Measuring Sustainable development: Achievements and Challenges

1. Measuring Sustainable development: Achievements and Challenges Enrico Giovannini OECD Chief Statistician June 2005

2. Outline of the presentation • Policy context and the OECD work on SD • Measuring SD • Achievements since 1992 • Outlook for further developments • Conclusions

3. Policy Context The concept of SD is concerned both with the quality and the quantity of economic growth and encompasses three dimensions of welfare: • Economic; • Social; • Environmental. Progress towards SD implies: • Inter-temporal framework; • Capital (or asset base) is preserved.

4. To make SD concept operational for public policies • Is complicated; • Raises important challenges; • Involves complex synergies and trade-offs; • Requires the understanding of the interactions among the three dimensions. Looking at the OECD experience, there is a need to step up the coherence of government policies, to make greater use of market instruments and strengthen international co-operation.

5. Interactions between key dimensions of SD Social Environmental Economic

6. The needs of policy makers and the society have to be supported with appropriate statistical information • To inform about the inter-linkages and trade-offs • To evaluate long-term implications of current decisions • To monitor progress • To change culture

7. OECD work on SD Specific programme on SD since 1998, when Ministers recognised SD as an overarching role of OECD governments • 1998-2001: project to better understanding SD and look at policy challenges • 2001-2004: links between the three pillars were further examined • 2005-2006: forum for substantive policy dialogue

8. Measuring SD The measurement challenge The concept of SD poses a significant challenge for measurement. It requires: • simple measures; • detailed measures; • models for policy analyses. A key issue: the role of frameworks

9. The role of frameworks (1) Frameworks are important to structure work on indicators and other statistics. In particular, framework for SD should: • Integrate the three dimensions; • Have sound conceptual foundations; • Capture key information needed to calculate selected indicators; • Help to clarify the relationships between different indicators and between indicators and policies.

10. The role of frameworks (2) Conceptual frameworks, frequently labelled “analytical” or “policy” frameworks (such as the OECD pressure-state-response model) They are: • Usually pragmatic and flexible • Linked to policy demands • Adaptable to national contexts They help users to: • See different parts interconnected • Communicate in an understandable way

11. The role of frameworks (3) Statistical frameworks, that help to ensure that the statistical basis is of quality and coherent to link different aspects They are necessary to: • Develop coherent indicators • Build models • Show trade-offs • Fill data gaps • Avoid duplications

12. Achievements since 1992 (1) The number of international and national initiatives has been expanding, stimulated by the work of the UN Commission for SD. • Several countries have core sets of indicators • In some cases, they are linked to national strategies • In few cases, national strategies have established quantitative policy targets • Development of accounting frameworks (UN of integrated Environmental and Economic Accounts (SEEA)

13. Achievements since 1992 (2) The OECD contribution • Several sets of indicators responding to specific policy questions • Use of indicators in policy analyses and peer reviews • Review and further development of frameworks and statistics • Accounting approaches • Material flows and resource productivity • National balance sheets

14. Outlook for further developments (1) Notwithstanding the improvements, much needs to be done. Main lessons learned: • Too great variability across countries in the completeness of indicators and other measurement tools adopted • Too weak theoretical base • Mainly focused on economic-environment • Poor quality of basic data • Absence of cross-boarder effects • Lack of resources for further statistical work

15. Outlook for further developments (2) Key areas for further progress: • Common conceptual framework to link economic-social-environmental dimensions • Better statistical framework to organise data and develop models • Improvement of international sets of indicators (EU and OECD) • Long-term perspective of research and data collection • Institutional arrangements

16. Outlook for further developments (3) A greater role for accounting tools. This is a necessary step to: • Improve coherence of sets of indicators; • Have international comparable data; • Develop models for policy simulations; What is missing is a simplified accounting framework for SD, covering the three dimensions. Attention to the measurement of stocks.

17. In conclusion A lot of work has been done, with very positive results. Further developments are needed, both on conceptual and statistical frameworks. Cross-border elements need to be included. Investments have to be made with a long-term perspective, but with short-term deliverables. An OECD project to fill these gaps would be highly desirable.