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

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

... 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

“The more the economy grows, the better off we are” - Sending the

wrong message?

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.

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)

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

Indicators are Powerful

What we measure: reflects what we value as a

society; determines what makes it onto

the policy agenda; influences behaviour

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

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

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

Natural

environment

Economy

Society

Values, elements of wellbeing• Health

• Security

• Knowledge

• Community

• Freedom

• Ecological integrity

• Equity

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

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

Human Impact on the Human Impact on the EnvironmentEnvironment• Greenhouse Gas Emissions• Sustainable Transportation• Ecological Footprint Analysis• Solid Waste

Natural Capital• Soils and Agriculture• Forests• Marine Environment/Fisheries• Water Resources / Water Quality• Energy• Air Quality

Nova Scotia Genuine Progress Index: ComponentsNova Scotia Genuine Progress Index: Components

Social Capital• Population Health• Educational Attainment• Costs of Crime

Living Standards• Income Distribution• Debt and Assets• Economic Security

Nova Scotia Genuine Progress Index: ComponentsNova Scotia Genuine Progress Index: Components

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

A few transportation trends . . .Transport Patterns

Motorized mobility

Per capita annual vehicle kilometres

Transport mode split

Portion of passenger travel by automobile

Environmental Indicators

Energy efficiency

Per capita transportation energy consumption

Air pollution Per capita transportation air pollution emissions (based on index)

GHG emissions Transportation-related greenhouse gas (GHG) emissions

Land consumption

Total amount of land paved for transportation facilities

Social Indicators

Commute mode split

Percentage of commuters who walk, bicycle, or use public transit

Commuter distance

Average commuting distance

Transit accessibility

Percentage of population who live within 500 m of transit station

Transportation accidents

Transport injuries and fatalities by mode

Economic Indicators

Government expenditures

Portion of government expenditures for transit

Household expenditures

Percentage of household transportation spending devoted to public transit

A few transportation trends . . .

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

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

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

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

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.

ReThinking Development: Local Pathways to Global Wellbeing

The Second International Conference on Gross National

Happiness

St. Francis Xavier University, Antigonish, NSJune 20 – 24, 2005

http://www.gpiatlantic.org/conference/conference.shtml

• 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!

ReThinking Development: Local Pathways to Global Wellbeing

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

• 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

Building Sustainable Development

• 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

ACSI - Objectives

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 AssociationTown of StratfordTown of Wolfville

University of Prince Edward Island

ACSI – Sustainability Partners

Thank You!

Comments? Questions?

Clare Levin, Managing Director, Genuine Progress Index (GPI) Atlantic,

clevin@gpiatlantic.org, 902-489-2524

www.gpiatlantic.org