MEASURING PROGRESS: Beyond GDP to New Measures of Wellbeing and Progress

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MEASURING PROGRESSBeyond GDP to New Measures of
Wellbeing and Progress

• A presentation for the Nova Scotia Planning
  Directors Association
• May 17, Lord Nelson Hotel, Halifax

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What kind of world are we leaving our children...?
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... In experience and language of ordinary people

• More possessions, longer lives, BUT
• Higher stress rates, obesity, childhood asthma,
  environmental illness
• Insecurity - safety, livelihood
• Decline of volunteerism
• Greater inequality child poverty
• Natural resource depletion, species loss
• Global warming

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The more the economy grows, the better off we
are - Sending the wrong message?
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The Big Myth of Economic Growth

• Resource depletion as economic gain a poorer
  world for our children
• More consumption, energy use, greenhouse gas
  emissions, make economy grow, but are we better
  off
• Crime, sickness, pollution, make economy grow
  just because money is being spent.

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Current measures of progress send the wrong
messages

• GDP can grow even as poverty and inequality
  increase
• More work hours make economy grow free time has
  no value affects health (stress)
• GDP ignores work that contributes directly to
  community health (volunteers, work in home)

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Why We Need New Indicators - Policy Reasons

• Economic growth better off sends misleading
  signals to policy-makers and local communities
• Vital social, environmental assets ignored
• Preventive initiatives to conserve and use
  resources sustainably, to reduce poverty,
  sickness and greenhouse gas emissions, are
  blunted and inadequately funded

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Indicators are Powerful

• What we measure
• reflects what we value as a society
• determines what makes it onto the policy agenda
• influences behaviour

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A good set of indicators can help communities

• foster common vision and purpose the world we
  leave our children
• identify strengths and weaknesses
• change public behaviour
• hold leaders accountable at election time
• initiate actions to promote wellbeing

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GPI Atlantic was founded to address that need

• Non-profit, fully independent research and
  education organization founded in 1997
• Located Halifax, Nova Scotia
• Web site www.gpiatlantic.org
• New Canadian Index of Wellbeing
• Working with Bhutan, New Zealand

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Measuring Wellbeing In the GPI . .

• Health, free time, unpaid work (voluntary and
  household), and education have value
• Sickness, crime, disasters, pollution are costs
• Natural resources (e.g. forests) are capital
  assets
• Reductions in greenhouse gas, crime, poverty,
  ecological footprint are progress
• Growing equity signals progress

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Natural environment
Society
Economy
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Values, elements of wellbeing

• Health
• Security
• Knowledge
• Community
• Freedom
• Ecological integrity
• Equity

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Towards Full Cost Accounting

• Basic Principles and challenges
• Expanded definition of capital Natural, human,
  social, cultural, produced capital, but no common
  metric for measurement
• External -gt internal benefits and costs
• Price non-market benefits and costs
• Fixed -gt variable costs
• Strengths Enhances market efficiency, reduces
  needs for govt. regulation, provides more
  accurate, comprehensive information

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The Genuine Progress Index - Components

• Time Use
• Economic Value of Unpaid Childcare and Housework
• Economic Value of Civic and Voluntary Work
• Value of Leisure Time
• Working Time and Employment

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Nova Scotia Genuine Progress Index Components

• Natural Capital
• Soils and Agriculture
• Forests
• Marine Environment/Fisheries
• Water Resources / Water Quality
• Energy
• Air Quality

• Human Impact on the Environment
• Greenhouse Gas Emissions
• Sustainable Transportation
• Ecological Footprint Analysis
• Solid Waste

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Nova Scotia Genuine Progress Index Components

• Living Standards
• Income Distribution
• Debt and Assets
• Economic Security

• Social Capital
• Population Health
• Educational Attainment
• Costs of Crime

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GPI Transportation Accounts

• true cost of road transportation in Nova Scotia
  is gt 6.4 billion annually
• average Nova Scotian spends about 3,036 a year
  directly and 4,562 indirectly
• 20 key indicators of sustainable transportation
  13 pointing in wrong direction
• Sprawl vs. smart growth

