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 ...

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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  • http://www.flickr.com/photos/telstar/128486232/sizes/o/
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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 Presentation Transcript

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