Beyond GDP

Need for a Great Transition

Stewart WallisExecutive Directornef (the new economics foundation)Email: stewart.wallis@neweconomics.orgWeb: www.neweconomics.org

4 ‘U’s of economics

› Unsustainable

› Unfair

› Unstable

› Unhappy

Myths and Half-Truths

Infinite growth Markets are fair Prices tell the truth Salaries reflect valueMore income equals more happiness

Goal of a good economy

Achieve high well-being and social justice within fair ecological limits

Need for a Great Transition

Key Components

1. Measure the right things

2. Reform finance

3. Stay within environmental limits

4. Reduce inequality

5. Create Good Jobs

6. Move public policy and investment upstream/prevention

7. Reframe the role of markets and companies

8. Rethink work (paid and unpaid) and productivity

9. Build strong local economies

10. Empower people to be economic citizens

Plus:

- Values shift

- Change economics

- Local, National and International

“What gets measured gets done”

The Gross National Product measures everything except that which makes life worthwhile.”

Robert Kennedy18th March 1968

“

Relying on GDP alone would be like driving a car only Relying on GDP alone would be like driving a car only looking at the speedometer…looking at the speedometer…

But other indicators are necessary to assess the But other indicators are necessary to assess the success of a policy.success of a policy.

Goal of a good economy

Achieve high well-being and social justice within fair ecological limits

Flourishing

Functioning well and experiencing good feelings day-to-day and overall

Personal flourishing

Connect...Be active...Take notice...Keep learning...Give...

› Unemployment› Inequality› Instability› Environmental pollution› Social fragmentation

› Well-being

External conditions

UK Government measuring well-being as a headline indicator

National Accounts of Well-being Measuring our progress Office for National Statistics Civil Service Commitment Australia and other Governments 10 years from now

To those who say that all this sounds like a distraction from the serious business of government, I would say that finding out what will really improve lives and acting on it is actually the serious business of government.”

UK Prime Minister David Cameron, 2010

“

Implications for policy

› Satisfaction with specific services – impact of ‘respect and dignity’

› Calculations of utility, e.g. sport, green spaces

› Income and wealth distribution

› Informing life choices, e.g. higher education

› Valuing opportunities for social interaction

› Planning policy

› Volunteering and reciprocity, e.g. complementary currencies, Time Banks

› Parenting and schooling

› Refining tax-benefits

› Work location

› Well-being at work

Changing central dynamic

Framework for measuring societal progress

Happy life years and ecological footprint for 143 countries

USA

Rethinking productivity

Vision of a new economy

Profound consequences for economics

STEWART WALLIS

nef (the new economics foundation)

www.neweconomics.org