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)
Time Use Economic Value of Civic and Voluntary Work Economic Value of Unpaid Housework and Child Care Work Hours Value of Leisure Time Environmental Quality Greenhouse Gas Emissions Sustainable Transportation Ecological Footprint Analysis Air Quality Water Quality Solid Waste
Natural Capital Soils and Agriculture Forests Marine Environment/Fisheries Energy Socio-economic Income Distribution Debt, External Borrowing, and Capital Movements Valuations of Durability Composite Livelihood Security Index
Social Capital Population Health Educational Attainment Costs of Crime Human Freedom Index
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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

1. Produced (Built) Capital machinery, equipment
2. Financial Capital loans, financial savings
3. Natural Capital renewable and non-renewable
   natural resources
4. Social Capital values and understanding within
   and between groups
5. Human Capital knowledge skills through
   life-long learning
6. 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

1. Support Local and Regional Governments in
   developing wellbeing indicators
2. Resource Kit of best practice and
   standardisation
3. Research and Resourcing
4. Develop international comparability model
5. 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