Measuring Sustainable development:

Achievements and Challenges

Enrico Giovannini

OECD Chief Statistician

June 2005

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Outline of the presentation

Policy context and the OECD work on SD

Measuring SD Achievements since 1992 Outlook for further developments Conclusions

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Policy Context

The concept of SD is concerned both with the quality and the quantity of economic growth and encompasses three dimensions of welfare:

Economic; Social; Environmental.

Progress towards SD implies: Inter-temporal framework; Capital (or asset base) is preserved.

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To make SD concept operational for public policies

Is complicated; Raises important challenges; Involves complex synergies and trade-

offs; Requires the understanding of the

interactions among the three dimensions.

Looking at the OECD experience, there is a need to step up the coherence of government policies, to make greater use of market instruments and strengthen international co-operation.

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SocialSocial

EnvironmentalEnvironmental EconomicEconomic

Interactions between key dimensions of SDInteractions between key dimensions of SD

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The needs of policy makers and the society have to be supported with appropriate statistical information

To inform about the inter-linkages and trade-offs

To evaluate long-term implications of current decisions

To monitor progress To change culture

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OECD work on SD

Specific programme on SD since 1998, when Ministers recognised SD as an overarching role of OECD governments

1998-2001: project to better understanding SD and look at policy challenges

2001-2004: links between the three pillars were further examined

2005-2006: forum for substantive policy dialogue

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Measuring SD

The measurement challenge

The concept of SD poses a significant challenge for measurement. It requires:

simple measures; detailed measures; models for policy analyses.

A key issue: the role of frameworks

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The role of frameworks (1)

Frameworks are important to structure work on indicators and other statistics. In particular, framework for SD should:

Integrate the three dimensions; Have sound conceptual foundations; Capture key information needed to calculate

selected indicators; Help to clarify the relationships between

different indicators and between indicators and policies.

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The role of frameworks (2)

Conceptual frameworks, frequently labelled “analytical” or “policy” frameworks (such as the OECD pressure-state-response model)

They are: Usually pragmatic and flexible Linked to policy demands Adaptable to national contextsThey help users to: See different parts interconnected Communicate in an understandable way

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The role of frameworks (3)

Statistical frameworks, that help to ensure that the statistical basis is of quality and coherent to link different aspects

They are necessary to: Develop coherent indicators Build models Show trade-offs Fill data gaps Avoid duplications

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Achievements since 1992 (1)

The number of international and national initiatives has been expanding, stimulated by the work of the UN Commission for SD.

Several countries have core sets of indicators In some cases, they are linked to national

strategies In few cases, national strategies have

established quantitative policy targets Development of accounting frameworks (UN

of integrated Environmental and Economic Accounts (SEEA)

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Achievements since 1992 (2)

The OECD contribution

Several sets of indicators responding to specific policy questions

Use of indicators in policy analyses and peer reviews

Review and further development of frameworks and statistics– Accounting approaches– Material flows and resource productivity– National balance sheets

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Outlook for further developments (1)

Notwithstanding the improvements, much needs to be done. Main lessons learned:

Too great variability across countries in the completeness of indicators and other measurement tools adopted

Too weak theoretical base Mainly focused on economic-environment Poor quality of basic data Absence of cross-boarder effects Lack of resources for further statistical work

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Outlook for further developments (2)

Key areas for further progress: Common conceptual framework to link

economic-social-environmental dimensions Better statistical framework to organise data

and develop models Improvement of international sets of

indicators (EU and OECD) Long-term perspective of research and data

collection Institutional arrangements

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Outlook for further developments (3)

A greater role for accounting tools. This is a necessary step to:

Improve coherence of sets of indicators; Have international comparable data; Develop models for policy simulations;

What is missing is a simplified accounting framework for SD, covering the three dimensions.

Attention to the measurement of stocks.

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In conclusion

A lot of work has been done, with very positive results.

Further developments are needed, both on conceptual and statistical frameworks. Cross-border elements need to be included.

Investments have to be made with a long-term perspective, but with short-term deliverables.

An OECD project to fill these gaps would be highly desirable.