Rich Nations, Poor Nations

“The Happy Planet Index”

Edu

Contents

• Purpose• Happy Planet Index Overview • Pros and Cons• Video: 5 min• Development Model: Country Example• Conclusions– Back up

What is the main purpose of individuals?

Security, Satisfaction, Happiness, Well-being or Richness?

All?

Gross Domestic Product

GDP measurement have been important, but also have been costly to our planet environment

GDP: Problem Statement

• Only measure one thing: Does not measure what matters more for individuals. • Wealth creation: Measured. But not Well-being that is more valuable.• Planet’s ecological impact of growth: Not measured • Who is getting wealthy? : Not measured. Per capita factor, does not consider this.

Alternatives?Many options:

Human Development Index (UN)

Happy Planet Index (NEF)

Gross National Happiness (Bhutan Kingdom)

National Well-Being Accounts (NEF)

Sustainable Economic Welfare Index Genuine Progress Indicator

Happy Planet Index• What: Index of human well-being and environmental impact .

• Who: New Economics Foundation (NEF) in July 2006.

• Why: Challenge well-established indices of countries’ development, which are seen as not taking sustainability into account.

Key Message: Aim of most people is not to be rich, but to be happy and healthy

HPI Measurement

Life Expectancy Ecological Sustainability

Life Satisfaction Well-Being

Result: Index range from 0 to 100

Pros and Cons of HPI

+ Well-being of people

+ Includes Ecological Impact in Planet.

+ Includes Life expectancy.

+ Supplementary to GDP

- Happiness could be considered subjective.

- Survey method can have high error rate.

- Lead to generalization

VIDEO

Nic Marcs

NEF FounderJuly 2010

Costa Rica* Highest HPI score is that of Costa Rica (76.1/100)

Costa Rica• Country Facts: • Abolition of the Army in 1949. • Investment in Education (32nd Rank). • Focus on Environmental growth (3rd rank).• 25% Landmass is protected national parks (1st rank) • Reduction in poverty from 40% to less than 16% in last

50 years.• Trade liberalization (FTZ). Exports to surpass its 30%

ratio of GDP to a current 50% rate

• Developmen Model: • New economy centered on people and the

environment. • Pura Vida: Costaricans Way of LifePura Vida!

ConclusionsIs important to measure economic

development, but should be also integrate it with well-being and ecological impact

GDP High ≠ Well Being of citizens

Let’s enjoy life and have a Pura Vida mentality.

Pura Vida!

Back up Information

- GDP per capita- HPI 2009

Costa Rica

• Country Facts: – Size: 51,000Km2 (129th rank)– Pop: 4.5 million (117th r rank)– Life Expectancy: 77.6 (56th rank)– GDP per Capita*: $10,900 (100th rank)– Unemployment: 4.6% (80th rank)– Literacy: 95%

GDP/HPI Formulas

HPI 2009 List

GDP Per capita 2009 List