1. Genuine Progress Index for Atlantic Canada Indice de progrès véritable - Atlantique MEASURING OUR REAL WEALTH: Beyond GDP to New Measures of Wellbeing and Progress AUT Conference Centre, Auckland, 22 Nov. 2004

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

3. ... In experience and language of ordinary Canadians and New Zealanders N.Z’s premier quality of life More possessions, longer lives But, defining wellbeing more broadly: Some disturbing signs

4. Warning Signals: Determinants of Wellbeing Higher stress rates, obesity, childhood asthma, environmental illness, infectious Insecurity - safety, livelihood Greater inequality; child poverty Decline of volunteerism Natural resource depletion, species loss (e.g. little spotted kiwi) Global warming

5. “The more the economy grows, the better off we are” - Sending the wrong message?

6. The Big Myth: ‘Healthy’ Economy = Healthy Society  More equals better? (health language)  Resource depletion as economic gain  More consumption, energy use, greenhouse gas emissions, make economy grow, but are we better off?

7. Current measures of progress send the wrong messages  Crime, sickness, pollution, make economy grow —just because money is being spent.  GDP can grow even as poverty and inequality increase.  More work hours make economy grow; free time has no value – affects health  GDP ignores work that contributes directly to community health (volunteers, work in home)

8. 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

9. Indicators are Powerful What we measure:  reflects what we value as a society;  determines what makes it onto the policy agenda;  influences behaviour (eg students)

10. A good set of indicators can help communities:  foster common vision and purpose;  identify strengths and weaknesses;  change public behaviour;  hold leaders accountable at election time  initiate actions to promote wellbeing

11. GPI Atlantic was founded to address that need Non-profit, fully independent research group founded April, 1997 Located Halifax, Nova Scotia, Canada. Web site: www.gpiatlantic.org Core of 10 researchers, academics, experts; 12-person board of directors

12. NZ on the leading edge Marilyn Waring’s pioneering work Quality of Life in NZ’s 8 Largest Cities -> 12 Monitoring Progress Towards a Sustainable NZ Social Reports (MSD) Tomorrow’s Manukau: A vision into the future Local Government Act 2002

13. Indicators: Where we are at in Canada and New Zealand Recognized inadequacy, flaws of conventional GDP-based measures of progress Understood potential power of indicators, role in determining policy agenda, and necessity for more accurate, comprehensive indicators Developed data sources, methodologies, reporting mechanisms for wide range of social, economic, environmental indicators

14. Limitations & Next Steps Some new social targets, but not yet shifted policy agenda in fundamental ways, nor effectively challenged power and dominance of conventional measures Fringe, satellite vs mainstream No integrated, coherent system: - NZ – Social Report, QOL in 8 Cities report, Sustainable NZ report; - Canada – GPI, IEW, PSI, NRTEE – ESDI, QOLIP, etc.

15. In Canada, we’ve concluded three steps are needed: New measures can no longer just be “add-ons” or satellites, but must challenge and critique the still dominant GDP-based measures of progress One coherent, integrated framework to become new core measure of progress Beyond indicators to a new set of national accounts – full national wealth

16. Key purposes of the new Canadian Index of Wellbeing To articulate vision of Canada’s future To account accurately for both current wellbeing and sustainability so trade-offs are clear and transparent To bring key social and environmental issues, often neglected, onto the policy agenda To enhance accountability To inform policy, improve performance, and evaluate program effectiveness

17. Purpose in relation to GDP CIW intent – To become Canada’s core, central measure of progress, and to replace misuse of GDP for that purpose (not abolish GDP!) To relegate GDP to function for which it was originally designed and intended – as measure of size of economy (Kuznets) To redefine ‘healthy economy’ in terms of wellbeing outcomes instead of growth, so that misleading signals will no longer blunt initiatives to reduce GHGs, poverty, inequity; conserve resources; prevent illness, etc.

