Sustainability Indicators of Nations
A Contribution to Dialogue
Sustainability Indicators of Nations
produced bY reVISIoN colaborador braSIleIro
Assertiva Produções Editoriais
grapHIcS aNd art edItINg
reSearcH aNd FuNd-raISINg
Report Comunicação www.reportcomunicacao.com.br
Anne Louette Silvia Laudisio
edItINg aNd teXtS
Antakarana Cultura Arte Ciência Ltda. / Willis Harman House
Fernando Felício Pachi Filho Prix Consultoria em Comunicação e Gestão de Prêmios
1st Edition São Paulo, SP 2009
André Alonso Marinho Machado warNINg
This guide, Sustainability Indicators of Nations provides information from various public sources. All references appropriate to the source(s) of information were made, and permission to data disclosure was sought during the development phase. This survey aimed to keep the integrity of information and respect the way the contents are presented by their creators, so as to provide the reader with an accurate picture of how these indicators have been conceived and what they are used for. The proximity to the actual events and accuracy of the information must be credited to the source they have been taken from. In the event the authorship of any piece of information has been incorrectly attributed or can be enhanced with useful data and comments, we would be glad to be contacted about it. Reproduction of the contents is permitted provided the source of the text reproduced is mentioned. Thank you.
The online “Sustainability Compendium” makes the content of this publication available on the Internet in an organized and periodically revised manner, allowing for the management indicators to be always updated with the most relevant social and environmental responsibility issues in the country and in the world. The online “Sustainability Compendium” is, therefore, part of a collective effort of managers and mentors of CSR management indicators to broaden their use in Brazil and abroad. Its ultimate purpose is sustainable development and that Corporate Social Responsibility practices become embedded in all levels of first, second and third sector organizations.
Dados Internacionais de Catalogação na Publicação (CIP) (Câmara Brasileira do Livro, SP, Brasil) Indicadores de Nações: uma Contribuição ao Diálogo da Sustentabilidade: Gestão do Conhecimento / organização, pesquisa, textos e captação de recursos Anne Louette. - 1.ed. São Paulo: WHH – Willis Harman House, 2007. Vários Colaboradores Bibliografia ISBN 978-85-88262-16-4 1. Desenvolvimento sustentável 2. Indicadores políticos 3. Indicadores sociais 4. Responsabilidade ambiental 5. Responsabilidade social I. Louette, Anne 07 - 8003 Índices para catágolo sistemático: 1. Indicadores de Sustentabilidade de Nações: Ciências Sociais 300.216 CDD - 300.216
In 2007, following one year of research, the first work of the trilogy was launched: Knowledge Management – Sustainability Compendium: Social and Environmental Responsibility Management Tools. It gathers CSR management tools from 33 countries in the Americas and Europe seeking to enhance the integration of these tools into the daily management systems of small, medium-sized and large organizations of the three sectors (public sector, private sector, and non-governmental organizations). It also aims to show the broad range of tools available, which serve as a parameter to figure out what is going on around the world regarding sustainability. It is a continuous learning and evolution process towards the planet’s sustainability. With 14 thousand copies, the publication was sponsored by Petrobras, Comgas and AES Tietê (1st edition); Anglo American (2nd edition); Petrobras and SESI (3rd edition). It was launched in Europe in October 2007 at the Social and Environmental World Forum and the national launch occurred in late 2007, in the States of São Paulo, Minas Gerais and Rio de Janeiro. In 2008, there was regional publicity in several Brazilian states – Espírito Santo, Pernambuco, Paraíba, Ceará, the Federal District, Goiás, Paraná and Amazonas – aimed at broadening its distribution. Without intending to standardize procedures, the publication fosters deep reflection on the management tools available to ensure sustainability planning and evolution. With this in mind, its content is accessible on the Internet at www.compendiosustentabilidade.com.br. The online Sustainability Compendium can be continuously updated, besides allowing organizations to submit new data, share doubts, solutions and successful experiences, as well as suggest changes.
This publication, Knowledge Management – Sustainability Compendium: Sustainability Indicators of Nations, is the second work of the trilogy, presenting over 25 Sustainability Indicators of nations being applied, both in Brazil and abroad, ‘to try and pull down the old and unsustainable economy, supported by the tragic fallacy of the GDP metrics. ’ The idea is to define sustainable development patterns that take into account environmental, economic, social, ethical and cultural aspects. Hence the need to define indicators to measure, monitor and assess such sustainable patterns, and thus guide us in our path. While volume I is aimed specifically at managers, this publication, Knowledge Management – Sustainability Compendium: Sustainability Indicators of Nations, aims to help our governments. It is everyone’s challenge, that is, the planet’s interdependency exempts no one from discussing, facing the tasks and sharing the results. The same way volume I raises the need for management tools to be used as a guide in the construction of our management activities to achieve the planet’s sustainability, this publication raises the need to develop, and demand from our governments, indicators that can assess sustainability so they can ‘serve as a sound basis for decision-making in all levels and contribute to a self-regulated sustainability of the environment and development integrated systems’ (UN 1992) After all, if we want to be sustainable, and demand these results from our governments, we must know how to measure sustainability. If we want to guide the economy towards sustainable development and common well-being (decreasing poverty, promoting justice and dignity to all), rationally channeling our production efforts to sustainable results, we must create assessment tools for these results. This is the only way to build a basis for political decisions and development of strategies aligned with the current state of the world – of scarcity and unsustainability. Dialogue based on ethics in order to unite three forces – the so-called first sector, or public power; the second sector, formed by the private sector, and the third sector, represented by non-governmental organizations – will be indispensable to reach consensus about possible solutions: the acknowledgement of public policy and its indicators as a means to universalize collective interests and the integration of theory and practice of economic agents and our governments. Not intending to present a magic, unique and uniform formula, the content invites readers to acquire knowledge that is likely to result in new ideas and constant benefits to all involved. At the same time, methodological descriptions of the sustainability indicators of nations are not exhaustive, because research methods are not always sufficiently defined, and the same applies to their variables, main factors, techniques and procedures. This publication seeks to inform and promote dialogue. It deals with the dynamic transformation of the society’s own awareness. By disseminating these concepts, we seek to offer food for thought..
Finally, volume III, to be launched in 2010, will address protagonism as a means to push forward ‘a strong civil society that allows people, even the most vulnerable ones, to influence and monitor public policy of all levels and demand moral and financial accountability from governments for their promises to reduce poverty and social exclusion. ’ The civil society can and must donate its time, talent, experience and enthusiasm. The civil society can become organized in cooperatives, nongovernmental organizations, academic institutions and women, youth or traditional groups associations. Nevertheless, engagement is not restricted to formal organizations. Countless people are involved in voluntary actions that make a difference, creating broad social networks. Many civil society organizations have shown mobilization skills and have created demands that keep our leaders committed to a better world. Enjoy your reading and roll up your sleeves.
Business Administration and Accountancy / University of São Paulo (FEA-USP). whether religious or economic.
the Central School of Planning and Statistics of Warsaw. UK 1995 (US edition. where he coordinates the Center for Social and Environmental Economics (NESA).dowbor. www. He directs the International Center Pierre Mendès France and collaborates with the Transversales Science-Culture magazine. 1996). a worldwide syndicated columnist. among which: A Emergência Socioambiental (The Social and Environmental Emergence) (S.com.br). He also writes editorials at newspaper Valor Econômico.INTRO
reference to inspiring people
Hazel HeNderSoN – Founder of Ethical Markets Media. Master’s degree in Future Studies from the University of Houston. whose job is aimed at fostering a desirable future.U..org
Serge latoucHe – Works on various groups on the
creation of the post development concept. and a period of consultancy at corporations. Assistant to the UN South-South Cooperation Special Unit’s Creative Economy for Development Programme (http:// ssc. LLC. consultant on sustainable development. both built upon fierce and obsessive competition. frugality. He is also the director of research for the Group in Anthropology. Senac. Director of the International Cooperation for the Instituto Pensarte (www. www. Besides collaborating with scientific papers in Brazilian and international journals and several chapters in books. adviser at the audit court and author of the mission ‘New Wealth Factors’. and newspapers.) re-appropriate virtues of communal wealth and convivial poverty in the development of social relations.S. 2007) Meio Ambiente & Desenvolvimento (Environment & Development) (S. Hazel Henderson is the creator and co-executive producer of its TV series.. currently under the French government Interministerial Committee for Innovation and Solidary Economy. Senac).. Member of the Scientific Council at Attac (Association for the tax on the financial affairs and the assistance with the citizens – an alter-globalization (also referred to as the global justice movement) organization. evolutionary economist.”
. which will provide the human adventure with an opportunity to not only ensure our biological survival but also reach a higher quality level of awareness – because things can get even worse.org.org.Paulo: Ed. she has been working on (1) arts and artistic languages to better convey contents and carry out strategies (2) as an advisor focused on Creative Economy and Sustainable Development. José Eli da VEiga – Full professor at the School of Economics. She is a world-renowned futurist. Let’s stop thinking about our contemporary issues based on the 19th Century’s geopolitics or economics. against the occidentalization of the planet. and professor emeritus at the Jean Monnet Faculty of Law. founder of NEF – Núcleo de Estudos do Futuro (www.”
roSa alegrIa – Futurist. www. Senac.undp.Paulo: Ed. besides having co-organized the work ‘Economia Social no Brasil’ (Social Economics of Brazil) (Ed. all of them published by Editora Vozes. lecturer and cultural entrepreneur.org). Garamond. She has founded her own organization Enthusiasmo Cultural (www.pro. and consultant for several UN agencies. He is also a historical contributor to the magazine La Revue du M. Epistemology..com JeaN gadreY – French economist.
lala deHeINzelIN – Lala Deheinzelin is a consultant. such as Le Monde and Politis. in Economic Sciences from
profile. 2006) – O desafio do século XXI e Desenvolvimento Sustentável (Sustainable Development – The challenge of the 21st Century) (R. He is an objector to consumerism and instrumental rationality. ‘A Reprodução Social: propostas para uma gestão descentralizada’ (Social Reproduction: proposals for a decentralized management). full professor at Catholic University of São Paulo-PUC. 2005). a lifestyle based on the ethics of simplicity. he has also authored several essays in magazines.br ladislau dowbor – Ph. that is. trends researcher.S. Following a career as an artist. Senac). Besides scientific papers and books. with a transdisciplinary
“. vice-president of the Future Studies Center (NEF) at PUCSP.Janeiro: Ed. Latouche is one of the most important proponents of sustainable degrowth. he has worked in the last years on wealth indicators and the limits of economic growth.enthusiasmo. Emeritus Professor of Economics at the University of Lille. Economics and Management at the University of Paris and at the Institut D’études du Développement Économique et Social (IEDS) in Paris. conviviality and solidarity – what some have advocated under the Gandhi or Tolstoy slogan ‘voluntary simplicity.zeeli.it is necessary to decolonize in our imagination these economic and developmentist meanings (.
“Let’s stop being deluded by the deadly logic of war. with Harlan Cleveland and Inge Kaul.A.br)
patrIcK VIVeret – Philosopher. ‘O Mosaico Partido: a economia além das equações’ (The Broken Mosaic: For an Economics Beyond Equations). Let’s spend most of our energy creating new ways of planetary citizenship. and Millennium Project’s Brazilian Node Cochair at the WFUNA – World Federation of United Nations Associations. The UN: Policy and Financing Alternatives. ‘Tecnologias do Conhecimento: os Desafios da Educação’ (Knowledge Technologies: the challenges of Education). He has authored ‘Democracia Econômica’ (Economic Democracy).pensarte.hazelhenderson. She co-edited. Elsevier Scientific. such as Alternatives Économiques. br). D. working for local governments and multilateral bodies in international cooperation. ‘O que Acontece com o Trabalho?’ (What happens to work?) (Ed. and author of The Axiom and Nautilus award-winning book Ethical Markets: Growing the Green Economy (2006) and eight other books. and Economy of Poverty (GRAEEP). with a degree
in Languages from the University of São Paulo – USP. he has authored 13 books.nef. Critic of both the neoclassical economic theory prevailing in economic sciences and the ‘neoliberalism’.
The effort of ‘socially responsible’ business networks is useless if we are governed without indicators consistent with the sustainability movement agenda. the use of natural resources by individuals. advances towards sustainable societies. such as the ‘Our São Paulo’ and ‘Rio. France. We will cover the main Sustainability Indicators of Nations being applied abroad (UK. This publication was inspired in the work of Ladislau Dowbor. still an embryonic practice in Brazil
. The book ‘The New Wealth Indicators’ by French writers Jean Gadrey and Florence Jany-Catrice and the work ‘Reconsidering Wealth’ by Patrick Viveret.INTRO
presentation of this publication
This publication. economic.’) so we can truly move towards the sustainability of our planet. this is a new analysis of the state of the world that measures human development and environmental conservation through the Wealth-Well-being Assessment. nations and mankind in general.
We will also see that several sectors are already demanding action. • Local administrations in rural areas/agribusiness.. For this purpose. 2008 in Brazil. social. Organizations that already take part in the effort towards a more sustainable world were invited to sponsor this publication. companies and civil society initiatives will show that practice has already made room for advancing this agenda at the following levels:
• International. among others. Switzerland. sponsored by SESI and Syngenta. the Netherlands and Bhutan) and in Brazil to show the broad range of tools available that can serve as parameters for the analysis of what is going on around the world regarding sustainability. In short. environment vulnerability. happiness. eco-efficiency through which human well-being is obtained throughout the world. we will cover indices that relate the state of corporate responsibility to the competitiveness of nations. The UN is receptive to this issue and is reviewing which new parameters should be included in the next ‘Millennium Development Goals – MDGs after 2015. They go far beyond the total measurement of economic activities for taking into account to what extent national policies truly result in better quality of life to all. such as the Global Forum América Latina. by nation or group of nations. as we will see in the valuable individual contributions of Hazel Henderson. and Jose Eli da Veiga. These indicators and indices provide information on the state of biodiversity in the world. held in November. indicators that measure.. Rosa Alegria and Lala Deheinzelin. Finally. Canada. such as the ‘Legal Lucas’ Project. • Local administrations in the Amazon. This is a continuous learning and evolution process towards the sustainability of the planet that requires everyone’s understanding and commitment. • International partnership. Despite not being new. monitor and assess such sustainable patterns must be defined in order to guide our future path. how are we doing’ movements. • State administrations in specific cities. Finally. measure the indicators and demand their application. there is an appendix introducing the world of ‘eco labels’. We need to gather data. This theme has long been included in the UN agenda – since 1990 with the HDI and the creation of the Commission on Sustainable Development (CSD) following the ‘Earth Summit. and indices that classify countries according to their capacity to protect the environment along the next decades. The ‘threshold hypothesis’ by Chilean Manfred Max Neef and the ‘degrowth theory’ by French Serge Latouhe helped us capture the dimension of the theme and paved our way.’ Concrete examples of governments. also contributed to the development of this publication. cities. from USP. aims to raise the need for legitimizing the ‘Sustainability Indicators of Nations’ (which can also be called ‘wealth indicators’ or ‘indicators of well-being.’ The OECD intends to move further by assessing the happiness of all inhabitants of a country with the aid of more elaborate indicators. this theme is not given enough attention. where the illusion of the GDP metrics and its current limitations have become pointless. USA. such as the ‘Sustainable Juruti’ Project. ethical and cultural aspects. such as the French government that has established an Economic Performance and Social Progress Measurement Commission – CMPEPS. inequality and poverty. The idea is to apply sustainable development patterns that take into account environmental. We will also cover monetary indices aimed at replacing the GDP as a measure of progress of nations. such as between the Fondation France Libertes and the Brazilian State of Acre. from PUC. actual progress and quality of life of nations.
such as water and soil. for the best or for the worst. cooperation. we can become more humble and aware that it is high time we adopted a new attitude towards life. Itaipu Binacional believes in this idea.FGV Center for Sustainability Studies ETHOS .Ethos Institute – Business and Social Responsibility
. When we consider that. All tools available to each segment – whether government. carefulness and responsibility of human beings towards each other and towards Nature seem to be the basis of right decisions. As an agribusiness company committed to sustainability. Syngenta contributes to the supply of food in larger quantities and of higher quality to future generations. This publication brings the best of what has been created to guide human life towards well-being and harmony with nature. for we always change our surroundings. Syngenta
Changing any situation requires taking responsibility for its creation.Akatu Institute for Conscious Consumption CEBDS . Enjoy your reading. And since it was created it has focused its behavior on the human being and the natural environment when managing the world’s largest hydroelectric power plant. Jorge Miguel Samek Brazilian Director-General of Itaipu Binacional
AKATU . we all have contributed to the planet’s current status. This is the time we feel deep inside the urgency of an action that cannot be postponed. The change starts individually and propagates by example. Syngenta promotes sustainable agriculture as a key element for its own business and its customers. regardless of the role each of us has played. in its joint work with governments and society. by action or omission. academia or civil society – will be useful provided their use is based on the best choices. in permanently feeling responsible for its initiatives or the lack of them. and to ensure the society’s future hoping to inspire other companies to engage in this sector and harvest good results. Attitudes such as respect. Syngenta feels honored to participate in and contribute to the production of the publication Knowledge Management – Sustainability Compendium: Sustainability Indicators of Nations. One example is the permanent search for new technologies to provide solutions that continuously optimize the use of natural resources.Brazilian Business Council for Sustainable Development
CES . business.INTRO
letter from the Sponsors
In line with its CSR guidelines. This behavior can be seen inside and outside its walls in the respect for partners. We feel honored to help this Sustainability Compendium: Sustainability Indicators of Nations to be inspiring to a larger number of people and adopted as a tool to promote the changes we need to be happy.
continuing to be a competitive company forms the core of Shell’s contribution to sustainable development. We seek to do it in a creative and innovative way.INTRO
letter from the Sponsors
Presented in the “Mapa Estratégico da Indústria 2007-2015” (2007-2015 Strategic Map of Industry) – CNI (National Confederation of Industry) document developed with the help of all affiliated State Industry Federations and tens of national associations representing a wide range of industry sectors.Willis Harman House / AntaKaranA
FIDES . Present in the 26 States and in the Federal District. raising awareness about the necessary balance of its economic. In this context. at the same time. its role in society and the sustainable development fosters the corporate social responsibility culture and the growing use of social and environmental management tools.
Núcleo Andrade Gutierrez de Sustentabilidade e Responsabilidade Corporativa Fundação Dom Cabral
FDC . Antonio Carlos Brito Maciel Diretor-Superintendente do SESI
The challenge faced by the world is gigantic: we must encourage development and reduce poverty in a socially and environmentally responsible manner. government and business. the sustainability indicators presented in this publication broaden and foster the understanding and implementation of an economic model that can be sustainable along time. Helping respond to this challenge and. including the need to reduce regional and social inequalities. deserving society’s recognition as one of the most respected organizations in the social area in the country. respecting people. In this sense.Group of Institutes. By presenting in a structured format a wide range of sustainability tools and instruments available in the world. Foundations and Companies WHH . the book Knowledge Management – Sustainability Compendium: Sustainability Indicators of Nations will truly contribute to strengthening this dialogue and its resulting experience sharing. including civil society.Dom Cabral Foundation
GIFE . above all.055 municipalities. SESI is not only a pioneer in this area. The challenges are big and will only be met if everyone participates. social and environmental aspects.Social and Business Development Institute Foundation
. but also an agent of change. we consider dialogue as key to building a solid and inclusive future. and. It is not by chance that SESI is currently considered as an effective social policy maker and manager for the production sector. besides outstanding business leaders – the industry’s vision of its perpetuity. its services covering 2.
brasil Foreword by Hazel Henderson
I welcome this Sustainability Compendium as an indispensible guide to the key new tools for management in the 21st century. from oil prices and understandable resource nationalism. speculation and shortselling provide a tragic lesson on the vital role of ethics and trust in all markets. The limits of greed. This book also meets the needs of everyday managers. teaching humans directly. Willis Harman House and the World Business Academy. social and governance (ESG) criteria. Brasil has also pioneered through the ground-breaking work of the Instituto Ethos. We are learning these lessons in multiple ways. natural resources and the race toward universal education. from waste and trivial consumerism to continuous quarterly rises in corporate profits and fantasies of limitless GDP-growth. accountants. For the accounting and statistical professions. These adaptation processes within governments and corporations have been encouraged by the rise of civil society: “grassroots globalists” convened in 1999 in Porto Alegre at the first gathering of the now truly global World Social Forum. hoarding and excessive competition. reputation and stock price in real time. sustainability reporting represents the greatest revolution since the invention of double-entry bookkeeping. communication between practitioners and acceleration of methodological advances. envy. belief-systems and values. as well as academics who must rapidly overhaul curricula in business schools worldwide. As we see by the rise in commodity prices. scientific and technological innovation beyond the fossil-fueled Industrialism of the past 300 years – toward the Solar Age of cleaner. greener economies that work with Nature. together with the Equator Principles and BOVESPAS’s ISE Index. The geo-politics of the new resource scarcities have invalidated economic textbook assumptions that air. which allows comparability. Human societies have been slowly adapting to all these Earth changes – each in their own culturally determined ways. governments and civic organizations worldwide. Hence. New media can accelerate social learning as with my Ethical Markets Media. after decades of effort. now is morphing into a new Age of Truth where citizens can expose corporate and government wrong-doing and damage a company’s brand. all deadly sins in most religions. Here. from pollution. accumulation. While corporations have made much progress in sustainability reporting. Today. indicators and other tools for social and environmental management compiled in this volume. water and biodiversity were “free goods. Capital asset pricing models still need to fully incorporate environmental.INTRO
For the Sustainability compendium. Georgia or in today’s unfolding order where the USA is no longer the world’s superpower. thanks to the internet. LLC. finance is still catching up: The UN Principles of Responsible Investing (now representing $15 trillion in managed assets) and the Carbon Disclosure Project ($54 trillion) are leading the way. The rise of the global information society. metrics. self-interest. And at last. holding up a mirror to our behavior. we understand that the planet is our programmed learning environment. not against her. The Earth is showing us which of our ways of being and doing are now unsustainable. avarice. the childish fantasies of an ever-growing GDP are facing up to reality. Multi-lateral negotiations and sustainable forms of development will continue to be the main geo-politics of the 21st century. are now clear. Today we see military experts and generals on TV warning us that there are no military solutions in Iraq.” Wars and military approaches to dispute-settlement are clearly obsolete. metrics. Fundação Getulio Vargas and Amana-Key Desinvolvimento y Educacao. Anne Louette brings deep expertise and insight into the assessment of all these tools for measuring social and environmental performance of companies. Uni-Ethos and such management institutes as Fundacao dom Cabral. The implosion of Wall Street’s risk-analyses models and the reckless use of leverage. real wealth lies in natural resources and the services that healthy ecosystems provide to humans. derivatives. losses of biodiversity and desertification to floods. Mercado Etico in Brasil. that has now brought over 77% of the world’s proven oil reserves under the control of governments rather than private companies and markets. fires and extreme weather variability which were the earliest signs of climate change. The early response of statisticians. indicators and methodologies employed in this paradigm shift toward managing human societies for long-term sustainability. business schools and corporate management was to dismiss all the new data and events provided by changes in the Earth eco-systems. identifying the new models. Today’s weapons of choice are currencies. the crucial importance of all the new models. This research covers a wide spectrum. and the Global Reporting Initiative’s triple-bottom line needs to be extended to all global corporations and security analysis. in the USA and Europe and our partner. One of the deepest errors that sustainability reporting corrects is the worldwide confusion propagated by conventional economics which equates money with wealth.
. Globescan of London and Ethical Markets Media. I presented at the European Parliament’s “Taking Nature into Account” conference in 1995. LLC. hazelhenderson. all these issues from local to corporate to global come together in a superb overview to guide us to a better future. com). Even the USA is awakening. Augustine. Japan. EUROSTAT and many other venues in China.beyond-gdp.” With this important Sustainability Compendium. Australia. and in 2003 in Curitiba at the ICONS conference where 700 business leaders and statisticians endorsed the many new “quality of life” metrics needed in national accounts (“Statisticians of the World Unite!” at www. I created the Calvert-Henderson Quality of Life Indicators with the Calvert Group in 2000 (updated regularly at www. Florida.com).INTRO
I was present at the signing of Agenda 21 in Rio de Janeiro in 1992 where over 170 countries agreed to overhaul their GDP accounting.calvert-henderson. Huge majorities in all 10 countries. I co-organized the “Beyond GDP” debate in the European Parliament where another 700 members of parliament and statisticians endorsed all these same corrections to GDP. In 2007. conducted a survey in 10 countries for the European Commission on the Beyond GDP issue. Hazel Henderson St. including Brasil (69%) supported correcting GDP to help steer countries toward sustainability (www.eu). and the Senate held hearings in March 2008 on “Re-thinking GDP. I was honored to present these indicators at the Parliament of Latin America.
