1. 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

2. 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 in the European Union)

3. 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
Inspection of toys 2003
- Mission of consumer protection studies
Product quality and safety,
- Introduction of crisis management systems
Training on counterfeiting
- Monitoring of the market and consumer protection

4. 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
Inspection of toys 2003
- Mission of consumer protection studies
Product quality and safety,
- Introduction of crisis management systems
Training on counterfeiting
- Monitoring of the market and consumer protection

5. 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.

6. 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)

7. 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
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
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.

8. 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.

9. 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.

10. 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