““Using the Genuine Progress Using the Genuine Progress Index to Stimulate and Index to Stimulate and

Measure Social Enterprise Measure Social Enterprise Success”Success”

Capital Change: the New Capital Change: the New Return on Investment Return on Investment

ConferenceConference

Vince Verlaan, Executive Vince Verlaan, Executive DirectorDirector

GPI-Pacific Society of BCGPI-Pacific Society of BCwww.vcn.bc.ca/gpipwww.vcn.bc.ca/gpip

vince.verlaan@dccnet.comvince.verlaan@dccnet.com

Workshop objectivesWorkshop objectives

Understanding of the origins of the Genuine Understanding of the origins of the Genuine Progress Index (GPI) as an indicator toolProgress Index (GPI) as an indicator tool

Understanding of how the GPI can be used to Understanding of how the GPI can be used to develop support for social enterprise effortsdevelop support for social enterprise efforts

Understanding of how the GPI can support Understanding of how the GPI can support measurement and ongoing development of measurement and ongoing development of social enterprise efforts social enterprise efforts

Understanding of the goals and purposes of Understanding of the goals and purposes of the GPI Pacific Societythe GPI Pacific Society

AgendaAgenda Introductions (or “Who are you people?”)Introductions (or “Who are you people?”) Group exercise #1 – We all want to live in a Group exercise #1 – We all want to live in a

“healthy community”, don’t we?“healthy community”, don’t we? Problems with GNP; the search for alternativesProblems with GNP; the search for alternatives Group exercise #2 – What is missing from the Group exercise #2 – What is missing from the

“GNP growth” model re: our healthy “GNP growth” model re: our healthy community?community?

Outline of the Genuine Progress Index model Outline of the Genuine Progress Index model and other alternative measuresand other alternative measures

GPI, social economy and social enterpriseGPI, social economy and social enterprise Group Exercise #3 – Stimulating SE in BCGroup Exercise #3 – Stimulating SE in BC GPI Pacific Society information (and free GPI Pacific Society information (and free

drinks!)drinks!)

IntroductionsIntroductions

Please introduce yourself, and suggest Please introduce yourself, and suggest just one thing that “social enterprise” just one thing that “social enterprise” definitely is or does (elevator summary)definitely is or does (elevator summary)

Vince captures SE points of all attendees Vince captures SE points of all attendees on flipchart sheets for later referenceon flipchart sheets for later reference

20 seconds max. per person please!20 seconds max. per person please!

Small group exercise #1Small group exercise #1

Brainstorming in groups of 5 or 6 peopleBrainstorming in groups of 5 or 6 people Each group lists the 10 things or qualities Each group lists the 10 things or qualities

that you think makes a given geographic that you think makes a given geographic community “healthy” (5 mins)community “healthy” (5 mins)

Each group decides internally on how to Each group decides internally on how to rank the items they have listed (5 mins)rank the items they have listed (5 mins)

Each group presents their ranking on a Each group presents their ranking on a flipchart sheet (1 min each – write clearly)flipchart sheet (1 min each – write clearly)

Post these for later referencePost these for later reference

In the beginning. . . In the beginning. . .

– Gross National Product (GNP)Gross National Product (GNP) is the is the total value of final goods and services total value of final goods and services produced in a year by domestically produced in a year by domestically owned factors of production. owned factors of production.

– Gross Domestic Product (GDP)Gross Domestic Product (GDP) is the is the total value of final goods and services total value of final goods and services produced within a country's borders in a produced within a country's borders in a year.year.

What’s wrong with What’s wrong with these measures?these measures?

The welfare of a nation can scarcely The welfare of a nation can scarcely be inferred from a measurement of be inferred from a measurement of national income.... national income....

Goals for “more” growth should Goals for “more” growth should specify of what and for what.specify of what and for what.

Simon Kuznets, principle architect of GDPSimon Kuznets, principle architect of GDP

What’s wrong with What’s wrong with these measures?these measures?

Too much and too long, we seem to have Too much and too long, we seem to have surrendered community excellence and surrendered community excellence and community values in the mere accumulation community values in the mere accumulation of material things.... The Gross National of material things.... The Gross National Product includes air pollution and Product includes air pollution and advertising for cigarettes, and ambulances advertising for cigarettes, and ambulances to clear our highways of carnage. to clear our highways of carnage.

It counts special locks for our doors, and jails It counts special locks for our doors, and jails for the people who break them. The GNP for the people who break them. The GNP includes the destruction of the redwoods includes the destruction of the redwoods and the death of Lake Superior. It grows and the death of Lake Superior. It grows with the production of napalm and missiles with the production of napalm and missiles and nuclear warheads.and nuclear warheads.

