Beyond GDP or GDP and Beyond
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Dr. Žiga Turk
“Beyond GDP” or“GDP and Beyond”
Round Table on the Measurement and Use of Data on Social Progress and People’s Well-Being
Conference Centre Brdo, Slovenia,29 November 2010
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Contents
• The 5 “ABCDE” global transformations are a challenge for policy makers.– Abundance makes us think that money (GDP) isn’t
everything
• There are reasons to look beyond GDP– and see why Slovenia was overtaken by Czech
Republic
• There are reasons to keep GDP– it is the GDP Euros that pay for many things
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ABCDE of grand transformations
• Automation and abundance
• BRICs and globalization
• Climate change and energy
• Demography
• E-everything
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A detailed look at A: abundance
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Our industrial model: people work
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… so that they can buy a car.
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The idea worked for a long time!
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But now some can produce but do not spend
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Leading to abundance of products and information in the developed world
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Solution: to those who already have a car also sell a motorbike!
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“What we sell is the ability for a 43-year-old accountantto dress in black leather, ride through small towns
and have people be afraid of him”.
Actually they are not in a business of selling bikes!
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Plain Design Award
Few are in a business of selling function.They sell meaning!
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Plain Fair-traded
Some sell coffee, some sell a good feeling.
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Some sell cleaners and some let us do something for the environment.
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Can we measure the economy of meaning with GDP?
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Some would say money does not make you more happy (and life more meaningful)andmove beyondGDP
Source: Economist
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But some say a dollar is worth more to the poor than to the rich.
log($) doesmakes people happy.
Source: Economist
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But we do not have money!
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So there are reasons to look at GDP and beyond
• economy, consumers are looking beyond the functional and the material
• when you are reasonably well of it takes a lot more money to be a little happier
• because of the crisis right now we do not have the money
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And there are good reasons not to look only beyond GDP
• we have a crisis because the GDP is down,not because people are unhappy!
• we can define:
– good times “joy-less outnumber the job-less”
– bad times “job-less outnumber the joy-less”
• which would you rather have?
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In Slovenia we always thought we are better than any of the former communist countries
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So this was a shock:
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Where?
0,828
0,931
0,782 0,780,841
0,9010,87
0,76
HDI Health Education Income
Slovenia Czech Rep.
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So there are messages for policymakers beyond the GDP, but
• your % of GDP for healthcare are GDP Euros.
• your % of GDP for education are GDP Euros.
• your % of GDP for research and development are GDP Euros.
• you will be paying off your debt with GDP Euros
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THE END
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Credits & Inspiration
• Images:– Google Picture Search
– Flickr
– Wikipedia
– Economist
• Inspiration– Reflection Group on the Future of Europe
– Stephane Garelli
– Daniel Pink