Measures of progress and well-being 15 th Jan 2010, Epiphany House, Cornwall Nicola Steuer & Saamah Abdallah Centre for Well-being nef (the new economics foundation)
Measures of progress and well-being 15 th Jan 2010, Epiphany House, Cornwall Nicola Steuer & Saamah Abdallah Centre for Well-being nef (the new economics.
Jan 14, 2016
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Measures of progress and well-being
15th Jan 2010, Epiphany House, Cornwall
Nicola Steuer & Saamah AbdallahCentre for Well-beingnef (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 principlesSustainable 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 National Product counts air pollution and cigarette
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.’
Robert Kennedy, 1968
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 indicatorsNot enough in terms of outcomesNot enough subjective measuresDoes not help determine trade-offsNo overall sense of progress
Personalresources
Functioning welland satisfaction
of needs
Experience of life
e.g. to be autonomous,
competent, and connected to others
e.g. resilience, optimism, self-esteem,
personality
e.g. material conditions,
opportunities, social norms
e.g. happiness, satisfaction, interest, boredom and distress
Enablingconditions
Foresight Mental Capital and Well-Being Project
What is well-being?
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 well-being”
• Every Child Matters• Securing the Future• Sub-National Review: “The purpose of local
government is to take responsibility for the well-being 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 well-being 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
Evaluate policy
Compare
Assess overall progress
Resolve trade-offs
Why measure?
Identify problems
Knowledge base
Formulate policy & shape delivery
Evaluate policy
Compare
Assess overall progress
Resolve trade-offsChange
understandings of progress
Stiglitz Commission:
“new political narratives are necessary to identify where our societies should go”
Results from the questionnaire
0 1 2 3 4 5
track progress
compare
understand problems
identify groups
allow trade-offs
evaluate policy
Importance
Outline
• The need for new measures
• Growing momentum
• The purposes of measurement
• New approaches to measuring progress
R-ISEW
(Regional) Index of Sustainable Economic Well-Being
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
GVA R-ISEW
Well below mean
Below mean
Above mean
Well above mean
R-ISEWs
0
20
40
60
80
100
120
140
160
180
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Inde
xed
agai
nst E
ngla
nd 1
994
North East
North West
Yorkshire &HumberEast Midlands
West Midlands
Eastern
London
South East
South West
England
R-ISEW by component – for South West
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
3.00
4.00
5.00
6.00
7.00
+ve feelings
-ve feelings
satisfying life
vitality
resilience & self-esteem
postiive functioning
supportive relationships
trust & belonging
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:
Footprint
HLYHPI
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
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
Social
Personal
wellbeing
PlaceQuality of local area
and environmentSafety and security
Access and opportunities
Material and financial wellbeing
Health and mental wellbeing
Engaging activities and achievements
Social support andengagement
Family and relationships
Sense of belonging and community cohesion
Social
Personal
wellbeing
PlaceQuality of local area
and environmentSafety and security
Access and opportunities
Material and financial wellbeing
Health and mental wellbeing
Engaging activities and achievements
Social support andengagement
Family and relationships
Sense of belonging and community cohesion
wellbeing
PlaceQuality of local area
and environmentSafety and security
Access and opportunities
Material and financial wellbeing
Health and mental wellbeing
Engaging activities and achievements
Social support andengagement
Family and relationships
Sense of belonging and community cohesion
PlaceQuality of local area
and environmentSafety and security
Access and opportunities
Quality of local areaand environmentSafety and security
Access and opportunities
Material and financial wellbeing
Health and mental wellbeing
Engaging activities and achievements
Material and financial wellbeing
Health and mental wellbeing
Engaging activities and achievements
Social support andengagement
Family and relationships
Sense of belonging and community cohesion
Social support andengagement
Family and relationships
Sense of belonging and community cohesion
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
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