What’s wrong with What’s wrong with these measures?these measures?

And if the GNP includes all this, there is much And if the GNP includes all this, there is much that it does not comprehend. It does not that it does not comprehend. It does not allow for the health of our families, the allow for the health of our families, the quality of their education, or the joy of their quality of their education, or the joy of their play. play.

It is indifferent to the decency of our factories It is indifferent to the decency of our factories and the safety of our streets alike. and the safety of our streets alike.

It does not include the beauty of our poetry It does not include the beauty of our poetry or the strength of our marriages, or the or the strength of our marriages, or the intelligence of our public debate, or the intelligence of our public debate, or the integrity of our public officials.integrity of our public officials.

What’s wrong with What’s wrong with these measures?these measures?

The GNP measures neither our wit nor The GNP measures neither our wit nor our courage, neither our wisdom nor our courage, neither our wisdom nor our learning, neither our compassion our learning, neither our compassion nor our devotion to our country. It nor our devotion to our country. It measures everything, in short, measures everything, in short, except that which makes life except that which makes life worthwhile.worthwhile.

-- Robert F. Kennedy (March 18, 1968) -- Robert F. Kennedy (March 18, 1968) Recapturing America’s Moral VisionRecapturing America’s Moral Vision

What’s wrong with GDP?What’s wrong with GDP? GDP Treats Crime, Divorce & Natural GDP Treats Crime, Divorce & Natural

Disasters as Economic GainDisasters as Economic Gain GDP Ignores the Non-market Economy of GDP Ignores the Non-market Economy of

Household & CommunityHousehold & Community GDP Treats the Depletion of Natural Capital GDP Treats the Depletion of Natural Capital

as Incomeas Income GDP Increases with Polluting Activities & GDP Increases with Polluting Activities &

Again with Clean-UpsAgain with Clean-Ups GDP Takes No Account of Income DistributionGDP Takes No Account of Income Distribution GDP Ignores the Drawbacks of Living on GDP Ignores the Drawbacks of Living on

Foreign AssetsForeign AssetsSource: Redefining ProgressSource: Redefining Progress

The search for alternatives - The search for alternatives - 11

1930 1940 1950 1960 1970 1980 1990 2000

Health

Su stain ab le Develo p m en t

Eco n o m ics

Health y Co m m u n ities

Natu ral Reso u rces/En viro n m en t

So cial

Q u ali ty-o f-L ife

Co rp o rate SD

Figure 1. The span of the late 20th century indicators literature (modified from Hodge, 1995).

Items used to calculate the GPI for the Items used to calculate the GPI for the USA 1950-1995USA 1950-1995

Private Consumption expenditure (+)Private Consumption expenditure (+) Index of Distributional Inequality (+ or -)Index of Distributional Inequality (+ or -) Cost of consumer durables (-)Cost of consumer durables (-) Services yielded by consumer durables (+)Services yielded by consumer durables (+) Services yielded by roads and highways (+)Services yielded by roads and highways (+) Services provided by volunteer work (+)Services provided by volunteer work (+) Services provided by non-paid household work Services provided by non-paid household work

(+)(+) Public expenditure on health and education - Public expenditure on health and education -

counted as personal consumption (+)counted as personal consumption (+) Cost of noise pollution (-)Cost of noise pollution (-) Cost of commuting (-)Cost of commuting (-) Cost of crime (-)Cost of crime (-) Cost of underemployment (-)Cost of underemployment (-)

Cost of lost leisure time (-)Cost of lost leisure time (-) Cost of household pollution abatement (-)Cost of household pollution abatement (-) The cost of vehicle accidents (-)The cost of vehicle accidents (-) The cost of family breakdown (-)The cost of family breakdown (-) Net capital investment (+ or -)Net capital investment (+ or -) Net foreign lending/borrowing (+ or -)Net foreign lending/borrowing (+ or -) Loss of farmland (-)Loss of farmland (-) Cost of resource depletion (-)Cost of resource depletion (-) Cost of ozone depletion (-)Cost of ozone depletion (-) Cost of air pollution (-)Cost of air pollution (-) Cost of water pollution (-)Cost of water pollution (-) Cost of long-term environmental damage (-)Cost of long-term environmental damage (-) Loss of wetlands (-)Loss of wetlands (-) Loss of old-growth forests (-)Loss of old-growth forests (-)

Total = sum of all positive and negative items = Total = sum of all positive and negative items = GPI (valued in dollars) GPI (valued in dollars)

