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Genuine Progress Index for Atlantic Canada Indice de progr


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Title: Genuine Progress Index for Atlantic Canada Indice de progr

Genuine Progress Index for Atlantic CanadaIndice
de progrès véritable - AtlantiqueMeasuring
Wellbeing and Sustainability in the GPI and
CIWWellington, 24 November, 2004
Indicators Where we are at in Canada and New
  • Recognized inadequacy, flaws of conventional
    GDP-based measures of progress
  • Understood potential power of indicators, role in
    determining policy agenda, and necessity for more
    accurate, comprehensive indicators
  • Developed data sources, methodologies, reporting
    mechanisms for wide range of social, economic,
    environmental indicators

NZ on the leading edge
  • Marilyn Warings pioneering work
  • Quality of Life in NZs 8 Largest Cities -gt 12
  • Monitoring Progress Towards a Sustainable NZ
  • Social Reports (MSD)
  • Tomorrows Manukau A vision into the future
  • Local Government Act 2002
  • Linked indicators project

Reaffirm goal Indicators should help communities
  • foster common vision and purpose, and track
    progress in achieving goals
  • identify strengths and weaknesses learn
  • affect policy and public behaviour action
  • hold leaders accountable at election time
  • improve wellbeing and ensure sustainable future
    for our children

Limitations Next Steps
  • Some new social targets, but not yet shifted
    policy agenda in fundamental ways, nor
    effectively challenged power and dominance of
    conventional measures
  • Fringe, satellite vs mainstream
  • No integrated, coherent system - NZ Social
    Report, QOL in 8 Cities report, Sustainable NZ
    report - Canada GPI, IEW, PSI, NRTEE
    ESDI, QOLIP, etc.

In Canada, weve concluded four steps are needed
  • New measures can no longer just be add-ons or
    satellites, but must challenge and critique the
    still dominant GDP-based measures of progress
  • One coherent, integrated framework to become new
    core measure of progress
  • Internationally, regionally comparable
  • Beyond indicators to a new set of national
    accounts full national wealth


Language / Communication Two key questions
underlying CIW How are we doing as a nation?
and What kind of world are we leaving our
Canadian Index of Wellbeing
  • Partnership of Canadas foremost indicator
  • National Working Group of 20 includes
  • 3 govt. agencies (Statcan, Envt.Can, CIHI)
    experts from 8 universities, 7 provinces, 5
    non-government research organizations
  • The process Letting go..
  • Funded by Atkinson Charitable Foundation
  • Spokesman Roy Romanow

Key purposes of the new Canadian Index of
  • To articulate vision of Canadas future
  • To account accurately for both current wellbeing
    and sustainability so trade-offs are clear and
  • To bring key social and environmental issues,
    often neglected, onto the policy agenda
  • To enhance accountability
  • To inform policy, improve performance, and
    evaluate program effectiveness

Purpose in relation to GDP
  • CIW intent To become Canadas core, central
    measure of progress, and to replace misuse of GDP
    for that purpose (not abolish GDP!)
  • To relegate GDP to function for which it was
    originally designed and intended as measure of
    size of economy (Kuznets)
  • To redefine healthy economy in terms of
    wellbeing outcomes instead of growth, so that
    misleading signals will no longer blunt
    initiatives to reduce GHGs, poverty, inequity
    conserve resources prevent illness, etc.

CIW Key Principles
  • Will measure wellbeing and sustainability in same
    reporting framework Legacy (wellbeing of future
    generations ours) cross-cutting theme within
    every domain. This is unique (cf NZ, QOL)
  • Will focus on outcomes for key conditions of
  • Will report on determinants infrastructural
    inputs (e.g. health care) within each outcome
  • Framework sustainability circle vs 3-legged
    stool or triple bottom line Relationship

Natural environment
Values, elements of wellbeing
  • Health
  • Security
  • Knowledge
  • Community
  • Freedom
  • Ecological integrity
  • Equity ( lit. review)

Outcome domains in the CIW
  • Standard of living
  • Time use (and balance)
  • Healthy populace
  • Educated populace
  • Community vitality
  • Ecosystem services
  • Governance

Process and reporting
  • Disaggregation - geographic (national,
    provincial, municipal) and demographic
  • Multiple audiences Report limited of key
    messages for public, policy audience, but experts
    can drill down for analysis (iceberg metaphor)
    technical rigour (e.g. KPMG)
  • Double review process, public consultation,
    cabinet approach at release (challenge!)

