DETERMINING BENEFITS & Performance Assessment of Observing System Products in Market and Policy Decisions

Other sectors---other uses

Conclusions Budget support for ocean observation systems will be “sold” on their operational benefits Economics can help justify investments and inform the design and priorities US economists eager to collaborate in international cost benefit studies

How to Calculate the National Return on Investment? 1.Economic Cost-Benefit Analysis 2.Business/Policy Trials or Performance Assessment a.“User-Supplier” Partnership with short term Goals b.Environmental Forecast Transforms into Business/Policy Forecast c.Improved Skill of Environmental Forecast increases Skill of the Business/Policy Forecast, thus “Demand Pull” d.Requires Information from Ocean, Weather and Climate Observing Systems e.Guides Marketplace Decisions and Strategy f.Informs National Policy and Strategy g.Prioritizes National S & T Strategy for Observing system design, implementation and operational decisions

Leisure Industry Importance in Economies and Societies GDP output in 1999 of equivalent to $3.5 trillion US 11 per cent of all international consumer expenditures, 11.3% of all capital investment, 6.7% of all government spending world’s largest tax contributor with an estimated $800 billion contribution in personal and corporate taxes for 1999 over 25% of the world’s trade in services world’s fastest growing industry world’s second largest employer next to agriculture, providing direct or indirect employment for 200 million people or one out of every 12 workers Using Observing system products to help this industry creates worldwide advocacy

Leisure Industry Needs.

Trials Method Template or Roadmap 1.Generic concept portable to all nations, industries, observing systems and products 2.Starts with the Function of Decision Making 3.Identify Organisational Units making the decision into which environmental information fits 4.ID the business forecast models, formats, portals 5.Tailor environmental forecasts to need 6.Assimilate information 7.Generate scenarios 8.Analyse options 9.Evaluate consequences (fiscal and risk)

Relevance to GOOS 1.Promotes Kofi Annan’s View of Engaging the Private Sector in UN Goals and Vision 2.Generic Approach Aiding Governments, Ministries and Private sector 3.Supports Sustainability- Solutions for Nations not sectors 4.Creates Advocacy, Investment, Demand Pull 5.Portable to Developed and Developing Nations 6.Fosters Capacity Building, Training, Dialogue 7.Gives Direction and Context to Observing System Improvements 8.Assesses All Observing System Products 9.Shows Value for Past and Future Investment

Challenge 2:Develop a Sustained Investment Strategy for GOOS