Discussion of

“Beyond SNA- A Broader Approach to Well-Being”

by Albert Braakmann (Federal Statistical Office,

Germany)

“Quality of Life: Issues and Challenges in

Measurement” by

Suresh Chand Aggarwal (University of Delhi)

Romina Boarini OECD Statistics Directorate

What the 2 papers have in common

• They start from a similar background (i.e. the SSF Commission, the “GDP and Beyond” movement)

• They review various national and international initiatives on measuring QoL/Wellbeing/Progress

• They conclude that efforts on “GDP and beyond” are interesting but insufficient and thus…

• … the SNA could be (partly) of help to advance this agenda

Insights from the paper “Beyond SNA – A Broader Approach to Well-Being” (i)

• Focus on measures of social progress in Germany: – The Franco-German Dashboard– National Welfare Index– KfW- Sustainability Indicator– Prosperity Quintet– W3 Indicators of the German Federal Parliament

• German sustainability strategy: the “dominant male” (interestingly, not GDP!)

• How statisticians can help on well-being:- Developing better metrics and new analysis- Providing evidence to judge progress on political targets

Insights from the paper “Beyond SNA – A Broader Approach to Well-Being” (ii)

• Ways forward to integrate WB in NA:– Memorandum items: e.g. distributional

measures– Additional accounts: HADI– Supplementary tables: environmental costs– Satellite Accounts: homework, parenting,

volunteer labour

• But not for everything: “It is difficult to imagine an objective way in which factors such as (social ones) could be quantified and more difficult to imagine the usefulness of including them in a system designed primarily to facilitate economic analysis”

Questions for the first paper

1. What would be really needed to make that integration happen? better/new data, different mindset, clear policy demand (e.g. the Gut leben in Deutschland - was uns wichtig ist?), anything else?

2. What is the experience of the Federal Statistical Office on expanding the boundaries of NA? Future plans?

3. Do you (all) agree (I don’t!) with SNA statement that a) we cannot quantify QoL factors; b) these factors do not matter for economic analysis?

- a) OECD Guidelines on SWB- b) The role of trust and cooperative norms

4. (The old question: isn’t it better to be imperfectly right than perfectly wrong?)

Insights from the paper “Quality of Life: Issues and Challenges in Measurement” (i)• Comparing composite indices “Beyond GDP” against their value-added to GDP

• Indian efforts: – Compendium on Environment Statistics (in line

with FDES)– Green National Accounts– New focus on wealth, e.g. inclusive growth=

inclusive growth in wealth

  WHI HPI HDI SPI QOLTop 15 rich countries by GDP per capita ($ PPP>40000, 2012)

-0.0571 0.0500 0.1055

-0.1357

-0.2341

Middle 39 countries by GDP per capita ($ PPP>11000 & <40000, 2012) 0.3581

-0.1887 0.9378 0.7417 0.6530

Bottom 16 countries by GDP per capita ($ PPP<11000, 2012) 0.0559

-0.1029 0.7794 0.5824 0.7290

Insights from the paper “Quality of Life: Issues and Challenges in Measurement” (i)• Measurement issues in Beyond GDP

agenda:– Concepts and definitions of QoL should be standardised;– Lack of an internationally agreed framework for the

capital stocks that drive wellbeing/QoL over time: human, social and environmental capital;

– SNA methodology not up to the herculean task;– Use available indicators, fill data gaps otherwise– Conduct studies to determine ALL shadow prices

• Challenges:– Paucity of “physical” indicators of e.g. natural capital – What to do with factors that are qualitative in nature

and/or beyond markets?– How to compare over time? How to aggregate?

Questions for the second paper

1. The paper states that the “best” indices/frameworks for measuring QoL are: Inclusive Wealth Index, the Gross National Happiness and the OECD Better Life Initiative (thanks!), why?

2. But do or could they really fit the NA framework?- e.g. Lot of the Beyond and GDP agenda has focused on

measuring inequalities in well-being outcomes, can NA do that?

3. Can we really find shadow prices for all QoL dimensions? And should we?- The example of the OECD Inclusive Growth project

4. Yes we do need an agreed framework, but how to ensure that this is relevant for all countries?

THANK YOU!romina.boarini@oecd.org

www.oecd.org/measuringprogresswww.oecdbetterlifeindex.org