Presentation background and main results

1. Seminar on the results of the ESS Sponsorship Group on Measuring Progress, Well-being and sustainable development • Presentation background and main results • Panel discussion: controversial issues, follow up and developments in other regions • Discussion UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

2. Measuring Progress, Well-Being and Sustainable Development: Results of the European Statistical Systems’ Sponsorship Group Pieter Everaers Director: Cooperation in the European Statistical System, International mcooperation, resources, Eurostat UN Statistical Commission, 43rd Session 1 March 2012

3. Overview of the presentation • Some basic orientation on European Statistics • Why is Europe looking at this now? • The EU response to the well-being & sustainability agenda • Topic 1: Strengthening the household perspective & distributional aspects Better assess inequalities and disparities (intra-generational) • Topic 2: Quality of life – agreement on the (multi) dimensions • Topic 3: Environmental sustainability – first priority actions Take into account environmental issues and sustainability (inter-generational) • Challenges and Need to bring all elements together UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

4. Focus on European statistics: some basic orientation • What is a Sponsorship? • Consultative and deliberative review taken by the European Statistical System, with political leadership (Eurostat/France) • Carried out by a high level Task Force • What is the European Statistical System (ESS)? • Partnership between all the statistical agencies across the EU & associated countries (e.g. EFTA) • What is Eurostat? • Statistical agency of the European Commission • Collates data transferred from the EU Member States • Disseminates comparable data in support of European policies • Co-ordination/leadership role for the ESS UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

5. Why is Europe looking at this now? (1) • Increasing dissatisfaction with our reliance on GDP as the solemeasure of societal progress • Overall awareness of the need to complement GDP to measure the progress of societies • Measure well-being of people(importance of subjective well-being) • Better assess inequalities and disparities (intra-generational) • Take into account environmental issues and sustainability (inter-generational) UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

6. Why is Europe looking at this now? (2) • Intensifying & broadening political interest within Europe • Broadening list of active Member States & personal interest of political leaders (Germany, France, UK) • Commission adopts GDP & Beyond communication (2009) • France commissioned influential Stiglitz Sen Fitoussi Report (2009) • Given fresh impetus as a result of the on-going financial crisis • Would a broader range of indicators have foreseen the crisis? • How have some key population groups fared as a result of the crisis (e.g. children, or those in lowest socio-economic brackets)? UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

7. The EU response to the well-being & sustainability agenda Major European conference involving broad participation (statisticians, environmentalists, social policy makers) (Nov 2007) Commission produces political roadmap for actions in the short/medium term (Aug 2009) Sponsorship Group launched by the European Statistical System (Feb 2010) Sponsorship Group Reports (November 2011) Stiglitz Report UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

8. Complementing GDP with environmental and social indicators A comprehensive environmental index Quality of life and well-being Near real time information for decision-making More timely environmental indicators More timely social indicators More accurate reporting on distribution and inequalities Developing a European Sustainable Development Scoreboard Extending National Accounts to environmental and social issues Priorities set out in the European Roadmap 2009 Europe 2020 Towards UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

9. The Stiglitz Report: among the 12 recommendations Emphasise household perspective Look at income and consumption rather than production • Measures of both objective and subjective well-being provide key information about people’s quality of life Income and consumption jointly with wealth Measure the distribution of income, consumption and wealth • Statistical offices should provide the information needed to aggregate across QoL dimensions, allowing the construction of different indexes UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

10. How did the “Sponsorship Group” work? • Broad participation of EU Member States including key partners (e.g. OECD, UNECE, ECB) led by Eurostat and INSEE (France) • 3 Task Forces reflecting the topics highlighted by the Stiglitz Report (plus a co-ordinating Task Force) • On households, (2) Environmental sustainability, • multi-dimensional quality of life • Mandate: Consider what should be EU statistical priorities & actions for the short to long term • Approach: Build on existing frameworks UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

