Has Indonesia achieved a well-being?

lilik sugiharti Department of Economics

Faculty of Economics and Business Airlangga University

1 presented in Chairul Tanjung Workshop 20062013

New Economy, New Indicators

Improving the quality of our lives should be the ultimate target of public policies. But public policies can only deliver best fruit if they are based on reliable tools to measure the improvement they seek to produce in our lives

• (Angel Gurria, Secretary General of the OECD, May 2011)

We need a new economic paradigm that recognizes the parity between the three pillars of sustainable development. Social, economic and environmental well being are indivisible. Together they define gross global happiness

• (Ban Ki-Moon, Secretary General of the United Nations, April 2012)

2 presented in Chairul Tanjung Workshop 20062013

Scarce resources, process, and systems which should be designed to achieve maximal well-being outputs

3 presented in Chairul Tanjung Workshop 20062013

Happiness and the Sustainable Development Goals (SDGs)

According to the recent recomendations of the UN Secretary Generals, the MDGs set to end in 2015

should be followed by a new set of SDGs: Four Pillars

Carry on the crucial work of the MDGs in order to end

extreme poverty by

2030

Environmental sustainabilitya

void creating irreparable

harms to the earth and to

future generations

Social inclusionthe goal should be happiness for

all

Good governance the ability of society to act collectively

through trully participatory

political institutions

4 presented in Chairul Tanjung Workshop 20062013

Happiness Measurements

•The Happy Planet Index.

• Is produced by the Centre for Well-Being at NEF (the New Economics Foundation).

The HPI

•The Gross National of Happiness.

•Economic, Social, and Environmental indicators now being collected by Bhutan’s GNH Commission in order to create Bhutan’s GNH Index.

The GNH

5 presented in Chairul Tanjung Workshop 20062013

The Causes of Happiness and Misery

Based on 30 years of research on the topic, both external and personal features determine well

being

External: income, work, community and government,

values and religions

Personal: mental and physical health, family experience, education, gender,

and age

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The Happy Planet Index (HPI)

The HPI is an efficiency measure which calculates the number of Happy Life Years (life expectancy

adjusted for experienced well-being) achieved per unit of environmental impact or resources use.

The HPI is a new measure of progress that focuses on what matters:sustainable well-being for all.

7 presented in Chairul Tanjung Workshop 20062013

Indonesia is the 14th rank out of 151 countries (NEC, 2012)

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Results of 2012

1

•Confirm that we are still not living on a happy planet, with no country achieving high and sustainable well-being, and only 9 close to doing so

2

•Highlight that 8 of those 9 countries are in Latin America and the Carrebean.

3

•Show the highest ranking Western European nation to be Norway in 29th, just behind New Zealand in 28th place.

4 •Place the USA in 105th position out of 151 countries

5

•Demonstrate how the scores of high-income countries are brought down considerably by their large ecological footprints.

9 presented in Chairul Tanjung Workshop 20062013

Indonesia scores the happiest out of the countries surveyed (51%) of citizens reporting they are ‘very happy’

Eight in 10 (77%) citizens in 24 countries generally say they “happy” in their lives, 22% report they are very happy (Ipsos Global Advisor, 2012)

6%

7%

8%

11%

13%

15%

15%

16%

16%

16%

19%

20%

21%

21%

21%

23%

27%

28%

28%

30%

30%

43%

43%

51%

22%

0% 10% 20% 30% 40% 50% 60%

Hungary

South Korea

Russia

Spain

Italy

Poland

France

Japan

Germany

Belgium

China

Sweden

South Africa

Saudi Arabia

Great Britain

Argentina

Canada

United States

Australia

Turkey

Brazil

Mexico

India

Indonesia

TOTAL

"Very Happy"

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Conclusions

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Policy Implications

1

• Happiness surveys can serve as an important complementary tools for public policy.

2

• Advocate the creation of national well being accounts to complement national income accounts. • The nation Bhutan has introduced the concept of

Gross National Happiness (GNH) to replace Gross National Product (GNP) as a measure of national progress

presented in Chairul Tanjung Workshop 20062013 12