They want to decrease unemployment. many other butterflies have been flapping their wings throughout governmental sectors of the world economy. Differently from what many may think. ecological assets accounting. Conferences such as the ones in Bhutan (GNH) and Belgium (Beyond GDP) enhanced the process of questioning GDP. Paul Novacek. Now it is time to collect all that has been created. the opportunities are huge and numerous: local development. cooperative advantages. change our metrics. Among other deep thoughts about the new routes to decision-making. became important issues in the agendas of several countries and started to influence public policy development and gather together notable thoughts and practices. the international financial system was already pointing out the need for a radical reform and challenging some acute observers in their ability to explain so much social injustice and ecological imbalance. of which I was one of the organizers. Sander Tideman. gather our mental and spiritual energy. such as Calvert-Henderson. Considering the theory of complexity that seeks to explain the systems effect of changes. GNH and Ecological Footprints. Eduardo Moreno. alternative currencies. said human needs should always be met taking happiness into account. access to new information technologies. All elements sum up in this arena of change and new future. get mobilized. we go on essentially confused’. in the search for well-being to all. putting it in the hot seat and bringing new indicators on the world economy stage. He brought the word compassion into the business world. the future is not meant to be forecast. Whether reinventing capitalism or creating new economic systems impelled by the deep 2008 crisis (5 years after ICONS). Hazel referred to the lack of vision of most politicians in the way they addressed public policy as a factor of social and economic stagnation and environmental degradation. IBGE. informed Dowbor. but collectively imagined and created so we can change the present right now. inclusion of intangibles in public budgets. and the big question is: what should we measure to make the right decisions? Following the ICONS in Curitiba 5 years ago. the economy started to shift towards a more systemic and responsible direction. many changes have taken place. Sustainability has also been submitted to information management and that was highlighted by the economist Ladislau Dowbor: ‘We have core technologies and information. the strength of creative economy. We were encouraged and supported by the participation of social and economic development organizations (Ethos. the break of patents and frontiers of knowledge. in 2003. the others go up. since ICONS 2003 in Curitiba. among others). ABDL. The work of Anne Louette in this Compendium serves as a compass in the creation of a new society.INTRO
the future reinvents values
Since the first edition of the international conference on new sustainability indicators and quality of life. then Bhutan Government consultant for the implementation of the GNH (Gross National Happiness) index. but they forget that global interactions are a woven fabric influencing each one of these rates. and the exhaustion of hyperconsumerism. recover our visions of future and occupy the public and private spaces in a collective process of imagination that will take us to the society we dream of. IPEA) and a group of world’s leading researchers (Mathis Wackernagel. at that time acting on behalf of the Future Studies Center (NEF) at PUC-SP. reassessment of what wealth is. Over 700 researchers and experts gathered in Curitiba to discuss new ways of measuring wealth and alternatives to break some traditional paradigms in the agendas of nations that follow the narrow-minded GDP values. Brazil. the ICONS (International Conference on Sustainable Development and Quality of Life Indicators) was like the flapping of a butterfly’s wing that caused impacts on several corners of the world. Many tools useful in the creation of the future and reinvention of values are presented in this Compendium. Once one goes down. Amid all the statistics compendiums and mountains of fragmented media information. In her inaugural address. held in Curitiba. David Berry. REDEH (Human Development Network) coordinator. human capital. Rosa Alegria
. deficit and interest rates. but organized knowledge tools have not been developed for citizen action. FIEP. Akatu. At that time. the futurist Hazel Henderson created the ICONS in partnership with Thais Corral. which became a landmark in Brazil and worldwide. and myself. New indicators. inflation. she said: ‘Most politicians still follow old economics books.’ Sander Tideman. For believing in the Brazilian potential to embrace the new and in the need to balance economic forces integrated into ecological and cultural forces. Paul Epstein.
culture and creativity not only are resources that cannot be depleted. if we remain stuck with old models. but the only ones that are renewed and multiplied by use. for the first time in history we have resources. rooms. A core theme is the need to change wealth indicators and measurement and assessment methods. activities based on intangible resources are multi-dimensional and can influence the four dimensions of sustainability: economic. social. The same way that. And this is a huge leap that sets the transition of centuries. the dance economy is little. We are ending an era of great innovation. If I share my knowledge with you.INTRO
creative economy and the reinvention of the economy
Evolution occurs in leaps and we are in the middle of one. since one of its definitions used to be ‘scarce resources management. the macro level should also have wealth and development indicators to assess governments and nations. self esteem. maybe just the small sum of dancers. our policies and structures will end up in a chicken soup of the hen that lays golden eggs. but can go beyond that. but the visibility-currency is received. aware that the answer lies in cooperation. Trying to quantitatively measure the intangible resources or the four dimensions of sustainability is like trying to measure water with a measuring tape. consequently. gold and oil are finite and are being depleted. In this process. choreographers and performances. The economy itself calls for revision. However. and so on. by the number of musicians that became professionals is like measuring liquid with a measuring tape. cultural capital. which in turn generates the constant innovation currency. because these products are sold by street vendors. and can be the way to more inclusive models based in cooperation. and besides the economic dimension. Assessing results of music programs in the slums. solidarity. and are an enormous asset that may lead to a thorough change in the concept of wealth and poverty. Measuring the intangible also implies shifting from an exclusively quantitative vision to one that includes the qualitative. we get a myriad of collaborative options and a new term can be coined: ‘abundance economy’ – which may originate more solidary lifestyles. blic-private sectors. at the micro level. A new economy that will require new measures. nightlife.
. the monetary currency resulting from copyright is not received. each one of us gets half of it. Furthermore. in a world based on the perception of our inter-dependency and. the entire fitness structure and respective equipment. environmental and symbolic/cultural. Examples such as the music from the State of Pará in Brazil or audiovisual arts from Nigeria show how such conversion of ‘currencies’ works: the key success factor in these models lies in distribution. thus strengthening the importance of intangible resources. The focus on results must be broadened to include the assessment of impacts: checking what has changed and the resulting benefits in other dimensions besides the economic one. it triples: we get mine. social capital. the intangible is elastic. This leads to a little known and studied currency exchange: investment made in monetary currency. for instance. acting as an environmentally correct social interaction factor that strengthens values. home) as in Ecology. currencies and indicators. A New Economy to manage the abundant resources offered by the intangible resources and technology. because land. It is a rare opportunity – made even more urgent and explicit by the crisis caused by the predatory ‘financialism’ – we can seize by reinventing the economy. and the necessary shift in mentality and policies so we can take advantage of it. thus creating a broad and dynamic process that eventually generates monetary currency. local projects development and their assessment and measurement methods should be multidimensional and have their ‘capitals’ and ‘currencies’ to represent such dimensions. It is impossible. knowledge and people to create the world we want and deserve. Resources go far beyond the idea of having money. Each dimension has its own capital: human capital. If I share an apple with you. This is also a time of natural resources crisis. or even millenniums. Practice shows that the sustainable development equation is not simply economic. In theory. the Economy will have to broaden its own sense to justify the Eco it bears – originated from the Greek word Oikos (house. investment made in environmental currency may have a return in symbolic currency. costumes. should include the cultural. representing a potential that reminds us of a hen that lays golden eggs. We cannot measure multidimensional things in a linear way. it all sounds wonderful. The fact is. tangible matters to an era when the intangible plays an increasingly central role. when several factors and languages had to become more ‘economy-oriented’. After all. Whereas the tangible/material is finite and limited. making the authors well known and desired. may have a return in social currency. When added to the digital technologies (bits are also infinite). enhancing their market. mainly in the Southern hemisphere countries. For instance. They sure have a strong economic impact. From now on. Comprehensive indicators must include natural and cultural wealth and diversity – the pillars of professional and personal relations: ethics. trust and other factors that ensure quality of life in a broader sense as proposed by the Gross National Happiness Index from Bhutan. such as the Affroreggae project. whose dynamics will result from the harmonious relationship between the macro economy of scale and the micro economy of niches. yours and the result of our interaction. contents. unlimited. environmental capital.’ Creativity and culture are abundant resources. social and environmental dimensions as well. and so on. the huge potential if offers. edges and credibility of communities and companies. when life was organized around material. A new Inclusive economy. Knowledge. the economy of ‘dancing’ is large because it includes festivals (such as Carnival). How much is the self-esteem of a community worth? How much are spared lives worth? How much is believing in the future worth? Assessing and measuring creative and cultural activities requires parameters yet to be developed. third sector and creative entrepreneurs become aware of the change of times we are going through.
See also the report ‘Reconsidering Wealth’ by Patrick Viveret. Similarly. let alone the economy of volunteer work or household labor. when a country sells its natural resources. the previous volume ‘Sustainability Compendium: Social and Environmental Responsibility Management Tools’. In other words. much on the contrary. already obvious3. which was not produced and will not be replenished. In other words. its accounts shows it as GDP increase. Paris 2005 . or even the discomfort of families expelled from their land and unemployment. By calculating soybean production increase. the country is decapitalizing itself. making use of and going beyond the HDI methodologies. but deducting society’s indirect costs. also organized by Anne Louette. if we measure the costs generated for the society with the slums created and water pollution. methodologically speaking. What we have inherited. Similarly. presented a range of methodologies aimed at assessing corporate social and environmental responsibility. The basic logic is simple: when a large soybean producer forces small farmers away from their land to suburban areas. we must evolve towards an accounting that shows results in terms of quality of life and actual social progress. Such contributions gradually enrich our ability to organize knowledge and ensure a more sustainable development. we will neither be able to assess public nor private policy. etc. Petrópolis. Vozes. 2008) (2) Everyone has been looking for a concept that better reflects the expected social and economic results. we may say there has been an increase in grain production by hectare and agribusiness productivity. health. Les Nouveaux Indicateurs de Richesse (the new wealth indicators). or a public school’s overhead. by presenting a wide range of indicators – either used or under review –becomes an important working tool. We will not describe here the limitations of this methodology. the Index of Sustainable Economic Welfare (ISEW). culture. Jörg Meyer-Stamer uses the Systemic Competitiveness Concept in his work on Local and Regional Development Strategy Initiatives. Therefore. the result is quite different. is what everyone expects. New York. The businessperson may say that he has enriched the town. such as the Index of Economic Well-being (IEWB) by Osberg and Sharpe. 2001
. we must build assessment tools for such results. leisure. The truth is that as long as we do not adopt generally accepted and standardized methods to measure the bottom line of our activities. presents an extremely well organized systematization of the new conceptual framework for national accounts being devised5. since mere economic productivity is too narrow to express social objectives. Quality of life is clearly harder to be measured than a company’s total sales volume. when in fact the country is selling its inherited natural resources. with the concepts of Amartya Sen4 and the Human Development Index (HDI) methodology. by Ladislau Dowbor. However. is the national accounts system developed in the 1950s by the United Nations. The economy must serve these social objectives. objective indicators (such as infant mortality rate) and subjective ones (level of satisfaction). which provides us with the well-known GDP – the sum of values and costs of goods and services production – therefore restricted to commercial activities. increasing its short-term wealth at the expense of future difficulties. Jean Gadrey and Florence Jany Catrice’s book. The Economist uses the ‘social return’ concept to calculate the impact of social investment that make ‘the best possible contribution to society’s problems.” Ladislau Dowbor
If we want to guide the economy. 2003 (4) See ‘Development as Freedom’ by Amartya Sen. The systemic productivity2 concept may be more explicit2. Currently. This has led to the development of several methodologies that are currently well structured. A life with health. In this way. the social aspect is no longer a means to ensure economic objectives. what are we measuring?1
“This publication ‘Sustainability Compendium: Sustainability Indicators of Nations’. education. social and environmental indicators. La Découverte. Celso Furtado uses the ‘social profitability’ concept. may lead us to mistake the vision of macroeconomic productivity for that of the productivity of sectors usually identified with the ‘social’ sphere. Random House. safety. the Genuine Progress Indicators (GPV). and altered in 1993.INTRO
Indicators: after all. (3) See ‘A Reprodução Social’ by Ladislau Dowbor. 1999 (5) See ‘Les Nouveaux Indicateurs de Richesse’ by Jean Gadrey and Florence Jany-Catrice. What matters is that from the 1990s on.
(1) See ‘Democracia Econômica’. which despite saying fundamental things. the systemic balance will be more comprehensive and technically correct. for instance. Vozes. there is a distinction between production accounting (outputs) and actual results in terms of social values (outcomes). economic. the economy becomes a means to improve people’s quality of life. rationally channeling our production efforts to desired results. such as education. and others. the World Bank’s Genuine Savings Indicator (GSI). monetary and non-monetary results. Schmitz uses the ‘collective efficiency’ concept (in Vázquez-Barquero). there has been a radical inversion: the human being is no longer regarded as a tool to serve companies – at that time the World Bank said education was good because it would increase business productivity – but as the primary objective. we have moved way ahead.’ H.
fr/documents/Survey_of_Existing_Approaches_to_Measuring_Socio-Economic_Progress. As a result. generating better life conditions to all10. In the region of Cascavel (State of Paraná. the accounts are broken down in 12 domestic sectors. 26 relatively simple indicators help evaluate whether the population’s situation is improving or not.org
(6) See Hazel Henderson. ‘Profit’. Most of our feeling of impotence before the economic dynamics derives simply from the lack of tools to know the actual contribution of the different activities to our well-being. not as a positive figure (GDP increase). The World Bank itself is rethinking its methodologies. which in turn increases the GDP. additional pollution-related health costs are now deducted. but it meant a significant political shift: the information is organized for the population and the data surveyed are those of highest interest to the population’s quality of life. for instance. we naturally believed progress exclusively resulted from business profit. prepared by INSEE. In other words. In the World Development Indicators 20037 Table 3. www. in Paris. 2001 (paper). OECD staff and other institutions. June 26th. must be social. the methodology adopted by Calvert-Henderson Quality of Life Indicators: a New Tool for Assessing National Trends6.INTRO
Of special interest. the Bank now records timber extraction.stiglitz sen fitoussi. economic accounts become a citizenship tool. this openness is welcome and will influence national accounts in several countries. for the first time. Brazil). and the initiatives of several public and private actors can be evaluated in terms of final results for the society. what we are saying here is that a change in the focus of economic accounts is essential. based on small local economic savings. but channels the savings to socially useful investments. we reach an intelligent vision of the actual progress achieved. 2003. There are other similarly creative and very practical solutions. shows small profits. The media hysterically demands a few extra percentage points in the GDP increase. (The Economist naturally laments that German regional legislators ‘refuse to authorize the sale of savings institutions. environment. 22 towns started developing local quality of life indicators9. at least in a more circumscribed territory. Considering the strong inductive effect of the World Bank’s methodologies. and distracts our focus from the main objective – society’s quality of life – leaving everyone confused and misinformed. a major advance in economic sciences is the radical change in the way we organize information around results achieved. but also human rights. The document presents a review of the progress in the development of methodologies in 20088. The development of more realistic evaluation systems of our economic and social progress corrects a structural flaw in economic sciences. because existing data was used. according to this vision. which intensifies the generalized anxiety over unemployment. but as decapitalization of he country. and also that public services were a burden. and productivity must be systemic. The development of new indicators of wealth is a particularly important axis in this direction. In broad terms. people can make informed decisions when voting according to actual results in their lives and not according to who has given away more electoral campaign T-shirts. where people can more easily take part in decision-making processes. When we adopt the systemic evaluation of results for the society as a whole. The evolution of economic sciences towards this comprehensive accounting. is a true review of national accounts applied to the United States. (10) See The Economist. is a major advance. The innovation has not demanded major changes in the calculation. page 174 (8) See http://www. including income. In this way. While the measure was limited to adding companies’ production value and public services costs.pdf (9) See Conceito e Metodologia de Aplicação (Application Concept and Methodology) – Versão 1. rather than a microeconomic one. badly informed people do not participate in anything. thus showing negative savings rate. a tool to evaluate how and in which areas the country is improving (or getting worse). As for the car manufacturing sector. 2004. OECD and recent collaborators such as Stiglitz and other economists attests the maturity and openness to change achieved in the debate. but reduces our systemic productivity by decapitalizing the communities and reducing the productive use of our savings. Following the same logic. Jon Lickerman and Patrice Flynn (editors) – Calvert Henderson Quality of Life Indicators: a new tool for assessing national trends. There is no economic democracy without adequate information about the dynamics and results that really matter. It is also worth mentioning the work Survey of Existing Approaches to Measuring Socio-Economic Progress. Washington. Of course. The participation of the World Bank.15 that assesses savings. 77. and so on. for instance. public safety. to private sector buyers’).
. calvertgroup. Neither new indicators nor new surveys were required. Anyway. A bank that misappropriates our savings and invests them in speculative financial investment shows high profit.com (7) See World Bank – World Development Indicators 2003. October. oil-exporting countries are now regarded as depleting their natural capital. North-Americans have. Instead of simply summing up the monetary results. owned by local communities. reFerêNcIa http://dowbor. The German system of financial intermediation. year by year. p. The most reliable existing data were selected and tabulated according to the major axes of practical results expected by the population.
mainly in terms of extreme poverty and inequality.’ A short time later. (1972) report. the limits to growth on this planet will be reached sometime within the next 100 years. by the United Nations World Commission on Environment and Development – the human dimension was strongly enhanced in the concept of sustainable development. Brundtland Report showed the need for an international awareness of the ‘human condition deterioration’. among which the GNP. the World Commission of Environment and Development.
(1) Sustainable development: the idea initially came from the Limits to Growth Report written by the MIT (Massachusetts Institute of Technology). The most probable result will be a sudden and uncontrollable decline in both population and industrial capacity. Since the Agenda 21. adopted the sustainable development concept in its report entitled Our Common Future. did not provide enough data for analysis.: “Commonly used indicators such as the gross national product (GNP) and measurements of individual resource or pollution flows do not provide adequate indications of sustainability. pollution. 178 signatory countries have agreed to correct distortions resulting from evaluations based exclusively on the GNP.br)
. The concept was definitely incorporated as a principle during the United Nations Conference on Environment and Development. At the time. in Rio de Janeiro. 1992). and resource depletion continue unchanged. changes must be made immediately in order to reverse the fate of a head-on collision”. launched the document ‘World Scientists’ Warning to Humanity”. and later from the ecodevelopment concept proposed in 1970 by Maurice Strong and Ignacy Sachs. social and economic’ tripod was accepted and formalized in the United Nations Conference on Environment and Development (Earth Summit 1992). held in Rio de Janeiro in 1992. food production.INTRO
New indicators to evaluate true wealth
“The social indicator only indicates. Besides the environmental problems. Human activities inflict harsh and often irreversible damage on the environment and on critical resources. social and developmental parameters are not sufficiently developed or applied. 1972).” (Januzzi. 1. during the first United Nations Conference on Environment and Development – UNCED (Stockholm.wikipedia.” (Bachelard) Following that. which originated the United Nations Environment Program – UNEP. It warned that: ‘Man and nature are in a head-on collision. In 1987. founded by Aurelio Peccei. Indicators of sustainable development need to be developed to provide solid bases for decision-making at all levels and to contribute to a self-regulating sustainability of integrated environment and development systems” (United Nations. Methods for assessing interactions between different sectoral environmental. challenged the idea that economic abundance and industrial growth had no frontiers: ‘If the present growth trends in world population.600 scientists. Agenda 21. the Meadows Report had already found the key to sustainable development: ‘It is possible to alter these growth trends and to establish a condition of ecological and economic stability that is sustainable far into the future. not to measure in order to reflec. The “environmental. Gro Harlem Brundtland. (www.
The Meadows et al.’ However. also known as the Brundtland Report. it does not replace the concept it originated from. entitled The Limits to Growth. since the tools available. Mankind must change. along with this distressing scenario. demographic.org. the need to develop indicators able to measure sustainability was raised. which was commissioned by the Club of Rome. among whom 102 Nobel Prize laureates from 70 countries. 2002) “It’s necessary to reflect in order to measure. In this Conference. a publication by the International Union for Conservation of Nature and Natural Resources – IUCN – also used the term ‘sustainable development1’ to describe the necessary development model to preserve the planet’s richness. chaired by the Norwegian Prime Minister. in the Brundtland Report (1983) – also known as Our Common Future. industrialization. the 1992 Earth Summit – Rio-92. The Conference’s resulting document. highlights in its chapter 40.
in Kuala Lumpur. 1995. in which the Millennium Development Goals were set. the so-called Rio+10. • World Forum on ‘Statistics. As examples. starting by the warning made by one of its chief architects Simon Kuznets (1901-1981). In most cases. by William Nordhaus and James Tobin (1972).’ reFereNce
Information gathered at the France Libertes Fondation Danielle Mitterrand website www. It is in the core of all Systems of National Accounts. GDP combines in a single indicator the total market value of all final goods and services produced in the economic territory of a country within a certain period of time. OECD and WWF have helped publicize the initiatives in force that clarify which indices are most suitable to measure progress and how they can be integrated into the decision-making processes and brought to public discussion. several nations have made serious commitments in this direction in numerous global events. Despite all these initiatives. 2006. neither a personal measure nor a set of indicators have been broadly acknowledged within the political context and by the general public. • UN Convention on Biological Diversity.beyond gdp. Knowledge and Policy’. Perhaps this is because there has been little consensus about fundamental concepts or lack of the analytical simplicity that ensured GDP’s success.
Conferences have always gathered top-class experts and influential politicians to solve these critical issues. the results of these events show a gradual increase in the process of warning about the dangers of the GDP. and websites www. June.
tal areas have participated. in Johannesburg.beyond-gdp. who cautioned in a 1932 report to the US Congress that ‘the welfare of a nation can scarcely be inferred from a measurement of national income.france-libertes. the Club of Rome. becoming increasingly evident at the following events:
• UN Earth Summit in Rio de Janeiro. in Palermo. Over 500 people from the economic. GDP’s shortcomings started to come out. A large number of proposals have been developed.stiglitz-sen-fitoussi. 2007. 1998. Chile. It is also worth mentioning the pioneering contribution of the Measure of Economic Welfare (MEW). 2008. Nobel Prize of Economy laureate in 1971. • Conference sponsored by the European Parliament on the theme ‘Taking Nature into Account’.eu. at the dawn of this century. GDP changes along time are the main indicator of macroeconomic activity growth (www. 1992. Since then. However. and its methodology is strictly defined and regulated. in Milan. social and environmen-
. November. 2002.fr and www. • ‘Beyond Growth: Policies and Institutions for Sustainability’. • EU Conference on Beyond GDP: Measuring Progress. • ‘World Summit on Sustainable Development’. European Parliament.INTRO
GDP – Gross Domestic Product – is the most widely used economic activity indicator. we can mention:
• World Forum on Measuring Well-being and the Progress of Societies. it is calculated on a quarterly or annual basis. • OECD World Forum on Measuring and Fostering the Progress of Societies.
The latest international conferences held by the European Commission. 2007. in Santiago. allowing international comparison and aggregation. True Wealth and the Well-being of Nations’ in Brussels.fr. June. in Istanbul.eu).
high GDP indices are no longer a guarantee of sustainable development. regardless of their purpose. which not necessarily means sustainable development and increased individual and collective wellbeing. representing a considerable amount of ignored wealth. Everything that can be sold and has an aggregate monetary value will increase the GDP and growth. biodiversity. the GDP does not deduct the losses of natural capital. The GDP is the total value of all final goods and services produced within a certain region or part of society (i. including the following: 3. pollution… (which. for instance. but makes additions to account for its organized destruction. once the GDP computes all resources as increase in GDP.
After all. In developed countries. (Source: Jean Gadrey. which lead to decreased well-being. It would be necessary to suppress the GDP increase of the first hypothetical society to better assess the actual creation of wealth (the one that contributes to well-being). to give it the same monetary value as the working hour. The classical equation to determine the GDP of a region is the following: Y=C+I+G+X-M Where
• Y is GDP • C is consumption • I is gross investment • G is government spending • X is net exports • M is net imports
In other words. of the Amazon Forest is an activity that makes the world GDP increase (value of the timber harvested and the tractor to cut it down. Let us then examine some of the main criticisms faced by the GDP. for instance). Volunteer work and household labor (not only performed at home. mostly by women. It assesses the productive contribution of the economic activities. The resulting loss of natural capital. Despite having no commercial value. etc. 2. the time spent in household chores is estimated to be equal to the total time spent in paid work. Thousands of opinion-makers and decision-makers in the economic. depletion of natural resources. countries. political or scientific fields have their decisions permanently guided by the GDP. which. its effects on the climate. which could double the GDP.e. are not part of the activities that contribute to the domestic wealth that is measured by the GDP. Many activities and resources that contribute to the well-being are unaccounted for.INTRO
criticism of the gdp
The Gross Domestic Product (GDP) is high in the media and is nowadays an almost world reference for most of the analyses. they may have a huge value for our wellbeing and that of future generations. for being unpaid. From this perspective. Well-being losses caused by economic growth are not measured anywhere. simply because they are not commercial or because they have no direct monetary production costs.