The search for alternatives – The search for alternatives – 22

Recent Indicator and Index projects:Recent Indicator and Index projects:– Federation of Canadian Municipalities Federation of Canadian Municipalities

(Quality of Life)(Quality of Life)– Oregon BenchmarksOregon Benchmarks– Canadian Index of Well BeingCanadian Index of Well Being– Gross National Happiness (Bhutan)Gross National Happiness (Bhutan)

Sustainable and equitable economic Sustainable and equitable economic developmentdevelopment

Cultural promotionCultural promotion Environmental preservationEnvironmental preservation Good governance and engaged citizenshipGood governance and engaged citizenship

Canadian Index of Well-Canadian Index of Well-BeingBeing

A set of indicators in seven areas: A set of indicators in seven areas: – living standards; living standards; – health outcomes; health outcomes; – education and literacy; education and literacy; – environmental quality; environmental quality; – community vitality; community vitality; – citizen engagement; citizen engagement; – time use and work-life balance time use and work-life balance

Romanow support; Globe and MailRomanow support; Globe and Mail Reality Check magazineReality Check magazine www.atkinsonfoundation.cawww.atkinsonfoundation.ca

The search for alternatives - The search for alternatives - 33

In the GPI (or in the CIW):In the GPI (or in the CIW):– Health, livelihood security, free time, Health, livelihood security, free time,

unpaid work, natural resource, & unpaid work, natural resource, & education have positive valueeducation have positive value

– Sickness, crime, disasters, pollution are Sickness, crime, disasters, pollution are costscosts

– Reductions in crime, poverty, greenhouse Reductions in crime, poverty, greenhouse gas, ecological footprint are seen as gas, ecological footprint are seen as progressprogress

– Growing equity also signals progressGrowing equity also signals progress

The search for alternatives - The search for alternatives - 44

Source: Pembina Institute

Small Group Exercise #2Small Group Exercise #2

Go back to your small groups and review the Go back to your small groups and review the cumulative sheet re: a healthy communitycumulative sheet re: a healthy community

What now jumps out as the failure of the What now jumps out as the failure of the GNP model given what we all want to see GNP model given what we all want to see healthy communities? (5 mins)healthy communities? (5 mins)

How can we rethink the way we measure How can we rethink the way we measure progress to achieve more of what we want – progress to achieve more of what we want – list 2 or 3 practical ideas for BC (5 mins)list 2 or 3 practical ideas for BC (5 mins)

Each group presents to all; discussion (10 Each group presents to all; discussion (10 mins) mins)

The GPI approach as a new frame of The GPI approach as a new frame of reference to stimulate “social reference to stimulate “social

enterprise”enterprise” Time Use:Time Use:

– Economic value of civic and Economic value of civic and voluntary work voluntary work

– Economic value of unpaid Economic value of unpaid housework and child care housework and child care

– Work hours Work hours – Value of leisure time Value of leisure time

Natural Capital:Natural Capital:– Soils and agriculture Soils and agriculture – Forests Forests – Marine environment/fisheries Marine environment/fisheries – Nonrenewable subsoil assets Nonrenewable subsoil assets

Environmental Quality:Environmental Quality:– Greenhouse gas emissions Greenhouse gas emissions – Sustainable transportation Sustainable transportation – Ecological footprint analysis Ecological footprint analysis – Air quality Air quality – Water quality Water quality – Solid waste Solid waste

Socioeconomic:Socioeconomic:– Income distributionIncome distribution– Debt, external borrowing, and Debt, external borrowing, and

Capital movements Capital movements – Valuations of durability Valuations of durability – Composite livelihood security Composite livelihood security

index index Social Capital:Social Capital:

– Health care Health care – Educational attainment Educational attainment – Costs of crime Costs of crime

Taken from GPI AtlanticTaken from GPI Atlantic

GPI Atlantic’s model has GPI Atlantic’s model has evolved to embrace local evolved to embrace local

participation participation Community GPICommunity GPI

– Demographics and employmentDemographics and employment Age, education, income, employment, job characteristics, Age, education, income, employment, job characteristics,

work schedulework schedule– Health and communityHealth and community

Care giving, volunteer work, community service, social Care giving, volunteer work, community service, social supports, weight, smoking, physical activity, disability, supports, weight, smoking, physical activity, disability, disease, health care usedisease, health care use

– Peace and securityPeace and security Costs of crime, neighbourhood safety, police, community Costs of crime, neighbourhood safety, police, community

issues (drinking, drugs, domestic violence)issues (drinking, drugs, domestic violence)– Time use diaryTime use diary

