD Income distribution and poverty database

Average life evaluation and GDP per capita across countries

Money is not all that counts

TUR EST HUN ITA ISR PRT GRC IND SVN ESP RUS CZE SVK CHL ZAF OECD Average DEU FIN BRA CHE CAN KOR USA NZL POL LUX BEL FRA AUS IRL MEX AUT GBR CHN SWE NOR NLD IDN JPN ISL DNK

4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 10000 20000 30000 40000 50000 60000 70000 80000 90000

‐

GDP per capita

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OECD response and other initiatives

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• OECD has been leading the international reflection
• n 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

The OECD response …

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• 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

Today: strong political support

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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

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The OECD Better Life Initiative

Building on almost 10 years

• f 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

• f 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

–

• fficial 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 Number of red lights out of 22 headline indicators

60%

Source : OECD calculations

Strengths and weaknesses differ among countries

Source : OECD calculations

Inequalities in well‐being : income

Large income inequalities in many OECD countries…

0.00 0.10 0.20 0.30 0.40 0.50 0.60

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

Source : OECD Health Data; EU‐SILC 10 20 30 40 50 60 70 80 90 100 Highest income quintile Lowest income quintile

Inequalities in well‐being: social connections

.…weaker social ties ….lower trust in others

Percentage of people reporting that they have someone to count on in times of need, 2010 Percentage of people reporting trusting others, 2010

Lower‐educated and lower‐income people also have….

Source : Gallup World Poll

65 70 75 80 85 90 95

Primary Secondary Tertiary

1 2 3 4 5 Education Income quintile

5 10 15 20 25 30 35 40

Primary Secondary Tertiary

1 2 3 4 5

Axis Title

Education Income quintile

Well-being is both objective and subjective

For every person assaulted there are ten who feel unsafe

10 20 30 40 50 60 70 80 90

self-reported victimisation feelings of insecurity

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

Source: Gallup World Poll

2

3

4

5 6

7

8

With friends to count on Without friends to count on

Environmental sustainability

Production‐based and demand‐based CO2 emissions, Rate of change per year, 1995‐2005

Demand‐based CO2 emissions grew faster than production‐based emissions in the OECD area

Source : OECD, Towards Green Growth: Monitoring Progress – OECD Indicators

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

OECD Other major economies Production Demand

An evolutionary process

• Now:

– Evidence based on existing data; all indicators reviewed by National Statistical Offices – But not all indicators satisfy all quality criteria equally well  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
• ne 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 become more important with age While income, jobs and work‐life balance become less important

Source : OECD calculations

7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5%

1

15‐24 25‐34 35‐44 45‐54 55‐64 >=65

Housing Income Jobs Community Education Environment Governance Health Life satisfaction Safety Work and Life balance

7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5%

15‐24 25‐34 35‐44 45‐54 55‐64 >=65

Housing Income Jobs Community Education Environment Governance Health Life satisfaction Safety Work and Life balance

What’s next?

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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

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

What’s next?

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Thank you

http:/ / www.oecdbetterlifeinitiative.org/ http:/ / www.oecdbetterlifeindex.org/

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