18. Canadian Index of Wellbeing Partnership of Canada’s foremost indicator practitioners National Working Group of 20 includes: 3 govt. agencies (Statcan, Envt.Can, CIHI) + experts from 8 universities, 7 provinces, 5 non-government research organizations Funded by Atkinson Charitable Foundation Spokesman – Roy Romanow

19. CIW Key Principles Will measure wellbeing and sustainability in same reporting framework: Legacy (wellbeing of future generations + ours) = cross-cutting theme within every domain. This is unique (cf NZ, QOL) Will focus on outcomes for key conditions of wellbeing Will report on infrastructural inputs (e.g. health care), determinants within each outcome domain Framework = sustainability circle vs 3-legged stool or triple bottom line: Relationship

20. Natural environment Society Economy

21. Values, elements of wellbeing Health Security Knowledge Community Freedom Ecological integrity Equity(+ lit. review)

22. Outcome domains in the CIW Standard of living Time use (and balance) Healthy populace Educated populace Community vitality Ecosystem services Governance

23. Process and reporting Disaggregation - geographic (national, provincial, municipal) and demographic Multiple audiences: Report limited # of key messages for public, policy audience, but experts can drill down for analysis (iceberg metaphor) Double review process, public consultation, “cabinet” approach at release (challenge!)

24. Unresolved (parked) issues Begin with ‘low-hanging fruit’ where indicators, data sources, methods agreed and good prior work exists - (e.g. living standards, time use, population health, some environmental indicators – like air quality, GHG emissions) But some domains require further definition, indicator selection – (e.g. education, community vitality, governance vs democracy, other environmental indicators (NR accounts like forests – qualitative + quantitative, waste, etc.) “Index” and aggregation to single # or sub- indices

25. More unresolved issues Beyond indicators to accounting framework: FCA and the capital approach (sustainability and monetization)? Global dimension - ethical relations w. other nations Communications and release strategies (gradual as early results available or all at once?) Data challenges – e.g. frequency (time use cf GDP)

26. E.g. 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

27. Fundamental approach Not allow the “tyranny of the best” to stand in the way of practical movement towards the “best possible” Transparent, open to change – better methodologies and data sources Not defensive – recognize that valuation of human, social, natural wealth, however imperfect, is far more accurate than omission or de facto ‘zero’ valuation

28. Resolved – e.g. 2 sides of sustainability equation Production (supply) and consumption (demand): CIW will reflect outcomes (resource supply), but demand reported as determinant = the “why” Ecological footprint shifts onus to consumer -> shared responsibility, and can mobilize citizens Recognizes global consequences of local actions Brings together the environmental and social aspects of sustainability (e.g. equity-Brundtland)

29. Brundtland Commission's seminal definition of Sustainable Development Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs... Even the narrow notion of physical sustainability implies a concern for social equity between generations, a concern that must logically be extended to equity within each generation. – World Commission on Environment and Development (Brundtland Commission), 1987. Our Common Future, Oxford University Press, New York.

30. Statistics Canada: 1997, Econnections: Linking the Environment and the Economy: A consensus has emerged that sustainable development refers at once to economic, social and environmental needs... A clear social objective that falls out of the definition (of sustainable development) is that of equity, both among members of the present generation and between the present and future generations… It is clear that the spirit of sustainable development implies that all people have the right to a healthy, productive environment and the economic and social benefits that come with it.

31. Global, equity dimensions: 20% of world’s people in highest-income countries account for 86% of consumption spending. Poorest 20% account for 1.3% Richest 20% consume 45% of all meat and fish, poorest 20% consume just 5% Richest 20% = 58% of total energy, poorest 20% = <4% Richest 20% =84% of paper, poorest 20% = 1.1% Richest 20% =87% of world's vehicle fleet, the poorest 20% = <1%

32. Translation to Behaviour: e.g. Estimated Transportation Footprint, NS 1985-2025

33. Reduction in Commuting Footprint

34. From Principles to Practicality: Sample Results - Policy Policy penetration: e.g. Office of Health Promotion; volunteer work; forest accounts; school curricula; media – call- in shows But last election sobering – requires quantum leap forward CIW will build on existing work, including NS GPI = pilot project

