Beyond GDP or GDP and Beyond
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Can we use GDP to measure the economy of meaning. My talk at the OECD / SURS Round Table on the Measurement and Use of Data on Social Progress and People’s Well-Being
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Beyond GDP or GDP and Beyond
- 1. Dr. Žiga Turk “Beyond GDP” or “GDP and Beyond” Round Table on the Measurement and Use of Data on Social Progress and People’s Well-Being Conference Centre Brdo, Slovenia, 29 November 2010
- 2. Contents • The 5 “ABCDE” global transformations are a challenge for policy makers. – Abundance makes us think that money (GDP) isn’t everything • There are reasons to look beyond GDP – and see why Slovenia was overtaken by Czech Republic • There are reasons to keep GDP – it is the GDP Euros that pay for many things
- 3. ABCDE of grand transformations • Automation and abundance • BRICs and globalization • Climate change and energy • Demography • E-everything
- 4. A detailed look at A: abundance
- 5. Our industrial model: people work
- 6. … so that they can buy a car.
- 7. The idea worked for a long time!
- 8. But now some can produce but do not spend
- 9. Leading to abundance of products and information in the developed world
- 10. Solution: to those who already have a car also sell a motorbike!
- 11. “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him”. Actually they are not in a business of selling bikes!
- 12. Plain Design Award Few are in a business of selling function. They sell meaning!
- 13. Plain Fair-traded Some sell coffee, some sell a good feeling.
- 14. Some sell cleaners and some let us do something for the environment.
- 15. Can we measure the economy of meaning with GDP?
- 16. Some would say money does not make you more happy (and life more meaningful) and move beyond GDP Source: Economist
- 17. But some say a dollar is worth more to the poor than to the rich. log($) does makes people happy. Source: Economist
- 18. But we do not have money!
- 19. So there are reasons to look at GDP and beyond • economy, consumers are looking beyond the functional and the material • when you are reasonably well of it takes a lot more money to be a little happier • because of the crisis right now we do not have the money
- 20. And there are good reasons not to look only beyond GDP • we have a crisis because the GDP is down, not because people are unhappy! • we can define: – good times “joy-less outnumber the job-less” – bad times “job-less outnumber the joy-less” • which would you rather have?
- 21. In Slovenia we always thought we are better than any of the former communist countries
- 22. So this was a shock:
- 23. Where? 0,828 0,931 0,782 0,78 0,841 0,901 0,87 0,76 HDI Health Education Income Slovenia Czech Rep.
- 24. So there are messages for policymakers beyond the GDP, but • your % of GDP for healthcare are GDP Euros. • your % of GDP for education are GDP Euros. • your % of GDP for research and development are GDP Euros. • you will be paying off your debt with GDP Euros
- 25. THE END
- 26. Credits & Inspiration • Images: – Google Picture Search – Flickr – Wikipedia – Economist • Inspiration – Reflection Group on the Future of Europe – Stephane Garelli – Daniel Pink