OECD and Progress - Beyond GDP

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GDP includes how much we’re spending on things like education, the police and health… But it isn’t designed to measure the outcomes of all that spending – are our kids getting smarter, our streets safer, our hospitals more effective? OECD produces many comparable indicators that can help assess progress. Visit: www.oecd.org/statistics

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  • [SLIDE CHANGE … text to replace “average income of various deciles (from top to bottom: richest 10%, next 10%, … to poorest 10%)]But when we break down income by decile (richest 10%, next richest 10% and so on) we see that the wealthiest people in some countries have a much bigger slice of the income pie than in others.
  • [SLIDE CHANGE … text to replace “average income of various deciles (from top to bottom: richest 10%, next 10%, … to poorest 10%)]But when we break down income by decile (richest 10%, next richest 10% and so on) we see that the wealthiest people in some countries have a much bigger slice of the income pie than in others.
  • [SLIDE CHANGE … text to replace “average income of various deciles (from top to bottom: richest 10%, next 10%, … to poorest 10%)]But when we break down income by decile (richest 10%, next richest 10% and so on) we see that the wealthiest people in some countries have a much bigger slice of the income pie than in others.
  • Some countries have much higher percentages of young people graduating from university-type education
  • Some countries have much higher percentages of young people graduating from university-type education
  • Do we need to add the “divided by 3” note? Means nothing to me.
  • Do we need to add the “divided by 3” note? Means nothing to me.
  • Do we need to add the “divided by 3” note? Means nothing to me.
  • Potentialyears of life lostis the amount of time that people who die before 70 would have lived if theyhad not diedprematurely.Prematuremortality has halved in OECD since 1970.
  • http://www.flickr.com/photos/dws/11303021/sizes/o/, itisnecessary to takeintoaccountindicatorsnot basedon production, bothobjective and subjective.
  • http://www.flickr.com/photos/dws/11303021/sizes/o/, itisnecessary to takeintoaccountindicatorsnot basedon production, bothobjective and subjective.
  • Add ‘hours spent sleeping’ to personal care?
  • OECD and Progress - Beyond GDP

