1. Measuring Progress: Democracy in the Information Age
Jon Hall & Barbara Iasiello
Global Project, OECD

2. Global Project on Measuring the Progress of Societies
We have to start measuring welfare, not just output
Angel Gurria, OECD Secretary General, 2007
Today we are bombarded by information
Jean Claude Trichet, President of the European Central Bank, 2005

3. An understanding of the limits of GDP is not new
An understanding of the limits of GDP is not new. Robert Kennedy spoke eloquently about this in the 1960s

4. Global Project on Measuring the Progress of Societies
A new approach
From output to welfare
From “information providers” to “knowledge builders”
From top-down to bottom-up
Four pillars
Statistical research
Development of ICT tools to help in transforming statistics into knowledge
Advocacy and institutional building
Development of a global infrastructure about progress
Time frame:

5. Using ICT & Civil society networks to produce and diffuse knowledge
Building knowledge
Number of users
Using ICT & Civil society networks to produce and diffuse knowledge
A minority
Experts
Information about societal progress

6. The Istanbul Declaration, 2007
A culture of evidence-based decision making has to be promoted at all levels of government
We affirm our commitment to measuring and fostering the progress of societies in all their dimensions and to supporting initiatives at the country level.
We urge statistical offices, public and private organisations, and academic experts to work alongside representatives of their communities to produce high-quality, fact-based information that can be used by all of society to form a shared view of societal well-being and its evolution over time.
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

7. Implementation 2008-2009 Official launch of the Global Project
Implementation of programmes of work and production of expected deliverables
Meeting of regional and thematic working groups
Establishments of national roundtables on measuring progress
Establish criteria for approving sets of measures of progress
3rd OECD World Forum Charting progress, building visions, improving life(October 2009)

8. Key Outputs
 Develop best practices to measure progress
-Taxonomy of societal progress dimensions
- Handbook on Measuring Progress
- Guidelines on how to measure particular dimensions of progress
- Launch the Journal of the Progress of Societies
Promote the establishment of national roundtables for measuring progress
-Global Project web site and development of the other communication tools
- Promote regional working groups
-Regional and thematic conferences with experts, policy makers, civil society, etc
- Guidelines on how to build progress roundtables at local and national levels

9. Key Outputs (cont'd)
Provide assistance on initiatives to measure progress
Training materials and courses
Report on what makes a set of key indicators successful
Release and promotion of ICT tools to communicate data and indicators
Best practice for developing data visualisation tools

10. Expected Impacts Improving statistical capacity
Improving statistical capacity
A better measurement of economic, social and environmental outcomes, of their interrelation and shared data to advocate necessary reforms and evaluate their impact on societal welfare
Improvement of citizen's numeracy
Improve citizens knowledge giving them the opportunity to improve their decision making processes and to become more aware of the risks and challenges of today`s world
Improving policy making
Through greater accountability and more joined-up government
Better assessment of societal progress not simply based on the economic point of view, but with the appropriate emphasis on social, cultural an environmental dimensions

11. The OECD’s Istanbul World Forum
1200 people from 130 countries
Presidents, ministers, leading academics and civil societarians, private sector and media
What is Progress?
What information do we need to assess progress in key global concerns?
From outputs to outcomes - how can we get measures used by a broad audience?
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

12. Istanbul World Forum
Istanbul Video

13. Measuring Progress in Practice

14. What is Progress?
The word progress (Latin: pro-gredi) refers to improvements, to move forward, to gain
We can speak about economic progress, social progress, scientific progress but above all we can talk about human progress

15. “Is life getting better?”
What is Progress?
Many views …
“Is life getting better?”
Sustainability...
Well-being...
Quality of Life...

16. What is Progress? Many views … But what is clear to me is
A. Progress is multidimensional
B. Progress means different things to different people

17. What is Progress?

18. Dimensions of Progress
Human system
Human wellbeing
Culture
Governance
Economy
Resource demand
Ecosystem condition
Ecosystem
Source: Robert Prescott-Allen, 2008

19. Human System: Human Well-being

20. Human System: Culture

21. Human System: Economy and Governance

22. Ecosystem: Ecosystem Condition

23. How to Measure Progress
Three Approaches
1. The Accounting Framework Approach
Extension of traditional economic accounts based on GDP, to capture the environment or social concerns

24. SESAME Approach
The SESAME can be defined as a detailed and integrated statistical information system in matrix format, from which a set of core (macro-)indicators for different aspects of well-being can be derived (Keuning, 1997)
Usually it includes many indicators as: GDP, population size, (un)employment, inequality, education, environmental indicators, etc.

