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OECD Work on Measuring Well-Being and Progress
Martine DurandOECD Chief Statistician and Director of Statistics
e-Frame European ConferenceParis, 26 June 2012
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Started 10 years ago: 3 World Fora, Global Project
Last year: launch of the OECD Better Life Initiative
Main goal: to build a GPS of societal progress, i.e. an information system for policy making that:
Goes beyond the marketGoes beyond the averageGoes beyond “here and now”
The OECD work on measuring well-being and progress
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The OECD Better Life InitiativeBuilding on almost 10 years of OECD work under the Global Project
Now moving to measuring what matters most in PEOPLE’s life
OECD@50: Better policies for better lives
OECD Better
Life Initiative
How’s Life?
(report)
Your Better Life Index
(interactive web tool)
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Focus
• Households and people, not just GDP
• Outcomes, not inputs or outputs
• Assessing inequalities alongside averages
• Including both objective and subjective aspects of well-being
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The OECD well-being framework
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Measurement approach Relevance of indicators
- face-validity- easily understood, unambiguous interpretation- amenable to policy changes- possibility of disaggregation by population groups
Quality of supporting data - official and well-established sources; non-official data used as
place-holders in a few cases- comparable/standardized definitions- maximum country-coverage- recurrent data collection
No Composite Index
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An evolutionary process• Now:
– Evidence based on existing data; all indicators reviewed by National Statistical Offices
– But not all indicators satisfy all quality criteria equally well How’s Life? identifies the statistical agenda ahead
• In future:
– New and improved indicators as results from OECD work, research and other initiatives become available
– More on environmental and other sustainability aspects (economic, human and social)
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Selected findings from How’s Life?
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No country performs best in all dimensions of How’s Life?
Num
ber of green lights out of 22 headline indicators
Number of red lights out of 22 headline indicators
60%
Source : OECD calculations
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Strengths and weaknesses differ among countries
Source : OECD calculations
0,000,100,200,300,400,500,600,700,800,90
Income and Wealth
Jobs and Earnings
Housing
Health Status
Work and Life
Education and SkillsSocial Connections
Civic Engagement and Governance
Environmental Quality
Personal Security
Subjective Well-being
Germany
Italy
Spain
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Inequalities in well-being : incomeHigh income inequalities in many OECD countries …
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Gini coefficient, 2008 or latest year available
… that have often increased
-0.04
-0.02
0.00
0.02
0.04
0.06
0.08
Point differences in Gini coefficient from mid-1980 to mid-2000
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Inequalities in well-being: social connections
… weaker social ties… … and lower trust in others
Percentage of people reporting that they have someone to count on in times of need, 2010
Percentage of people reporting trusting others, 2010
0
5
10
15
20
25
30
35
40
Primary Secondary Tertiary 1 2 3 4 5Axis TitleEducation Incomequintile
65
70
75
80
85
90
95
Primary Secondary Tertiary 1 2 3 4 5Axis Title
Education Incomequintile
Lower-educated and lower-income people also have…
Source : Gallup World Poll
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Environmental Sustainability
The OECD Green Growth Strategy delivered to OECD Ministers in 2011
Drawing upon long-standing experience with:– Fact-based policy analysis and evaluation– Country reviews
Green growth is policy-oriented, pragmatic way of approaching environmental sustainability
Key element: set of Green Growth Indicators– First release in 2011– New release in 2012
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Environmental sustainability
Production-based and demand-based CO2 emissions,Rate of change per year, 1995-2005
Demand-based CO2 emissions grew faster than production-based emissions in the OECD area
Source : OECD, Towards Green Growth: Monitoring Progress – OECD Indicators
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
OECD Other major economies
Production Demand
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Indicator framework applied at national level
Green growth indicator publications • The Czech Republic• Korea• The Netherlands• Mexico• Work underway in Colombia,
Costa Rica, Ecuador, Guatemala, Paraguay, Peru, Kyrgyzstan
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Involving the public
• Engaging with civil society has been one of the goals of the OECD Project
• How’s Life? is accompanied by interactive web tool (Your Better Life Index) aimed at involving the public
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Your Better Life Index
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What matters most to people ?
Housing
Income
Jobs
Community
Education
Environment
Governance
Health
Life sa
tisfacti
onSafety
Work and Li
fe balance7.50%
8.00%
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
AllMaleFemale
Male63%
Female37%
Source : OECD calculations
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What’s next: measurement (1) OECD committed to deliver on How’s Life? measurement
agenda, in close collaboration with National Statistical Offices, Eurostat and other initiatives (e.g. e-Frame)
Material conditions and Quality of Life
International Guidelines on Subjective Well-being Integrating inequalities in National Accounts Developing standards for measuring household wealth and joint
distribution of income, consumption and wealth TUS and measures of household non-market production Indicators of Health Outcomes and Inequalities Civic engagement and institutions Regional indicators of well-being Gender
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What’s next : measurement (2) Environmental sustainability
– SEEA: implementation (in cooperation with Eurostat and other international organisations)
– Development of headline indicators
– Research: GG Knowledge Platform (GGGI, WB, UNEP, OECD)
Human and Social Capital – Monetary estimates of human capital– groundwork for developing statistical guidelines on social
capital (with DG EMPL) in the future
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From developed to developing countriesExtending the well-being and progress agenda
to developing countries – Three Regional Conferences (Latin America, Asia Pacific,
Africa) – From Rio+20 towards post 2015 Agenda
4th OECD World Forum in New Delhi, October 2012 – Measuring Well-Being for Development and Policy Making– Contributions from regional conferences, including European
Conference
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From measurement to policy
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Taking a multi-dimensional approach to well-being can make a difference
– strategic decisions about which aspects of people’s well-being to focus on, and who should be main target group– decisions about how to improve well-being most efficiently in each field (e.g. by identifying spill-overs and unintended effects)– promoting whole-of-government approach
Several examples at national and regional levels– Buthan; UK; Australia; New-Zealand; Reform of EU Cohesion
PoliciesAt OECD
–Involving policy groups –Developing new analytical framework for multi-dimensional
country reviews)