. progression of illnesses stemming from food insecurity. Besides these examples in which well-being losses are not recorded. In other words. and the long-term needs of future generations are not measured anywhere. 1. But is it true that these types of work do not create wealth and well-being as much as the paid work? These are invisible types of work by nature. states. the two societies would have the same increase in the GDP. the more wealth is created by a country? Defining what a country’s wealth consists of has become a task that requires examining various economic. If we decided. there are others in which gains – or essential contributions to well-being – are disregarded. but also the broader realm of our neighborhoods and communities) are examples of forgotten contributions. for instance. to be offset. Nevertheless. The GDP positively records all forms of evil and destruction.).). is it true that the higher the GDP. cities) during a specified period (month. requires defensive expenditures) the same way it accounts for common wellbeing resources (education and participation in cultural and leisure activities in a society where people are healthy. quarter. such as increase in the number of accidents. Les nouveaux indicateurs de richesse). which serves as a compass for their actions. The same idea can be applied to expenses on repairing environmental damage caused by human activities: pollution. The destruction. they represent huge volumes and contribute to the well-being as much as the paid work. year. etc. social and environmental aspects.
as a means and not as an end. A 2-3% growth for some years might. considered almost exclusively as dimensions of a society’s well-being. for the GDP does not take into account that increased free time is a wealth that deserves being valued. It is not enough to add an environmental pillar and then a social pillar to an economic pillar that would remain unaltered. we force or encourage people to work more and more and to have less leisure and free time. come together with an increase or a reduction in social inequalities. etc. A wealth that leads us to sustainable development. It is necessary to consider what (criticism 1). It is important to rethink how we are measuring this wealth. how this income is shared among the local people. We do not know. since 1980. to inequalities. nevertheless. by is not enough for social development and improved life conditions of its population to occur. The economic development of a country is a necessary condition. Does not it make any difference to live in a society where masses of poor coexist with a handful of rich people? Would not one more euro or dollar of growth in the pocket of a poor person generate more well-being than the same amount in the pocket of a rich person? It is definitely not enough to produce more. Sustainable development will be possible only if a true reconsideration of the economic pillar transforms the economic vision and practice.
. If. Here is a good example of an essential contribution to well-being – free time – that is not part of the wealth accounts.INTRO
4. as opposed to what has happened to almost all European countries. which are. to whom (criticism 5). by simply looking at the average GDP. economic safety. this phenomenon will be considered as progress by the GDP. The GDP measurement is also indifferent to the accounting of wealth distribution. in order to reach high growth rates. 5. poverty. This measure does not indicate the well-being of a society. which are more important to measure progress. This example was not taken by chance: in the United States. 3 and 4). the average annual working hours has risen five hours a year (240 hours). how we are producing (criticisms 2. and what its balance is. We must redefine the terms of wealth. The GDP measures only the amounts produced (outputs) and ignores results in terms of satisfaction and well-being resulting from the consumption of such goods (outcomes). as the case may be. A development towards common well-being.
For them. reality reflects the economy and not the contrary. something unexpected happened: the economy was no longer philosophical and became extremely mathematical. there is nothing worse than a growth society with no growth.000 $12. This phenomenon led Manfred Max-Neef to write the ‘Threshold Hypothesis : ‘up to an extent in the economy. It is no easy task to oppose a widespread thought among the political and economic class. The more mathematical it was. Denmark. but burdensome (air.000 $20. At that moment. figures-oriented. This view changed with the neoclassical thought. cultural and environmental programs that guarantee a minimum quality of life.000 income in 1995 $21.000 $19. A more productive and abundant economy seems to have the power to solve this general malaise. price increase in scarce
. Growth for its own sake becomes the primary objective.000 per-person after-tax $22. ‘compensation’ expenses (medication.
ecoNoMIc perForMaNce or SocIal progreSS? It is known that a deceleration in economic growth drives our societies to despair due to unemployment and the neglect of our social. is no more than an offspring of this neoclassical economy. totally detached from reality. disregarded. leisure) as modern life new needs.000 $16. it tends to become malignant to the people’s wellbeing: the economic system becomes self-destructive. but they forget to deduct the increase in their costs. In this economy.000 $11. however. ’
(Manfred Max Neef ). and therefore. Since the 70s. which are.INTRO
the growth Myth
‘We should remember. there still is consensus that economic growth is the solution for a wide range of social problems. if not the only one in life. We can even identify its origin at the start of the 20th Century in the work of the economist AC Pigou (1920). the GDP performance is in no way an indicator of material progress.000 $14.000 $15. The high life standard most people from the Northern Hemisphere believe they have has increasingly become an illusion. Of course they spend more in terms of goods and services. such as quality of life degradation – non-quantified. who stated that economic well-being followed social well-being. created by the Chilean economist Manfred Max Neef and his colleagues 15 years ago. Graphs’ analysis showed an increasing trend of decrease in GPI per capita while there is an increase in GDP per capita.000 $17. In most societies worldwide. more consumption! IMpact oF ecoNoMIc growtH oN otHer ForMS oF wealtH ecoNoMIc growtH aNd our well-beINg – tHe tHreSHold HYpotHeSIS According to the threshold theory. After that. such as the United States.000 $6. environment) –. the economic growth has increased whereas the GPI has dropped.000 $7. by measuring what is bought at the supermarket. which measures quality of life. From this new perspective. England. This theory has been tested in every country where studies were carried out. It has many different faces. only what can be turned into figures matters. Imagine how catastrophic a negative growth rate would be! The same way there is nothing worse than a labor society with no jobs. Chile and
Average $23. which states that our happiness must necessarily go through more growth. the economy was well-being-. This model allows plenty of calculations and numbers.000 $4. in the first place.000 $18.000 1930 1940 1950 1960 1970 1980 1990 2000 Ano
100% 90 80
P Personal Income n n e
Percentage Very Happy
70 60 50 40 30 20 10 0 Percentage describing themselves as verry happy
Thailand. commercial and non-commercial ones. water. that the classical economists were all moral philosophers. the more scientific it would be. the neoclassical economists do not know how to deal with human needs.000 $10. This result was achieved by comparing the GDP growth curve to another index – the GPI (Genuine Progress Indicator). human happiness-oriented. the population’s quality of life level started to drop. Sweden. Beyond that. ‘There is a presumption that qualitative conclusions about the effect of an economic cause upon economic welfare will hold good also of the effect on total welfare’’. economic growth is aligned with the society’s quality of life up to a certain extent. transport. the Netherlands. including poverty. Consequently. Austria. but it is totally out of the reality. Beyond that.000 $8. more productivity. at the end of the 19th Century. pollution and scarce natural resources. therefore. well-being or quality of life. the increase in trade transactions captured by the GDP may reflect evolution in wealth.000 $13.000 $5. more buying power. They all went through a period of strong economic growth and development for three decades until 1970. They ignore them and guide themselves by preferences. so highly regarded at the end of the 20th Century. The neoliberalism.000 $9.
. According to Serge Latouche. 17-42) After some decades of uncontrolled misuse. but rather than replacing the old economy with the new one. all indicators show that depletion keeps growing [BONAIUTI. but it is not by chance that humankind has seen for the first time in history in a single decade so many gigantic world forums to assess issues such as: • The planet’s environmental depletion (Rio-92). 3. Economia social no Brasil (Social Economy in Brazil). 2003). the 50% poorest account for only 1% of the planet’s wealth.
NOTHING IS CREATED. • The economic system is not a perpetual motion machine that permanently feeds itself in a virtuous cycle with no losses. we have broken the planet’s natural life cycle and do not respect it anymore (See the four system conditions at The Natural Step – tool 6. • Human rights scandals (Vienna-93). 2. Gestão social e transformação da sociedade (Social management and society transformation). The economy must serve the people. • There is no preservation of Nature’s potential for the production of renewable resources (due to systematic increases in concentrations of substances extracted from the Earth’s crust by the society). Growth is not the same as development. Parangon. [DOWBOR. • There is no respect for the capacity of natural cycles to renew themselves (due to the increasing production and concentration of harmful substances produced by the society) We do not intend to list here the mounting troubles. because it exists in a finite sub-system of the biosphere. • There is no limit to the use of non-renewable resources. • The decrease in impacts and pollution per product unit made is systematically invalidated by the multiplication of units sold – a phenomenon called the ‘return effect’. 5. After all.. • Demographic boom (Cairo-94).13 in ‘Knowledge Management – Sustainability Compendium: Social and Environmental Responsibility Management Tools’). it is a system that turns natural resources into refuse that cannot be reused. in fact. reFereNce
Information from texts written by Serge Latouche and Manfred Max Neef.’ It is all about progressively reducing the ecological impact and intensity of natural resources depletion up to a level considered compatible with the planet’s acknowledged replenishing capacity. this negligence is implicit in most economic debates. with no place in a civilized society. In order to reconcile the two opposing imperatives of growth and respect for the environment. 1ª ed. 2011. as shown by Georgescu-Roegen in his book The Entropy Law and the Economic Process.
Current life is totally contrary to these principles. 2% alone hold half of the world’s wealth. experts believe they have found the elixir in ecoefficiency. this ‘new economy’ is. Under no circumstance can any economic process or interest be above life. Vandana. La guerre de l’eau. No economy can exist in the absence of eco-systems. In: DOWBOR. Economic development is about people and not objects. NOTHING IS LOST. São Paulo: Senac. Ladislau.
. Samuel. Climate changes are followed by oil wars. The alternative left is to stick to the blind faith of orthodox economists who believe the science of the future will solve all problems and that unlimited replenishing of nature is possible by artifice. This wealth accumulation is considered as shameful as slavery and colonialism. which will be followed by water wars (SHIVA. On the contrary. analysts have for a long time acknowledged the need to take into account the effects of human economic activity on nonrenewable natural resources. rather than the people serving the economy. v. EVERYTHING IS TRANSFORMED… • ‘Dematerialization of the economy’ – by moving the economic activity axis to the third sector. • Social crisis.INTRO
goods (bottled water. the cornerstone of ‘sustainable development. what we find are complementary relationships between them. Manfred Max Neef’s economy is based on six principles:
1. it seems we have reached a stormy zone – in the literal and figurative sense. It is unequivocal that ecoefficiency has improved dramatically.
illusion. • The global rural exodus that is leading to sprawling cities (Istanbul-96).1. energy. 6. p. but at the same time. and development does not necessarily require growth. An economy cannot have infinite potential.. Mauro. 2003]. especially of energy – turned out to be an
The UN Human Development Report regards as obscene the fortunes of a handful of just over four hundred people in the world. 4. Nicholas Georgescu-Roegen: bioeconomia verso un’altra economia ecologicamente e socialmente sostenible.. less demanding of natural resources. currently unsustainable (Copenhagen-95). Ladislau and KILSZTAJN. who possess a fortune equivalent to that of about half of the poorest population of the planet. relatively immaterial or less material. the perpetuation of uncontrolled growth leads to global degradation. • The tragedy of women stuck in the trap of economic transformations and family breakdown (Beijing-95).. as well as by pandemics and essential flora and fauna species extinction as a consequence of predictable biogenetic catastrophes. In fact. Today. IMpact oF ecoNoMIc growtH oN otHer ForMS oF wealtH ecoNoMIc growtH aNd reSpect For tHe eNVIroNMeNt The industrial development model followed by western countries and based on the orthodox economic theory has far too often neglected the impact of economic growth on other forms of wealth and well-being. (bioeconomics versus another ecologically and socially sustainable economy) Torino: Bollati Boringhieri. green areas).. In other words.
justice and good relations among members of a society. • There is no evidence that economic growth can be separated from an increase in its environmental impact. thus speeding up their depletion – not to mention that 20% of the world’s population already consumes 85% of the natural resources. aSSuMptIoNS oF tHe degrowtH tHeorY
• The current economic system depends essentially on non-renewable resources. mainly regarding energy sources. etc.degrowth. etc. • By relying on superfluous consumption. measured solely by monetary indicators.
sustainable. if the current pace of consumption increase is maintained. The increase in material wealth. once the permanent increase in goods and services production also leads to an increase in the consumption of natural resources. sanitation. the ‘Ecological Footprint’ and the Social Health Index (see the chapter on ‘Sustainability Indicators and Indices of Nations’).wikipedia. fauna and human health degradation. Development cannot be
(1) Oxymoron is a deliberate combination of two words that seem to mean the opposite of each other and make up a third concept to be understood at the reader’s discretion.net www. such as quality of life.org. they suggest the use of indicators such as the HDI. and underestimate the reaction of marginalized populations – as is the case of suburban violence and resentment towards the West from countries that do not have the same economic development standard.br http://pt. which goes against the GDP principle of unlimited growth. The main issue. gas. the level of equity and the democratic nature of institutions.info www.wikipedia. Alternatively.
Sustainable degrowth theorists also believe that the GDP is only a partial measure of wealth. uranium. This idea opposes the prevailing economic thought according to which quality of life improvement derives from the GDP increase so that the increase in production value should be a society’s permanent goal. the criticism of growth objectors is more radical. coal. loss of biodiversity and pollution. published in his book The Entropy Law and the Economic Process (1971). it cannot be perpetual.decroissance.
.) in the next century.INTRO
the sustainable degrowth theory
Degrowth is an economic and political concept coined in the 1970s – partially based on the theory of the Romanian economist Nicholas Georgescu-Roegen. there is no infinite growth. The degrowth theory is based on the hypothesis that economic growth – understood as constant increase in Gross Domestic Product (GDP) – is not sustainable for the global ecosystem. and if we intend to reestablish the whole range of possible forms of wealth. crItIcISM oF tHe MaINStreaM ecoNoMIc tHougHt According to its critics. global warming. food. • Improvement in the standard of living in Northern hemisphere countries at the expense of Southern countries regarding transport. • Increasing raw materials scarcity. • Environmental degradation: greenhouse effect. Raw material reserves are limited. Therefore. reFereNce
www. we must stop using it as a compass. creator of bioeconomics. whether socialist or capitalist – would be:
• Depletion of energy resources (such as oil.org www. There are other forms of social wealth. • Flora.org/wiki/ P%C3%A1gina_principal
Although productivism has been partially questioned by sustainable development advocates. • Wealth produced by economic systems is not restricted to goods and services.decroissance. the main consequences of productivism – understood as the emphasis on growth and productivity increase in industrial societies. Quality of life improvement must be achieved with no consumption increase. Therefore. since they regard sustainable development itself as an oxymoron1 – somewhat of a contradiction. can be detrimental to other forms of wealth. such as the ecosystems’ health. Western societies are usually unaware of progressive loss of other forms of wealth. but rather by changing the dominant paradigm. according to degrowth advocates – of whom Serge Latouche is the most prominent – is that natural resources are finite.
characteristics of new indicators – New reflections
‘We know that what is measured is done. If there is no data, we will be only one more person with one more opinion’
There is consensus that a sustainable development policy can only be developed with indicators. New indicators are needed to help companies, governments and people to see the world more accurately so that the social usefulness of activities can be assessed. This is how we can build a sound basis for political decisions and the development of business strategies consistent with the current state of the world – of scarcity and unsustainability. Hindrances to the creation of such indicators include parameters for conceptualization, implementation and monitoring of local, national or international systems. There is still little done because the theme is new for the academic community, and research and test results are not available yet, since several works are underway or simply undergoing a legitimization process. It is also true that the current lack of objective knowledge about ecosystems prevents the creation of a development index that includes the environmental dimension. Well-being is also hard to be measured, but the fact is that, unless we adopt standardized and generally accepted ways to measure our natural resources, the well-being and the results of the social usefulness of our activities, we will neither be able to devise nor assess public and private policies. It is time to reflect on and set new trends to meet sustainability challenges. Building solutions towards sustainable development requires that we face it from a new perspective: What should be changed so we can become economically, socially and environmentally sustainable? What should be measured? How should it be measured? What are the necessary indicators? New paraMeterS, New paradIgMS The proposal of new indicators aims to create a statistical basis to measure results of social and environmental policies and of economic development policies. Education and family values, popular culture, respect for nature and sustainable exploration of resources, poverty and inequality reduction are some of the many key aspects of ‘development’ not acknowledged by our conventional indicators, which often lead us to inaccurate diagnosis of poverty and development in areas of abundant natural resources and popular culture, for instance. Basically, these new indicators:
• Shall not be regarded as simple tools complementary to the GDP, but rather an alternative to the GDP; • Shall account for the urgent need for a better distribution of the existing wealth and put an end to its undue accumulation; • Shall account for the negative effects of over-exploitation of natural resources and degradation of life due to the devastation caused by the trade of world public assets; • Shall be devised as a way to measure progress of the Human Rights.
The GDP has survived far longer than its usefulness! wealtH INdIcatorS The Human Development Index (HDI), devised by the UNDP, was the first major initiative widely accepted by the society. The HDI combines three basic indicators: life expectancy, income and education level. Still, many side effects of progress are not taken into account, such as unemployment, crime rate increase, new health needs, environmental pollution and family breakdown, among others. Despite its importance for paving the way, it is no longer the most advanced tool in the area. A growing number of countries have implemented the Handbook of National Accounting: Integrated Environmental and Economic Accounting 2003 (SEEA 2003). It is a satellite system of the System of National Accounts. It brings together economic and environmental information in a common framework. http://unstats.un.org/ unsd/envAccounting/seea2003.pdf In 2008, the Commission on the Measurement of Economic Performance and Social Progress (CMDEPS), an initiative of the French government, raised 28 proposals (15 of which from international organizations and 13 from academia and national initiatives).
http://www.stiglitz-sen-fitoussi.fr/documents/Survey_of_ Existing_Approaches_to_Measuring_Socio-Economic_ Progress.pdf
Information gathered on the websites of France Libertes Fondation Danielle Miterrand www.france-ibertes.fr and at www.beyond-gdp.eu
oecd aNd uN
oecd aNd SuStaINabIlItY INdIcatorS To realize the dream of a better world, the OECD, with the support of the Bank of Italy and the Joint Research Centre (JRC) of the European Commission, gathered in Rome a contingent of experts on the theme: ‘Is happiness measurable and what do those measures mean for policy?’ They discussed up to what extent life satisfaction can affect economic models and governmental action. Happiness is not a new idea. However, it is still hard to be measured. This was also one of the objectives of the OECD June 2007 Istanbul World Forum. OECD begins with the following assertion: the society is increasingly concerned with its quality of life. Therefore, it is important to integrate, when measuring societal progress, not only economic indicators like the GDP, but also environmental and social concerns. National per capita income is not enough. A clear example is that, due to oil income, Republic of Equatorial Guinea has a per capita GDP similar to that of Greece, but the infant mortality rate is thirty-fold higher. OECD intends to go beyond: it wants to assess the level of happiness of a country’s population with the aid of more elaborate indicators. And why not guide public policy following this criterion? With this in mind, the OECD uses, at an international level, indicators such as life expectancy, infant mortality, obesity, public-private health expenditure, youth inactivity, income inequality, prison population, road network, road motor vehicles and road fatalities, as well as tourism (hotel nights), recreation and culture. reFereNce Text edited from LExpansion.com - Hugo Lattard. Excerpt of the Istanbul Declaration ‘We are encouraged that initiatives to measure societal progress through statistical indicators have been launched in several countries and on all continents. Although these initiatives are based on different methodologies, cultural and intellectual paradigms, and degrees of involvement of key stakeholders, they reveal an emerging consensus on the need to undertake the measurement of societal progress in every country, going beyond conventional economic measures such as GDP per capita. Indeed, the United Nation’s system of indicators to measure progress towards the Millennium Development Goals (MDGs) is a step in that direction.’ ‘A culture of evidence-based decision making has to be promoted at all levels to increase the welfare of societies. And in the ‘information age,’ welfare depends in part on transparent and accountable public policy making. The availability of statistical indicators of economic, social, and environmental outcomes and their dissemination to citizens can contribute to promoting good governance and the improvement of democratic processes. It can strengthen citizens’ capacity to influence the goals of the societies they live in through debate and consensus building, and increase the accountability of public policies.’
uN aNd SuStaINabIlItY INdIcatorS: eartH SuMMIt – rIo 1992 aNd ageNda 21 The United Nations Conference on Environment and Development - UNCED (Earth Summit - 1992) raised the need to develop indicators able to measure sustainability, since the tools available, among which the GDP, did not provide enough data for analysis. The Conference’s resulting document, Agenda 21 – chapter 40, highlights: ‘Commonly used indicators such as the gross national product (GNP) and measurements of individual resource or pollution flows do not provide adequate indications of sustainability. Methods for assessing interactions between different sectoral environmental, demographic, social and developmental parameters are not sufficiently developed or applied. Indicators of sustainable development need to be developed to provide solid bases for decision-making at all levels and to contribute to a self-regulating sustainability of integrated environment and development systems’ (United Nations, 1992). Since the Agenda 21, 178 signatory countries have agreed to correct distortions resulting from evaluations based exclusively on the GDP. For this purpose, data on social and environmental resources should be added and data on predatory activities and wasteful use of resources should be subtracted, among other distortions. Only then can sustainability and development standards that include economic, social, ethical and cultural aspects be defined. The UN Commission on Sustainable Development (CSD) was created in December 1992 at the United Nations General Assembly meeting to ensure effective follow-up to the UNCED. It is responsible for monitoring and reporting on the implementation of the Agenda 21 and the Rio Declaration on Environment and Development, as well as the implementation of the agreements at the local, national, regional and international levels reaffirmed at the World Summit on Sustainable Development (WSSD), held in Johannesburg 10 years later to evaluate the full implementation of Agenda 21 and the Commitments to the Rio principles. The Johannesburg Plan of Implementation, (Chapter X), and the Commission on Sustainable Development (CSD), at its 11th and 13th sessions, encouraged further work on indicators for sustainable development by countries, in line with their specific conditions and priorities. CSD-13 invited the international community to support efforts of developing countries in this regard. The third, revised set of CSD indicators was finalized in 2006 by a group of experts from developing and developed countries and international organizations. The revised edition contains 96 indicators, including a subset of 50 core indicators. The guidelines (www. un.org/esa/sustdev/natlinfo/indicators/guidelines. pdf) on indicators and their detailed methodology sheets (www.un.org/esa/sustdev/natlinfo/indicators/ methodology_ sheets.pdf) are now available as a reference for all countries to develop national indicators of sustainable development. The CSD indicator set is based on the previous two (1996 and 2001) editions, which have been developed, improved and extensively tested as part of the implementation of the Work Programme on Indicators of Sustainable Development.
Also speaking at the occasion. He emphasized the need to ‘deepen and strengthen democracy to the grass root level and empower people’. child malnutrition. which has helped pave the way for Bhutan’s progress in the MDGs. net primary education enrolment and access to safe drinking water. Mr. the UN Resident Coordinator. said that Bhutan’s success story on the MDGs is attributed to the strong political will and commitment of the Government in integrating the MDGs into the national planning framework.
. the UN Assistant Secretary-General and Regional Director. will help address the contrasts across districts on a number of MDG target areas such as poverty incidence.bt/mdg/MDG_ Midway. and said that the ‘Millennium Declaration is guided by the universal values of freedom. Chhibber highlighted the need for targeted programs that will deliver development benefits directly to the poor. The GNH is more comprehensive than the GDP and.org. equality.INTRO
uN aNd SuStaINabIlItY INdIcatorS: MIlleNNIuM deVelopMeNt goalS (Mdg) aNd groSS NatIoNal HappINeSS (gNH) Bhutan’ good results made the UN consider its implementation in other countries. differently from what many would think. Bhutan has already achieved three of the MDG indicators and is on track to meet most of the other targets by 2015. said that Bhutan presents an exemplary case of a peaceful political transformation from absolute monarchy to parliamentary democracy with a gradual set up of democratic institutions and practices. food security. He highlighted the synergy between Bhutan’s development approach of Gross National Happiness and the Millennium Declaration.pdf. respect for nature and shared responsibilities – ideals which are integral to Bhutan’s development approach of Gross National Happiness’. is based on scientific methods rather than on philosophical or moral assumptions. An International version is being developed in Canada to be implemented this year. UNDP. he said. which will not only help achieve the MDGs but also strengthen the democratic process. tolerance. According to the latest report ‘Bhutan’s progress: Midway to the Millennium Development Goals’ http://www. ‘We must rethink the way we measure progress. According to Michael Pennock (Director of the Population and Public Health Observatory at the Vancouver Island Health Authority in Canada. Such intervention. who worked on the development of the Genuine Progress Indicator from Canada and is a UN consultant for the development of the GNH indicators in Bhutan). enhancing their human development and addressing the root causes of their impoverishment. Ajay Chhibber. Nicholas Rosellini.undp. Mr. the GDP metrics are too narrow as a well-being measure. In a keynote address at the launch. ’ Bhutan is among the few countries that have been making good progress in achieving the Millennium Development Goals. which was launched in Thimphu in November 2208. Mr.
presented by philosopher Isaiah Berlin in 1956. but rather on science and empiricism. regional and local levels. of the United Nations Development Programme (UNDP). ’ ‘The GNH is a good starting point. ’ ‘Nevertheless. it is regarded as a guide to public policy. It says that people who endure long periods of deprivation develop defense mechanisms against hardships. It has some good points that should be used so we can have a better and more equitable measure of well-being’. show a high level of happiness. • Public policy tools. says the economist Flavio Comim. Both go beyond income (and GDP) as a wellbeing measure. like the GDP. Maybe the most well known distortion. Some initiatives are very interesting. Happiness is an intuitive concept common to all human beings. What should we do about those extremely poor people who say they are the happiest people in the world? Should we neglect them? We know we cannot do that. Both are concerned with the individual and the multiple dimensions of well-being. uses many of the core items of the Bhutanese survey and incorporates some lessons learned in a similar work carried out by the GPI Atlantic (Genuine Progress Index) applied in two Nova Scotia communities. is the ‘preference adaptation’. thus adopting a fully scientific approach. We must develop:
• Tools that measure well-being or happiness at national. The last ranking places Norway first whereas the USA ranked 10th. as well as their respective conditioning factors. 6 places below the GDP per capita ranking. says Flavio Comim. 2009
. but not necessarily the end. ‘There are many similarities between the GNH and the set of UN human development indicators (such as the HDI .
