Insights on Expanding Boundaries of National Accounting for Well-Being

The discussion focuses on a broader approach to measuring well-being beyond GDP, reviewing initiatives and concluding on the potential of the System of National Accounts (SNA) to advance the agenda. Insights from the papers highlight measures in Germany, ways to integrate well-being in national accounting, and challenges in quantifying social factors for economic analysis. Questions are posed regarding data needs, the experience of the Federal Statistical Office, and the relevance of QoL factors in economic analysis.

• Well-Being Measurement
• System of National Accounts
• National Accounting
• Social Progress
• Economic Analysis

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1. Discussion of Beyond SNA- A Broader Approach to Well-Being by Albert Braakmann (Federal Statistical Office, Germany) Quality of Life: Issues and Challenges in Measurement by Suresh Chand Aggarwal (University of Delhi) Romina Boarini OECD Statistics Directorate

2. What the 2 papers have in common They start from a similar background (i.e. the SSF Commission, the GDP and Beyond movement) They review various national and international initiatives on measuring QoL/Wellbeing/Progress They conclude that efforts on GDP and beyond are interesting but insufficient and thus the SNA could be (partly) of help to advance this agenda

3. Insights from the paper Beyond SNA A Broader Approach to Well-Being (i) Focus on measures of social progress in Germany: The Franco-German Dashboard National Welfare Index KfW- Sustainability Indicator Prosperity Quintet W3 Indicators of the German Federal Parliament German sustainability strategy: the dominant male (interestingly, not GDP!) How statisticians can help on well-being: - Developing better metrics and new analysis - Providing evidence to judge progress on political targets

4. Insights from the paper Beyond SNA A Broader Approach to Well-Being (ii) Ways forward to integrate WB in NA: Memorandum items: e.g. distributional measures Additional accounts: HADI Supplementary tables: environmental costs Satellite Accounts: homework, parenting, volunteer labour But not for everything: It is difficult to imagine an objective way in which factors such as (social ones) could be quantified and more difficult to imagine the usefulness of including them in a system designed primarily to facilitate economic analysis

5. Questions for the first paper 1. What would be really needed to make that integration happen? better/new data, different mindset, clear policy demand (e.g. the Gut leben in Deutschland - was uns wichtig ist?), anything else? What is the experience of the Federal Statistical Office on expanding the boundaries of NA? Future plans? Do you (all) agree (I don t!) with SNA statement that a) we cannot quantify QoL factors; b) these factors do not matter for economic analysis? - a) OECD Guidelines on SWB - b) The role of trust and cooperative norms (The old question: isn t it better to be imperfectly right than perfectly wrong?) 2. 3. 4.

6. Insights from the paper Quality of Life: Issues and Challenges in Measurement (i) Comparing composite indices Beyond GDP against their value-added to GDP WHI HPI HDI SPI QOL Top 15 rich countries by GDP per capita ($ PPP>40000, 2012) Middle 39 countries by GDP per capita ($ PPP>11000 & <40000, 2012) Bottom 16 countries by GDP per capita ($ PPP<11000, 2012) -0.0571 0.0500 0.1055 -0.1357 -0.2341 0.3581 -0.1887 0.9378 0.7417 0.6530 0.0559 -0.1029 0.7794 0.5824 0.7290 Indian efforts: Compendium on Environment Statistics (in line with FDES) Green National Accounts New focus on wealth, e.g. inclusive growth= inclusive growth in wealth

7. Insights from the paper Quality of Life: Issues and Challenges in Measurement (i) Measurement issues in Beyond GDP agenda: Concepts and definitions of QoL should be standardised; Lack of an internationally agreed framework for the capital stocks that drive wellbeing/QoL over time: human, social and environmental capital; SNA methodology not up to the herculean task; Use available indicators, fill data gaps otherwise Conduct studies to determine ALL shadow prices Challenges: Paucity of physical indicators of e.g. natural capital What to do with factors that are qualitative in nature and/or beyond markets? How to compare over time? How to aggregate?

8. Questions for the second paper 1. The paper states that the best indices/frameworks for measuring QoL are: Inclusive Wealth Index, the Gross National Happiness and the OECD Better Life Initiative (thanks!), why? 2. inequalities in well-being outcomes, can NA do that? But do or could they really fit the NA framework? - e.g. Lot of the Beyond and GDP agenda has focused on measuring 3. Can we really find shadow prices for all QoL dimensions? And should we? - The example of the OECD Inclusive Growth project 4. Yes we do need an agreed framework, but how to ensure that this is relevant for all countries?

9. THANK YOU! romina.boarini@oecd.org www.oecd.org/measuringprogress www.oecdbetterlifeindex.org