1 / 28

MISMEASURING OUR LIVES

MISMEASURING OUR LIVES. GDP – Gross Domestic Product HDI – Human Development Index. The Right Question. What do we really care about? HUMAN WELLBEING So what do we want to measure and track? HUMAN WELLBEING. Score Card -GDP.

breck
Download Presentation

MISMEASURING OUR LIVES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MISMEASURING OUR LIVES GDP – Gross Domestic Product HDI – Human Development Index

  2. The Right Question What do we really care about? HUMAN WELLBEING So what do we want to measure and track? HUMAN WELLBEING

  3. Score Card -GDP • Measures only economic production and therefore only material wealth constituent of wellbeing • No social and environmental dimensions • Sustainability- Snap shot in time

  4. Interlinkages and Human Well-Being-JSSA. Physical Level of physical unhealthiness Level of local nature Mental Level of mental unhealthiness Source: JSSA 2011 Level of local nature (Tanaka, 2005)

  5. Score Card -HDI • Measures health and education in addition to income as constituents of well-being • No environmental dimension • Sustainability- Snap shot in time

  6. WE MANAGE WHAT WE MEASURE KEY PRINCIPLES • VALUES • SUSTAINABILITY • EQUALITY • TRADE-OFFS AND SYNERGIES

  7. THE PROPOSITION: INCLUSIVE WEALTH Point 1: Wellbeing is defined as the discounted flow of present and future generation’s consumption flow. Point 2: The discounted flow is dependent on the capital asset [Productive Base] base of the economy Point 3: Wellbeing increases as long as the CHANGE in the VALUE of the capital asset base is positive

  8. IWI: The Coupled System

  9. The Capital Asset Base • Social Capital • Natural Capital • Human Capital • Produced Capital

  10. INCLUSIVE WEALTH Value of Assets = Inclusive Wealth Inclusive Wealth is the SHADOW PRICE of the asset multiplied by the QUANTITY STOCK of asset

  11. Trade-Offs and Synergies • Substitution between capital assets • Critical Capital Stocks • Inter-dependency among Capitals • Shadow Prices • Rate of Substitution • Externalities

  12. Natural Capital • Non-Renewable Resources • Oil, Minerals • Renewable Resources • Ecosystem Services

  13. Ecosystem Services • Provisioning • Regulating • Cultural

  14. Shadow Prices Strength and Achilles Heel How do we compute shadow prices? Coupled Systems Modeling

  15. IWI IWI per capita

  16. Average annual growth in IWI per capita

  17. Average annual growth in IWI per capita

  18. Average annual growth in IWI per capita

  19. Average annual growth in IWI per capita

  20. AVERAGE ANNUAL GROWTH RATES DISAGGREGATED BY NATURAL CAPITAL TYPES

  21. ANNUAL GROWTH RATES DISAGGREGATED BY NATURAL CAPITAL TYPES Agricultural Land Forest Resources Minerals Fisheries Fossil Fuels Natural Capital Index

  22. KEY DATA SOURCES

  23. Key Findings • Focus on both the aggregate sum of all capitals and each capital • Population growth rate is key for measuring productive base of country • Shadow prices are key to measuring wellbeing and progress. • National accounts need to be revised to reflect all four capitals

  24. Key Messages • New Yardstick for measuring progress is needed • Wellbeing is multi-dimensional and dependent on the productive base of the economy • Need shadow prices of key ecosystem services

More Related