Excerpt from lecture given by Michael Pennock – Director of the Population and Public Health Observatory at the Vancouver Island Health Authority in Canada. In other words.Human Development Index). It is based on the GNH conceptual framework. as a rule. We also know that only a measure that shows the objective deprivations endured by people can bring back a stand that prioritizes human rights over frivolous preferences. Canada and Thailand1 – that gathered empiric economists and scientists to identify the main conditioning factors of happiness. ‘The UN welcomes this indicator. but its measurement is prone to biases. They do not mind life is hard. France ranked 16th. Besides the GDP. the HDI aggregates composite indices including life expectancy and education level. the GNH conceptual framework is not based on religious assumptions. that can be used to evaluate the impact on happiness.
International GNH version
It is the beginning of a very exciting period. is a UN consultant in the development of the GNH indicators in Bhutan and coordinator of the GNH International version implementation. they minimize the problems and. and developing an evidence-based framework. but.
(1) The fourth conference will be held in Brazil in November.
An international version is underway. such as ‘political lenses’. but they are only ‘beginnings’ being ignited worldwide. we can now rely on the work done by the Bhutanese. from the Western world. who worked on the development of the Genuine Progress Index for Atlantic Canada. ’ ‘The problem lies in the fact that the GNH is not only proposed as a measurement of well-being. We need to work together to gain enough momentum and keep this movement going ahead. the GNH presents some constraints inherent to subjective metrics.
gNH aNd tHe weSt
GNH conceptual framework
What do we need to do?
The GNH was developed along three conferences – in Bhutan. the UNDP Human Development Index has been annually measured and published. As we. often of psychological nature. They learn how to be content with little. so that we can be more competent in assuring that such policy will really improve happiness.INTRO
uN aNd SuStaINabIlItY INdIcatorS: HuMaN deVelopMeNt INdeX (HdI) Since 1990. and • International collaborators that can share knowledge and promote the GNH within our jurisdictions. When asked about life. is cross-cultural and takes only 20 – 30 minutes to be filled out. This version can be self-managed. Both respect people’s autonomy as the ultimate expression of development. seek better conceptual framework for progress.
Indicators determine policies. tend to take social or economic programmes at face-value. One way to overcome this tendency is by recognizing the fact that between values and policy implementation stand indicators. In this respect. Although GNH is a complex concept and ideal. covering trade. the Royal Government of Bhutan directed the Centre for Bhutan Studies (CBS) to develop GNH index. The government expressed the need for GNH indicators because without some kind of measurement system. which will provide appropriate indicators for Bhutanese development. along with a host of supporting indicators. The almost universal use of GDP-based indicators to measure progress has helped justify policies around the world that are based on rapid material progress at the expense of environmental preservation. illness. conventional indicators. GNH indicators are also needed to foster vision and a sense of common purpose. The level of trust. etc. by checking whether these the targets are being fulfilled. Information on their prevalence rates will influence peoples’ behaviour as they begin to gauge their own traits against the national trends. policies and programmes are mediated by indicators. but it is not always easy for the people to discern that indicators are not value neutral. GDP. In general. This potential behaviour changing function of GNH indicators can be valuable. and pollution. People clarify their vision by specifying targets and indicators that serve to point to areas of weakness and strength. screening tools for projects and policies developed by the Centre for Bhutan are expected to used for selection of policies and programmes. imprecision will allow many conventional indicators to play unwitting roles in a GNH society. Yet GDP is heavily biased towards increased production and consumption. Once people are familiar with GNH indicators. Indicators serve as convenient instruments and yardsticks of evaluation over time. volunteerism and safety can also be tracked. Not only do GNH indicators assist in building vision. they are instrumental to that vision being held in common by all citizens. Indicators actually drive society in certain directions and even determine the policy agendas of governments. The construction of an index should give equal weight to both the functional aspects of human society as well as the emotive side of human experience. GNH indicators can become tools of accountability. The sense of common purpose embodied in a coherent set of indicators enables ordinary men and women to more readily judge. monetary exchange rates. Indicators embody values. For example. Left at the plane of vision. an indicator with respect to any variable has to have either a positive or a negative influence on well-being and happiness. Without a common vision concretized through indicators. even though welfare is a shared pursuit. The direction of causality on happiness and well-being must be clear. illness. Not only decision makers. Left at the level of inspirational discourse. growth. and that values and principles underlie and determine programmes and policies. GNH cannot guide practical po24
licies and programmes. The Centre for Bhutan Studies constructed a single number index for Gross National Happiness that can be broken down into individual component indicators that are useful for different sectors for planning and technical purposes at the ministerial and departmental levels. at the expense of other more holistic criterion. they can have a practical effect on consumer and citizens’ behaviour. and air pollution have a more positive influence on happiness than more crime. certain indicators for GNH gauge the prevalence rates of negative and positive emotions. stockmarket. but ordinary citizens. indicators focus largely on market transactions. These dominant. regardless of the necessity or desirability of such outputs. The behaviour changing function can emerge in significant ways when there are appropriate indicators that direct attention towards both the causes of problems and the manner in which behaviour and decisions can prevent and solve those problems. for practical application. As many contemporary indicators of progress and development do not reflect GNH adequately. It is biased against conservation since it does not register conservation or stocks. GNH philosophy had to be translated into a metric system. cultures.INTRO
Need for gNH index
Across the world. That
. To give just one example. people’s perceptions of their own safety and security are as important in determining happiness as objective crime statistics. Values. each individual merely looks to his or her own ends. But indicators can help bridge that gap. policy makers tend to implement policies or programmes based on current international development trends. and accept proposed policy implementation without examining the ultimate values underlying those programmes. building a notion of greater interdependence across time and over space. To qualify as a valid indicator of GNH. GNH indicators include both objective and subjective dimensions of life. less crime. Indicators capture the imagination and help convince lay people about the direction of the country’s goals and development objectives. generally related to Gross Domestic Product (GDP) reflect quantity of physical output of a society. For examples. from compassion to anger. is the most widely used indicator. and community cohesion. which are aligned with GNH. GNH cannot specify the practical programmes and resources needed to attain those visions in quantitative terms. without taking into consideration the values that lie behind such trends. hold accountable their leaders.
balance allows good representation of information between the objective and the subjective. it must be understood that the subjective versus objective distinction is merely a heuristic device that does not in any fundamental sense represent what is basic to the nature of reality. The conventional subjective versus objective division is an abstraction from what is actually inter-relational. from a Bhutanese cultural perspective. social. When measuring objective conditions such as educational and medical facilities. In fact. and that there will be a natural coherence to the country’s policies that reflect its cherished values. which can only be assessed by a broad range of social. given that from a Buddhist view. Thus. For GNH indicators. The distinction between subjective and objective is but
an abstraction from reality. a student attends a school that scores highly in the conventional educational statistics. the various domains are not simply separate conditions of happiness in and of themselves. happiness and well-being is ultimately a way of being that is affected by and affects relational quality. Self reporting of experiences along with objective statistics therefore provides a more accurate picture of well-being than the objective statistics alone. cultural and technological environments will be penetrated by GNH values. In other words. they can be used not only to check whether programmes are consistent with GNH indicators but also to create conditions for a coherent. The interdependence of all things. For example. they do not exist. and the non-abiding self of everything. or room ratios etc. or the classroom tense. happiness itself dwells in the experience of quality of relationship. The GNH index construction aimed at a deeper representation of well-being than conventional indicators. it is the intimate inter-relationship among these domains that is significant. programmes and projects on the other. Seen in this way. measure of the psychological or subjective experience that accompanies this condition is important. but he/she subjectively views the educational experience as entirely deficient— the teachers might be oppressive. thereby allowing the values they embody to be infused into policies and programmes in a broad based manner. What exists in a fundamental way is relationality (as opposed to subject and object) at all levels. Thus. economic. which changes in meaning over time with deepening sensitivities to the world around us and with our understanding of what is important or valuable for us and for all sentient beings. and shape programmes. despite the school’s apparent high objective performance. As indicators reflect values. they become a vital link in providing feed-back on the effectiveness of existing policies and programmes and ‘feed-forward’ into programme implementation. and environmental indicators. in the case of using GNH indicators as evaluative tools. it means that the country’s economic. The ramification of pursuing such an organic relationship should be recognized for the polity of Bhutan as a whole: if it is done successfully. including the classroom experience. does not promote a sense of well-being in the student. cultural. is a key concept. the process of obtaining the education. Rather. Dasho Karma Ura . At the same time. environmental. this cultural concept means that seeing everything as relational is more useful than seeing them as separate categories. organic relationship between professed values on the one hand and actual policies.Butan
6. 10. 20. 8. 16. 7. 14. 4. 19. 3. 11. 13. 18. 22. 25. 15. 23. 12. 24. 2.Baromêtre des Inegalités et de la Pauvreté BCN – Balanço Contábil das Nações (Balance Sheet of Nations) BS . Bellagio Principles IDH + IPH + IDG + MPG GNH – Gross National Happiness BIP 40 .Barometer of Sustainability Calvert-Henderson Quality of Life Indicators DNA Brasil DS – Dashboard of Sustainability EF – Ecological Footprint EPI – Environmental Performance Index ESI – Environmental Sustainability Index EVI – Environmental Vulnerability Index GPI – Genuine Progress Indicator (IPR) GSI – World Bank’s Genuine Saving Indicator HPI – Happy Planet Index IDS – Indicadores de Desenvolvimento Sustentável IBGE IEWB – Index of Economic Well-being IPRS – Índice Paulista de RS (São Paulo State Social Responsibility Index) Isew – Index of Sustainable Economic Welfare ISH – Index Social Health LPI – Living Planet Index RCI – Responsible Competitiveness Index SF – Social Footprint WN – The Well-being of Nations 76 78 79 80 83 85 28 30 37 40 42 44 47 48 51 54 57 60 62 64 66 68 70 72 74
. 9. 5. 21.2
Indicators and Indices
INDICADORES E ÍNDICES DE SUSTENTABILIDADE DE NAçõES
poverty. And we are the ones to choose the politicians that will make these choices. The current financial crisis. Redesigning a social. monetary or physical problems. These studies are increasing in number and depth. and what is measured is manageable. thus changing our political priorities to build more equitable and happy societies. and even happiness (quality of life / well-being). This distortion comes from the fact that the generations and societies that preceded us did not have the same problems. and the UN has been the main supporter of this process. threatens our survival and the cohesion of our societies. as well as more appropriate regulatory instruments. in most cases. such as water and air: exhaustion of natural resources by predatory exploitation. Therefore. social and environmental sustainability. we need new thermometers that can help us change our production and consumption models. due to the big environmental and human challenges we face. It is high time we reconsidered development theories based solely on economics and restricted to the GDP concept. They are leading us to the wrong direction. Such task is key to planning a development that does not focus only on the economic dimension. adjusting them to the natural resources available. which has been shaking the world economy. as it was done in the HDI measures of education. Finally. air and water). They are literally making us sicker. Redefining Progress. World Bank. It is an initiative carried out by several partners and donors. water scarcity…). The biggest challenge is to reach a consensus on the ways to assess and measure the objective – not the subjective – perceptions of well-being. but a vital need. in line with our social and environmental challenges and self-destruction risks. a change in attitudes regarding the structure and the dimensions of a development model. besides including happiness / quality of life assessment parameters. including the International Institute for Sustainable Development (IISD). shows that our economic metrics are deficient. a unique opportunity to change this situation. It is a considerable change in the way of life. social and environmental variables in the production and economic development model adopted. It is all about political choices. That explains the GDP metrics. After all. We must raise the status of these indicators to the level enjoyed by the GDP today. which was exclusively focused on the monetary amount produced in the post-war period. If we want to be sustainable and have quality of life. There is a large number of initiatives that create “alternative economic indicators” aimed at improving the GDP metrics by incorporating. etc. rating them. environmental degradation through pollutant production processes (negative externalities that impact on soil.Intro 1
What are we doing with our survival in this planet? What are we doing with our species?
Our (economic) thermometers no longer allow an accurate reading. we need reliable indicators that can lead us to this direction. Currently. therefore. environmental and political pact worldwide would mean changing our vision and ways of thinking. We now have. Environment Canada. is that it is not a question of technical. rethinking the wealth that will add true value to life. environmental and social sustainability measures into the data. In other words. health and standards of living. and they are working in this direction. provided by international studies on future risks (global warming. tIp Global Directory to Indicator Initiatives. a new accounting and new statistics will allow a different reading to our routes. The trade/financial model that is spreading around the world worsens inequalities. new economic. in an attempt to include social and environmental variables in suggested national accounting principles. what matters has to be measured. Compendium of Sustainable Development Indicator Initiatives is a worldwide directory of sustainability indicators. The objective is to offer more comprehensive economic data that can be more intelligible to the population and more relevant to policy makers. Most experts agree that we need to update our economic metrics. We must rethink our wealth measurement by including economic. it is a question of trying to show the interdependence of economic. We must correct the route for the sake of our survival. one of the clearest pieces of evidence. Nowadays. and the United Nations Division for Sustainable Development. It is no longer an alternative activity. Production was the key point. the GDP was created to be a measurement tool directly determined by the cost of manufacturing industry and the war.
. by taking into account factors like environmental degradation and quality of life. These are constraints currently faced when trying to monetize public goods.
• consider both positive and negative consequences of human activity.. and the interaction between parts. • consider the well-being of social. dealing with such concerns as resource use. ecological.
. human rights. HOLISTIC PERSPECTIVE
Assessment of progress toward sustainable development should:
• include review of the whole system as well as its parts. their interpretation and communication of the result. These principles serve as guidelines for the whole of the assessment process including the choice and design of indicators. as appropriate. They are interrelated and should be applied as a complete set. 4. non-market activities that contribute to human/social well-being. • consider economic development and other. ESSENTIAL ELEMENTS
Assessment of progress toward sustainable development should:
• consider equity and disparity within the current population and between present and future generations. and they cover all stages of the sustainability measurement indicators development process. The principles that guide the stages of the sustainable development measurement process and their content are as follows:
1. thus responding to needs of future generations as well as the current ones to short-term decision-making.1 IISD
International Institute for Sustainable Development – IISD
sustainable development and clear goals that provide a practical definition of that vision in terms that are meaningful for the decision-making unit in question. obJectIVe The principles were developed both to start sustainable development assessment processes and to evaluate existing processes in any institution. of their component parts. in monetary and nonmonetary terms. Principles 6 through 8 deal with key issues of the process of assessment. their state as well as the direction and rate of change of that state. ADEQUATE SCOPE
Assessment of progress toward sustainable development should: • adopt a time horizon long enough to capture both human and ecosystem time scales. coNteNt TThere are 10 Bellagio principles. in a way that reflects the costs and benefits for human and ecological systems. 3. aiming to synthesize insights on the main aspects related to sustainability assessment. Principles 2 through 5 include the content of any assessment. Principle 1 deals with the starting point of any assessment . over-consumption and poverty. orIgIN These principles are the result of the work of an international group of measurement practitioners and researchers from five continents gathered by the International Institute for Sustai¬nable Development – IISD in 1996 at the Rockefeller Foundation’s Study and Conference Center in Bellagio. Italy. • define the space of study large enough to include not only local but also long distance impacts on people and ecosystems. GUIDING VISION AND GOALS
Assessment of progress toward sustainable development should be guided by a clear vision of sustainable development and goals that define that vision. and economic sub-systems. and access to services.establishing a vision of
2. while Principles 9 and 10 deal with the necessity for establishing a continuing capacity for assessment. • consider the ecological conditions on which life depends. couNtrY Canada wHat It IS Principles to measure and assess progress toward sustainable development. from local communities and companies to international institutions.
Assessment of progress toward sustainable development should:
• obtain broad representation of key grass-roots. technical. • providing institutional capacity for data collection.
Assessment of progress toward sustainable development should:
• make the methods and data that are used accessible to all. it is difficult to foresee any way to measure sustainable development that is widely accepted and complies with the ten Bellagio principles.org/mesure/compendium
Assessment of progress toward sustainable development should:
• be designed to address the needs of the audience and set of users. OPENNESS
Continuity of assessing progress toward sustainable development should be assured by:
• clearly assigning responsibility and providing ongoing support in the decision-making process. maintenance. 6.
5. Source: Adapted from Brunvoll et al. • make explicit all judgments. and indicators as new insights are gained. ranges. • supporting development of local assessment capacity. • standardizing measurement wherever possible to permit comparison • comparing indicator values to targets.IISD 1
• build on historic and current conditions to anticipate future conditions . • be iterative.usp. assumptions. In the words of Universidade de São Paulo professor José Eli Veiga: “Establishing these ten principles may have been too high an aspiration. women. reference values. and responsive to change and uncertainty because systems are complex and change frequently. However. or direction of trends. thresholds. • adjust goals. 9. where we could go. José Eli Veiga USP. and uncertainties in data and interpretations. • ensure the participation of decision-makers to secure a firm link to adopted policies and resulting action.BR reFereNce
www. 7. as appropriate. PRACTICAL FOCUS
determine trends. • promote development of collective learning and feedback to decision-making. ONGOING ASSESSMENT
Assessment of progress toward sustainable development should:
• develop a capacity for repeated measurement to
. • aim. • a limited number of indicators or indicator combinations to provide a clearer signal of progress. and indigenous people .fea. for simplicity in structure and use of clear and plain language. INSTITUTIONAL CAPACITY
Assessment of progress toward sustainable development should be based on:
• an explicit set of categories or an organizing framework that links vision and goals to indicators and assessment criteria. 10. (2002). adaptive. EFFECTIVE COMMUNICATION
reSultS Even though everyone acknowledges the key role played by indicators in measuring sustainable development. from the outset. and documentation.br/Semead/9semead/resultado_semead/ trabalhosPDF/331. • draw from indicators and other tools that are stimulating and serve to engage decision-makers. and social groups . even if only the fifth criterion is used as a reference point – Practical focus: Assessments should be based on an explicit set of categories that links vision and goals to indicators – one must admit that there are still conceptual and operational differences and constraints preventing it from being accomplished”.iisd. • a limited number of key issues for analysis. 8. professional. including youth.to ensure recognition of diverse and changing values.where we want to go.ead. frameworks.pdf www.
2 HDI + HPI + GDI + GEM
people’s “happiness” nor shows the “best place in the world to live in”. It is an important tool to compare life conditions among countries. It is also used to develop and guide social policy and programs. coNteNt The HDI is an index based on capabilities: everyone should be able to enjoy a long and healthy life, acquire knowledge and have access to resources necessary to a decent standard of living. Since long and healthy life, access to knowledge and decent standard of living are not palpable things similarly conceived everywhere, it is necessary to use indicators that allow the expression of these life conditions.
• Life expectancy at birth - Life expectancy at birth –
wHat It IS The Human Development Index (HDI), introduced by the United Nations Development Programme (UNDP), is important because it combines three basic indicators: life expectancy at birth, income and education attainment. Despite being published for the first time in 1990, the index was recalculated for the previous years, as of 1975. The HDI has gradually become a world reference. orIgIN Since the 1990s, the UNDP has developed and disclosed the HDI for 175 countries, aiming to express in figures and solidify the idea of Human Development, which is based on the premise that, besides the economic dimension, other social, cultural and political characteristics that influence the quality of human life should be taken into account in order to measure the progress of a population. Working for the UNDP, the Pakistani economist Mahbub ul Haq (1934-1998) conceived the report. It is currently published in dozens of languages and in over 100 countries. obJectIVe The objective of the Human Development Index is to offer a counterpart to a very popular index, the Gross Domestic Product (GDP) per capita, which considers only the economic dimension of development. Created by Mahbub ul Haq with the help of Indian economist Amartya Sen, 1998 Nobel Prize winner in Economics, the HDI intends to be a general, concise measure of human development. It neither encompasses all aspects of development nor represents
number of years newborn babies can be expected to live if prevailing patterns of mortality at the time of birth were to stay the same throughout the child’s life.
Minimum value: 25 years Maximum value: 85 years
• Adult literacy rate - is the percentage of people aged 15 and above who can, with understanding, both read and write a short, simple statement on their everyday life.
Minimum value: 0% Maximum value: 100%
• Combined gross enrolment ratio for primary, secondary and tertiary education - measures the percentage of stu-
dents enrolled in the three education levels, regardless of age, in relation to the total number of people in the age group that officially corresponds to each one of these education levels.
Minimum value: 0% Maximum value: 100%
Step bY Step Minimum and maximum values (goalposts) are chosen for each underlying indicator. These goalposts are fixed and are based on the indicator behavior trends for the next 25 years. The difference between the actual value observed and the minimum value corresponds to the progress made by a society in that specific indicator. The difference between the maximum and minimum values corresponds to the complete pathway to be followed by a society in that specific indicator.
IDH + IPH + IDG + MPG 2
For each indicator the following index is calculated:
(actual value – minimum) Index = ----------------------------------------------------(maximum – minimum)
HPI-1 – Human Poverty Index for developing countries HPI-2 – Human Poverty Index for a group of select highincome OECD countries GDI – Gender-related Development Index GEM – Gender Empowerment Measure
Determining the HDI is straightforward. It is a simple average of the three dimensional indices that shows the path followed by the society as compared to the path yet to be followed for a certain indicator. weIgHted aVerage Three indices are, then, composed and all of them will have the same weight (1/3) in HDI composition: Life Expectancy at Birth indicator;
• Life Expectancy Index - exclusively composed by the • Education Index - composed by the indicators “Adult
Note The HPI-1 and the HPI-2 consider the same dimensions of the HDI in their calculations – a long and healthy life, access to knowledge, and a decent standard of living –, with the addition of another dimension: social exclusion. reSultS It is a key index of the UN Millennium Development Goals (http://www.pnud.org.br/odm/) and, in Brazil, it has been used by the federal government and by the local administrations: the Municipal Human Development Index (IDH-M), which can be accessed at the Atlas do Desenvolvimento Humano no Brasil (http://www. pnud.org.br/atlas/), is an online database with social and economic information on the 5,507 municipalities in the country, the 26 states and the Federal District. The IDH-M is developed in the same way as the HDI, from the same dimensions: a long and healthy life, access to knowledge, and a decent standard of living. The indicators used in the IDH-M are not the same as in the HDI:
• Longevity Index - Life expectancy at birth in the municipality indicator. • Education Index - Adult literacy rate indicator, with two-
Literacy Rate”, with two-thirds weight, and Combined Gross Enrollment Ratio for Primary, Secondary and Tertiary Schools, with one-third weight;
• GDP Index - exclusively composed by the GDP per
Minimum value: 100 PPP US dollars. Maximum value: 40 thousand PPP US dollars.
calculatIoN All three dimensions/aspects of the HDI are equally valuable and desirable. For this reason, all indices representing them have the same weight (1/3) in the HDI composition.
Aggregation Method: The three indices are added, with
equal weight, and divided by 3.
The value of the indices ranges from 0 to 1. Therefore, the HDI value also ranges from 0 to 1. The closer to 1 the HDI value is, the higher the human development level of a city, region or country. ValueS
Medium human development: HDI between 0.5 and 0.8. High human development: HDI higher than 0.8. Low human development: HDI lower than 0.5.
thirds weight, and Gross school attendance rate by municipality inhabitants indicator, with one-third weight. municipality indicator.
• Income Index - Average family per capita income in the
HdI evolution in brazil Since 1990 – has risen 14 places among the 177 countries assessed; 2005 – ranked 65th (index = 0.792 or medium human development); 2006 (November) – ranked 69th (index = 0.792; previous index = 0.788 ranking 68th);
In order to complement the information on human development in the world, the UNDP has developed other indices besides the HDI:
(*) gdP per capita - total value of all final goods and services produced within a certain region or part of society (i.e. countries, states, cities) divided by its total population.
2 HDI + HPI + GDI + GEM
1975 1980 1985 1990 1995
2000 2001 2002 2003 2004 2005
0,643 0,678 0,691 0,712 0,738 0,747 0,75 0,757 0,778 0,792 0,802
HDI is still limited, for it does not take into account the so-called side effects of progress, such as unemployment, crime, new illnesses, environmental pollution, family breakdown, among others. Quote I must admit I did not initially see much merit in the HDI itself, which, as it happens, I was privileged to help devise. At first I had expressed to Mahbud ul Haq, the originator of the Human Development Report, considerable skepticism about trying to focus on a crude index of this kind, attempting to catch in one simple number a complex reality about human development and deprivation. (…) But after some initial hesitation, Mahbub persuaded himself that the dominance of GNP (an overused and oversold index that he wanted to supplant) would not be broken by any set of tables.
