WELL-BEING IN REGIONS: BUILDING
MORE COHERENT POLICIES FOR A
BETTER GROWTH MODEL
Monica Brezzi and Joaquim Oliveira Martin...
1. Growth and inequalities:
managing the trade-offs
2
Income inequality has increased in most OECD
countries and emerging market economies , also
with large differences within ...
Until the crisis, U-shaped relation between GDP
growth and income inequality in regions
4
Gini coefficient on disposable i...
2. Integrating the economic, social
and environmental dimensions:
building complementarities
5
Complementarities need to be constructed through
appropriate design
6
Well-
being
Econo
mic
Green growth
Environ
ment
Soci...
Inclusive growth
• Active labour market policies (ALMPs) can facilitate a better match of
jobs with skills, thus lowering ...
3. Using regional well-being
metrics for a better growth
model
8
9
How do we measure regional well-being?
Individuals’
characteristics
Place characteristics
People’s well-being
People’s w...
OECD publication How’s life in your region?
Identify 11 dimensions and
indicators for OECD countries
 OECD work on
regio...
1. Wide consultation on objectives and ways to
meet them
2. Citizens engagement also in monitoring
progress and contributi...
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Well being in regions

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Presentation on "Well-being in Regions: building more coherent policies for a better growth model" made at the Hvordan får vi nyt liv i væksten? [How do we spark growth?], Copenhagen Denmark, 2 May 2014, by by Joaquim Oliveira Martins, Head, Regional Development Policy Division & Monica Brezzi, Head of Statistics Unit,OECD. For more information see www.oecd.org/regional/how-is-life-in-your-region.htm.

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Well being in regions

  1. 1. WELL-BEING IN REGIONS: BUILDING MORE COHERENT POLICIES FOR A BETTER GROWTH MODEL Monica Brezzi and Joaquim Oliveira Martins OECD
  2. 2. 1. Growth and inequalities: managing the trade-offs 2
  3. 3. Income inequality has increased in most OECD countries and emerging market economies , also with large differences within countries 3 0.2 0.3 0.4 0.5 0.6 NewZealand Slovenia SlovakRepublic Finland Hungary Greece Netherlands Poland Denmark CzechRepublic Japan Switzerland Canada Sweden Norway Austria Italy Turkey Australia France Germany Israel Belgium Spain UnitedKingdom Mexico Chile UnitedStates Country value regional valuesv v Source: OECD(2014) How’s life in your region? forthcoming Regional values of Gini coefficient of disposable income (2010)
  4. 4. Until the crisis, U-shaped relation between GDP growth and income inequality in regions 4 Gini coefficient on disposable income (2010) and average annual growth of GDP per capita (2000-2007) 0.02.04.06.08.1 AverageannualgrowthrateofGDPpercapita(2000-2007) .2 .3 .4 .5 .6 Gini on disposable household income Source: OECD(2014) How’s life in your region? forthcoming Note: dots represent OECD regions CHL, USA Eastern Europe SVK, CZE Nordic Countries Continental and Southern Europe
  5. 5. 2. Integrating the economic, social and environmental dimensions: building complementarities 5
  6. 6. Complementarities need to be constructed through appropriate design 6 Well- being Econo mic Green growth Environ ment Social-ecology Social Inclusive growth DIMENSIONS CITIES RUR AL AREA S Economic + - Environment - + Social – public goods (health, education, etc.) + - Social – community produced goods (trust, security, social connections) - + • Evidence shows that life satisfaction is higher in countries with a more balanced distribution of well-being outcomes among the 3 dimensions (the estimated coefficient of dispersion across the well-being dimensions is significantly negative).
  7. 7. Inclusive growth • Active labour market policies (ALMPs) can facilitate a better match of jobs with skills, thus lowering unemployment and making a strong contribution to social equality. They are more effective when designed at the regional or local levels, since information about local conditions is crucial to success. Green growth • Integrating land-use, transport and business infrastructure policies can contribute to outcomes that are greener (increasing reliance on public transport), more equitable (improving access to labour markets for disadvantaged areas) and more efficient (reducing congestion and commuting times, etc.). Social-ecology • To integrate economic and social objectives, carbon taxes could be complemented with instruments that address both individuals and places. In fact, the fuel poverty indicator (% of households that spend more than 30% on energy) shows a link between individual (income) and places characteristics. Place-based policies can help transforming trade-off in complementarities 7
  8. 8. 3. Using regional well-being metrics for a better growth model 8
  9. 9. 9 How do we measure regional well-being? Individuals’ characteristics Place characteristics People’s well-being People’s well-being is composed of many dimensions These dimensions have synergies and can reinforce each other Including institutions, governance and citizenship
  10. 10. OECD publication How’s life in your region? Identify 11 dimensions and indicators for OECD countries  OECD work on regional inequalities “How’s life in your region? Measuring regional and local well- being for policy making” (FINAL REPORT SEPTEMBER 2014) Common framework to measure well-being Guidance for policymakers and citizens to use these indicators for more effective policies to improve people’s lives INTERACTIVE WEBSITE Internationally comparable indicators in regions and cities Seven case studies of regions using well-being metrics for policy making www.OECDregionalwellbeing.org
  11. 11. 1. Wide consultation on objectives and ways to meet them 2. Citizens engagement also in monitoring progress and contributing to changes 3. Coordination across levels of government, sectors and across jurisdictions 4. Institutional changes informed also from the territory 5. Open data Using well-being metrics in policy making 11

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