25. Paid employment and self employed persons
Male
Female
Total
GDP
Low education
High education
Low education
High education
Total employm.
Agriculture, forestry and fishing … … … … … …
Mining and manufacturing … … … … … …
Electricity, gas and water supply … … … … … …
Construction … … … … … …
Trade, hotels, restaurants and repair … … … … … …
Transport, storage and communication … … … … … …
Finance and business services … … … … … …
Other commercial services … … … … … …
General government … … … … … …
Care and other service activities … … … … … …
Total … … … … … …
Source: Keuning, S., Verbruggen, M., European Structural Indicators – a Way Forward. June 2003.

26. Strengths & Weaknesses
Very powerful tool for analysis
Investment in terms of the amount of data to be collected and the resources needed

27. How to Measure Progress
Three Approaches
2.The One-Number Approach
Development of composite indicators of progress that combine detailed information into a single measure

28. The GPI Subtract “real” costs (eg defensive expenditure, social cost)
GDP
Genuine
Progress Indicator
Add uncounted benefits (eg
Unpaid work, parenting)

29. Strengths & Weaknesses
Powerful tool for advocacy
Difficulty in aggregating units measured in different ways – adding apples and oranges, or valuing things like “parenting” in $s
Difficult to interpret the results without stepping back to investigate the components

30. How to Measure Well-being
Three Approaches
3. The Suite of Indicator Approach
Identification of a set of key indicators covering economic, social and environmental domains

31. Strengths & Weaknesses
It has the advantage of covering a wide range of topics, without the need of estimating individual weights.
Can be difficult to interpret
Can include too much information

32. X Numbers of patients treated X
Indicators
Measures should be “unambiguous" that is have a clear good/bad direction of movement
Important to focus on the big picture
Important to discuss the links between indicators ….. trade-offs and reinforcements
Life expectancy √
X Numbers of patients treated X

33. Progress and Regress

34. Progress and Progress

35. Progress: Objective and Subjective Components
Objective components – longevity, income, air quality
The stuff we can measure exactly

36. Progress: Objective and Subjective Components
Subjective components – fear, trust, happiness, life satisfaction
Business Confidence Self assessed health
Must ask people how they feel

37. Objective and Subjective Assessments Are Important
Level of
Subjective well-being
high
low
Objective living conditions
well-being
dissonance
adaptation
deprivation

38. Measuring Subjective Well-being
Arguments For
Nice organising principle
Public are interested – and a growing demand
Solid evidence that high subjective wellbeing correlates with other “hard” aspects of wellbeing e.g. health
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

39. Happiness and Health The Nuns
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

40. Measuring Subjective Well-being
Arguments Against
Difficult to measure
Difficult to find policy relevance for measures (at least for generalised measures of life satisfaction)
Doesn’t appear to change a great deal over time (though there is a life course effect)
Not “appropriate” ground for a statistical office
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

41. Measuring Progress to Foster Progress
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

42. The benefits Help countries prioritize resource allocation
Promote accountability and enhance citizen engagement.
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

43. The benefits – for citizens
Improve citizens knowledge giving them the opportunity to improve their decision making processes and to become more aware of the risks and challenges of today’s world
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

44. The benefits – for policy makers
Policy makers can better assess the current situation, make more informed decisions, and measure progress over time and relative to other nations
Better coordination in government
Data to advocate necessary reforms and evaluate their impact on societal welfare
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

45. The benefits – for countries
By highlighting the issues that genuinely matter to a society, a set of progress measures can help a country best meet the needs of its citizens by focussing attention on the key outcomes
‘Sunshine is the best disinfectant’….transparency has the ability to reduce waste, prevent corruption, and shift resources where they’re truly needed
Statistics represent an essential input into the analytical work of the Organisation.
Data are collected, mainly from Member governments, and are converted, as much as possible, onto an internationally comparable basis. Statistics are then made available for internal use and most of them are then published in both printed and electronic form for use by the general public.
In collaboration with statisticians from member countries and other international organisations, the OECD develops data systems to respond to policy concerns in areas such as national accounts, environment, and service industries.

46. Progress Measures Can Help…
Enhance democracy …
… enhance decision making …
… and so generate progress
Promote greater accountability
Enhance the quality of public debate

47. “Measuring the Progress of Societies is one of the most important roles the OECD can take on”
Angel Gurria, OECD Secretary General
"World GDP growth has been faster than it has been for a very long time. But people are not particularly happy"
Kemal Dervis, Head of UNDP
" Progress indicators are a way for people to hold their government’s accountable "
Francois Bourguignon, Chief Economist of the World Bank

48. Thank you!