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#eframe e-Frame Convergence Report Jan Pieter Smits Rutger Hoekstra Niels Schoenaker Statistics Netherlands Number of systems to measure SD/progress (Cumulative) 2 Question to the audience 3 Number of countries with national income estimates 100 80 60 Econometric models Keynes theory Input-output analysis 40 20 0 1900 1920 1940 1960 4 GDP and Beyond: Why convergence? – Arguments for convergence ‐ One message for society ‐ International comparability ‐ Working together – Arguments against convergence ‐ Countries have different preferences (Stakeholder involvement) – Misconceptions ‐ It is just a matter of choosing one of the current systems ‐ Convergence leaves no flexibility ‐ This is the golden ticket to success in GDP and Beyond ‐ The convergence process needs to be started now 5 Stocktaking of convergence initiatives SCALE LEVEL National Sustainable development, Wellbeing, Happiness, Sustainability, Green Growth, Resource efficiency, Corporate Social Responsibility, Integrated reporting, Footprint etc. Conceptual convergence STAKEHOLDER Government Regional Regional government Company Companies Product Consumers Example: Measuring what matters (UK) CBS/GRI/TSC (The Netherlands) Horizontal convergence Example: System of Environmental and Economic accounts (SEEA) Global Reporting Initiative Vertical convergence 6 Conceptual convergence (National level) Progress “Here and now” Well-being Economic capital Sustainable development “Later” (Sustainability) Natural Human capital capital Green Growth “Elsewhere” Social capital Capital approach /Wealth accounting (World Bank) (mid 90s) Conceptual model is: -Consistent to National Accounts -Linked to economic models UNECE/Eurostat/OECD WG on Statistics on Sustainable development (2005-2009) Stiglitz-Sen-Fittousi report (2009)/Sponsorship Group (Eurostat/INSEE) CES recommendations (UNECE-Eurostat-OECD (2009-2013) 7 Number of systems to measure SD/progress (Cumulative) 8 Case study: Measurement systems SD/progress – Database ‐ 12 composites (economic and non-economic) ‐ 43 Sustainable Development Indicator Sets • 24 out of 28 EU countries 9 SD at national level: SDI sets 10 SD at national level: Popular indicators Themes TH1. Subjective well-being TH2. Consumption and income TH3. Nutrition TH4. Health TH5. Labour TH6. Education TH7. Housing TH8. Leisure TH9. Physical safety TH10. Land and ecosystems TH11. Water TH12. Air quality TH13. Climate TH14. Energy resources TH15. Mineral resources TH16. Trust TH17. Institutions TH18. Physical capital TH19. Knowledge capital TH20. Financial capital Most used indicator Life satisfaction Gross Domestic Product Drinking water Life expectancy at birth Unemployment rate Educational attainment Housing quality Leisure time Recorded crime Protected areas Water quality Acidifying emissions GHG emissions Energy intensity Generation of waste Voluntary work Voter turnout in elections Gross fixed capital formation R&D expenditures Government debt 11 SD at national level: Country differences Biased to higher income countries Biased to lower income countries Obesity prevalence Wastewater treatment Official Development Assistance Sanitation Physical exercise Drinking water Smoking prevalence Land degradation Mental well-being Biofuel Voluntary work Literacy rate Family/friends/neighbours E-government 12 Conclusions – We can learn from the history of National accounts/GDP – Bad news ‐ Convergence takes a long time ‐ Adoption takes even longer ‐ Can we really wait several decades? – Good news ‐ Convergence has already started ‐ Despite their differences there are many similarities ofsystems – Comments? ‐ Draft report ready by end of February ‐ Want to review? [email protected] ‐ June 2014- final version 13 SD at national level: Composites • 59% 14