Unpaid work (household, volunteer, care giving), free time, Unpaid work (household, volunteer, care giving), free time, traveltravel

– EnvironmentEnvironment Energy use, transportation patterns, water quality, Energy use, transportation patterns, water quality,

recycling, food consumptionrecycling, food consumption

Interactive aspects of the Interactive aspects of the Community GPI conceptCommunity GPI concept

Process as resultProcess as result Indicator selection, survey creationIndicator selection, survey creation Results and report releases bring together Results and report releases bring together

stakeholders and disparatestakeholders and disparate Scan existing programs and identify gapsScan existing programs and identify gaps Catalyst for new ideas (restorative justice, Catalyst for new ideas (restorative justice,

family-friendly work, social enterprise)family-friendly work, social enterprise)

Balance community-based research Balance community-based research with methodological rigourwith methodological rigour

GPI and Social Economy? GPI and Social Economy? SE?SE?

Social economy organizations produce Social economy organizations produce goods and services with a clear social goods and services with a clear social mission and have these characteristics and mission and have these characteristics and objectives:objectives:– The mission is services to members and The mission is services to members and

community and not profit-oriented. community and not profit-oriented. – Management is independent of government. Management is independent of government. – Workers and/or users use a democratic process Workers and/or users use a democratic process

for decision-making. for decision-making. – People have priority over capital. People have priority over capital.

Participation, empowerment, individual and Participation, empowerment, individual and collective responsibility are key values. collective responsibility are key values.

-- Economic and Employment Summit in Quebec, -- Economic and Employment Summit in Quebec, 1996 (Chantier de l'économie sociale, 1996)1996 (Chantier de l'économie sociale, 1996)

Small Group Exercise #3 Small Group Exercise #3

Small groups again…Small groups again… Discuss how the approach of the Genuine Discuss how the approach of the Genuine

Progress Index might stimulate the social Progress Index might stimulate the social enterprise sector of BC? (5 minutes)enterprise sector of BC? (5 minutes)

Each group then identifies an existing or Each group then identifies an existing or planned social enterprise issue or initiative planned social enterprise issue or initiative in BC; suggest ways to show its value and in BC; suggest ways to show its value and increase its support by using a GPI increase its support by using a GPI framework (10 minutes)framework (10 minutes)

Report back to large group (10 minutes)Report back to large group (10 minutes)

GPI Pacific SocietyGPI Pacific Society GPI Pacific’s visionGPI Pacific’s vision is to see public policy is to see public policy

decision-making in British Columbia based on an decision-making in British Columbia based on an integrated perspective that values social, integrated perspective that values social, economic, and environmental concerns equally.economic, and environmental concerns equally.

GPI Pacific’s Goals are to: GPI Pacific’s Goals are to: – Create greater public awareness/understanding of, and Create greater public awareness/understanding of, and

support for, the GPI concept and methodology.support for, the GPI concept and methodology.– Increase the capacity of Community Based Increase the capacity of Community Based

Organizations in the use of GPI tools and methodology.Organizations in the use of GPI tools and methodology.– Increase the capacity of all government levels in BC in Increase the capacity of all government levels in BC in

the use of GPI tools and information. the use of GPI tools and information. – See sustainable and non-partisan institutional structures See sustainable and non-partisan institutional structures

achieve the above three points with broad-based achieve the above three points with broad-based community support.community support.

For more informationFor more information GPI Atlantic -GPI Atlantic - www.gpiatlantic.org www.gpiatlantic.org GPI Pacific –GPI Pacific – www.vcn.bc.ca/gpipac www.vcn.bc.ca/gpipac Canadian Index of Well Being -Canadian Index of Well Being -

www.atkinsonfoundation.ca/ciwwww.atkinsonfoundation.ca/ciw Pembina Institute -Pembina Institute -

www.pembina.org/sustainability_mea.aspwww.pembina.org/sustainability_mea.asp Redefining Progress -Redefining Progress -

www.rprogress.org/newprograms/www.rprogress.org/newprograms/sustIndi/index.shtmlsustIndi/index.shtml

If GDP is up, why is America down?If GDP is up, why is America down? (Atlantic (Atlantic Monthly, 1995) - www.rprogress.org/newmedia/Monthly, 1995) - www.rprogress.org/newmedia/articles/9510_atlantic.pdfarticles/9510_atlantic.pdf

Closing ThoughtClosing Thought

I slept and dreamt that life was joy, I slept and dreamt that life was joy, I awoke and saw that life was service I awoke and saw that life was service

, , I acted and behold, service was joy. I acted and behold, service was joy.

- Rabindranath Tagore- Rabindranath Tagore