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GDP & BEYONDCIVIL SOCIETY PARTICIPATION IN
SELECTING COMPLEMENTARY INDICATORS
Stefano Palmieri
IX National Conference on Excellence in Management –
XII International Conference on CSR
Universidade Federal Fluminense
Rio de Janeiro, 20 June 2013
CONTENT
• The long revolution in measurement
• Recent years
• The paradigm shift: from economic growth
to societal progress
• The involvement of civil society (the EESC
Opinion)
The long revolution in measurement
1930 - 2013
3
THE LONG REVOLUTION: THE MATERIALIST PHASE (1930-1970)
1930–1970
MATERIALIST PHASE
GDP
ECONOMIC INDICATOR
19302013
GDP is a measurement that "specialises" in a particular segment of activity – essentially market-based – of a given society.
-The Great Depression- World War II
1970
THE CORRELATION BETWEEN GDP AND WELL-BEING
• GAPMINDER
THE MATERIALIST PHASE…went into CRISIS
“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 KennedyKansas March 18, 1968
THE SOCIAL PHASE (1970 - 1990)
1970 – 1990
SOCIAL PHASE
ECONOMIC INDICATORS
+ SOCIAL INDICATORS
Between the 1960s and the 1990s scholars began to design social indicators as complements or alternatives to GDP, which could reveal areas of enquiry in addition to the traditional economic domain.
Towards the end of the 1980s the Brundtland Report (1987) brought the issue of sustainable development to the world's attention.
1970 1990
THE GLOBAL PHASE (1990 – 2013)
2013
1990 - 2013
GLOBAL PHASE
ECONOMIC INDICATORS + SOCIAL INDICATORS + ENVIRONMENTAL INDICATORS
•The ensuing 1992 UN Conference on Environment and Development (Rio Earth Summit) marked the shift to a "global phase" in researching and designing indicators with the capacity to measure the progress of society, using economic, social and, for the first time, environmental parameters.
1990
Recent years
9
European Commission: …on GDP and beyond
• On 20 August 2009 the European Commission published its major communication on GDP and beyond – Measuring progress in a changing world, setting out five actions:
a) complementing GDP with environmental and social indicators;
b) more timely information for decision-making;
c) more accurate information on distribution of income and inequalities;
d) developing a European sustainable development scoreboard;
e) extending national accounts to environmental and social issues.
10
STIGLITZ – SEN – FITOUSSI REPORT
11
On 14 September 2009, the Report by the Commission on the Measurement of Economic Performance and Social Progress was published, with the explicit objectives of:
- Identifying the limits of GDP as an economic and social indicator
- gauging whether further indicators of social progress might be necessary in order to adopt further information
- assessing the possibility of using alternative measurement instruments and discussing how to present statistical information properly.
12 Recommendations
Pittsburg G-20 Summit
• On 25 September 2009, the debate on GDP and the
need for complementary indicators of social and
environmental well-being gained greater authority at
the Pittsburgh G-20 summit.
Its final declaration emphasised that “As we commit to
implement a new, sustainable growth model, we should
encourage work on measurement methods so as to
better take into account the social and environmental
dimensions of economic development”.
12
THE FUTURE WE WANTRio+20 United Nations Conference on Sustainable Development, 20-22 June 2012Agenda item 10Outcome of the Conference
“38. We recognize the need for broader mesures of
progress to complement gross domestic product in
order to better inform policy decisions, and in this
regard we request the United Nations Statistical
Commission, in consultation with relevant United
Nations System entities and other relevant
organizations, to launch a programme of work in this
area building on existing initiatives.”
• Creating new awareness and
knowledge
• Impact on behaviour and decision-
making process of:• Citizens and civil society
• Policy-makers
• New business models (Corporate Social Responsibility, Fair
Trade, … )
OECD,2012: Conclusion of the 4th World Forum
A virtuous cycle
OECD,2012: Conclusion of the 4th World Forum
EQUITABLE AND SUSTAINABLE WELL-BEING IN ITALY 2013: twelve domains - 134 indicators
• Health (14)
• Educationand training
(10)
• Work and life balance
(12+3)
• Economic well-being
(10)
• Social relationships (11)
• Politics and institutions
(13)
ISTAT, 2013: Equitable and sustainable well-being in Italy
• Security (11)
• Subjective well-being (3)
• Landscape and cultural
heritage (12)
• Environment (13)
• Research and
Innovation (7)
• Quality of services
(13+2)
The System of Xiaokang Indicators: CHINA6 Domains23 Indicators
• – Economic development (Indicators 1-5)
• – Social harmony (Indicators 6-10)
• – Quality of life (Indicators 11-15)
• – Democracy and law (Indicators 16-17)
• – Culture and education (Indicators 18-20)
• – Resources and environment (Indicators 21-23)
Xu Xianchun, 2009
GROSS NATIONAL HAPPINESS: BHUTAN: 9 Domains – 33 Indicators
GROSS NATIONAL HAPPINESS: BHUTAN: 9 Domains – 33 Indicators
Transform your mind to change the World: “Today GNH has come to mean so many things to so many people, but to me it signifies simply – development with values. Thus for my nation today GNH is the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth. GNH acts as our National Conscience guiding us towards making wise decisions for a better future”
(The present King of Bhutan, His Majesty Jigme Khesar Namgyel Wangchuck )
WHAT IS THE GROSS NATIONAL HAPPINESS IN BUTHAN?
