Going Beyond GDP and Measuring Poverty: new challenges ahead

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1 Going Beyond GDP and Measuring Poverty: new challenges ahead Michail Skaliotis Eurostat 20 th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

2 Why is it important to go beyond GDP? 9 Life satisfaction and GDP per capita (PPS), 2007 Life satisfaction RO DK FI SE NL MT ES FR BE UK SI EU15 DE PL CY EU27 AT EE CZ EL IT SK LT PO LV HU IE NO LU 5 BG GDP per capita in PPS 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

3 Drivers of change: 3 historical developments Stiglitz Commission (12) Recommendations developing better metrics for measuring economic performance and social progress QoL-Well-being Societal progress Europe 2020 Poverty and social inclusion At risk of poverty Material deprivation Low work intensity HH Education Early school leavers Tertiary attainment Labour Market Employment rates Investing in R & D Environmental and Energy-efficiency targets: GDP & Beyond QoL & Well being Social indicators Distributions and inequalities Near real-time social and environmental indicators 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

4 How well people know about Stiglitz, GDP and beyond and Europe 2020? 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

5 A momentum for Official Statistics Never before have political commitment and strategic policy developments in the macroeconomic, social and environmental fields been jointly co-ordinated so closely with the adoption of ambitious action plans by Official Statistics Official Statistics are in front of a historical challenge and..a responsibility as well It is also a matter of credibility for Official Statistics and the international statistical community Political expectations are high and Official Statistics cannot afford to lag behind! 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

6 Europe 2020 headline target: lift at least 20 million people out of the risk of poverty and exclusion Defining the target population: AROP (at risk of poverty): those with an equivalised disposal income bellow the 60% of national median income, after social transfers [relative] SMD (severe material deprivation): those experiencing at least 4 out of 9 deprivation situations (e.g. cannot afford to: pay rent or utility bills, a week holiday away from home, eat meat, fish or a protein equivalent every second day, a washing machine, a telephone, etc ) LWI (low work intensity): those aged 0-59 living in households where the adults worked less than 20% of their total work potential during the past year 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

7 At risk of poverty : 81 million Severe material deprivation: 41 mio At risk of poverty or social exclusion: 115 million EU 27, 2008 Low work intensity: 34 mio 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

8 At risk of poverty : 16.5 % Severe material deprivation: 8.3 % At risk of poverty or social exclusion: 23.5 % EU 27, 2008 Low work intensity: 7.0 % 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

9 At-risk-of poverty: 10.5 % Severe material deprivation: 1.5 % At risk of poverty or social exclusion: 14.9 % Low work intensity: 6.4 % The Netherlands 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

10 At risk of poverty: 23.4 % Severe material deprivation: 32.9 % At risk of poverty or social exclusion: 44.2 % Romania, 2008 Low work intensity: 4.1 % 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

11 At-risk of poverty rates and material deprivation rates, 2008 At-risk-of-poverty rate (% of the population) LV RO BG ES EL LT UKEE IT PO EU15 EU27 PL NMS12 IE CY BE MT FI DE LU DK FR SE AT SI HU NL SK IS NO CZ Material deprivation rate (% of the population) Source: Eurostat, EU-SILC Note: For readability, some countries labels have been slightly repositioned 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

12 Share of target population across Member States 50% AROP MD not AROP LWI not AROP 40% 30% 20% 10% 0% EU27 CZ NL SK DK SE SI HU AT FR LU FI MT BE DE IE CY PL PT IT UK EE ES LT EL BG RO LV 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

13 At risk of poverty or exclusion: % of total population and % of total household income, % Share of the population Share of the income 40% 30% 20% 10% 0% EU27 LU NL SE DK CZ FI EE DE MT ES FR AT SI BE CY IE PT SK IT EL LT UK LV BG HU PL RO 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

14 Eurostat-INSEE sponsorship on Measuring Progress, Wellbeing and Sustainable Development Focus: building strategic consensus on measuring sustainability among producers of statistics Scope: 1. Households perspective and distributional aspects of income, consumption and wealth. Measuring inequalities 2. Environmental sustainability 3. Multidimensional measures of quality of life 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

15 Quality of Life: critical issues to address Establishing objective indicators of quality of life on the basis oh household surveys and relevant administrative sources Assessing the life inequalities Aggregating the different inequality dimensions (composite indicators) Improving timeliness and comparability Measuring subjective well-being 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

16 Challenges and Responsibilities for Official Statistics Ensure successful outcomes of the work of the sponsorship INSEE Eurostat : collective challenge EU SILC: Enhancing its capabilities and addressing its weaknesses: Timeliness must and can be improved! Learn from the experience of INE Spain: target for 2011 is set to publish SILC results in 2 months after data collection!!! Linking SILC with other data sources: again, we can build on successful national experiences 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

17 Concluding remarks Official Statistics are in front of a historical momentum At the cross-roads of GDP & beyond, the Stiglitz recommendations and the Europe 2020 strategy, Official Statistics have been given a new mission: to develop a comprehensive and efficient statistical framework for better measuring societal progress, economic performance, wellbeing and sustainable development It is a matter of credibility for the entire statistical community 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov

18 Thank you for your attention 20th Statistical Days - Measuring the Well-being and the Progress of Society - Radenci 8-10 Nov