Brazil’s HDI improved between 2003 and 2004, but the country’s position in the world ranking decreased from 68 to 69, coming after Belarus (former Byelorussia) in a list of 177 countries and territories, shows the 2006 Human Development Report (HDR) published by the United Nations Development Programme (UNDP). Brazil’s HDI rose from 0.788 in 2003 to 0.792 in 2004, a result that keeps the country among the 83 nations with medium human development (HDI between 0.500 and 0.799), outside, therefore, the group of 63 nations with high human development, which has Norway on the top for the sixth year in a row (HDI of 0.965). The data obtained from the improved methodology indicate that, between 2003 and 2004, Brazil advanced in two of the three dimensions of the Human Development Index (longevity and income) and remained the same in one (education). In the ranking, Brazil comes right below the Caribbean island Dominica (0.793) and right above Colombia (0.790); 13 countries in Latin America and the Caribbean have a better performance than Brazil, among which Mexico (ranked 53, with an HDI of 0.821), Cuba (ranked 50, with an HDI of 0.826), Uruguay (ranked 43, with an HDI of 0.851), Chile (ranked 38, with an HDI of 0.859) and Argentina (ranked 36, with an HDI of 0.863). Other 17 nations of the region rank below Brazil, such as Venezuela (ranked 72, with an HDI of 0.784), Peru (ranked 82, with an HDI of 0.767), Paraguay (ranked 91, with an HDI of 0.757), Jamaica (ranked 104, with an HDI of 0.724), and Haiti, the worst in Latin America and the Caribbean (ranked 154, with an HDI of 0.482). The lowest index in the world is Niger’s (ranked 177, with an HDI of 0.311), in Africa. Another indicator derived from the HDI is the Gender-related Development Index (GDI), which measures achievement in the same basic capabilities as the HDI does, but takes note of inequality in achievement between women and men. In the ranking with 136 countries, Brazil comes in 55, just before Colombia (56) and Oman (57), and right after Macedonia (54) and Mauritius (53). Like in the HDI list, Norway is the leader and Niger the last country in the GDI.
pnud. The Environmental HDI. the lowest (<0. reFereNce
Ranking de municípios no Brasil www. brown. (…) Mahbub got this exactly right.pnud. I have to admit. Financial news. Emerging power China ranks 129th in the environmental indicator.htm Human development report 2005 hdr. 1998 Nobel Laureate in Economics.br www. the UNDP has developed other indices besides the HDI:
• HPI-1 – Human Poverty Index for developing countries • HPI-2 – Human Poverty Index for a group of select high-income OECD countries • GDI – Gender-related Development Index • GEM – Gender Empowerment Measure
HDI around the world: dark green shows the highest indices (>0. but when it came to using a summary measure of development. they would still go back to the unadorned GNP. Biggest world polluters.org/reports/global/2005/pdf/presskit/HDR05_PKE_ HDI.org.IDH + IPH + IDG + MPG 1. in turn. plummet from the eighth place in the traditional HDI to the 15th position in the Environmental HDI.
. because it was crude but convenient.
In order to complement the information on human development in the world. In the Environmental HDI ranking.3 2
People would look at them respectfully. the United States. whereas Brazil would climb some steps. in the foreword to the 1999 HDR.9).3). 2007.pnud. a hybrid index calculated by the BNDES technicians.br/atlas/ranking/IDH-M%2091%2000%20R anking%20decrescente%20(pelos%20dados%20de%202 000).org. Mar 25. and I am very glad that we did not manage to deflect him from seeking a crude measure. By skilful use of the attracting power of the HDI. Mahbub got readers to take an involved interest in the large class of systematic tables and detailed critical analyses presented in the Human Development Report. Amartya Sen. a sort of rotation of nations would occur. The United States would plummet in the ranking. he argued.pdf
tHe eNVIroNMeNtal HdI If the UN started to build the environmental variable into the annual assessment made by the UNDP.org.
Source: O Globo. is a combination of the indicators that comprise the HDI and the variables of the Environmental Sustainability Index (ESI).br/idh/ www.undp. pages 33 and 34. Brazil goes up from the 54th to the 39th place.
reflected by the long-term unemployment rate.
• Long and healthy life. • Knowledge. and • Decent standard of living. the percentage of adults who are illiterate and deprivation in overall economic provisioning. orIgIN Indicator derived from the HDI and published since 1997 by the UNDP. and in order to take advantage of high data availability in these countries. Percentage of people whose ability to read and write is far from adequate. A separate index was developed for industrialized countries because human deprivation varies with the social and economic conditions of the community. Uruguay is the highest scoring country. Percentage of people not expected to survive to age 40. Therefore. The variables used are:
• Long and healthy life. Percentage of people not expected to survive to age 60. while the HDI measures overall progress in a country in achieving human development. • Social Exclusion: Proportion of long-term unemployed (12 months or more). and • Decent standard of living. obJectIVe The HPI measures deprivation in human development. reflected by the percentage of people without access to health services and safe water and the percentage of underweight children under five. and Niger is the lowest. Brazil ranked 20th out of 103 countries and territories. The HPI is conceived for developing countries (HPI-1) and for developed countries (HPI-2). calculated only for developing countries. and one additional dimension for the HPI-2: social exclusion.
reSultS Developing countries: In the Human Poverty Index (HPI). Proportion of people with disposable incomes of less than 50% of the median. Deprivation in overall economic provisioning – public and private – reflected by the percentage of people without access to health services and safe water and the percentage of underweight children. The variables are: wHat It IS The Human Poverty Index – HPI measures deprivation in the three essential elements of human life: expected to die before age 40.
. • Lack of access to public and private resources (measured by the unweighted average of the percentage of the population without access to safe water and the percentage of underweight children for their age). This indicator measures deprivation in three aspects:
• Short life (represented by the probability of not surviving to age 40).2 HDI + HPI + GDI + GEM
Human poverty Index
coNteNt The HPI-1 and the HPI-2 make use of the same dimensions as the HDI in their calculations. • Lack of basic education (measured by the percentage of adults who are illiterate). the human poverty index (HPI) reflects the distribution of progress and measures the backlog of deprivations that still exists. • Knowledge. The HPI-1 measures deprivation in the same dimensions of basic human development as the HDI. Percentage of adults who are illiterate.
The HPI-2 focuses on deprivation in the same three dimensions as the HPI-1.
. whereas in the United States this figure reaches 13. It examines the extent to which women and men are able to actively participate in economic and political life and take part in decisionmaking. that is. It also includes the gender disparity in earned income.pnud. the Netherlands. the country ranks 64. on average. Brazil ranks 52nd.org. the HPI measures only 78 countries. Australia. 7. number of female legislators. but takes note of inequality in achievement between women and men.3% of the population lives below the poverty line (with US$ 11 per day.br http://www. reFereNce
www. In a ranking with 140 countries. According to the statistics. In Sweden.5% of the Swedish population between 16 and 65 is functionally illiterate. if we add the countries that would come before Brazil in the HDI list to the GDI list. followed by Canada. the United States has the worst human poverty index among the rich countries. NOTE: Due to the lack of data from developing countries. only one position below its position in the HDI ranking. which ranked 17th. France. The UNDP notes that Sweden. Ireland. As well as in the HDI list. Developed countries: Despite having one of the highest per capita incomes in the world. which is the reference point for this group of countries). whereas in the United States this figure is over 20%.dhnet. Italy ranks 11th.
Equality between men and women is an important part of human progress. The GDI is simply the HDI discounted. coming before Norway. has. more adults who are functionally literate and fewer living in poverty. as the HDI ranking has 177 countries.HDI + HPI + GDI + GEM 2
The better the position in this ranking. reflecting economic independence. It verifies the number of seats in parliament held by women.6%. High income does not ensure gender equality: when it comes to GEM. while countries in the Arabian region are among those with the lowest ranking. United Kingdom. Japan ranks below the Philippines and Botswana. Gender inequalities are measured in the Gender-related Development Index (GDI) and in the Gender Empowerment Measure (GEM). and female professionals and technical workers. just before Belarus (53) and Mauritius (54). and the United States. The Gender Empowerment Measure (GEM) evaluates progress in advancing women’s standing in political and economic forums. 6.br
The Gender-related Development Index (GDI) measures achievement in the same basic capabilities as the HDI does. That shows a virtual gender equality in the country (women live longer and have more education. senior officials and managers. the lower the human poverty presented by the country or territory. despite a lower per capita income than the United States. but lower income reduces living conditions for them). Norway tops the GDI list and Niger is at the bottom.org. However. Denmark. Finland. but this is neither reflected in the Human Development Index nor in the Human Poverty Index. for gender inequality. The greater the gender disparity in basic capabilities. Luxembourg. and right after Romania (51) and Malaysia (50). Belgium. Spain and Japan. The result of the study shows that Sweden is the country that has evolved the most in this aspect. the lower a country’s GDI compared with its HDI. Germany. or adjusted downwards. The nordic countries and the Netherlands top the GEM.
2 HDI + HPI + GDI + GEM
TECHNICAL NOTE 1 CALCULATING THE HUMAN DEVELOPMENT INDICES The diagrams here summarize how the five human development indices used in the Human Development Report are constructed. senior officials and managers Female and male shares of professional and technical positions Power over economic resources Female and male estimated earned income
EQUALLY DISTRIBUTED EQUIVALENT PERCENTAGE (EDEP)
EDEP for parliamentary representatition
EDEP for economic participation
EDEP for income
Gender empowerment measure (GEM)
A long and healthy life Life expectancy at birth
Knowledge Adult literacy rate Adult literacy index Gross enrolment ratio (GER) GER index
A decent standard of living GDP per capita (PPP US$)
Life expectancy index
Human development index (HDI) HpI-1
DIMENSION A long and healthy life Probality at birth of not surviving to age 40 Knowledge Adult iliteracy rate A decent standard of living Percentage of population not using an improved water source Percentage of children under weight-for-age
Deprivation in a decent standard of living
Human poverty index for developing countries (HPI-1) HpI-2
DIMENSION A long and healthy life Probality at birth of not surviving to age 60 A decent standard of living Percentage of people living below the poverty line Social exclusion Long-term unemployment rate
Knowledge Percentage of adults lacking functional literacy skills
Human poverty index for selected OECD countries (HPI-2) gdI
DIMENSION A long and healthy life Female life expectancy at birth Female life expectancy index Male life expectancy at birth Male life expectancy index Knowledge Female adult literacy rate Female GER Female education index Male adult literacy rate Male GER A decent standard of living Female estimated earned income Male estimated earned income
Male education index
Female income index
Male income index
EQUALLY DISTRIBUTED INDEX
Equaly distributed life expectancy index
Equally distributed education index
Equaly distributed income index
Gender-related development index (GDI) geM
DIMENSION Political participation and decision-making Female and male shares of parliamentary seats Economic participation and decision-making Female and male shares of positions as legislators. highlighting both their similarities and their differences. The text on the following pages provides a detailed explanation.
so that individual efforts can benefit from each other and that collectively these efforts can more strongly impact on the international development agenda. Coinciding with the coronation of the 5th King of Bhutan.
1. Psychological wellbeing 2. they can take different weights when calculating the overall measurement. in November 2008.GNH
gNH – gross National Happiness the centre for bhutan studies
couNtrY Bhutan wHat It IS GNH indicators serve as evaluative tools to track developmental progress over time. political changes in Bhutan is the fulfillment of GNH. Education 7. His
Majesty King Khesar underlined that the ultimate goal for social. who is the author of GNH. Within each dimension. GNH should become a serious arbitrator of public policies and plans. His Majesty Jigme Khesar Namgyel Wangchuck. orIgIN “Gross National Happiness is more important than Gross Domestic Product” was coined by His Majesty the 4th King of Bhutan – Jigme Singye Wangchuck HM – (in the 1970s). The Gross National Happiness index is generated to reflect the happiness and general well-being of the Bhutanese population more accurately and profoundly than a monetary measure. Finally. GNH indicators as targets display a common sense of purpose. the GNH index was developed by the Centre for Bhutan Studies. a non-aligned and non-profit research institution based in Thimphu. but since each dimension has a different number of indicators. The GNH takes what is known as the ‘union’ approach to identification in the literature on multidimensional measurement. Community vitality 4. How do we identify who is happy? The Bhutanese understandings of happiness are much broader than those that are referred to as “happiness” in the Western literature. PSYCHOLOGICAL WELLBEING INDICATORS 1 General health questionnaire 2 Frequency of prayer recitation 3 Frequency of meditation 4 Taking account of karma in daily life 5 Frequency of feeling of selfishness 6 Frequency of feeling of jealousy 7 Frequency of feeling of calmness 8 Frequency of feeling of compassion
. Time use 3. The nine dimensions are equally weighted. Health 6. The nine dimensions are:
1. coNteNt The GNH comprises 72 indicators that cover nine dimensions considered as the main components of happiness and wellbeing in Bhutan. Living standards 9. Bhutan obJectIVe GIH aims to connect the international efforts which are taking place in the field of developing alternative development indicators. the indicators are equally weighted. In December 2006 he proclaimed that fulfilling the vision of GNH would be one of the four main responsibilities of his reign. human economics and happiness psychology. the Royal Government of Bhutan has adopted the GNH index. A person who has achieved sufficiency in all 9 dimensions is considered happy. offering us direction to the programs and policies which are coherent with the values of GNH. economic. The measure will inform both the Bhutanese people and the wider world about the current levels of human fulfillment in Bhutan and how these vary across districts and across time. and will also inform government policy. Culture 5. Good governance
In this perspective ‘happiness’ comprises having sufficient achievements in each of the nine dimensions. The constitution of Bhutan describes the state and the government as having responsibilities to pursue GNH. Ecology 8.
• Aggregation: The second step is to aggregate to the data of the population a decomposable measure that is sensitive to the ‘depth’ as well as ‘severity’ of achievements. it is time to calculate the number of people who have
. sex. ECOLOGY INDICATORS 1 Pollution of rivers 2 Soil erosion 3 Method of waste disposal 4 Names and species of plants and animals 5 Tree plantations around your farm or house 3. CULTURAL INDICATORS 1 Speaking first language 2 Frequency of playing traditional games 3 Zorig chusum skills 4 Teaching children importance of discipline 5 How important is it for children to learn to be impartial towards rich. 6 Knowledge of mask and other dances performed in tshechus 7 Importance of reciprocity as a life principle 8 Attitude towards killing 9 Attitude towards stealing 10 Attitude towards lying 11 Attitude towards sexual misconduct 12 No. GOOD GOVERNANCE INDICATORS 1 Performance of central government in reducing income gap 2 Performance of central government in fighting corruption 3 Right to freedom of speech and opinion 4 Non-discrimination on the basis of race.TIME USE INDICATORS 1 Total working hours 2 Sleep hours 8. HEALTH INDICATORS 1 Self reported health status 2 Long term disability 3 Number of healthy days in the past 30 days 4 Body Mass Index 5 Knowledge of transmission of HIV/AIDS virus 6 Duration for a child to be breast fed only 7 Walking distance to health care center 4. religion. DUCATION INDICATORS 1 Level of education 2 Literacy rate 3 Ability to understand Lozey (Dzongkha language) 4 Historical literacy (Knowledge on local legend and folk stories) 5. politics or other status 5 Trust in central ministries 6 Trust in dzongkhag administration1 7 Trust in media
(1) Wangdue Phodrang. etc. The fact that it may be difficult to set an exact cutoff should not obscure the reasonableness of setting some sufficiency cutoff. Haa. poor. Pemagatshel. Samdrup Jongkhat. Zhemgang.3
9 Frequency of feeling of generosity 10 Frequency of feeling of frustration 11 Occurrence of suicidal thought 2. Thimphu.
Step bY Step The Gross National Happiness Index (GNH) is constructed in 2 steps: identification and aggregation. of days spent in a year attending community festivals 6. LIVING STANDARDS INDICATORS 1 Household income 2 Income sufficiency to meet everyday needs 3 Food insecurity 4 House ownership 5 Room ratio 6 Purchase of second hand clothes
7 Difficulty in contributing to community festivals 8 Postponement of urgent repairs and maintenance of house 7. Samtse.
Having calculated the indices in the nine dimensions. of days volunteered 15 Amount of donation in cash value 16 Availability of social support 9. Tsirang. Dagana. Gasa and Tashigang. This is done by applying a sufficiency cutoff to each dimension. language. COMMUNITY VITALITY INDICATORS 1 Sense of trust in neighbors 2 Neighbors helping each other in the community 3 Labor exchange with community members 4 Socializing with friends 5 Members of your family really care about each other 6 You wish you were not part of your family 7 Members of your family argue too much 8 There is a lot of understanding in your family 9 Your family is a real source of comfort to you 10 No. Tashi Yangste. different status.
• Identification: The first step is to define whether each household has attained sufficiency in each of the nine dimensions. of relatives living in the same community 11 Victim of crime 12 Feelings of safety from human harm 13 Sense of enmity in the community 14 No.
www. USA and the Netherlands • Social Venture Network Asia. GIH presents a radically different development paradigm. The GNH can be used as an instrument of policy. Redefining Progress & Implementing New Indicators on Sustainable Development.grossinternationalhappiness. to identify whether the gap below
the sufficiency cutoff is deepening or narrowing across time. the Netherlands • The Government of Mongolia • The Values Center. an international project on research and dialogue aimed at developing policy and indicators focused on true values. Canada • New Economics Foundation. which account for environmental and social values. seminars. GIH aims to develop more appropriate and inclusive indicators which truly measure the quality of life within nations and organizations. 2004 in Bhutan. by occupation. and the least happy are Gasa and Tashigang. The GIH Project is a collaboration by the following institutions: • Bhutan Sustainable Development Secretariat (SDS) and Center of Bhutan Studies. Step bY Step The GIH Project is guided by a select group of experts. to see how shortfalls in GNH vary across disaggregated levels. • by dimension.grossinternationalhappiness. • Out of the nine dimensions. while collecting international research and practices around sustainable development indicators.grossinternationalhappiness. GPI Atlantic.. USA • Society for Ecology and Culture. obJectIVe GIH aims to connect the international efforts which are taking place in the field of developing alternative development indicators. followed by conferences in Mongolia (July 2004) and the Netherlands (2005).
Methodology > http://grossnationalhappiness. researches and publications around the world.GNH
not reached cutoff in each indicator. Bhutan • Spirit in Business. yet it also transcends them by including values reflecting general well-being over a longer time horizon.org Book: First GNH Conference in Bhutan This seminar is the first national initiative on exchanging ideas deriving from various areas and sectors. This information reveals immediately in what dimensions of life shortfalls from sufficiency are most acute. coNteNt The GIH Project consists of a series of conferences. by age group etc.aspx reSultS Here are some of the conclusions of GNH in Bhutan:
• Men are usually happier than women. A possible GNH Index could become the next level of innovation of indices. monitoring GNH decomposition to decrease any dimension. The concept of GNH is meant to incorporate these values. It is compared:
• in different districts surveyed. The first meeting will be held in Bhutan (February 2004). Thailand • ICONS. India • Genuine Progress Indicators.org
tIp: tHe groSS INterNatIoNal HappINeSS proJect (“gIH”)
wHat It IS The Gross International Happiness Project (‘GIH’) is based on the insight that conventional development concepts such as GNP and Per Capita Income do not properly reflect the general well-being of the inhabitants of a nation. held February 18-20. but one that holds a promise for achieving real sustainability. if necessary. orIgIN GIH is inspired by the concept of Gross National Happiness (GNH) proposed by the King of Bhutan. This number shows the percentage contribution to the lack of happiness. In order to develop real progress and sustainability and to effectively combat trends which compromise the planet’s natural and human ecosystems.org/downloads/Book-GNH-I-1.doc
. Rooted in Buddhist philosophy and values. The GIH Project draws on the best practices of the growing number of countries and companies that have started to implement sustainability and corporate social responsibility. Brazil • Inner Asia Center for Sustainable Development. sustainable development and well-being for nations and organizations.
www. UK reFerêNcIa www. divided by the number of deprivations pointed out by the population. • across time to see if GNH is decreasing or increasing after we conduct future surveys. “time use” and “good governance” had the higher frequency. and can capture a great deal of interconnected information. improving upon those measuring environmental and social values.com/ screeningTools/screeningTools. • severity of deprivations. • by gender.pdf Report on the GNH Conference. • Among the 12 Dzonkhags. human economics and happiness psychology. UK and Ladakh. the happiest are Wangdue Phodrang and Thimphu. www. forming a Task Force.grossinternationalhappiness.org/downloads/GIH_report_18-2-04. which puts the well-being of individuals on top of the national development agenda. so that individual efforts can benefit from each other and that collectively these efforts can more strongly impact on the international development agenda.
Employment and work (24 indicators broken into four categories) 2. Health (5 indicators)
• rate of health expenditure borne by families. and. • income and tax inequalities index. wHat It IS Combined indicator of inequalities and poverty. • consumption index. obJectIVe Encompassing several dimensions of inequalities and poverty. and • poverty index. • property rental price index to consumer price index.
couNtrY France. JUSTICE INDEX • rate of imprisonment. building one indicator for each dimension (being this indicator itself a result of several indicators) so that the evolution of corresponding inequalities can be monitored along time. consolidating (or aggregating) these indicators so as to reach a global index. and • professional relations index. • inequalities in the French language level. coNteNt There are six dimensions (58 indicators): 1. Housing (5 indicators) 6. and • number of legal claims of landlords for not receiving the rents. EDUCATION INDEX • access to course completion. orIgIN Disclosed in 2002 by the Network of Warning about Inequality and Poverty.4 BIP 40
bip 40 – Inequity and poverty barometer
Network of Warning about Inequality and Poverty
4. finally. • inequalities in the Mathematics level. and • rate of grant of refugee status
. • life expectancy gap between executives and workers. Justice (4 indicators)
EMPLOYMENT INDEX • working conditions index. Education (5 indicators) 5. • rate of pre-trial detention. • dropout. and • proportion of children of executives to children of workers in college entrance exams. • percentage of prisoners convicted to over 5 year of imprisonment. • rate of health expenditure in the GDP. HOUSING INDEX • weight of housing expenditure in families’ overall consumption. • unemployment index. INCOME INDEX • wages index. HEALTH INDEX • life expectancy at birth. Income (15 indicators broken into four categories) 3. • rate of housing allowance in housing overall expenditure. • precariousness index. • percentage of housing finance. and • disparity of regional medical expenses.
bip40.50 4. whereas the other indices are given one-eighth weight. The second step consists of giving different weights to the six dimensions.bip40. and continued to increase in 2004. inequalities and poverty increased in France in 2004. After a reduction in 2000 and 2001.00 3. especially after the summer of 2003. An increase in the index will mean the inequality or poverty has become worse.BIP 40 4 1. Bip 40 gives more importance to income and employment indices.