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A few transportation trends . . .
Transport Patterns Transport Patterns Transport Patterns
Motorized mobility Per capita annual vehicle kilometres ?
Transport mode split Portion of passenger travel by automobile ?
Environmental Indicators Environmental Indicators Environmental Indicators
Energy efficiency Per capita transportation energy consumption ?
Air pollution Per capita transportation air pollution emissions (based on index) ?
GHG emissions Transportation-related greenhouse gas (GHG) emissions ?
Land consumption Total amount of land paved for transportation facilities ?
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A few transportation trends . . .
Social Indicators Social Indicators Social Indicators
Commute mode split Percentage of commuters who walk, bicycle, or use public transit ?
Commuter distance Average commuting distance ?
Transit accessibility Percentage of population who live within 500 m of transit station ?
Transportation accidents Transport injuries and fatalities by mode ?
Economic Indicators Economic Indicators Economic Indicators
Government expenditures Portion of government expenditures for transit ?
Household expenditures Percentage of household transportation spending devoted to public transit ?
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What does this mean for planning?

• Need to plan with these indicators in mind
• Land use planning is key
• Initiatives like transportation demand
  management, parking management and pricing, HOV
  lanes, improvement of active transportation
  options, etc. become more appealing and viable

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Goal Changing Behaviour E.g. Waste Diversion
in Nova Scotia
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Can it be done?...1900s/1980s...
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Community GPI

• Strongest interest in GPI has been from local
  communities looking for ways to accurately assess
  their well-being
• Community GPI surveys were completed in Kings
  County and Glace Bay in 2000
• Data is now available for research and use
• Ongoing work by non-profit societies in each
  community
• Future project to bring community GPI to other
  communities

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The Atlantic Canada Sustainability Initiative
The Atlantic Canada Sustainability Initiative
(ACSI) is intended to build capacity and
commitment among a diverse group of Atlantic
organizations who will advance sustainable
development within our own organizations and the
Atlantic Region as a whole using the Natural Step
Framework as a guide.
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ReThinking Development Local Pathways to Global
Wellbeing The Second International Conference on
Gross National Happiness
St. Francis Xavier University, Antigonish,
NS June 20 24, 2005 http//www.gpiatlantic.org/c
onference/conference.shtml
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ReThinking Development Local Pathways to Global
Wellbeing

• Over 450 delegates, including non-government,
  business, labour, academic, and youth leaders,
  from 33 countries
• Examined successful initiatives world-wide that
  integrate sustainable and equitable economic
  development with environmental conservation,
  social and cultural cohesion, and good governance
• Presenters included leading experts such as
  Marilyn Waring, Ray Anderson, Allan Savory, Ela
  Bhatt, John Ralston Saul, and many, many more!

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Building Sustainable Development Transforming
Atlantic Canada into a model of socially and
environmentally responsible development
Oak Island, NS November 18-19, 2005
http//www.gpiatlantic.org/conference/followup.htm
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Building Sustainable Development

• 84 participants from government, business,
  non-governmental organizations, academic
  community, youth leaders and interested
  individuals
• Focus on action in Atlantic Canada
• Large group discussion and brainstorm
• Small groups concentrating on individual issues

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ACSI - Objectives

• build capacity and competence within their
  organization to become better leaders in
  sustainable development
• implement a plan of action that advances
  sustainability within their organization through
  concrete actions
• serve as role models by sharing their own
  organizations successes and lessons with respect
  to sustainability
• build an effective network that collaborates and
  supports progress towards sustainability
• build regional momentum towards sustainability
  by engaging citizens, organizations and
  governments within the Atlantic Region
• identify and act on opportunities
  collaboratively to help move the region towards
  sustainability

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ACSI Sustainability Partners
Antigonish Sustainable Development Project (Town
and County) Atlantic Institute for
Sustainability Bathurst Sustainable Development
Bell Aliant Halifax Regional Municipality
Halifax Shambhala Centre iNova Credit Union
Jacques Whitford Ltd. Just Us Coffee Roasters
Plovers, the Environmental Store City of Saint
John Saint Margarets Bay Stewardship
Association Town of Stratford Town of Wolfville
University of Prince Edward Island
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Thank You!

• Comments? Questions?
• Clare Levin, Managing Director, Genuine Progress
  Index (GPI) Atlantic, clevin_at_gpiatlantic.org,
  902-489-2524

www.gpiatlantic.org