Unresolved (parked) issues
  • Some domains require further definition,
    indicator selection, literature review, data and
    methodology development
  • esp. education, community vitality, governance
    vs democracy, some environmental indicators and
    natural resource accounts (e.g. forests
    qualitative quantitative depreciation, water
    resources, waste)
  • Index and aggregation to single or

More unresolved issues
  • Beyond indicators to accounting framework FCA
    and the capital approach (sustainability and
  • Global dimension - ethical relations w. other
  • Communications and release strategies -gradual
    as early results available or all at once?
  • Data challenges e.g. frequency (time use cf
    GDP). CIW function create new data demands

E.g. Unresolved Defining community vitality
  • Safe communities
  • Cohesion
  • Inclusion
  • Multiculturalism
  • Identity
  • Religion/spirituality
  • Family
  • Culture, arts, recreation

Fundamental approach to unresolved challenges
  • Not allow the tyranny of the best to stand in
    the way of practical movement towards the best
  • Transparent, open to change better
    methodologies and data sources
  • Not defensive recognize that valuation of
    human, social, natural wealth, however imperfect,
    is far more accurate than omission or de facto
    zero valuation

Resolved build on existing work. E.g. Standard
of living
  • Median income
  • Income and wealth distribution (GINI, quintiles,
  • Poverty and low income rates
  • Income volatility (dynamics)
  • Economic security (incl. social safety net)
  • Employment, unemployment, underemployment, job
    security, work arrangements

E.g. Population health health status and health
  • Self-rated health functional health
  • Disability-adjusted life expectancy
  • Infant mortality, low birth weight
  • Mortality morbidity circulatory diseases,
    cancers, respiratory diseases, diabetes
  • Depression, suicide
  • BMI, teen smoking, 2nd-hand smoke exposure,
    physical activity

Resolved e.g. 2 sides of sustainability equation
  • Production (supply) and consumption (demand) CIW
    will reflect outcomes (resource supply), but
    demand reported as determinant the why
  • Ecological footprint shifts onus to consumer -gt
    shared responsibility, and can mobilize citizens
  • Recognizes global consequences of local actions
  • Brings together the environmental and social
    aspects of sustainability (e.g. equity-Brundtland)

Brundtland Commission's seminal definition of
Sustainable Development
  • Sustainable development is development that meets
    the needs of the present without compromising the
    ability of future generations to meet their own
  • Even the narrow notion of physical sustainability
    implies a concern for social equity between
    generations, a concern that must logically be
    extended to equity within each generation.
  • World Commission on Environment and Development
    (Brundtland Commission), 1987. Our Common Future,
    Oxford University Press, New York.

Statistics Canada 1997, Econnections Linking
the Environment and the Economy
  • A consensus has emerged that sustainable
    development refers at once to economic, social
    and environmental needs...
  • A clear social objective that falls out of the
    definition (of sustainable development) is that
    of equity, both among members of the present
    generation and between the present and future
  • It is clear that the spirit of sustainable
    development implies that all people have the
    right to a healthy, productive environment and
    the economic and social benefits that come with

Global, equity dimensions
  • 20 of worlds people in highest-income countries
    account for 86 of consumption spending. Poorest
    20 account for 1.3
  • Richest 20 consume 45 of all meat and fish,
    poorest 20 consume just 5
  • Richest 20 58 of total energy, poorest 20
  • Richest 20 84 of paper, poorest 20 1.1
  • Richest 20 87 of world's vehicle fleet, the
    poorest 20 lt1

Translation to Behaviour (eg PEI) e.g.
Estimated Transportation Footprint, NS 1985-2025
Reduction in Commuting Footprint
From Principles to Practicality Sample Results
in GPI - Policy
  • Policy penetration e.g. Office of Health
    Promotion volunteer work forest accounts
    school curricula media call-in shows
  • But last election sobering requires quantum
    leap forward
  • CIW will build on existing work, including NS GPI
    pilot project (GPI adds economic valuation,
    full-cost accounting)