Step bY Step The indicator is built in two steps. The first step consists of grading each indicator 0-10.00 4. whereas the highest value is given a 10. year in which inequalities have reached its peak in 20 years reFerêNcIa
bIp 40 evolution of the Inequity and poverty barometer as of 1983 6.50 5.00 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
reSultS For the third year straight. inequalities rose again in 2002. The lowest value observed in the period is given a 0. The weighted addition of these indicators produces an index that translates the trend in the evolution of inequalities and poverty observed year on year. It is possible to calculate your Bip 40 by making your own weighting system.org/bip40_2003. each of them with one-fourth weight.
wHat It IS The Balance Sheet of Nations is a methodology for financial reporting of countries or regions through the inquired balance sheet method and the basic accounting equation: assets minus liabilities equals equity. Japan (4. and compliance with the Kyoto Protocol. India (0. Assets are monetarily assessed (US$). China (0. Business Administration and Accountancy. illiteracy. and the USP Energy and Nuclear Research Institute (IPEN/USP). regional and local actions related to environmental preservation mechanisms. CO2 residual balance: Forest carbon stocks contained in the soil biomass and organic compounds represent deposits of carbon avoided in the atmosphere and have been converted into Million Tons of Carbon (MtC). according to the areas of biomes of each country and respective stock levels suggested by IPCC (2000).purchasing power parity (GDP-ppp).5). coNteNt The Environmental Balance Sheet of each country has its assets represented by its forest resources. Germany (4. it is critical that poor countries surpass the 1 TOE level (GOLDEMBERG. covering deforestation. Russia (3. Due to the limitations of this economic growth measurement.5 BCN
balance Sheet of Nations
liabilities correspond to environmental preservation ones. especially CO2 ones. and the level of economic and social development of the countries. and the equity means the residual part designed to reestablish the natural reservations for the current and future generations. to generate the same amount of $ in a given country. USA (8. orIgIN The model was created by a group formed by researchers of the Department of Accounting and Actuaries of the University of São Paulo School of Economics.2).45). consisting of physical (forest resources) and financial data.05). It is unevenly distributed. infant mortality. The purchasing power parity (ppp) method is adopted by the UN and the World Bank and allows for a better comparability between countries. and fertility rates are high. CO2 emissions and environmental degradation are uneven. the Yoko Civilization Research Institute (YCRI). It shows superavit or deficit scenarios and allows for individual and collective reflections on global.15). adopting as opportunity cost the gross domestic product .69 TOE).32).66). The
. whereas life expectancy and the human development index (HDI) are low. and. adjusted by the average energy consumption in tons of oil equivalent (TOE). Average energy consumption (in TOE): It is directly related to GHG emissions. Therefore. according to the various combinations of IPCC SRES’s A1B1 and A2B2 scenarios for 2050. calculated based on the expected cost of carbon sequestration and on the scenarios forecast in IPCC’s Special Report on Emission Scenarios (SRES). therefore was defined as assets assessment parameter.09). The rationale for the criteria adopted is the following: GDP-ppp: Represents the monetary value of all final goods and services produced within a nation. Equity is measured by the residual balance of carbon (CO2) emissions minus sequestration for each country or region. It means that. the USP Environmental Science Graduate Program (PROCAM/ USP). as follows: the world average (1. obJectIVe The Balance Sheet of Nations aims to unveil the burden that each citizen will have to bear as a result of the global climate change and global warming due to increased greenhouse gas (GHG) concentration. 2007). The residual balance is determined by subtracting the amount of accumulated carbon emissions. despite the urgent need for reducing energy consumption. Liabilities are determined by equivalence. its adjustment by energy consumption was suggested. Bangladesh (0. In countries where this consumption is lower than one TOE. use of technologies.
carbon stock levels. an unsecured environmental liability equivalent to $ 2. Russia.br Rafael Feltran-Barbieri (PROCAM/USP) – rafaelfb@usp. was in deficit.br Francisco Carlos B. This pioneering study of USP was presented during the award ceremony of the 2008 ECO Award. Brazil and Russia will play a key role since they should present ‘environmental superavit’. Measuring the Environmental Assets: determining the per capita GDP-ppp by the number of inhabitants and dividing it by the average energy consumption (in TOE).br
. and the main economic blocs. which account for 68% of the GDP. that is. and cost suggested by the UN of the avoided carbon.com. 50% of the population and 48% of the energy consumption. Nelson Carvalho (FEA/USP) – lnelson@usp. 2. deriving from this study. an advantage primarily conditioned to urgent actions against the current deforestation. 4.BCN
Step bY Step The basic procedures to determine the Balance Sheet of Nations of a given country or region are the following:
1. Finally.br Alexandre Foschine (YCRI) – afoschine@uol. Germany and Japan). as part of the lecture given by Minister Roberto Mangabeira Unger on ‘Myths and realities of the Amazon’. promoted by the American Chamber of Commerce for Brazil. India and China) and developed countries of America.6 billion inhabitants.
reSultS The results of this model show the per capita environmental situation for each country or region studied in the form of an ‘Environmental Balance Sheet’.br L. The consolidated balance sheet for the planet. the balance in MtC is converted into $ using the cost suggested in the UN reports. forest area of biomass and organic compounds. Collecting data: gross domestic product (GDP ppp). number of inhabitants. In this insolvent scenario. Santos (IPEN/USP) – fcarlos@usp. Europe and Asia (USA. 3. average annual energy consumption (TOE). Measuring the Environmental Equity: determining the residual carbon balance obtained by subtracting the estimated carbon emissions in the scenarios created by IPCC from the balance in stock (forest area times the carbon sequestration rate).3 thousand per year for each of the 6. Measuring the Environmental Liabilities: obtained by equivalence. It covered a sample of seven countries of BRIC (Brazil. tHe uSp teaM
José Roberto Kassai (FEA/USP and YCRI) – jrkassai@usp. with a negative net equity.br Yara Cintra (FEA/USP) – yaracintra@usp.
indicating a situation that varies from bad to good in relation to sustainability. It provides clear. mainly those linked with The World Conservation Union (IUCN) and The International Development Research Centre (IDRC). unemployment. as well as the position of indicators can be outlined within this scale. coNteNt It is the only performance scale designed to measure human and ecosystem well-being together without submerging one in the other. land. air. all using the same general scale. obJectIVe It is a systems sustainability measurement model. health. The definition of indicators is based on some key principles such as the consideration that people are part of the ecosystem and. if any. people and ecosystems must be treated jointly and equally. and that raising relevant issues within a context is critical and must be done by a group of people linked with this context (community engagement) and that are willing to collectively ask and learn. education.6
barometer of Sustainability
The World Conservation Union (IUCN) e The International Development Research Centre (IDRC)
level. which consistently combines various social and environmental indicators. It is a function of water. income. etc. and major strengths and weaknesses. Prescott-Allen is one of the main researchers involved in the development of this tool. Prescott-Allen believes it is a logical way to turn overall concepts of sustainable development. education. decision-makers and people involved with sustainable development-related issues at any system’s
. using performance scales. crime. The ecosystem wellbeing index identifies trends of the ecological function along time. economy. orIgIN Developed by several specialists. Its two axes – one for human well-being. as well as human business and activities. according to its authors. The Barometer of Sustainability is designed. The result is a set of performance measures. since the lack of knowledge of people-ecosystems relations is a well-known fact. such as. thus enabling the combination and joint use of indicators. violence. Step bY Step In order to calculate or measure progress towards sustainability. the rate and direction of change. the other for ecosystem well-being – enable socioeconomic and environmental indicators to be combined independently.. The tool combines a series of environmental and social indicators (selected by the community). employment. values are calculated for the social wellbeing and ecosphere well-being. for instance: water quality. The human wellbeing index represents the overall level of well-being of society and is a function of well-being concerning the individual. the overall progress towards sustainability. Good or fair are defined as one end of the scale and bad or poor as the other end. disclosing an assessment of the state of people and the environment through a scale of indices. to governmental and non-governmental agencies. A point defined by these two axes within the two-dimensional graph shows a mea-
couNtrY Canada. It also compares human and ecosystem well-being within societies. therefore. wHat It IS A methodology for assessing and communicating progress toward sustainable societies. crime. keeping them separate to allow analysis of people-ecosystem interactions. from local to global. biodiversity and resource use. rapidly communicated pictures of the condition of the environment. when analyzed in combination. the condition of the people and. as well as the sub-indices. It is a two-dimensional graph where human and ecosystem well-being states are placed in relative scales ranging from 0 to 100. well-being and progress into a set of real human and ecological conditions. poverty.
Publication Services Unit. Insofar as it can be linked to governance. The scale used in the Barometer of Sustainability for each of the axes ranges from 0 to 100. The intersection point of these indices. the balance of qualitative and quantitative data. represented inside the graph. portrays the system’s sustainability. UK
SuMMINg INdIcatorS upoN tHe IucN baroMeter oF SuStaINabIlItY HIerarcHY
System Subsystem Category Criterion Indicator
. an assessment of the ability of the Barometer to become an important tool in community mobilization based on sound evidence will be assessed. It will address key questions of how the Barometer leads to action. and how a changing situation is reflected in an evolving instrument. an approach to assessing Progress toward Sustainability: Tools and Training Series. IUCN . and the balance of the human health condition versus the ecosystem condition. R. The trends may represent progress or not of a certain city.
O BAROMETER OF SUSTAINABILITY
H 80 u M a N 60
30 55 36 45 40 55 42 43 56 43
w e 40 l l Poor b e 20 I Bad N g
Medium 40 60
Fonte: Prescott-allen. Each sector corresponds to a color. reSultS There is a need to test the Barometer as a prototype measurement instrument in ecosystem health under very different cultural and ecological conditions. state or nation.idrc. 2001
www. This provides for dialogue between communities and public services. plus its baseline equivalent to 0.iucn. 2001. Nepal.BS
sure of sustainability or unsustainability of the system. It will also address the optimization of information input. Uganda. what is behind the reading.ca http://www. Cambridge CB 3 ODL. The Wellbeing of Nations: a countryby-country index of quality of life and the environment. The graphic representation of the results obtained from the use of this tool are shown in the Figure. This proposal will field test the Barometer in at least one district within four selected countries: Costa Rica.org/ Prescott-Allen. as shown by the figure above. and Mexico. and. Washington: Island Press. It is divided into five sectors of 20 points each. is now operational in 37 countries worldwide. consisting of 100 points and a 0 baseline. The testing ground involves a process known as sentinel community surveillance (SCS). C Huntington Road. The indices calculated for each of the system’s dimensions are plotted in the graph from their respective axes. with the IDRC support. 219. which represents a combination of quantitative and qualitative measurement techniques. which varies from red to green.
positive (+). erosion) water • Water access • Water supply • Water quantity • Water quality • Drainage pattern
air • Air quality
resouce use • Land use • Conservation of natural resouce • Resouce use
Human needs • Diverse outputs (productivity) • Food security • Yeld (efficiency) • Risk • Income or income distribution • Capital requirements • Economic return. or neutral (n) impact on the listed criteria. profit margin • Labour requirements • Maintenance / learning requirements • Self-reliance (uses local materials?) • Control over output and process • Living conditions (e.. macro policy) ?
equity Who benefits? • women • Girls • Old • Poor • Illiterate • Men • Boys • Young • Rich • Literate
. wood. this could be a negative (-) impact. land tenure. preferences. shelter) • Human healt (e. and wisdom? • Does the system or technology build on local practices and on existing capacity? • Does the system or technology supported by other factors (e.g.g. grazing lands) • Community cultural landmarks • Community recreational activities • Land tenure Questions (Yes = positive impact) • Does the system or technology respond to problems and constrains identifed by villagers? • Were local people involved in all stages of the project planning / development? • Is the system or technology supported by the local power structure? • Is the system or technology compatible with current local practices. water..g. sanitation..g. fuel) Social self-determination • Family structure • Gender roles • Popular growth • Education • Local culture • The rights of local communities • Community health • Local economy / capital flow • Local (re)investment • Community infrastructure (e. toxicity) • energy supply (e. land • Wildlife habitat • Vegetation cover • Soil texture • Nutrient recycling • Soil fertility • Soil structure • Soil or slope stability (e..6
a ScreeNINg ForM For SuStaINabIlItY
Indicate whether the system or technology has a negative (-).g.g.g.. roads) • Community harvesting • Access to community resources (e.
biodiversity • Wildlife diversity • Rare or endangered species • Species abundance • Wild plant diversity • Crop diversity • Introduces exotic species? If yes..
www. The 12 Indicators are:
• Employment • Energy • Environment • Health • Human Rights • Income • Infrastructure • National Security • Public Safety • Re-Creation • Shelter
couNtrY USA wHat It IS It is an index to measure the quality of life in nations that takes into account social. It was decided not to aggregate data so as to turn them into a monetary coefficient that would measure the value of ecological assets.calvertgroup. economic and environmental trends and results through a systems approach.” explains Hazel Henderson.calvert-henderson.com www. with a depth that would be unfeasible with classical indicators. it was not necessary to build new indicators or carry out new research: the study made use of existing data and selected the most reliable ones. For such purpose.CALVERT
calvert-Henderson Quality of life
coNteNt A systems approach is used to illustrate the dynamic state of our social. overall. orIgIN The Calvert-Henderson Quality of Life Indicators grew out of a relationship between an international futurist. The Indicators. a free and multidisciplinary methodology was chosen to present data in an ordinary format. reSultS For the first time the North-Americans have a tool to assess how and in which areas the country is improving (or worsening).com
. but not centered on a single figure. and nonprofit organizations who see the need for more practical and sophisticated metrics of societal conditions.”
Each of these specific areas is unfolded into more oneoff indicators that. Then these data were crossed according to the major axes of practical results expected by the population. manage to cover the universe of information necessary to develop a new way to conceive quality of life. are the result of an extensive six-year study by a multi-disciplinary group of practitioners and scholars from government agencies. for-profit firms. an asset management firm. “Our goal was to systematically measure and illuminate key aspects of quality of life. economic and environmental quality of life. and 12 scholars with expertise in quality of life dimensions. people can focus on the details of each field. businesses and the local officials engaged in debates about quality of life. obJectIVe Contributing to the worldwide effort to develop comprehensive statistics of national well-being that go beyond traditional macroeconomic indicators. first published in 2000 in book format. As a result. Hazel Henderson. “This study outlines statistical data trends. We hope it is an invaluable resource for citizens. Calvert Group. Instead.
obJectIVe It aims to:
• Visualize reality through indicators integrating various dimensions. and had a small increase to 51.br/dnabrasil/referencia.nepp. and measures its result based on seven social and economic dimensions (without disregarding the demographic dimensions of the Brazilian reality):
1. the (external) area of the forecast polygon resembles the shape of a circle. The comparison with forecasts to 2029 was made. this index was later changed to 47. in 2006. Social and environmental conditions
. the information was updated and most of it refers to 2003 data. • Compare the Brazilian reality with future expectations and the situation of other countries. of the same university. held in 2004.3%.8 DNA
the brazil dNa Index
Brazil DNA Institute
4. it kept this trend. one desirable and realistic scenario to be achieved in 2029 from the actual Brazilian situation portrayed by the 2002 information. orIgIN Brazil DNA Index is the result of a joint reflection on the Brazilian development carried out by the Brazil DNA Institute and the NEPP (University of Campinas Center for Public Policy Studies). Due to corrections in the indicators. Social cohesion
Step bY Step A geometric shape was defined to sum up the comparison of dimensions included in the study. longevity and education). are given a value above 1.4 percentage points separated the Brazil of 2004 from the Brazil the Institute’s board members forecast as plausible and rationally desirable. The participants of that first meeting were asked to forecast.nepp. Due to the amount of indicators. for each indicator.br 2004 Summary index = 46. Better scenarios. reFereNce
www. Health 6. • Measure the mobilization of public/private actors involved in development projects. based on forecasts made by participants of the meeting organized by the Brazil DNA Institute in October 2004.org. In its third update.
The ultimate objective of the Brazil DNA Index is to create a national mobilization around a project for social and economic development of the country. In 2005.6%. Education 5.8% out of the forecast 100%. In 2005.pdf
wHat It IS This index aims to measure the real progress and quality of life in the country as compared to an ideal scenario forecast for 2029.dnabrasil. Economic well-being 2. which was adopted to facilitate its graphic visualization.unicamp. Economic competition 3. In other words. if any. the index showed that Brazil was rating 46. the index improved a little. The set of points defined by the Brazilian indicators presented in 2004 and referring to the year 2002 had the shape of a polygon that can be compared to the forecasts made by the participants in the referred meeting.br/dnabrasil/sintese.pdf 2004 Full index (PDF file) www. Basic social protection 7. highlighting the problematic issues and setting parameters with the maximum seriousness and scientific orientation to guide the development of policies and the action of individual and institutional players. It was established with the help of participants in the Brazil DNA Institute of the first annual meeting. NEPP is supported by researchers of the Economics Institute (IE) and the Center of Studies on Population (NEPO). thus enabling the new relative scenario of Brazil to be visualized against the forecasts. to which was given value 1. 52.4%. reSultS In its first measurement.8% (PDF file) www. up to 49. coNteNt The Brazil DNA Index goes beyond the dimensions used by the HDI – Human Development Index (income.unicamp. Worse scenarios for the same Brazilian indicator are given a value below 1.
8 0. Economic Competitiveness
c.Female Potential Years of Life Lost – Male
dIMeNSIoNS aNd INdIcatorS Selected IN 2005
ECONOMIC WELL-BEING Per Capita Income and its Interregional Distribution Ratio of Women’s to Men’s Average Earnings Ratio of Black people’s to White people’s Earnings Formal Employment Rate ECONOMIC COMPETITIVENESS World Exports: Evolution of Brazil’s Share. Social Protection
Formal Employment Rate Ratio of Women’s to Men’s Earnings Ratio of Black to White Earnings Exports Share Medium-High Technology and High Technology Share Appropriate Sewage Systems
Per Capita Health Care Funding
Social Security Coverage – 65 Mortality rates due to Cardiovascular Disease – Female Mortality rates due to Cardiovascular Disease – Male Child Mortality
Appropriate Destination of Waste Sewage Treatment High School Schooling Rate High School Graduates at Expected Age
Student’s Performance at PISA Potential Years of Life Lost .3% The Brazil we are and the Brazil we would like to be
Per Capita Income Tax Justice Teenage Mothers (%) Income Distribution Inequality Homicide Rate for Men aged 15-24 Health Care Funding by Public Power (%)
1. Economic Well-being b. Education
e. Social and Environmental d. with Special Emphasis on Medium-High-Technology and HighTechnology Products or Sectors SOCIAL AND ENVIRONMENTAL CONDITIONS Appropriate Sewage Systems Appropriate Destination of Urban Waste Sewage Treatment EDUCATION High School Net Schooling Rate High School Graduates at Expected Age Student’s Performance at PISA – Programme for International Student Assessment
HEALTH Potential Years of Life Lost (APVP) Child Mortality Mortality rates due to Cardiovascular Disease and Cerebrovascular Accidents (CVAs) BASIC SOCIAL PROTECTION Social Security Coverage for People over 65 Health Care Funding SOCIAL COHESION Interpersonal Income Distribution Homicide Rate for Men aged 15-24 Percentage of Teenage Mothers Tax Justice
Brazil DNA Index: 49.0 0. Social Cohesion
.6 0. Health F.
g.Female Potential Years of Life Lost – Male
2004 = 47.4
0.3% O What the “Actual Brazil” wants
Per Capita Income Tax Justice Teenage Mothers (%) Income Distribution Inequality Homicide Rate for Men aged 15-24
1. Social Cohesion
Actual Brazil DNA Index: 55.6 0.Female
Student’s Performance at PISA Potential Years of Life Lost – Male
a. Economic Competitiveness
Medium-High Technology and High Technology Share Appropriate Sewage Systems
Social Security Coverage – 65 Mortality rates due to Cardiovascular Disease – Female Mortality rates due to Cardiovascular Disease – Male Child Mortality
b B eE c C
Appropriate Destination of Waste Sewage Treatment High School Schooling Rate High School Graduates at Expected Age
Potential Years of Life Lost . Social and Environmental d.0
Formal Employment Rate Ratio of Women’s to Men’s Earnings Ratio of Black to White Earnings Exports Share
Health Care Funding by Public Power (%)
g dDF F
2005 = 49. Health F.6
Brazil DNA Index 2004/2005 Comparison between the 2004 Index (gray) and the 2005 Index (black)
Per Capita Income Tax Justice Teenage Mothers (%) Income Distribution Inequality Homicide Rate for Men aged 15-24 Health Care Funding by Public Power (%)
Formal Employment Rate Ratio of Women’s to Men’s Earnings Ratio of Black to White Earnings Exports Share Medium-High Technology and High Technology Share Appropriate Sewage Systems
Per Capita Health Care Funding
Social Security Coverage – 65 Mortality rates due to Cardiovascular Disease – Female Mortality rates due to Cardiovascular Disease – Male Child Mortality
Appropriate Destination of Waste Sewage Treatment High School Schooling Rate High School Graduates at Expected Age
Student’s Performance at PISA Potential Years of Life Lost . Education
e.8 0. Economic Well-being b.
the group focused on linking its work with the sustainability indicator initiative of the Bellagio Forum for Sustainable Development (one of the main sponsors of the work). social and environmental performance). environmental and social indicators that visually displays country-specific advances in these three dimensions toward (or away from) sustainability by using the metaphor of a vehicle’s instrument panel. The Consultative Group on Sustainable Development Indicators developed in 1998 an aggregated conceptual system to supply information on the direction of development and its sustainability level. orIgIN It was developed by the Consultative Group on Sustainable Development Indicators. policy-makers and the general public.DS
dashboard of Sustainability
International Institute for Sustainable Development – IISD
mental. it displays country-specific assessments of economic.
couNtrIeS Canada and otherss wHat It IS It is an aggregated index of several economic. an international team of sustainability experts. As a contribution to the World Summit on Sustainable Development in 2002. social and economic data. In 1999. the economic area. the Policy Performance Index. the media. 2 In case the objective is to assess the decision-making process. IISD expanded the Dashboard to provide users with the functionality to compare 10 years of environ-
1 An additional function calculates the average of displays (economic. The new edition promotes the Millennium Development Goals (MDGs) indicators — especially for developing countries. It is suitable for decision-makers and others interested in sustainable development. as it is an online tool designed to be understood by experts. As for the indicator performance. it is measured by a color code ranging from deep red to deep green. the framework was made functional for the comparison of countries by using 46 indicators to compose the three main clusters: the environmental area. PPI is calculated. with 18 indicators. which covers more than 100 countries. These indicators comprise the database of the Consultative Group on Sustainable Development Indicators. and the social area. environmental. The relevance of a certain indicator is shown by the size it takes against others in the visual representation of the corresponding system. obJectIVe Using the metaphor of a vehicle’s instrument panel. with 15 indicators. with 13 indicators. The Dashboard of Sustainability has garnered international attention and displays the United Nations’ core set of sustainability indicators. so that a global sustainability index or Sustainable Development Index –SDI can be reached. As a result of this integration. The latest addition to the collection of Dashboard presentations is the Millennium Development Goals Dashboard (MDGs).
. Each of the indicators within the sustainability scopes or dimensions proposed by the system can be assessed both in terms of sustainability1 and decision-making process2 from two main elements: relevance and performance. These indicators help define Poverty Reduction Strategies and monitor the achievement of the MDGs coNteNt Initially. this group created the dashboard metaphor that resulted in the model named Dashboard of Sustainability. the Compass of Sustainability. social and institutional performance toward (or away from) sustainability. coordinated by International Institute for Sustainable Development – IISD (Canada).
the economy. 2000. and there is a gauge showing the amount remaining of certain criti-
cal stocks. descriptive measures and guiding signs. critical”). A graph seeks to reflect the change in that performance over time.
Figura 1 . according to the authors. and the social well-being of a nation. using a color code ranging from deep red (“critical situation”) to deep green (“excellent”). turning this concept into numerical data. all indicators within each of the scopes have equal weight. Currently. In this sense.O Dashboard of Sustainability
u S t e N ta b all S IlI
oM VIr eN
Ial HealtH Soc
c perForM oM I aN oN ce c
C A P I TA L S
enviromental alerts water
Social alerts poverty
economic alerts Inflation
Fonte: adaptado de Hardi & Zdan. A typical Dashboard view – a map of Africa. The current performance of the system is communicated using a simple color code from deep green (“very good”) to deep yellow (“acceptable”) to red (“very bad.9
A recent graphic representation of the Dashboard of Sustainability system is built through a visual dashboard with three displays corresponding to three clusters of indicators that measure the status of the environment.
. the indicators tend to facilitate the process of communication of sustainable development.
Step bY Step The Dashboard of Sustainability is a free. but it can also be applied for urban and regional indices.24 453 points
Gender equality and empowerment of women Women employment Female literacy
Libyan Arab Jamahiriya
Cape Verde Senegal
Cape Verde 93% ages 15 . changing the number and weighting of variables at its own discretion. reSultS The tool is meant to be used for comparison between
countries. 52 .htm
.. 71 67 .24 653 points
Burkina Faso Benin
EPH UPE GEW ChM IMH HMD EES GPD O
Women in parliament Girls to boys in education
Ethiopia Central African Republic Ghana Togo Cameroon Ivory Coast Kenia Equatorial Guinea Republic Uganda Congo Rwanda Gabon São Tome and Principe Burundi Congo.iisd.. 104 102 .. Rep. enabling each individual.24.. create panels on measurement. These indicators comprise the database of the Consultative Group on Sustainable Development Indicators.it/envind/dashbrds. which covers more than 100 countries. 62 . advocacy group. as well as building one or more national combined indicators. to consult numerous data. This tool links a free software package to a flexible international database.iisd.DS
Indicator: ratio of literate females to males
Source world bank
Women in parliament
Girls to boys in education
Morocco 78% ages 15 . 78 76 . etc. association.org/cgsdi/dashboard.. Dem. 86 85 .asp Download the Dashboard esl. reFereNce
www. 44 no data
Madagascar 92% ages 15 .jrc. non-commercial software package....org/cgsdi/ www.24 Tanzania Liberia
119 109 . % ages 15 . 95
Comoros Angola Zambia Namibia Zimbabwe Botswana Malawi Mayotle
Gender equality and empowerment of women Women employment Female literacy
It illustrates who uses how much of which ecological resources. These accounts help individuals. cities. “Global Footprint Network 2005
couNtrY USA wHat It IS It is a tool to manage the use of natural resources by individuals. Global Footprint Network. Global Footprint Network is committed to fostering a world where all people have the opportunity to live satisfying lives within the means of Earth’s ecological capacity. Global Footprint accounts over the last forty years indicate a twenty-five year growth trend beyond the amount of renewable biocapacity. It measures the extent to which humanity is using nature’s resources faster than they can regenerate. and track progress toward sustainability. Footprints vary widely by region. Development and standardization of this accounting method are currently coordinated by Global Footprint Network. In short. as well as the Footprint of Products. publISHed StudIeS Among the most recent studies are “Europe 2005: The Ecological Footprint” and “Asia-Pacific 2005: The Ecological Footprint and Natural Wealth” (both in partnership with WWF). coNteNt This resource accounting tool measures the extent to which humanity is using nature’s resources faster than they can regenerate. The Committees are in the final stages of drafting the Certification process for Footprint assessments. and governments frame policies. and its 50 partner organizations. humanity’s Ecological Footprint appears to have breached ecological limits and is thus unsustainable. and recently released a report for Africa in partnership with Swiss Agency for Development and Cooperation. orIgIN Developed by the team of Mathis Wackernagel and William Rees at the University of British Columbia in 1993. Processes and Services. organizations. The Footprint of a population is the total amount of biologically productive land and water area that the population requires to produce the resources it consumes and absorb the waste it generates. using current technology. It also shows to what extent humans dominate the biosphere at the expense of wild species. with populations defined either geographically or socially. regardless of where they are located on the planet. the Ecological Footprint methodology has matured considerably over the past years. was issued in June of this year with focus on Sub-National Population studies. obJectIVe Ecological Footprint accounting measures the extent to which the ecological demand of human economies stays within or exceeds the capacity of the biosphere to supply goods and services. Keeping track of the compound effect of humanity’s consumption of natural resources and generation of waste is one key to achieving sustainability. Development of the next edition of Ecological Foot-
. Ecological Footprint Standards 2006. have published reports for Europe and Asia. when humanity’s Footprint exceeds the amount of renewable biocapacity. The first release of the Standards. nations and humanity as a whole. set targets. founded in 2003.10 EF
Mathis Wackernagel e William Rees da University of British Columbia
print Standards has started. with its partner WWF International. their Footprint is the sum of these areas. From a sustainability perspective. a draw down in natural capital is required and this is considered unsustainable. In this edition the Footprint Committees will expand the Standards to more specifically address organizational Footprints. Since people consume resources and ecological services from all over the world.
and humanity as a whole. Footprint Scenarios 14. Separation of Analytical Footprint Results from Normative or Values-based Interpretations. Online information – there are many studies available at www. the per capita productive area available was 1. 1. dividing the average annual consumption of that item by the measure of its productivity. Traceability to National Footprint Accounts 11.
