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

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/ http://www.flickr.com/photos/lilivc/364968396/ http://www.flickr.com/photos/g_kat26/3614041318/ 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/