The Measurement of Welfare, Well-being and Sustainable Development Jan Pieter Smits and Rutger Hoekstra (Statistics Netherlands)

Measuring societal progress/ sustainable development –The need for a new “statistical compass” –What do we want to measure? –Political initiatives –Need for harmonisation

History of measurement System of National Accounts –Concepts –Harmonisation (SNA 1953, 1969, 1993, 2008) –Adoption Welfare/Sustainable Development/Progress of Society –First wave (early 1970’s) –Second wave (1987 onwards) –Current situation –Concepts/adoption: Plethora of approaches/definitions –Harmonisation: Strong desire

Debates –Policy versus conceptual –Integrated versus future oriented approaches –Indicator sets versus composite indicators –Monetary versus non-monetary indicators

Future versus integrated approach Current Quality of life Future Quality of life International dimension Future oriented view (capital approach) MonetaryX HybridX Integrated viewXXX

Conceptual approach

Conceptual approach (2)

Themes Themes SSF United Nations Eurostat SDI OECD Australia Canada The Netherlands New Zealnd Norway Switzerland United Kingdom Eurostat Welleing Well-being -XXX (National) Income1XXXXXXXXX Poverty, inequality and social exclusion 1,6XXXXXXXX Culture/leisure4XXXX Natural hazards8XX Physical safety8XXXXXXX Housing4XXXX Health2XXXXXXXXXX Education3XXXXXXXXXX Labour 4XXXXxXXXXXX Pension 8XXX Air quality7XXXXXXXX Social capital6XXXXXX Institutions5XXXXXX

Dashboard 1 Quality of life Theme DevelopmentEU rank CORE INDICATORS Well-beingS Material welfareO PERSONAL CHARACTERISTICS Health S O Housing S O Education S O Leisure time S O Income security S O O SOCIAL AND ENVIRONMENTAL Physical Safety S O Inequality and social exclusion S O O S Social participation and trust S S O O Institutions S O Nature and air quality S O O

Dashboard 2 Capital CapitalTheme DevelopmentEU rank Natural capital Land Nature Climate Energy Soil quality Water quality Air quality Human capital Labour Health Education Social kapitaal Social participation/trust Knowledge networks Institutions Economic and financial capital Physical capital Knowledge (R&D) Financial debt

Dashboard 3 International dimension Theme DevelopmentEU rank Energy Resources Climate Trade and aid (LDCs) Knowledge

Policy indicators 1Well-being 2Material welfare 3Health 4Housing 5Education 6Leisure time 7Income security 8Physical safety 9Inequality and social exclusion 10Social participation/trust 11Institutions 12Nature 13Land 14Climate 15Energy 16Soil quality 17Water quality 18Lucht quality 19Labour 20Physical capital 21Debt 22Resources 23International co-operation 24Knowledge (R&D) Indicator Growth rate EU rank Historical CO2 emissions1,4%11(/17) GHG emissions per person-0,5%21 CO2 emissions per energy unit-0,8%11 CO2 emissions for consumption0,0%NB CO2 balance of trade-6,4%NB Renewable energy8,1%21(/26) Renewable electricty10,4%18 Visualisations/ Policy targets

Overview Quality of life Capital International dimension Well-being DevelopmentEU rankProblems Personal charact. Social/environment Natural capital Human capital Social capital Economic capital Natural capital Knowledge Intern. cooperation Material welfare

Final thoughts Task Force for Measuring Sustainable Development (TFSD) –UNECE/Eurostat/OECD –World bank and over 10 countries –Follow-up of WGSSD –Brundtland and Stiglitz-Sen-Fitoussi –(Broadened) mandate –Human capital/Social capital/Quality of life –SDI set Next steps –Short term 1.Find differences/commonalities 2.Flexible conceptual framework 3.Agree on dashboards/themes/indicators (official statistics) 4.Check data availability in international data sets –Long term 1.Monetisation techniques 2.Satellite accounts