GPI recognizes environmental, social assets have
economic value
  • Economic valuation add-on based on, always
    points to underlying physical indicators (Waring)
  • Natural resources (eg forests) are capital assets
    (wealth). Health, free time, unpaid work
    (voluntary and household), and education have
  • Sickness, crime, disasters, pollution are costs
  • Reductions in greenhouse gas, crime, poverty,
    ecological footprint are progress
  • Growing equity signals progress
  • No bottom line (eg air quality Auckland/Christchur

Nova Scotia Genuine Progress Index 22 Components
Natural Capital
  • Soils and Agriculture
  • Forests
  • Marine Environment/Fisheries
  • Water Resources / Water Quality
  • Nonrenewable Subsoil Assets

Nova Scotia Genuine Progress Index Twenty-two
Components Environment
  • Greenhouse Gas Emissions
  • Sustainable Transportation
  • Ecological Footprint Analysis
  • Air Quality
  • Solid Waste

Nova Scotia Genuine Progress Index Twenty-two
Components Time Use
  • Value of Civic and Voluntary Work
  • Value of Unpaid Housework Childcare
  • Work Time and Underemployment
  • Value of Leisure Time
  • Marilyn Warings pioneering work paved way

Nova Scotia Genuine Progress Index Twenty-two
Components Social Capital/Socioeconomic
  • Health
  • Educational Attainment
  • Income Distribution, Debts and Assets
  • Livelihood Security
  • Costs of Crime
  • Freedom / Civic engagement

The Capital Approach
  • Conceptual strengths (1) capacity to measure
    sustainability capital stocks (2) links
    domains via natural, human, social, cultural,
    produced capital
  • Strategic strength from indicators to
    accounting framework challenges dominance of
    GDP-based measures
  • Tactical strength language of economics and
    business wealth, investment, depreciation

Valuing Natural Resource Health
  • For example, a healthy forest effectively
  • Prevents soil erosion/sediment control
  • Protects watersheds
  • Regulates climate regulation/sequesters carbon
  • Provides habitat for wildlife / biodiversity
  • Supports recreation, tourism, aesthetic quality
  • Provides timber

E.g. Forest Area by Age Class, NS 1958-99
CONCLUSION Clearcut harvesting and loss of
natural age and species diversity have resulted
in loss of
  • valuable species
  • wide diameter and clear lumber that fetch premium
    market prices
  • resilience and resistance to insect infestation
  • wildlife habitat, decreasing populations of
  • forest recreation values - impact nature tourism

This represents a substantial depreciation of a
valuable natural capital asset
  • a decline in forested watershed protection and a
    50 drop in shade-dependent brook trout
  • soil degradation and the leaching of nutrients
    that can affect future timber productivity
  • a substantial decline in carbon storage capacity
    and an increase in biomass carbon loss
  • a decline in other essential forest ecosystem

The Good News Volume 2 Best Forestry Practices
in N. S.
  • Selection harvesting increases forest value and
    provides more jobs
  • Shift to value-added creates more jobs
  • Restoration forestry is a good investment
  • What incentives can encourage restoration

Full Cost Accounting
  • Basic Principles and challenges
  • Expanded definition of capital Natural, human,
    social, cultural, produced capital, but no common
    metric for measurement
  • External -gt internal benefits and costs
  • Price non-market benefits and costs
  • Fixed -gt variable costs
  • Strengths Enhances market efficiency, reduces
    needs for govt. regulation, provides more
    accurate, comprehensive information

  • Total benefits of 2000-01 system range from 79
    million to 221 million 84-236 pp, incl
  • 3.3 - 84.3 million in GHG emission reductions
  • 9 - 67 million in air pollutant reductions
  • 18.8 million in extended landfill life
  • 28.6 million in energy savings from recycling
  • 6.5 - 8.9 million in employment benefits
  • 1.2 - 1.9 million in avoided liability costs
  • 1.1 - 1.7 million in export revenue of goods
    and services
  • 187,000 in additional tourism

Energy savings per tonne of waste recycled
  • Total costs of 2000-01 solid waste-resource
    system were 96.6-102.7 million
  • 72.4 m. in operating and amortized capital costs
  • 14.3 m. for beverage container recycling prog.
  • 2.7 million for used tire management program
  • 1.6 million in RRFB operating and admin costs
  • 5 - 9.5 million to increase participation
  • 220,000 - 1.8 million in nuisance costs