11. Topic 1: Strengthening the household perspective & distributional aspects • Promoting existing national accounts data on household income & consumption • Providing information on distribution of income, consumption & wealth • Encouraging compilation of balance sheet accounts for households Emphasising concrete actions in the short – long term UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

12. Key actions to strengthen household & distributional aspects include Short Medium Long term Publish consumption figures Develop measurement of household liabilities Publish additional headline figures on household income & consumption Reconciliation exercises between social statistics & national accounts data Publication of annual data on distribution Consider whether/how to change EU level household surveys to better record social transfers in kind Increase coverage of assets for household sector Increase coverage of household wealth UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

13. Topic 2: Quality of life – agreement on the (multi) dimensions UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

14. Topic 2: Multi-dimensional measures of quality of life • Use EU Statistics on Income & Living Conditions as the core instrument • Complement the coverage of the dimensions with additional data sources • Deepen and improve the analysis UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

15. Topic 2: Multi-dimensional measures of quality of life Short Medium Long term Add further dimensions to EU SILC, e.g. trust in institutions, social participation Add subjective well-being questions in the 2013 SILC ad-hoc modules Further develop EU SILC as core instrument of QoL measurement New & revised surveys will add to QoL (e.g. European Health Interview Survey), changes to LFS Household Finance & Consumption Survey to yield new data Extend and develop Time Use survey & Household Budget Survey Compile indicators based on existing data Develop synthetic indicators to go alongside a scoreboard of primary indicators UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

16. Topic 3: Environmental sustainability – first priority actions • Develop energy flows accounts and derive indicators (e.g. energy use by economic activity) • Further develop indicators related to climate change • Develop early estimates of CO2 emissions based on monthly energy statistics • Derive “footprint indicators” using Supply and Use Input/Output Tables (SUIOT) to look at the “consumer perspective” of global climate change • Explore production of a “raw material consumption” indicator All by 2014 UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

17. Different approaches to deriving footprint indicators UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

18. Topic 3: Environmental sustainability - second priority actions Short Medium Long term Develop asset accounts for natural resources, including sub-soil assets and energy assets Develop environmental goods and services sector (EGSS) Consolidate & simplify the environmental protection expenditure accounts (EPEA) Use Land Use/Land Cover data to build relevant indicators on landscape and biodiversity Seek to merge both the above with existing framework for European environmental accounts UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

19. Topic 3: Environmental sustainability - third priority actions Short Medium Long term Develop water accounts to map use of water according to economic activity Harmonise presentation and meta-data of existing waste indicators Improve data coverage & quality of existing water statistics & develop indicators for pressures on regional water resources Develop waste accounts based on existing waste statistics UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

20. Challenges • Implementation • Giving broader society time to “catch up” with the statisticians • Openness to the results of a broader societal reflection, e.g. civil society reflection with the EU • Still evolving picture at national level • Moving forward but keeping some flexibility • Selecting a dashboard of indicators • Getting political acceptance and use of the data (long term) UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

21. Need to bring all elements together Consistency with theory The OECD Triangle for Quality of Indicators (QoL) Stiglitz Europe 2020 GDP&Beyond Measurability Political relevance UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

22. UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

23. UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development

24. Reference documents • The Sponsorship Report http://epp.eurostat.ec.europa.eu/portal/page/portal/pgp_ess/0_DOCS/estat/SpG_progress_wellbeing_report_after_ESSC_adoption_22Nov1.pdf • “GDP and Beyond” (Communication of the Commission) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0433:FIN:EN:PDF) • „Stiglitz-Sen-Fitoussi-Commission“ (France) http://www.stiglitz-sen-fitoussi.fr/en/index.htm) • „Measurement of Progress“ (OECD) http://www.oecd.org/pages/0,3417,en_40033426_40033828_1_1_1_1_1,00.html UNSC meeting: Results of the Sponsorship Group on Measuring Progress, Well-Being and Sustainable Development