10. Sub-National Population Calculations 4.EF 10
Annual Report” and “Africa’s Ecological Footprint: Human Well-Being and Ecological Capital” (in partnership with the Swiss Agency for Development and Cooperation). furniture…). Use of Non-Standard Elements in Footprint studies 8. The footprint is a rectangle. clothing. • National Footprint Accounts currently exist for over 150 countries in hectares and acres. Footprint Study Limitations 15. The results of studies in 150 countries have also been published. to ensure that project reports do not distort the intention nor misrepresent the limitations of the National Accounts. etc.org. Those goods and services include various categories. and the height represents the per capita consumption of resources. so that results are reproducible and comparable with other studies employing common boundary definitions. (Place holder for calculation methods: Not Released) 9.define requirements for calculating Footprint results. housing. paper.define requirements for reporting Footprint results. Glossary. organizations. The base is proportional to the number of inhabitants. Error Estimates (GUIDELINE)
II. nations. including: • Humanity’s Footprint 1961-2002 – Ecological Footprint accounts estimate how many Earths were needed to meet the resource requirements of humanity for each year since 1961. Communication Standards . leisure.3 hectares. regions. the area required for the production of each item is estimated. Step bY Step The Ecological Footprint can be applied at scales ranging from single products to households. • Guidelines are recommended practices which are not required for study certification. to ensure that Footprint calculations are conducted in a consistent manner.footprintnetwork. Explanation of Link between Sustainability and Footprint 16. • Standards are those elements that are required for
. when complete UN statistics became available. In other words. for each year from 1961 to 2002. By multiplying the base by the height. energy. Totaling the national Footprints of each country provides us with the global analysis. Communication style (GUIDELINE)
In order to calculate the Ecological Footprint it is necessary to estimate the consumption of goods and services and the production of residues by the population unit under study. cities.
Ecological Footprint Standards 2006 – The publication of standards used to measure the ecological footprint aimed at guaranteeing the scientific integrity of the methodology and to produce consistent and comparable data.
ECOLOGICAL FOOTPRINT ACCOUNTS AND THE CURRENT FIGURES:
I. Derivative Conversion Factors 6.
1. (Place holder for organizational and product studies: Not released) 5. Consistency of Components 7. Applications Standards . Citation of sources and description of methodologies 17. wood products (firewood. and its sum constitutes the Ecological Footprint. Global Footprint Network will establish a certification system based on these standards. This corresponds to an overdimensioning: we would require 120% of the Earth area
The Ecological Footprint Standards contain both compulsory Standards and voluntary Guidelines. Reference to Standards and Certifying Bodies 18. Consistency with National Footprint Accounts 2. 13. Afterwards. such as food.9 hectares and the per capita area able to provide for the resources consumed that year was 2. we get the consumption of resources of this population. This first release of the standards has two parts:
Footprint studies to be certified. Definitions and Versions 12. Definition of Study Boundaries 3. all standards (unless they are not applicable) must be met in order to qualify for certification. Each one of those areas is considered equivalent to a type of biologically productive area. transport. In 1999.
panda. The National Footprint and Biocapacity Accounts provide the basis for all Ecological Footprint analyses. are running ecological deficits.rprogress.org/livingplanet/lpr00/ecofoot. we move into what is termed ecological overshoot. which use extensive data sets largely from United Nations agencies. that is. reSultS Today. and the world as a whole.myfootprint. national Footprint accounts document the natural resources (e. the Ecological Footprint exceeds the regenerative capacity of the planet by 23%.. With over 4. cropland.
Source: www. available at www. the humanity is using 120% of the Earth’s capacity. most countries. Maintaining or increasing this gap will result in the exhaustion of the natural resources of the planet.
299 384 343 307 484
3. more than one year and three months are necessary for the Earth to regenerate what is used in a single year. forests and fisheries) available within the country as well as the country’s demand on these resources.europa.shtml www.org.g.eea.000 data points and 10.eu/highlights/Ann1132753060
Individual Footprint – a quiz (Ecological Footprint Quiz) on habits and attitudes.
TO CALCULATE YOUR ECOLOGICAL FOOTPRINT
12 – 10 –
North America Western Europe Central and Eastern Europe Middle East and Central Asia Latin America and the Caribbean Asian/Pacific Africa
Área units per person
8– 6– 4– 2– 0–
1 When humanity’s ecological resource demands exceed what nature can continually supply. This is an underestimated major threat that has not been properly addressed.
ecological Footprint by region.222
.org www. In other words. pasture.org/newprojects/ecolFoot. Information is presented in consistently formatted balance sheets. The world’s ecological deficit is equal to its ecological overshoot1.footprintnetwork.10 EF
to bear our lifestyle.000 calculations per country per year.
Productive Natural Resources. Note The EPI is not an update of the Environmental Sustainability Index (ESI). at the annual meeting of the World Economic Forum in January 2006. The 2006 EPI generates a number of policy conclusions.
couNtrY USA wHat It IS It is a method of quantifying and numerically scaling the environmental performance of a set of companies or countries. Water Resources. Developing countries must confront the additional challenge of managing environmental health stresses such as water-borne diseases and indoor air pollution. demonstrating that policy choices also affect performance.EPI 11
environmental performance Index . but rather a new effort to gauge countries against a set of 16 specific environmental policy targets. eNVIroNMeNtal perForMaNce INdeX crIterIa
General objectives Environmental Health Ecosystem vitality Policy-related categories Environmental Health
. This measure of the environmental performance of countries was formally released in Davos.
The 2006 EPI ranks 133 countries on 16 indicators tracked in six established policy categories: Environmental Health. coNteNt The EPI identifies targets for environmental performance and measures how close each country comes to these goals using the best data available. Air Quality. The issue-by-issue and aggregate rankings facilitate crosscountry comparisons both globally and within relevant peer groups. Further refinements will be undertaken in the coming year as the EPI project moves beyond its pilot phase. A country’s wealth emerges as a significant determinant of environmental outcomes. Industrialized countries often suffer from pollution and degraded ecosystems. It centers on two broad environmental protection objectives that mirror the priorities expressed by the environmental dimension of the United Nations’ Millennium Development Goals: 1) reducing environmental stresses on human health and 2) protecting ecosystem vitality. orIgIN The Pilot 2006 Environmental Performance Index was developed by a team of environmental experts at the environment school at Yale University and the Earth Institute at Columbia University in collaboration with the World Economic Forum and the Joint Research Centre of the European Commission. Switzerland. Incomplete data excluded 60 countries from the 2006 EPI. thus providing benchmarks for current national pollution control and natural resource management results. But at every level of development. and Sustainable Energy. The Index reveals that nations at all levels of economic development face serious environmental challenges. some countries achieve environmental results that far exceed their peers. Data constraints and limitations in methodology make this a work in progress. Biodiversity and Habitat.epI
Yale University and Columbia University
obJectIVe The EPI provides a powerful tool for improving policymaking and shifting environmental decision making onto firmer analytic foundations.
Water resources Biodiversity and habitat Productive natural resources Sustainable energy
Water consumption Wilderness protection Ecoregion protection Timber harvest rate Agricultural subsidies Overfishing Energy efficiency Renewable energy CO2 per GDP
Child mortality Indoor air pollution Drinking water Adequate sanitation Urban particulates Regional ozone Nitrogen loading
reSultS The top-ranked countries all commit significant resources and effort to environmental protection. resulting in strong performance across most of the po-
INdIcatorS Child Mortality Indoor Air Pollution Drinking Water Adequate Sanitation Urban Particulates Regional Ozone Nitrogen Loading Water Consuption Wilderness Protection Ecoregion Protection Timber Harvest Rate Agricultural Subsidies Overfishing Energy Efficiency Renewable Energy CO2 Per GDP
Enviromental Health Enviromental Health Air Quality Water Resouces Enviromental Performance Index Biodiversity and Habitat
Productive Natural Resouces
25.3 . reFereNce
www. and the United Kingdom. Mauritania. respectively.1
69.sedac. The lowest-ranked countries – Ethiopia.7 .5
51. Among the middle-rank countries.edu/es/epi
pilot 2006 enviromental performance Index
overall epI Score by country Quintile
78. which reflects top-tier performance on environmental health issues. Brazil.6 . performance is often uneven. Czech Republic. The United States ranked 28th.69.6 .6
60. but also indicates that the US is under-performing on critical issues such as renewable energy.EPI
licy categories.ciesin. ranked 34th. has very high water scores but low biodiversity indicators. greenhouse gas emissions. and water resources.51.88.78.yale. followed. Chad and Niger – are underdeveloped nations with little capacity to invest in environmental
infrastructure (such as drinking water and sanitation systems) and weak regulatory systems. New Zealand ranked first. by Sweden. Finland. for example.8 .columbia.
The index serves as a basis that makes cross-country comparisons possible. • Finally. Reducing waste and consumption pressures 10. cooperation in environmental agreements. Reducing ecosystem stress 8.columbia. biodiversity and natural resources management..cec. etc. Reducing water stress 11.eu. science and technology.
CIESIN of Columbia University
Center for International Earth Science Information Network
Each dimension has its corresponding concept.jrc. coNteNt The ESI is calculated by integrating 76 data sets into 21 indicators of environmental sustainability.
couNtrY USA wHat It IS The Environmental Sustainability Index (ESI) benchmarks the ability of nations to “protect the environment over the next several decades. including the following dimensions:
• Environmental systems: air quality. Water quality 5. • Social and institutional capacity: corporate governance. It helps to warn the member countries about future problems such as natural resources scarcity or their misuse. in collaboration with the World Economic Forum (www. food and health should not be vulnerable to environmental disturbances. Land 4. allowing assessment of sustainability practices evolution. water quantity. there must be cooperation among countries to manage common environmental problems and reduce negative transboundary environmental impacts.edu/ envirocenter) and the Center for International Earth Science Information Network – CIESIN of Columbia University (www. • Reducing environmental stress: reducing pollution. • Reducing human vulnerability: basic sanitation.
I ENVIRONMENTAL SYSTEMS 1. water quality.ciesin.edu).12 ESI
environmental Sustentability Index – esi
Center for Environmental Law and Policy
obJectIVe The ESI is a cross-country benchmarking tool. and risk management. there must be institutions and underlying social patterns of skills. lower stress on the ecosystem.
• Firstly. attitudes. Air quality 2.yale. • Global stewardship: international agreements. Natural resource management
. Reducing air pollution 7.weforum. vital environmental systems must be maintained at healthy levels rather than deteriorating.int/uasa). etc. Biodiversity 3. orIgIN The ESI is an Initiative of the Yale Center for Environmental Law and Policy – YCELP (www. • Thirdly. Water quantity II REDUCING ENVIRONMENTAL STRESSES 6.” It is used by around 140 countries and consists of 21 weighted core indicators. etc. each of them building on between two and eight variables that allow the assessment of environmental sustainability performance nationwide including air and water quality. Reducing population pressure 9. and networks that foster effective responses to environmental challenges.org) and the Joint Research Centre of the European Commission (www. • It is also essential that the levels of anthropogenic stress are low and do not cause harm to its environmental systems. • In the fourth place. at each version.
Argentina (9th.columbia. Iraq. Basic human sustenance 14. Uruguay.5 . The top five countries are Finland.2 .7 points).8 46.2 29. Turkmenistan e Uzbequistan. 71.6 .ciesin. Participation in international collaborative efforts 20.pdf www.7 . the survey provided a full and unbiased picture of the reality.edu/epi/ www.ciesin.4 40.pdf www. and released in early 2005.9 points). Environmental governance 16.ciesin. Greenhouse gas emissions 21. it is worth mentioning some positions and scores in the ESI ranking and score: Uruguay (3rd. The ranking is made from pre-established scores for each one of the 21 indicators. Brazil (11th.br/zeeli/artigos_valor/052_2005_07_19.2 points). placed Brazil 11th in the ESI. being top ranked the ones achieving the highest scores (Brazil stands out positively in water quality and quantity and scores poorly in air quality)
eNVIroMeNtal SuSteNtabIlItY INdeX couNtrY ScoreS bY QuINtIle
59.40. For the sake of comparison.ciesin. 62. considered rich in natural resources.usp.8 points).yale. 61.52.0 points) and the United States (45th. reFereNce
sedac. Reducing environment-related natural disaster vulnerability VI SOCIAL AND INSTITUTIONAL CAPACITY 15.pdf (resumo) sedac.75.5 . 62. Eco-efficiency 17. USA and Columbia University.columbia.0
. Science and technology V GLOBAL STEWARDSHIP 19.htm
By using strict rules aimed at avoiding mistakes. 52.1 52.pdf (completo) sedac.edu/es/esi/ sedac. whereas the lowest ranking countries are North Korea. Reducing transboundary environmental pressures
reSultS A study carried out by Yale University.ciesin.48.fea.columbia.org/ www. Norway. Taiwan. USA.yale.ESI
III REDUCING HUMAN VULNERABILITY 12. Environmental health 13.59.edu/es/esi/ESI2005.econ. Private-sector responsiveness 18.edu/es/esi/ESI2005_policysummary. Sweden and Iceland.columbia. Australia (13th.edu/epi/2006EPI_Rankings.edu/es/esi/ESI2005_Main_Report.
EThis is the proposal of the EVI methodology: understanding and measuring the vulnerabilities of the environment means foreseeing greater and irreversible damage that may endanger mankind’s future well-being. Italy. in order to promote sustainability. It is designed for use in all countries. namely environmental. While further refinements and improvements will always be necessary. Norway. The index was developed through consultation and collaboration with countries. the outcome for countries could be optimized for their unique situations and development goals. Ireland. The EVI is based on 50 indicators for estimating the vulnerability of the environment of a country to future shocks. the United Nations Environment Programme (UNEP). we convert natural resources and services to give us support. social systems and economies are the basis of sustainable development and human welfare. resistance and
United Nations Environment Programme
couNtrIeS New Zealand. it has become increasingly important to be able to measure how vulnerable each aspect is to damage and to identify ways of building resilience. and their partners. orIgIN EVI has been developed by the South Pacific Applied Geoscience Commission (SOPAC). While the environment is the source of all raw materials used by society. With this information to hand. It is designed to be used with economic and social vulnerability indices to provide insights into the
. Development is often achieved through trade-offs between these pillars. the EVI can be used to identify specific problems. United Nations Environment Program. obJectIVe The EVI reflects the extent to which the natural environment of a country is prone to damage and degradation. coNteNt Healthy. This overview with drill-down structure means that. Each indicator is classified into a range of sub-indices including the three aspects of hazards. The EVI provides a rapid and standardized method for characterizing vulnerability in an overall sense. The problem is that all of these systems can be damaged. These indicators are combined by simple averaging and reported simultaneously as a single index. the condition of our lands and opportunities for future generations. economic and social aspects of a country’s development. in addition to an overall signal of vulnerability. determine our own quality of life. Therefore. productive and protective environments.13 EVI
environmental Vulnerability Index – eVI
South Pacific Applied Geoscience Commission
processes that can negatively influence the sustainable development of countries. By taking care of daily economic and social issues. Simple averages across indicators were used because they can be easily understood and more complex models do not appear to offer any advantages to the expression or utility of the index. to a large extent. it also absorbs all the pollution generated by our activities. or prevented from meeting our needs. wHat It IS It is an Environmental Vulnerability Index that takes into account human well-being as a whole. institutions and experts across the globe. and identifying issues that may need to be addressed within each of the three pillars of sustainability. overloaded. a range of policy-relevant thematic sub-indices and as a profile showing the results for each indicator. the index is now ready for application at country level. By our choices we can.
Belgium. Paraguay and Uruguay are among those consi¬dered at risk. Bolivia. Dry periods 3. Austria. Japan and United Kingdom are classified as extremely vulnerable. Reserves 29.EVI 13
damage and into policy-relevant sub-indices including:
Climate Change = CC Biodiversity = CBD Water = W Agriculture and fisheries = AF Human health aspects = HH Desertification = CCD Exposure to Natural disasters = D
reSultS 235 countries received scores according to their environmental level of vulnerability/resilience as calculated by the EVI. mostly in the African continent. It is important to highlight that the scores considered valid were those from countries who supplied data for over 80% of the 50 EVI indicators. Openness 19.pdf 1.Endemics 21. Highly Vulnerable. were considered resilient. Vulnerable.net/EVI_Indicators. or Resilient. Canada. keywords and a description of the main signals for which it is a proxy as well as the indicators policy relevance. At Risk. Air 38. thus building a world ranking. Among the countries with valid indices. Earthquakes 9. Slides 11. Waste 39. Loss of cover 26. reFereNce
www.vulnerabilityindex. Each country was classified in one of the following catego¬ries: Extremely Vulnerable. Degradation 28. Tourists 48. Coastal 49.net/Files/EVI%20Descriptions%202 005.
SUMMARY EVI INDICATOR LISTI www. Water 37.vulnerabilityindex. Growth 47. Mozambique. Fisheries 35.htm www. Argentina. Australia. Isolation 14. Introductions 22. Brazil. Population 46. Land area 12. Migrations 20. Fishing effort 36. Relief 15. Farming 31. Borders 17. United States. New Zealand and Sweden were classi¬fied as vulnerable. Mining 43.net/ EVI SCORES FOR ALL COUNTRIES (includes data deficient countries)
90 80 70 60 50 40 30 20 10 0Resilient At risk Vulnerable Highly vulnerable Extremely vulnerable
Each indicator is also accompanied by a short form key name. whereas only ten countries. Fragmentation 27. Hot periods 5. Spills 42. Wet periods 4. Volcanoes 8. Endangered 23. Sanitation 44. Dispersion 13. Agreements 50. Fertilizers 32. Vehicles 45. SST 7. Italy. Treatment 40. Imbalance 18. Biotech 34. detailed definition. The countries with insufficient data (less than 80% of the 50 indicators) were classified as prone to environmental vulnerability. Lowlands 16. High winds 2. Cold periods 6. MPA’s 30. Conflicts
. Israel. Vegetation 25. Tsunamis 10.vulnerabilityindex. Extinctions 24. Pesticides 33. Industry 41.
because inequality between the very rich and the least well off may also be rising. as an alternative indicator to the GDP. Pollution . fit to the economy since GDP increases with polluting activities and then again with clean-ups. When leisure time increases. On the other hand.
IV. environmental de¬gradation. On the contrary. Long-term Environmental Damage – Climate chan-
ge and nuclear waste management are two long-term costs generated from fossil fuel and nuclear energy use. caused by substances such as the chlorofluorocarbons (CFCs). Loss of Leisure Time – As a nation gets richer.
. pollution is a double bene-
VII. on its turn deducts air and water pollution. The GPI increases when the poor receive a higher percentage of the national income. These costs are not accounted for in traditional economic calculations. obJectIVe The GPI measures economic growth of a country associated with increase in the well being of its inhabitants. whereas the GPI counts the depletion or degradation of wetlands. Household Work and Volunteer Work – Highly rele-
III. which put forward solutions aimed at helping people. it is shifting a cost to future generations that should be borne in the present as a resource rent. orIgIN The GPI was created in 1995 by Redefining Progress. seeking to show to what extent traditional economic growth is compromising the planet’s future life.14 GPI
genuine progress Indicator – gpI
Factors considered by the GPI as opposed to the GDP calculation:
I. coNteNt The indicator uses the same calculation methodology as the GDP. In the GDP accounts. pollution. farmland and non-renewable minerals (including oil) as a current cost. However. The index proposes a comparison with the GDP. and decreases with a lower percentage. vant contributions to society that go unmeasured in the GDP. The GPI corrects such omission and adds. The GDP addresses such expenses as additions to well-being.
V. For this reason. it makes additions to account for items such as household and volunteer labor. depletion of non-renewable resources and other forms of natural capital such as water supply. it makes deductions to account for costs derived from factors such as crime. forests. but the GPI considers leisure very valuable. the GPI addresses the consumption of certain sources of energy and ozonedepleting substances as costs. because they are not done for pay.For the GDP. Crime and Family Breakdown – Factors that take a lar-
ge economic toll on individuals and society in the form of fines. the value of household work through an estimate of the cost of hiring someone to do equivalent work. etc. lost property. people should be able to choose between spending more time on the job or having more time for family. chores or leisure. protecting the environment and developing the economy. medical expenses. a non-profit public policy organization founded in 1994. such rents are part of the current income. The index is updated annually to provide an accurate and true portrait of economic progress. which allows comparisons. among other things.
II. The GPI. Both the GDP and GPI are measured in monetary terms. the GPI goes up. much the opposite has occurred in the last few years. The GDP ignores the loss of leisure time. whereas the GPI deducts them. it is not truly contributing to well-being. Depletion of Resources – Once the current eco¬nomic
activity depletes the natural capital necessary for future activities. The same occurs with ozone depletion. otherwise it goes down. but unlike the GDP.
mean improvement for all. Income distribution – Increase in income does not
couNtrY USA wHat It IS Index to measure a nation’s progress considering wellbeing and environmental parameters. measured according to the current harm on human health and the environment.
redefiningprogress. the GPI drops.pdf
Measure of economic welfare (Mew) Nordhaus and Tobin. Social costs Cost of crime Cost of automobile accidents Cost of commuting Cost of family breakdown Loss of leisure time Cost of underemployment Environmental costs Cost of household pollution abatement Cost of water pollution Cost of air pollution Cost of noise pollution Loss of wetlands Loss of farmlands Depletion of non-renewable resources Cost of long-term environmental damage Cost of ozone depletion Loss of old-growth forest Benefits added to the GPI Value of household and parenting Value of volunteer work Services of consumer durables Services of highways and streets Net capital investment GIP Result
money spent by people on prevention of decrease in quality of life or compensation for the externalities as an increase in well-being. and household pollution abatement.
X. The findings suggest that although the North American per capita GDP. has increased by 79% in this period. A study published by Redefining Progress in late 2001 compares the North American GDP per capita evolution in the last 50 years with the GPI figures. Its growing consumption increases the GDP.Cobb.rprogress. Cheslog: The Genuine Progress Indicator Update)
www. The GPI accounts these “defensive” expenditures as costs instead of benefits. it is living beyond its own resources. 1972
economic aspects of welfare (eaw) Zolotas. 1989
genuine progress Indicator (gpI) Redefining Progress. such as water filters.org/newpubs/2004/gpi_ march2004update. damage or economic loss due to automobile accidents. for the actual value consumers receive from them. (source: C. the GPI treats the services of household capital as a benefit and the initial purchase price as a cost.rprogress. show that the Genuine Progress Index has stagnated since the 1970s. but if they are used to fund consumption.org/projects/gpi/ www. Examples of such expenses are medical expenses. The organization provides the example of the use of oil for energy production. the index measured by the GPI rose only 2% in the same period. If wealth borrowed is invested. the negative effects are cancelled. cost of commuting.org www. This hides the loss of well-being due to the fact that these products are made to last little.
.redefiningprogress. but reduces the GPI. Because of this. Defensive Expenditures – The GDP considers the
PERSONAL CONSUMPTION Economic costs Unequal income distribution Net foreign lending or borrowing Cost of consumer durables. The GPI considers net lending as positive contributions to the well-being and net borrowing from abroad as deductions. M. This means.GPI
VIII. reSultS Surveys carried out in the U. Example of the North American GPI calculation structure: from household expenses to the GPI. That is because oil is non-renewable.S. Net Foreign Borrowing – If a nation allows its capi-
tal assets to decrease or relies on foreign funding to finance its current consumption.Glickman Et C.org/projects/gpi/ www. whereas the GDP has increased. Cost of Consumer Durables and Public Infrastructure – The GDP mistakes the money generated by consu-
mers’ purchases. that growth is in fact a myth for what increases at one end strongly decreases at the other end. according to the GPI logic. This also applies to public infrastructure and services of highways. pollutes the environment and creates health problems among other negative factors to the well-being. such as household appliances. in constant values. 1981
Index of Sustainable economic welfare (ISew) Daly and Cobb.
in Ecological Economics. If the GSI is negative.
(*) Capital Theory and the Measurement of Sustainable Development: an Indicator of Weak Sustainability’. This indicator of progress or setback to genuine savings aims to provide a combined measure of a country’s sustainable development by adding or subtracting several non-economic.) and extractors. natural resources. is used. calculated as a treatment cost.worldbank. (**) Green Adjustments to GDP’ in Resources Policy 20 (3) 1994. mineral depletion. 1993. an estimate of the marginal social cost by emitted ton. environmental quality. It is the so-called resource rent. human resources and foreign assets.
• The monetary assessment of exhaustible resource deposits is based on the concept of supplementary net income that estimates the difference between extraction values at world prices and the total cost of production (including prospection).
Such rates are annually published in the World Bank Indicators and used by countries in policy discussions. However. thus showing whether the economy is sustainable or not.
