Workshop on the new methods and standards statistics implemented at the National Institute of Statistics Consequences of the reflections of the Stiglitz Commission on the Measurement of Economic Performance and Social Progress Alain TRANAP, INSEE June 2006

After the 1993 National Accounting System, a reminder … The international recommendations to set up In the short term, The national accounts at the previous year´s prices, chained The accounts at constant prices and the regular modification of the base year In the medium term, The establishment of the new nomenclatures The introduction of Manual 6 of the Balance of payments, and The introduction of the 2008 National Accounting System (after 2012-2013 in the European Union)

But the development indicators were calculated As a result of putting into question the virtually exclusive use of the Gross Domestic Product (GDP) as an overall indicator of progress. - Human development index (UNDP) Social indicators of the Statistical Commission of the UN Millennium Development Goals 2001 - Inspection of toys 2003 - Mission of consumer protection studies 2003 - Product quality and safety, - Introduction of crisis management systems 2005 - Training on counterfeiting - Monitoring of the market and consumer protection

The Stiglitz-Sen-Fitoussi Commission Growing questions about the relevance of the measurements of economic performance, of social well-being, of sustainable economic, ecological and social development. The International Commission chaired by Joseph Stiglitz, with Amartya Sen and Jean-Paul Fitoussi, made its recommendations (14 September 2009) on : developments concerning the Gross Domestic Product measurement of the quality of life and statistics on sustainable development and the environment 2001 - Inspection of toys 2003 - Mission of consumer protection studies 2003 - Product quality and safety, - Introduction of crisis management systems 2005 - Training on counterfeiting - Monitoring of the market and consumer protection

The recommendations of the Stiglitz Commission A - Developments concerning the Gross Domestic Product Consider income and consumption jointly with wealth. Emphasise the household perspective. Give more prominence to the distribution of income, consumption and wealth. Broaden income measures to non-market activities. Look at income and consumption rather than production.

A first example from the household side Except for those who are most well-off, One-third of disposable household income is devoted to pre-committed expenditures : housing, telecommunications, insurance, financial services, etc. Whence the feeling of not having a comfortable income cushion Source : national accounts 2003, SRCV surveys 2004, Tax revenues 2003, Family budget 2006 Average annual amount Q1 Q2 Q3 Q4 Q5 EnTogethersemble per CU (€) Disposable income (DI) 10 080 16 410 21 040 26 750 50 030 24 910 Pre-committed expenditures 3 300 4 840 6 280 7 780 10 300 6 510 Arbitrable income 6 780 11 570 14 760 18 970 39 730 18 400 Pre-committed expenditures 33 29 30 29 21 26 (% of DI)

2nd example : redistribution of income Distribution of income before and after redistribution 2003 Taking transfers in kind into account Source : Insee, National accounts 2003, SRCV 2004, Tax revenues 2003, Family Budget 2006, Housing 2002 and Health 2003 In % Total Q1 Q2 Q3 Q4 Q5 Together (in Md€) Primary income (1) 5 12 17 24 42 100 1 140.2 Disposable income (2) 8 13 17 22 40 100 993.4 Social transfers in kind (3) 25 21 19 18 18 100 229.5 Of which : health 21 22 21 18 19 100 97.8 education 28 20 19 18 15 100 75.1 housing allowances 70 23 5 1 1 100 10.2 Adjusted disposable income = (2)+(3) 11 15 17 21 36 100 1 222.9 The transfers in kind favour the quintiles Q1 and Q2 and appear to put the quintile Q4 at a disadvantage, whence a feeling of injustice concerning the services of the State.

The implementation of the Stiglitz report The French offer The implementation of the Stiglitz report 1 - Insee and Eurostat will set up a « sponsorship » within which interested European states may involve themselves in order to implement, in whole or part, the recommendations of the Stiglitz report. 2 - The OECD will host a working group to flesh out and acclimate the recommendations of the Stiglitz report in the countries of North America, but also in Japan, South Korea, Turkey, Australia, etc.

Impacts on the working programme of the French public statistical system - analysis of very high incomes (first quarter 2010) ;  study of poor housing situations under the heading « quality of life » ; study devoted to the evaluation of human capital in France (during 2010) ; work on « social capital », deriving from an exploitation of the international SILC survey ;  survey on well-being ; national conference on sustainable development indicators ; indicators to monitor the condition of the environment ; etc.

Thank you for your attention Consequences of the reflections of the Stiglitz Commission on the Measurement of Economic Performance and Social Progress Thank you for your attention