GDP and other criteria for GDP and other criteria for Cohesion Policy Cohesion Policy – – How to How to measure socio measure socio - - economic economic development for cohesion policy development for cohesion policy Jacek Szlachta, Warsaw School of Economics Brussels 20 December 2011 1
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GDP and other criteria for Cohesion Policy –How to measure ......Antic Greece –Ksenofont –goal of economic activity is to achieve surplus Mercantilism-sources of wealth are trade
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GDP and other criteria for GDP and other criteria for Cohesion Policy Cohesion Policy –– How to How to measure sociomeasure socio--economic economic
development for cohesion policydevelopment for cohesion policy
Jacek Szlachta, Warsaw School of EconomicsBrussels 20 December 2011
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Milestones of national accountsMilestones of national accountsAntic Greece – Ksenofont – goal of economic
activity is to achieve surplusMercantilism- sources of wealth are trade and exportA. Smith – every labour is source of new value
added K. Marks – productive and unproductive workW. Leontief – input/output tableR. Stone – outline of System of National Accounts
(SNA) proposed by UNEuropean System of National Accounts (ESA)
proposed by EUROSTAT in 1990s 2
Cohesion in Lisbon Treaty Cohesion in Lisbon Treaty --from December 1from December 1--st 2009 three st 2009 three dimensions dimensions –– economic, social economic, social
Beyond GDP (1)Beyond GDP (1) Different proposals of indicators in fifth cohesion
report: 1. Employment rate, unemployment rate, population
with a tertiary education, early school leavers, total expenditures on R&D, employment in high-tech sector, regional innovation index, productivity in industry and services, households with broadband connection, competitiveness index, infant mortality rate, population at risk of poverty, public investment per head, EU and UN human development index
2.Happiness index, happy life years (only for countries) 12
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Targets proposed by EU 2020 Targets proposed by EU 2020 1. Employment 75% of the 20-64 years old to be
employed 2. R&D 3% of GDP to be invested in R&D 3. Climate change/energy Greenhouse gas emission
20% lower than 1990, 20% of energy from renewables, 20% increase in energy efficiency
4. Education reducing school drop out rates below 10%, at least 40% of 30-34 years old completing third level education
5. Poverty/social exclusion at least 20 million fewer people in or at risk of poverty
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ConclusionsConclusions 1. GDP still important but we should improve
methodologies of calculations 2. We should work on different synthetic
indicators, especially: A. Showing welfare level B. Adressing also social and territorial
dimension of cohesion 3. We should accept limited number of sector
indicators (EU 2020 list is good example)
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