    1. 1. OECD and Progress<br />Beyond GDP<br />
    2. 2. GDP is an important economic indicator that measures output.<br />
    3. 3. But it doesn’t give a full picture of social progress and well-being<br />But it is not sufficient to measure<br />
    4. 4. If GDP per capita rises, itmeanswe’re all gettingricher, right?<br />
    5. 5. Wrong. GDP per capita isjust GDP divided by the size of the population. It doesn’t tell us what people are actuallyearning or if that’srising.<br />
    6. 6. Equally, GDP leaves out <br />somegoodthings …<br />
    7. 7. Raisingchildren, cooking dinner or tidying up may or may not be counted in GDP depending on whether they’re done in the home, by the state or by a firm.<br />
    8. 8. GDP includes how muchwe’respending on thingslikeeducation, <br />the police and health…<br />
    9. 9. But itisn’tdesigned to measure the outcomesof all thatspending – are ourkids gettingsmarter, ourstreetssafer, ourhospitals more effective? <br />
    10. 10. Badthingscanbegoodfor GDP:<br />Natural disasterskill and maim millions …<br />
    11. 11. But all thatcleaning up afterwardsmeans<br />extra economicactivity, whichisgood for GDP.<br />
    12. 12. GDP is a good economicmeasure … <br />
    13. 13. … but not so good for measuringprogess, well-beingor happiness.<br />
    14. 14. Relying on GDP alonewouldbelikedriving a car onlylookingat the speedometer…<br />
    15. 15. Relying on GDP alonewouldbelikedriving a car onlylookingat the speedometer…<br />But otherindicators are necesary to assess the success of a policy.<br />
    16. 16. OECD work onmeasuringprogress<br />OECD  has taken part in the Stiglitz-Sen-FitoussiCommission on the Measurement of Economic Performance and Social Progress<br />
    17. 17. OECD producesmany comparable indicatorsthatcan help assessingprogress.<br />
    18. 18. GDP per capita<br />Takeinequality.<br />This map shows GDP per capita for countries in Western Europe.<br />
    19. 19. GDP per capita<br />Takeinequality.<br />This map shows GDP per capita for countries in Western Europe.<br />But whenwe break down those countries by region ….<br />
    20. 20. Other patterns emerge:<br />Differenceswithin countries canbe<br />biggerthanthosebetweencountries<br />Source:OECD Regional eXplorerhttp://stats.oecd.org/OECDregionalstatistics/ and OECD Factbook, http://stats.oecd.org/oecdfactbook/<br />
    21. 21. Differences in incomecanbe<br />even more striking …<br />
    22. 22. Source:OECD(2008), GrowingUnequal, chart 1.6<br />Data: http://dx.doi.org/10.1787/420721018310<br />
    23. 23. Again, differencesacross countries are lesser<br />Source:OECD(2008), GrowingUnequal, chart 1.6<br />Data: http://dx.doi.org/10.1787/420721018310<br />
    24. 24. Again, differencesacross countries are lesser<br />thandifferenceswithin a country.<br />Source:OECD(2008), GrowingUnequal, chart 1.6<br />Data: http://dx.doi.org/10.1787/420721018310<br />
    25. 25. In most OECD countries, incomeinequalityisrising…<br />Source:OECD(2008), GrowingUnequal, chart 1.5<br />Data: http://dx.doi.org/10.1787/420718178732<br />
    26. 26. OECD has an extensive range of indicators,such as PISA, thatmeasureeducationoutcomes…<br />thingslikehowwellstudents are doing, and whetherthey’rebeingheld back by poverty.<br />
    27. 27. Equally, students in some countries do much better in the OECD’s PISA tests. <br />Source:OECD(2009), Society at a Glance, chart SS.4.1.<br />Data: http://dx.doi.org/10.1787/550180640382<br />
    28. 28. Some countries have much higher percentages of young people graduating from university-type education <br />Source:OECD(2009), OECD Factbook<br />Data: http://dx.doi.org/10.1787/537572781005<br />
    29. 29. Some countries have much higher percentages of young people graduating from university-type education <br />Source:OECD(2009), OECD Factbook<br />Data: http://dx.doi.org/10.1787/537572781005<br />
    30. 30. OECD also measures the outcome of health services.<br />
    31. 31. Source:OECD(2009), Health at a Glance, Chart 1.1.1.<br />Data: http://dx.doi.org/10.1787/717383404708<br />
    32. 32. Life expectancy has increased by 10 yearssince 1960…<br />Source:OECD(2009), Health at a Glance, Chart 1.1.1.<br />Data: http://dx.doi.org/10.1787/717383404708<br />
    33. 33. Life expectancy has increased by 10 yearssince 1960…<br />The gap between countries is a thirdof whatitwas<br />Source:OECD(2009), Health at a Glance, Chart 1.1.1.<br />Data: http://dx.doi.org/10.1787/717383404708<br />
    34. 34. Potentialyears of life lostis the amount of time that people who die before 70 would have livedif theyhad not diedprematurely. Prematuremortality has halved in OECD since 1970.<br />Mexico<br />Portugal<br />United States<br />OECD<br />Sweden<br />Source:OECD(2009), Health at a Glance, chart 1.3.2.<br />Data: http://dx.doi.org/10.1787/717458111254<br />
    35. 35. OECD canalsocompare outcomes of law-enforcementservices.<br />
    36. 36. Source:OECD(2009), Society at a Glance, Table CO.3.2.<br />Data: http://dx.doi.org/10.1787/550717741440<br />
    37. 37. Environmentdashboard<br />OECD statistics examine not onlyenvironmental capital –clean water, forests, animal species and so on … <br />but also the factorsthat are threateningthem – greenhousegasemissions, pollution, urbanisation. <br />
    38. 38. For instance, OECD and itssisteragency IEA measure CO2emissions<br />Source:IEA(2009), CO2 Emissionsfrom Fuel Combustion<br />
    39. 39. But alsoresources, such as threatenedspecies<br />Source:OECD(2008), OECD Environmental Data Compendium, table 1.A.<br />
    40. 40. Clearly, wecan’tassesspeople’squality of life just by lookingatwhatthe economyisproducing (whichiswhat GDP measures). <br />
    41. 41. Weneed to consider a muchwider range of indicators, someobjective (how long are people living?) and somesubjective(do youfeel happy?) <br />
    42. 42. Measuringleisure time is an example of an objective measure of well-being…<br />Source:OECD(2009), Society at a Glance, chart 2.3<br />Data: http://dx.doi.org/10.1787/548528164155<br />
    43. 43. While polling people on life satisfaction is a subjectiveindicator.<br />Source:OECD(2009), Society at a Glance, chart CO.1.1 and CO.2.1.<br />Data: http://dx.doi.org/10.1787/550664800231Data: http://dx.doi.org/10.1787/550708264007<br />
    44. 44. We’ve made a good start on measuringprogress …<br />
    45. 45. We’ve made a good start on measuringprogress …<br />but westill have a lot more to do. <br />
    46. 46. For further information:<br />www.oecdilibrary.org<br />OECD Factbook 2009<br />Society at a Glance 2009<br />GrowingUnequal?<br />OECD iLibrary, - all OECD publications<br />Healthat a Glance 2009<br />OECD Environmental Outlook<br />SustainableDevelopment<br />DoingBetter for Children<br />
    47. 47. Image sources:<br />http://www.flickr.com/photos/cristic/251337503/<br />http://www.flickr.com/photos/telstar/128486232/<br />http://www.flickr.com/photos/flickravatar/3197059682/<br />http://www.flickr.com/photos/lilivc/364968396/<br />http://www.flickr.com/photos/g_kat26/3614041318/<br />http://www.daylife.com/photo/0c1F93Y0Xebqb<br />http://www.flickr.com/photos/bulent/172267112/<br />© Inmagine Ltd.<br />http://www.flickr.com/photos/chrissuderman/248876814/<br />http://www.flickr.com/photos/26870279@N04/3881367834/<br />http://www.flickr.com/photos/tellmewhat/3647622370/<br />http://www.flickr.com/photos/kseniab/556687241/<br />http://www.flickr.com/photos/dws/11303021/<br />

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