35. 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 (eg forests) are capital assets  Reductions in greenhouse gas, crime, poverty, ecological footprint are progress  Growing equity signals progress  No bottom line (eg air quality Auckland/Christchurch)

36. Nova Scotia Genuine Progress Index: 22 Components Natural Capital: Soils and Agriculture Forests Marine Environment/Fisheries Water Resources / Water Quality Nonrenewable Subsoil Assets

37. Nova Scotia Genuine Progress Index: Twenty-two Components Environment: Greenhouse Gas Emissions Sustainable Transportation Ecological Footprint Analysis Air Quality Solid Waste

38. Nova Scotia Genuine Progress Index: Twenty-two Components Time Use: Value of Civic and Voluntary Work Value of Unpaid Housework & Childcare Work Time and Underemployment Value of Leisure Time Marilyn Waring’s pioneering work paved way

39. Nova Scotia Genuine Progress Index: Twenty-two Components Social Capital/Socioeconomic Health Educational Attainment Income Distribution, Debts and Assets Livelihood Security Costs of Crime Human Freedom Index

40. Examples of GPI Results: e.g. Valuing Voluntary Work Canadians contribute 3.4 billion hours of voluntary work per year; equivalent of 1.8 million FTE jobs (economic add-on) Services worth $53.2 billion / year, invisible in our conventional measures of progress 1990s: voluntary work down 12.3% - time stress Canadians lose $6 billion in volunteer services

41. Valuing a Healthy Population GPI Population Health Reports include: Cost of Chronic Illness in Canada (focus on preventable portion) Women’s Health in Atlantic Canada Income, Health and Disease in Canada; Equity and Disease in Atlantic Canada Costs of Tobacco, Obesity, Physical Inactivity Cost of HIV/AIDS in Canada Economic Impact of Smoke-Free Workplaces Value of Care-giving

42. Valuing Equity: GDP tells us how much income, not how income shared

43. Valuing Natural Resource Health For example, a healthy forest effectively: Prevents soil erosion/sediment control Protects watersheds Regulates climate regulation/sequesters carbon Provides habitat for wildlife / biodiversity Supports recreation, tourism, aesthetic quality Provides timber

44. Volume 2, Figure 18

45. Provincial area (hectares) of clearcut harvest and silviculture (000’s seedlings), Nova Scotia 1975-1997

46. Natural Age Limits Maritime tree species White Ash 100-200 American Beech 300-400 White Birch 120-150 Yellow Birch 150-250 East’n Hemlock 300-800 Red Maple 100-150 Sugar Maple 300-400 Red Oak200-350 Red Pine200-250 White Pine200-450 Black Spruce200-250 Red Spruce250-400 White Spruce150-200

47. % Forest Area by Age Class, NS 1958-99

48. Volume 1, Figure 2

49. Volume 1, Figure 4

50. Volume 1, Figure 5

51. Volume 1, Figure 6

52. Volume 1, Figure 3

53. Old Forests Store More Carbon A new study published in Science, reported that:... replacing old-growth forest by young Kyoto stands... will lead to massive carbon losses to the atmosphere mainly by replacing a large pool with a minute pool of regrowth and by reducing the flux into a permanent pool of soil organic matter. (Schulze et. al. 2000) Nova Scotia forests have lost $1.3 billion in carbon storage value since 1958

54. Changes in Atlantic Bird Species Populations

55. Recreational Brook Trout Caught and Retained in Nova Scotia 1975-1995

56. The Economic Dimension: e.g. Angling Cost Per Fish, Nova Scotia 1975-95 (1997$)

57. Valuation of Non-Timber Forest Ecosystem Goods and Services in NS (Costanza, replacement values)

58. Volume 1, Figure 32

59. Volume 2, Figure 17

60. The Job Creation Potential of Value-Added Wood Industries: Full-Time Jobs Theoretically Created with Set Volume of Wood Volume 2, Table 32