“The right to delirium”(Eduardo Galeano)
The paradigm shift
“If we measure the wrong things we do the wrong things”
(Robert Stiglitz, 2013)
22
The New Paradigm of Reference: the Progress of Societies
Today Economic Growth is no longer
enough to ensure real progress for the
community unless it is inclusive from the
social and territorial point of view, and
sustainable from the environmental point
of view.
23
The concept of PROGRESS
• A far wider-reaching and more complex concept,
whose multidimensional character entails a range of:
i) Objectives to be pursued;
ii) Policies and actions to be planned;
iii)Indicators to monitor the state of progress towards
these objectives.
• The concept of progress itself may imply different
interpretations and meanings in different places, for
different populations, cultures and religions
24
The debate
• Far from simplifying matters, the change of benchmark
from economic growth to progress tends if anything to
complicate them.
• The meaning of progress
• Redefining the concept of development
• Identifying the objectives to be pursued and the tools
to achieve them
• In other words, a debate that enables society – in all its
individual parts – to focus on what it considers
essential for its own esistence.
25
WHAT DETERMINES SOMEONE’S WELL-BEING IN A FEW WORDS
choice
community
educationequity
justicereligion
My football team…onlywhen WIN
money
equality
environment
friendship
safety
employment
freedom love
respect
happiness
healthfamily
dignity sex
fitness
THE EESC OPINION
Shaping indicators that reflect people's quality of life and social conditions in relation to the
sustainability of economic systems
• The EESC continues to view the development of this work
as crucial, in particular by means of a comprehensive
approach.• the new European strategies for stability and economic growth, for
development and social cohesion, and for environmental
sustainability.
• The first agenda against which the preparation of
complementary indicators to GDP should be measured is
the Europe 2020 Strategy.
• a new definition of well-being and the progress of
societies cannot be separated from concurrent
European policies to tackle the renewed impact
of the economic and financial crisis.
• a new benchmark that bases development on
well-being and the progress of societies.
SOCIAL AND ENVIRONMENTAL SUSTAINABILITY INDICATORS
VS. ECONOMIC AND FINANCIAL INDICATORS
The gap between
- economic policies at both national and European level
- and policies for well-being and social progress
has widened considerably
EU 2020: the new trajectory
• The inclusive growth: the missing train
2011:
• 119,6 mn people (24.2% of the population)
were at risk of poverty or social exclusion
- 16,9% of the tot.pop. At risk-of-poverty after social transfers
- 8,8% of the tot.pop. Severely materially deprived
- 10,0% living in households with very low work intensity
THE ROLE OF CIVIL SOCIETY IN THE PROCESS
• determine the arenas in which the progress of societies is to be gauged, identifying specific areas and salient facts (in the economic, social and environmental spheres). This can be done by means of dedicated information, consultation and participation instruments.
• The legitimacy of public decisions cannot be assured only by official guarantees and systems – whether institutional, legal or constitutional – emanating from the State, but must necessarily be based on the contribution of civil society.
• Civil society's particular contribution to mapping out the prospects for development and well-being represents a necessary policy input not only into combining the participatory dimension with the knowledge dimension, but also into pursuing the objectives set.
THE DELIBERATIVE PARADIGM
• “a process of exchanging information and opinions
regarding a shared decision in a forum for discussion where
collective preferences are formed and expressed”
• which should serve as the foundation for future well-being
and progress indicators, should itself be rooted in:
• face-to-face meetings between institutional actors and
representatives of civil society,
• the involvement in the decision-making process of all the interests at
stake when envisaging the measurement and pursuit of well-being
and social progress,
• constant pursuit of the common good, particularly in outcomes
emerging from debate.
The EESC undertakes to continue monitoring activities that, at national and European level, entail the involvement of civil society in preparing indicators complementary to GDP.
The EESC emphasises its willingness to act as a meeting place between organised civil society and official European bodies as part of a participatory decision-making process to identify and design indicators of progress for the European Union.
Sometimes individual happiness is not easy to quantify but ….. this does not mean that you cannot value it!?!
…from the Italian Movie: “I Mostri” (1963) by Dino Risi
Tribute to Vittorio GASSMAN…and my FAVOURITE TEAM:
AS ROMA
Obrigado pela sua atenção
FOR ANY INFO & COMMENTS: [email protected]