Measuring Real Wealth in New Zealand

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Measuring Real Wealth in New Zealand
David Kettle, Anew NZ Progress Indicator Action
Group 2nd International Conference on
Sustainability Engineering and Science, February
2007
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OUTLINE

• Introduction
• Current Measures of Progress (GDP)
• Genuine Progress Indicators (GPI)
• Other Wellbeing Indicator Work
• Going Forward in New Zealand

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INTRODUCTION

• Significant Current Indicators Work
• Challenge - Integrate and comparability,
• - Misuse of GDP
• Key question
• How can we create an integrated system of
  indicators .. global comparability combines
  present well-being with long term
  sustainability. while challenging the misuse
  of GDP as being the basic indicator of societal
  well-being?

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Why we need measures to complement GDP (Gross
Domestic Product)

• Every expenditure as addition to well-being (e.g.
  cyclones, war, etc.)
• Ignores functions that dont involve money (e.g.
  volunteers, open spaces, trees etc.)
• No regard for future
• (e.g. depletion of natural resources as current
  income instead of liquidation of an asset)
• Ignores distribution of income
• (e.g. the gap between the haves and have-nots)

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Average income happiness in the US, 1957-2002
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Things of personal importance to Kiwis Growth
Innovation Advisory Council 2004
0 is not important and 10 is very important
100
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Genuine Progress Indicators (Example Nova
Scotia GPI, Ron Colman)
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Canadian Index of Wellbeing (CIW)

• Living Standards gap between rich poor, food
  security, affordable housing
• Time Allocation balance between paid work,
  unpaid work free time
• Healthy Populations self-rated health, infant
  mortality, rates of suicide
• Ecosystem Health air water quality, healthy
  forests, soils
• Educated Populace literacy, numeracy
• Community Vitality safe communities, diversity,
  culture, arts
• Civic Engagement meaningful participation

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The 6 Capitals of Wellbeing

• Produced (Built) Capital machinery, equipment
• Financial Capital loans, financial savings
• Natural Capital renewable and non-renewable
  natural resources
• Social Capital values and understanding within
  and between groups
• Human Capital knowledge skills through
  life-long learning
• Cultural Capital traditions and behaviours

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At a Global Level

• United Nations Statistics Division City Groups
  on Statistical Methodologies (http//unstats.un.or
  g/unsd/methods/citygroup/index.htm).
• The European Social Survey (http//ess.nsd.uib.no)
  .
• OECD 2006 Factbook (www.SourceOECD.org/factbook).
  
• June, 2006 Milan OECD post conference on a
  National Index of Wellbeing - developing a
  national index of wellbeing model to be presented
  at
• OECD Global Project Measuring the Progress of
  Societies, Second OECD World Forum on Statistics,
  Knowledge and Policy, 27-30 June 2007, Instanbul,
  Turkey

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Existing good work in NZ

• Quality of life in our
• cities now 12 largest
• Excellent MSD social reports
• Marilyn Warings pioneering
• work in assoc. with Dr. Colman
• Local Gov. Act 2002 LTCCPs

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A Pathway for Going Forward in NZ

• Support Local and Regional Governments in
  developing wellbeing indicators
• Resource Kit of best practice and
  standardisation
• Research and Resourcing
• Develop international comparability model
• New Zealand Measures of Wellbeing

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The AnewNZ Initiative

• A National Index of Progress and Wellbeing,
  Developing a Model for Global Comparability,
  November 2007
• Six to Eight Countries, including OECD
• Demonstrate viability of comparable set
• Agree on wording and data bases

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www.anewnz.org.nz

• David Kettle dbkettlelimited_at_slingshot.co.nz
• Dave Breuer
• Chris Ferkins
• Gary Russell
• John Shaw
• Ray Skinner
• Antony Vallyon