61. U.S. Employment Created by Various Timber Products Volume 1, Table 12

62. Examples of Retail Prices for Varying Dimension White Pine (Jan. 2001 prices) Volume 2, Table 29

63. Examples of Retail Prices for Varying Dimension Spruce (Jan. 2001 prices)

64. Retail Prices for Clear vs. Knotty White Pine (Jan. 2001 prices)

65. Machinery Costs for Large- Scale Harvesting

66. CONCLUSION: Clearcut harvesting and loss of natural age and species diversity have resulted in loss of:  valuable species  wide diameter and clear lumber that fetch premium market prices  resilience and resistance to insect infestation  wildlife habitat, & decreasing populations of birds  forest recreation values - impact nature tourism

67. This represents a substantial depreciation of a valuable natural capital asset  a decline in forested watershed protection and a 50% drop in shade- dependent brook trout  soil degradation and the leaching of nutrients that can affect future timber productivity  a substantial decline in carbon storage capacity and an increase in biomass carbon loss a decline in other essential forest ecosystem services.

68. The Good News: Volume 2: Best Forestry Practices in N. S. Selection harvesting increases forest value and provides more jobs Shift to value-added creates more jobs Restoration forestry is a good investment What incentives can encourage restoration

69. Community GPI Initiative came from community groups. Many community partnerships include: NS Citizens for Community Development Society; community health boards, regional public health authorities, Cape Breton Wellness Centre, Atlantic Centre of Excellence for Women’s Health CB regional police, Glace Bay Citizens Service League, Rotary Clubs, Kings and Cape Breton Community Economic Development Agencies

70. Community-Government- University Partnerships: Federal: Canadian Population Health Initiative, National Crime Prevention Centre, HRDC, Canadian Rural Partnership, Rural Secretariat, Statistics Canada Dalhousie Univ. Population Health Research Unit; St. Mary’s University Time Use Research Program University College of Cape Breton, Acadia U.

71. Goals and Objectives: Community: vision, learn, mobilize, act Vision - community indicator selection “Learning about ourselves” Mobilize communities - common goals Turn new-found knowledge into action

72. Research Goals: Identifying strengths and weaknesses of 2 very different communities Community learning about itself, insights, understanding relationships among variables - eg volunteerism, time use and health Turning knowledge into action; keeping track - measuring genuine progress

73. Process as Result Indicator selection, creating survey Farmers exchanging information Report releases in Sheffield Mills, Jeddore - farmers, fishermen present New ideas: e.g. restorative justice Results bring disparate groups together

74. The Means: 3,600 surveys - random, 15+, confidential CI 95% +/- 3%; 2 cross-tabulations Detailed: 2 hrs; Glace Bay: 82% response Survey includes health, care-giving, time use, voluntary work, security, income employment, environmental issues Data entry & cleaning, access guidelines

75. Community Action Community access to results - special software packages, news stories, etc. Meet to discuss results and identify policy priorities / actions Community prioritizes indicators for annual benchmarks of progress Community training - adaptations

76. Emphasis on practical action - E.g: Teenage smoking; overweight; exercise - e.g. promote school-based programs Screening rates - mammography, pap smears -- notify health officials of needs Identify counselling needs - employment, domestic violence, mental health Education - nutrition, recycling, energy use From elites to whole community – newsletter, website

77. New directions for the future: New solutions: e.g. work-life balance Model for other communities - template for adaptation - community / province Balance community-based research with methodological rigour, Statistics Canada oversight, advice, review Improve methods, indicators, survey tools, data sources - never a final product

78. CIW Action on 3 fronts: Research, communication and policy. E.g.: NWG Ottawa Nov 8-9: Research has begun. Announcement in Feb-Mar; next NWG meeting in May to assess progress Reality Check – 3-year pilot now expanded -> high profile seminars International dimension + Conference June 20-23 2005 on global best practices (e.g. Ray Anderson, Paul Hawken)

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

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

81. CIW: Measuring what we value to leave a better world for our children

82. Genuine Progress Index for Atlantic Canada Indice de progrès véritable - Atlantique www.gpiatlantic.org