MEASURING PROGRESS: Beyond GDP to New Measures of Wellbeing and Progress

1. MEASURING PROGRESS:Beyond GDP to New Measures of Wellbeing and Progress A presentation for the Nova Scotia Planning Directors Association May 17, Lord Nelson Hotel, Halifax

2. What kind of world are we leaving our children...?

3. ... In experience and language of ordinary people • More possessions, longer lives, BUT • Higher stress rates, obesity, childhood asthma, environmental illness • Insecurity - safety, livelihood • Decline of volunteerism • Greater inequality; child poverty • Natural resource depletion, species loss • Global warming

4. “The more the economy grows, the better off we are” - Sending the wrong message?

5. The Big Myth of Economic Growth • Resource depletion as economic gain = a poorer world for our children • More consumption, energy use, greenhouse gas emissions, make economy grow, but are we better off • Crime, sickness, pollution, make economy grow —just because money is being spent.

6. Current measures of progress send the wrong messages • GDP can grow even as poverty and inequality increase • More work hours make economy grow; free time has no value – affects health (stress) • GDP ignores work that contributes directly to community health (volunteers, work in home)

7. Why We Need New Indicators - Policy Reasons: • “Economic growth = better off” sends misleading signals to policy-makers and local communities • Vital social, environmental assets ignored • Preventive initiatives to conserve and use resources sustainably, to reduce poverty, sickness and greenhouse gas emissions, are blunted and inadequately funded

8. Indicators are Powerful What we measure: • reflects what we value as a society; • determines what makes it onto the policy agenda; • influences behaviour

9. A good set of indicators can help communities: • foster common vision and purpose – the world we leave our children; • identify strengths and weaknesses; • change public behaviour; • hold leaders accountable at election time • initiate actions to promote wellbeing

10. GPI Atlantic was founded to address that need • Non-profit, fully independent research and education organization founded in 1997 • Located Halifax, Nova Scotia • Web site: www.gpiatlantic.org • New Canadian Index of Wellbeing • Working with Bhutan, New Zealand

11. Measuring Wellbeing: In the GPI . . • Health, free time, unpaid work (voluntary and household), and education have value • Sickness, crime, disasters, pollution are costs • Natural resources (e.g. forests) are capital assets • Reductions in greenhouse gas, crime, poverty, ecological footprint are progress • Growing equity signals progress

12. Natural environment Society Economy

13. Values, elements of wellbeing • Health • Security • Knowledge • Community • Freedom • Ecological integrity • Equity

14. Towards Full Cost Accounting Basic Principles and challenges: • Expanded definition of capital: Natural, human, social, cultural, produced capital, but no common metric for measurement • External -> internal benefits and costs • Price non-market benefits and costs • Fixed -> variable costs Strengths: Enhances market efficiency, reduces needs for govt. regulation, provides more accurate, comprehensive information

15. The Genuine Progress Index - Components Time Use • Economic Value of Unpaid Childcare and Housework • Economic Value of Civic and Voluntary Work • Value of Leisure Time • Working Time and Employment

16. Nova Scotia Genuine Progress Index: Components Natural Capital • Soils and Agriculture • Forests • Marine Environment/Fisheries • Water Resources / Water Quality • Energy • Air Quality Human Impact on the Environment • Greenhouse Gas Emissions • Sustainable Transportation • Ecological Footprint Analysis • Solid Waste

17. Nova Scotia Genuine Progress Index: Components Living Standards • Income Distribution • Debt and Assets • Economic Security Social Capital • Population Health • Educational Attainment • Costs of Crime

18. GPI Transportation Accounts • true cost of road transportation in Nova Scotia is > $6.4 billion annually • average Nova Scotian spends about $3,036 a year directly and $4,562 indirectly • 20 key indicators of sustainable transportation: 13 pointing in wrong direction • Sprawl vs. smart growth

19. A few transportation trends . . .

20. A few transportation trends . . .

21. What does this mean for planning? • Need to plan with these indicators in mind • Land use planning is key • Initiatives like transportation demand management, parking management and pricing, HOV lanes, improvement of active transportation options, etc. become more appealing and viable

22. Goal: Changing Behaviour E.g. % Waste Diversion in Nova Scotia

23. Can it be done?...1900s/1980s...

24. Community GPI • Strongest interest in GPI has been from local communities looking for ways to accurately assess their well-being • Community GPI surveys were completed in Kings County and Glace Bay in 2000 • Data is now available for research and use • Ongoing work by non-profit societies in each community • Future project: to bring community GPI to other communities

25. The Atlantic Canada Sustainability Initiative The Atlantic Canada Sustainability Initiative (ACSI) is intended to build capacity and commitment among a diverse group of Atlantic organizations who will advance sustainable development within our own organizations and the Atlantic Region as a whole using the Natural Step Framework as a guide.

26. ReThinking Development: Local Pathways to Global Wellbeing The Second International Conference on Gross National Happiness St. Francis Xavier University, Antigonish, NS June 20 – 24, 2005 http://www.gpiatlantic.org/conference/conference.shtml

27. ReThinking Development: Local Pathways to Global Wellbeing • Over 450 delegates, including non-government, business, labour, academic, and youth leaders, from 33 countries • Examined successful initiatives world-wide that integrate sustainable and equitable economic development with environmental conservation, social and cultural cohesion, and good governance • Presenters included leading experts such as Marilyn Waring, Ray Anderson, Allan Savory, Ela Bhatt, John Ralston Saul, and many, many more!

28. Building Sustainable Development:Transforming Atlantic Canada into a model of socially and environmentally responsible development Oak Island, NS November 18-19, 2005 http://www.gpiatlantic.org/conference/followup.htm

29. Building Sustainable Development • 84 participants from government, business, non-governmental organizations, academic community, youth leaders and interested individuals • Focus on action in Atlantic Canada • Large group discussion and brainstorm • Small groups concentrating on individual issues

30. ACSI - Objectives • build capacity and competence within their organization to become better leaders in sustainable development • implement a plan of action that advances sustainability within their organization through concrete actions • serve as role models by sharing their own organization’s successes and lessons with respect to sustainability • build an effective network that collaborates and supports progress towards sustainability • build regional momentum towards sustainability by engaging citizens, organizations and governments within the Atlantic Region • identify and act on opportunities collaboratively to help move the region towards sustainability

31. ACSI – Sustainability Partners Antigonish Sustainable Development Project (Town and County) Atlantic Institute for Sustainability Bathurst Sustainable Development Bell Aliant Halifax Regional Municipality Halifax Shambhala Centre iNova Credit Union Jacques Whitford Ltd. Just Us Coffee Roasters P’lovers, the Environmental Store City of Saint John Saint Margaret’s Bay Stewardship Association Town of Stratford Town of Wolfville University of Prince Edward Island

32. Thank You! Comments? Questions? Clare Levin, Managing Director, Genuine Progress Index (GPI) Atlantic, clevin@gpiatlantic.org, 902-489-2524 www.gpiatlantic.org