  • Implementation of the Solid Waste-Resource
    Strategy led to an increase in operating and
    amortized costs from 48.6 million (53/capita)
    in the 1996-97 fiscal year to 72.5 million
    (77/capita) in the 2000-01 fiscal year.
  • An increased cost of 24 million (25/capita) for
    implementing the changes

  • The new NS solid waste-resource system in 2000-01
    produced net savings of at least 31.2 million,
    when compared to the old 1996-97 solid
    waste-resource system
  • This translates into savings of 33 for each Nova
    Scotian, versus a cost of 25 as suggested when
    comparing strictly the operating and amortized
    capital costs of the two systems

From Indicator Perspective Genuine Progress
  • Access to curbside recycling in Nova Scotia
    jumped from less than 5 in 1989 to 99 today
  • 76 of residents now have access to curbside
    organics pickup
  • Both are by far the highest rates in the country

Access to curbside recycling, NS 1987-2001
  • On a per capita basis, Nova Scotia disposes of
    39 less waste than Canadian average
  • HRM has the highest waste diversion rate of any
    municipality in Canada twice the average.
  • Nova Scotias overall waste diversion rate of 46
    is also higher than any industrialised country.
  • Nova Scotia's high diversion rate is due in large
    part to its composting system.

Goal Changing Behaviour E.g. Waste Diversion
in Nova Scotia
Examples of GPI Results e.g. Valuing Voluntary
  • Canadians contribute 3.4 billion hours of
    voluntary work per year equivalent of 1.8
    million FTE jobs (economic add-on)
  • Services worth 53.2 billion / year, invisible in
    our conventional measures of progress
  • 1990s voluntary work down 12.3 - time stress
  • Canadians lose 6 billion in volunteer services

Valuing a Healthy Population Health as Human
  • GPI Population Health Reports include
  • Cost of Chronic Illness in Canada (focus on
    preventable portion)
  • Womens Health in Atlantic Canada
  • Income, Health and Disease in Canada Equity and
    Disease in Atlantic Canada
  • Costs of Tobacco, Obesity, Physical Inactivity
  • Cost of HIV/AIDS in Canada
  • Economic Impact of Smoke-Free Workplaces
  • Value of Care-giving

Costs of 7 Types Non-Infectious Chronic Disease,
NS, 1998
  • 60 medical costs 1.2 billion / year
  • 76 disability costs 900 million
  • 78 premature death costs 900 mill.
  • 70 total burden of illness 3 billion
    3,200 per person per yr 13 GDP

Cost of Chronic Illness in Nova Scotia 1998
(2001 million)
Why are we interested? What Portion is
Preventable? Requires Determinants (sci.
  • Excess Risk Factors Account for
  • 40 chronic disease incidence
  • 50 chronic disease premature mortality
  • Small number of risk factors account for 25
    medical care costs 500 mill./yr
  • 38 total burden of disease preventable 1.8
    bill. (includes direct and indirect costs)

Costs of Key Risk Factors, Nova Scotia (2001
Valuing Equity GDP tells us how much income,
not how income shared
(No Transcript)
Health Costs of Socioeconomic Inequality in Nova
  • Use of physician services (Kephart)
  • No high school 49 than degree
  • High school diploma 12 more
  • Lower income 43 than higher
  • Lower middle income 33 more

Excess Physician Use ( small fraction total
  • Educational inequality 42.2 million
    17.4 of total
  • Income inequality 27.5 million
  • costs avoided if all Nova Scotians were as
    healthy as higher income / university

CIW Action on 3 fronts Research, communication
and policy. E.g.
  • NWG Ottawa Nov 8-9 Research has begun.
    Announcement in Feb-Mar next NWG meeting in May
    to assess progress
  • Reality Check 3-year pilot now expanded -gt high
    profile seminars
  • International dimension NZ, Bhutan Conference
    June 20-23 2005 on global best practices. Need
    cooperation sooner rather than later before
    systems entrenched


CIW Measuring what we value to leave a better
world for our children
Genuine Progress Index for Atlantic CanadaIndice
de progrès véritable - Atlantique
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