(publications. who introduced the term “genuine saving” (**). extracted beyond the limits of natural growth. The Genuine Saving Indi¬cator (GSI) measures the value of the net change in the whole range of assets that are important for development: produced assets.e. it was World Bank environmental economist Kirk Hamilton. the country’s welfare will decrease and the development will be unsustainable.
genuine Saving Indicator – gSI
obJectIVe The indicator aims to denote the rate at which national wealth (broadened to include natural capital and human capital) is being created or destroyed. net forest depletion. couNtrY Estados Unidos wHat It IS Genuine Savings is a simple indicator devised by World Bank researchers to assess an economy’s sustainability. Genuine savings = net savings (i. gross domestic savings – consumption of fixed capital) + Educational expenditure – (energy depletion.org/ecommerce/catalog/product?item_ id=5424413)
coNteNt Genuine Savings defines a nation’s wealth more broadly than orthodox national accounts. etc. resources from a basis formed by the national savings. wells. mainly environmental. taking into account accounting methodologies that include human and environmental capital to estimate the net savings of a country. It remunerates both mine owners (mines. orIgIN Environmental economists David Pearce and Giles Atkinson first developed the principle of applying environmental accounting methods (*). CO2 damage). 8(2). • For the carbon dioxide emissions. • Forest destruction is calculated based on stumpage value (average logging cost) of the amount destined for commercial use and for fuel. formerly with Statistics Canada and a PhD student of David Pearce.
which considers water as natural capital in a more strategic and explicit manner in the following water depletion formula: Water rent: (annual renewable water – annual water withdrawal) x water price x rent rate.worldbank. e) deduct the value of resource depletion.
The formula for genuine savings is given in World Development Indicators. reFerêNcIaS
www. including lost welfare in the form of human sickness and health. b) deduct pollution damages. teachers’ salaries. the quality of life will improve.fz-juelich. water and other assets are unsustainably managed). d) deduct net foreign borrowing and add net official transfers. World Bank.
This document presents the new concept: Adjusted Genuine Saving/Water.de/ste/datapool/Preprint2005/Preprint2-2005.) as saving rather than as consumption. etc. The indicator differs from standard national accounts calculations in that they:
a) deduct the value of depletion of natural resources (where forests. pdf (pg 3)
. c) treat current expenditure on education (on books. The World Bank suggested further research “in the field of Genuine Saving to include water as natural capital in the AGS concept”. The Rent rate is calculated as follows: rent rate = (market price of water – production cost) / market price of water).pdf (pg 6). as the following equation: GDP – public and private consumption – Net foreign borrowing – depreciation of produced assets + current spending on education – resource depletion – pollution damage.
If the GSI is positive. 1998.brettonwoodsproject.org/ www. as it increases countries’ human capital.
The Happy Planet Index: An index of human well-being and environmental impact. The results are surprising. high levels of resource consumption do not reliably produce high levels of well-being (life satisfaction). government. campaigning. and what comes out (human lives of different length and happiness). and then subtract social and environmental costs to create a more accurate measure of economic success. people live long and happy lives. happy lives without over-stretching the planet’s resources is possible. It shows the relative efficiency with which nations convert the planet’s natural resources into long and happy lives for their citizens. even shocking. orIgIN NEF (the New Economics Foundation) was founded in 1986 by the leaders of The Other Economic Summit (TOES). It works in partnership and puts people and the planet first. As an independent think-and-do tank that inspires and demonstrates real economic well-being. And it also has a different rationale to the various alternative indicators that begin with GDP. and that it is possible to produce high levels of well-being without excessive consumption of the Earth’s resources. It also reveals that there are different routes to achieving comparable levels of well-being. The Happy Planet Index (HPI) was launched in July 2006 and NEF’s report. The resulting Index of the 178 nations for which data is available. it aims to improve quality of life by promoting innovative solutions that challenge mainstream thinking on economic. No single country listed in the Happy Planet Index has
couNtrY UK wHat It IS It is an innovative new measure that shows the ecological efficiency with which human well-being is delivered around the world (by a specific nation or group of nations). in-depth research. it represents the efficiency with which countries convert the earth’s finite resources into well-being experienced by their citizens. but it does so only at a vast and ultimately counter-productive cost in terms of resource consumption. The HPI shows that around the world. No country achieves an overall ‘high’ score on the Index. which forced issues such as international debt onto the agenda of the G7 and G8 summits. The model followed by the West can provide widespread longevity and variable life satisfaction. was published in association with the nonprofit institution Friends of the Earth. NEF works with all sections of society in the UK and internationally – civil society. coNteNt The Index does not reveal the ‘happiest’ country in the world. reveals that the world as a whole has a long way to go. Put another way. businesses and academia – to create more understanding and strategies for change. nation or group of nations per unit of planetary resources consumed. The HPI reflects the average years of happy life produced by a given society. The nations that top the Index are not the happiest places in the world. and no country does well on all three indicators. policy discussion. In terms of delivering long and meaningful lives within the Earth’s environmental limits – all nations could do better. The Happy Planet Index (HPI) strips the view of the economy back to its absolute basics: what we put in (resources). individuals.16
the Happy planet Index – HpI
The New Economics Foundation
obJectIVe It is the first ever index to combine environmental impact with well-being to measure the environmental efficiency with which country by country. It works on specific project areas through practical pilots and tools for change. environment and social issues. Note HPI differs markedly from the central indicator of national income usually used to measure its success – Gross Domestic Product (GDP). but there is much to learn from what they show. but those that score well show that achieving long.
life satisfaction and life expectancy. half the size of the USA’s. The Vanuatu islands residents live around 69 years. whereas Russia was the worst at 172nd. reFereNce
www.neweconomics. Step bY Step How it is calculated: The HPI incorporates three separate indicators: ecological footprint. However. nearly eight years less than the North-Americans and their per capita GDP is US$ 2. near the lowest ranking in the world. The statistical calculations that underlie the HPI are quite complex. while some countries are more efficient than others at delivering long. are now happiness paradises. Italy was the highest ranked country. 111th. (Note that the way people report their life satisfaction corresponds to objective factors such as their mental and physical health). the statistics of the World Database of Happiness. have an “ecological reserve” or an area to support its population. Based on these findings. ranked last (HPI of 16. According to the survey.org/gen PDF: www. the USA and Germany show similar satisfaction and life expectancy levels.co. 178 countries. it is straightforward and intuitive:
HpI = Satisfação com a vida x expectativa de vida Pegada ecológica
than that of the USA. every country has its problems and no country performs as well as it could.2. according to the report released on the foundation’s website. The Central American countries accounted for nine out of the ten first positions of the happiest countries. Among the wealthy nations.pdf Calculate you own HPI http://www. ranking more than 100 positions above the USA. The third indicator is people’s subjective well-being or “life satisfaction”. two of which are objective: life expectancy and the ecological footprint – a measure of our use of environmental goods and services. The UK achieved HPI of 40. The African economies.944. whereas the USA reached an HPI of 28. Colombia ranked 2nd (HPI of 67. 13-fold less
. We have to acknowledge from the start that. The challenge will be whether we can learn the lessons of the HPI and apply them. in the 66th position. whose information was available.8 and ranked 150th. participate in the HPI ranking. including Swaziland and Equatorial Guinea. published in 2003. Vanuatu ranked first with an HPI of 68. The unhappiest country in the world. Brazil ranked 63rd (HPI of 48. 47th (HPI of 52. it is possible to see patterns emerging that point to how we might better achieve long and happy lives for all.HPI
everything right. NEF highlights the policy areas on which countries with low life expectancy. Japan. respectively.3 and was ranked 108th. This result is then divided by the environmental impact of each country. 2005. way behind Argentina. Zimbabwe. countries that represen¬ted the “red scare” in the 1960s. On a 0 to 100 scale. Canada and France ranked 95th. and a research on consumption and environmental impact carried out by World Footprint. The index is built from three different indicators. conceptually. Among the G8 members. reSultS The index was compiled for two months with the help of data from the World Health Survey (UN).uk/hpisurvey
The HPI is calculated by multiplying life expectancy by life satisfaction. poor life satisfaction or high ecological footprint must focus.org/gen/uploads/dl44k145g5scuy 453044gqbu11072006194758. happy lives for their people. who ranked 81st. are among the last ten. including CO2 emissions. fascinatingly.2).itint.2). although the Germans.neweconomics. “People can live long and be happy without having to use more than their fair share of the planet’s natural resources”. and 129th.6). whilst living within our environmental means. NEF proposes a global manifesto for a happier planet. Cuba and Vietnam. so that we can all live within our environmental limits and increase well-being for all.6). Yet.
economic and institutional dimensionsl.17 IDS
Sustainable development Indicators – IdS
Brazilian Institute of Geography and Statistics
obJectIVe This set of information is valuable for understanding relevant themes regarding the country’s sustainable development. within the environmental dimension. • Adaptability: diversification. alternative production processes. environmental. including 12 new ones regarding emerging issues. thus enabling a more comprehensive assessment of the sustainable development. oceans and coastal areas. as well as comparisons among countries. They are presented in four dimensions:
• Environmental: 22 indicators • Social: 19 indicators • Economic: 12 indicators • Institutional: 6 indicators
The indicators refer to four guidelines:
• Equity: distributive aspects. including social. organized in the following themes: atmosphere. and indicates needs and priorities for making and assessing development policies. biodiversity and sanitation. regarding environment.
• Attention to future generations: resources and economic. ecological and human assets for future generations.
They provide. fresh water.
ENVIRONMENTAL DIMENSION 01 . land. First developed in 2002. development and decision-making infor¬mation.Industrial consumption of ozone-depleting substances 02 – Concentration of air emissions in urban areas 03 – Use of fertilizers 04 – Use of pesticides 05 – Agrosylvopastoral systems 06 – Forest burning and fire 07 – Deforestation in the Legal Amazon 08 – Remnant area and deforestation in the Rain Forest and coastal vegetation formations 09 – Desertification and drought 10 – Quality of inland waters 11 – Bathing quality of the beaches
. adopted at the United Nations Conference on Environment and Development held in Rio de Janeiro in 1992.
couNtrY Brazil wHat It IS Sustainable Development Indicators of Brazil providing information on the Brazilian reality. information on the use of natural resources and environmental degradation. coNteNt The latest version (2004) gathers 59 indicators. it follows the guidelines proposed by the Commission on Sustainable Development (UNCSD). It allows interregional comparisons in Brazil. • Efficiency: rational use of resources. orIgIN The development of sustainable development indicators in Brazil is part of the international efforts to consolidate ideas and principles set forth by the Agenda 21.
a chart providing an indicators overview and a list of indicators according to guidelines for the transition to sustainable development. the states and.gov. with reference to equity. charts and maps. provides information on political orientation. the country.
ECONOMIC DIMENSION 42 . and safety.
INSTITUTIONAL DIMENSION 54 . Information is available in the CD-ROM that accompanies the publication. the indicators address themes such as population.ibge.Gross domestic product per capita 43 – Investment rate
. when possible. health.Ratification of global agreements 55 – Existence of local councils 56 – Research & development expenditure 57 – Public expenditure on environmental protection 58 – Access to telephone services 59 – Access to Internet
The indicators are presented in tables. on its turn.
SOCIAL DIMENSION 23 . efficiency. reFerêNcIaS:
www. methodological comments were previously described in a form. and social justice.IDS
12 – Marine and continental fish production 13 – Coastal areas population 14 – Extinct and endangered species 15 – Protected areas 16 – Wildlife traffic. impacts on material resources consumption.ibge. breeding and trade 17 – Invasive species 18 – Access to residential waste collection services 19 – Final waste disposal 20 – Access to water supply system 21 – Access to sewage system 22 – Sewage treatment
44 – Trade balance 45 – Degree of indebtedness 46 – Energy consumption per capita 47 – Energy intensity 48 – Share of renewable sources in energy supply 49 – Mineral consumption per capita 50 – Useful life of mineral reserves 51 – Recycling 52 – Selective waste collection 53 – Radioactive nuclear waste: generation and storage
As for the social dimension.shtm
The indicators’ economic dimension seeks to portray the macroeconomic and financial performance. and energy use by addressing the themes economic outlook and production and consumption patterns. the rationale and.br www.Population growth rate 24 – Indigenous population and land 25 – Gini Index on income distribution 26 – Unemployment rate 27 – Per capita family income 28 – Average monthly income 29 – Life expectancy at birth 30 – Infant mortality rate 31 – Total malnutrition prevalence 32 – Immunization against infectious diseases in children 33 – Contraceptive methods use rate 34 – Basic health care provision 35 – Environmental sanitation-related diseases 36 – Schooling rate 37 – Literacy rate 38 – Schooling 39 – Adequate housing 40 – Homicide rate 41 – Coefficient of mortality from transport accidents
The institutional dimension. follow up and analysis of phenomena taking place in the country along time. housing. broken into the themes institutional framework and institutional capacity. whose variables used in their construction. which shows the links among these data. The end of the publication brings a glossary of terms used. adaptability and attention to future generations. and includes information on history.br/home/geociencias/recursosnaturais/ids/ default. education. The current version presents an additional matrix of relationships between indicators. in some specific cases. quality of life improvement. ca¬pacity and efforts made towards the necessary changes for the implementation of sustainable development.gov. labor and income. all of them related to human needs satisfaction.
such as GDP per capita. coNteNt The IEWB was developed from the acknowledgement that one of the key components of well-being is the economic well-being or the “access to economic resources”. human and environmental). assume that some representative agents can define well-being of the society as a whole and consider only the present income flows. living standards and economic and social well-being through research. national. independent organization that seeks to contribute to a better understanding of trends in and determinants of productivity. such as the GDP. an index like this can help citizens assess other collective issues – such as answering whether or not a given public policy may bring effective benefits to society. the criteria traditionally used to measure economic progress. without distinguishing between present consumption flows and accumulation of assets that will guarantee future consumption flows. inequalities and economic security (within a present and future perspective). wealth (economic.18
Index of economic well-being – Iewb
Centre for the Study of Living Standards
obJectIVe This index of economic well-being. orIgIN Developed in 1998 by the Centre for the Study of Living Standards1 IEBW was based on a paper written by Lars Osberg for the MacDonald Commission entitled The Measurement of Economic Welfare. The index consists of a weighted average of four combined indicators on consumption flows. i. The goal of the IEWB is not to summarize the economic well-being of society in a single objective figure.
(1) A non-profit. Considering that individuals are called to exercise their personal choices on themes that affect the society as a whole (such as voting). ignoring the value of leisure and longer life spans.
. However. and it also ignores the value of accumulation for future generations. (2) For the Centre for Study of Living Standards. more realistic and comprehensive than the GDP2. since it is an average. to give individuals a way to “add it all up” and come to their own conclusions. They are the following:
couNtrY Canada wHat It IS ÍIndex aimed at measuring the economic component of social well-being in a more realistic and comprehensive way than traditional indices. GDP measures consumption incompletely. and individuals may have different subjective weightings of the components of economic well-being because they have different personal values. GDP per capita gives neither indication of the likelihood that an individual will share in prosperity nor the degree of anxiety with which individuals contemplate their futures.e. aims to help the in¬dividuals of a society to evaluate and decide whether the decisions and public policy adopted in one country can bring effective societal improvements. Well-being has multiple dimensions. Each component (with a 25% weight) articulates data regarding national accounts and social statistics. Furthermore. but to provide a well-organized and manageable set of objective data which individual analysts can use to come to a summative judgment of social outcomes.
.pdf www.Income Inequality and Poverty Future Aggregate Accumulation of Productive Stocks Insecurity of Future Incomes
reSultS The index was calculated for Canada. reFereNce
www. The overall IEWB is calculated as the weighted average of the four scaled components. accumulation of human capital.ca/iwb. government services. illness. including the intensity of poverty (incidence and depth) and the inequality of income.csls.IEWB
1) Effective per capita consumption flows. 2) Net societal accumulation of stocks of productive resources. with aggregation weight determined subjectively according to individual views on relative importance of each.
dIMeNSIoNS oF ecoNoMIc well-beINg or coMMaNd oVer reSouceS
Concept “Typical Citizen” or “Representative Agent” Heterogeneity of Experiences of all Citizens Present Average Flow of Current Income Distribuition of Potential Consuption .csls.csls. effective per capita flows of household production. and the stock of R&D investment. leisure. net changes in the value of natural resources stocks.ca/iwb. including consumption of marketed goods and services.ca/iwb/iewb-guide. United States and some OECD member countries. net changes in the level of foreign indebtedness. housing stocks.ca/iwb/macdonald. and changes in life span.asp www. Complete results can be accessed at: www.csls. including net accumulation of tangible capital. and poverty in old age. 4) Economic security from job loss and unemployment. environmental costs.asp. 3) Income distribution.
but without ranking them. together with the Seade Foundation. orIgIN The Seade Foundation was commissioned by the São Paulo State Capitol. comments and suggestions were made to improve the variables and indices that comprise the IPRS. and a typology composed of five groups called IPRS groups (**). which measure the current conditions of a municipality regarding income. sharing the same belief as the Human Development Index (HDI) that human development is a complex process that should consider social and quality of life dimensions alongside economic aspects. mainly during regional meetings. provides a portrait of the social and economic situation of the municipalities. Through the Legislative Forum for Sustainable Economic Development. An
. obJectIVe The current version.19 IPRS
São paulo State Social responsibility Index
indicator was then developed aimed at identifying the development stage of a particular municipality considering the three HDI dimensions: income. During the publicity work carried out in 2003. in 2000. in a linear combination of a set of specific variables. as well as analyses and com¬parisons of the index evolution in each State municipality or region regarding wealth generation and impact on its social indicators. the State Capitol. schooling and longevity – allowing a ranking of the 645 São Paulo State municipalities according to each one of these dimensions. coNteNt The IPRS is composed of four indicators: three combined sectoral indicators (*). The weighting structure was achieved following a factorial analysis model to study the interdependency level among the different variables. promo¬ted a series of debates with technicians and specialists in economics. schooling and longevity. at the São Pau¬lo Forum. to develop an indicator to measure human development in all state municipalities. The three combined indicators are presented on a scale ranging from 0 to 100. health and education. based on 2002 data. which summarizes the municipalities’ situation according to the three axes.
(*) THREE COMBINED SECTORAL INDICATORS: I Municipal wealth • CResidential electric energy consumption • Agriculture. attended by over 3 thousand people. their recent history and main challenges. commerce and services electric energy consumption • Average wage of formally employed and public sector workers • VAF (a local tax-related economic health index) per capita II longevity • Perinatal mortality
couNtrY Brazil wHat It IS The IPRS is a system of social and economic indicators of each municipality of the State of São Paulo aimed at providing information for the development and assessment of public policy created to help develop the state mu¬nicipalities. It is not an ordinary development. but one the society participates in and benefits from in search of better governmental economic and social balance. The indicator should provide a detailed portrait of the State of São Paulo regarding development. aiming to improve both the IPRS methodolo¬gy and applicability.
19 who completed high school • Percentage of children aged 5 . Therefore. Group 2: municipalities which. all results presented already have the methodologi¬cal changes. both in terms of wealth and social indicators. This is because. The 2004 edition.6 who attend pre-school (**) TYPOLOGY MADE OF FIVE IPRS GROUPS: Group 1: municipalities showing high wealth level and good social indicators levels. Group 3: municipalities showing low wealth level. which presents the 2002 results.seade.
more detailed view of the municipality.seade. even in better positioned municipalities within the groups.br/produtos/iprs/pdf/metodologia.br/produtos/iprs/pdf/informativo. thus expressing the reality of 2002. do not have good social indicators. in 2000 and 2003. particularly the larger ones such as São Pau¬lo and Campinas. In 2000.br/produtos/iprs/ www.17 with at least four years of schooling • Percentage of teenagers aged 18 . although showing high wealth level.gov. the IPRS do not fully answer questions concerning existing equity and poverty in the referred locations. the Seade Foundation and the State Capitol created the IPVS – Índice Paulista de Vulnerabilidade Social (State of São Paulo Social Vulnerability Index). Group 5: deprived municipalities.pdf www.IPRS 19
• Infant mortality • Mortality of people aged 15 to 39 • Mortality of people over 60 III Schooling • Percentage of teenagers aged 15 . From this realization. Note By ranking the State of São Paulo municipalities according to different development levels. regarding the year 2000.seade. in 2003. there are portions of their territories with large segments of population exposed to different conditions of social vulnerability. identifying the areas of significant poverty concentration.gov. which allows a
. but good indicators in the other dimensions.17 who completed middle school • Percentage of teenagers aged 15 . Group 4: municipalities showing low wealth level and intermediate longevity and/or schooling levels. in order to allow comparisons between 2000 and 2002. reFereNce
reSultS The São Paulo State Social Responsibility Index has already had two editions. Such changes caused the need to redo the 2000 IPRS indicators. incorpora¬ted some changes aimed at its improvement as an effective tool for assessing and monitoring public policy. results from 1992 and 1997 were presented and.gov.
“quality” economic activity. like in the GDP. political and social activities’ negative contributions (social and environmental costs related to income inequality. and depletion of environmental assets. loss of natural capital. They later went on to add several other “costs” to the definition of ISEW. It was first coined in 1989 by Daly and Cobb. It also covers areas such as income inequality. noise. consumption expenditure is offset by factors such as income distribution and pollution-related costs. the ISEW can be defined by the following formula:
Centre for Environmental Strategy
The New Economics Foundation
couNtrY United Kingdom wHat It IS It is a monetary index aimed at replacing the GDP as a measure of nations’ progress. for instance. going far beyond the total measure of economic activities for it takes into account the extent to which national policies truly lead to better quality of life for all. It is an attempt to measure the portion of economic activity which delivers genuine increases in our quality of life – in a sense. measures a nation’s economic performance based on 20 indicators. the New Economics Foundation (NEF) and others to put forward alternative economic indicators to GDP. aggregating conventional measures — such as capital investment growth — with social and environmental elements — such as. household labor. other environmental damage. pollution. For example. The index is based on the ideas presented by Nordhaus and Tobin in their Measure of Economic Welfare. which has been calculated for 9 countries. ozone depletion. which badly reflects people’s well-being).) and positive contributions (household labor and public expenditure on health and education). The most advanced is the Index of Sustainable Economic Welfare (ISEW). that allows comparisons between countries through a homogeneous methodology. air and water pollution. it makes a subtraction for air pollution caused by economic activity. etc. income distribution. orIgIN Friends of the Earth is working with the Centre for Environmental Strategy (CES) . Instead of simply adding up all expenses. The Index creators believe the ISEW or an equivalent should be one of the main economic indicators in the Government’s Indicators strategy. National progress calculation takes into account the economic. nonrenewable resources depletion.
The ISEW. and makes an addition to count unpaid household labor – such as cleaning or child-minding. and has just been revised in the UK by CES. as well as other economically unsustainable costs. it includes distributive economic issues and a series of environmental and social variables of great im¬portance to the aggregated well-being. In general terms. Index of Sustainable Economic Welfare.20 ISEW
Index of Sustainable economic welfare ISew
Friends of The Earth
obJectIVe The ISEW is one of the most advanced attempts to create an indicator of economic welfare – a more suitable social well-being index than the GDP (merely a gross tally of products and services bought and sold. NEF and Friends of the Earth. agriculture soil degradation and loss of natural resources. In other words.
Australia. valuing the variables as adequately as possible to each situation. United Kingdom. Austria. Boston. the Daly and Cobb methodology has been adopted in countries like the Netherlands. which allows anyone to create their own ISEW (Index of Sustainable Economic Welfare). Germany and Chile. that is. A common trend has been noticed for all countries: national welfare has diverged from the GDP since 1970. co.foe. the Environment. Switzerland. Ita¬ly.natural capital depreciation
Pesos per capita 1990 prices
ISEW = personal consumption + public expenditure not related to defense and safety. Beacon Press. Friends of the Earth: http://www.
1000000 SEK per capita (1985 prices) 75000 50000 25000 0 1950
1000000 Lire (m) per capita (1985 prices) 800000 600000 400000 200000 0 1960
tIp Friends of Earth has developed a tool.” 1989.co. In the event a country ignores deductions on its natural capital stock.S. This evidence is critical not only for the U. Jr . substantial welfare losses could be incurred even if traditional measures would point to substantial improvements. + capital formation + household labor services .foe. the North American economy is not regarded as having reached substantial welfare improvements.private expenditure on safety
1000000 800000 600000 400000 200000 0 1965
reSultS Besides the United States. USA. (1989). Massachusetts. available on the Internet at www. disregarding environmental degradation. as natural capital stock degradation. According to Daly & Cobb Jr.
www.“For the Common Good: Redirecting the Economy Toward Community.uk/campaigns/sustainable_development/progress Book: Herman Daly & John Cobb. Calculations based on the new index showed that. pollution-related costs.org. and perverse effects of income inequality are taken into account. and a Sustainable Future. while the North American GDP increased substantially between 1950 and 1985 (measured by the traditional formula).foe. but for any country concerned with inaccuracies regarding growth accounts performed exclusively in economic terms.costs of environmental degradation . the ISEW has remained the same since 1970.
A. Between 1970 and 2004. In 2004. the latest year full data was available. the Index seeks to provide a comprehensive view of the social health of the nation. as follows:
• Alcohol-related traffic fatalities • Affordable housing • Income inequality
reSultS As of 1973. and alcohol-related traffic fatalities. ages 65 and over. In looking at social problems that affect Americans at each stage of life – childhood.. ages 65 and over. child poverty. acting on each other. and has been under the responsibility of the Fordham Institute for Innovation in Social Policy of Fordham University. The GDP continues to increase.S. youth. the social Health of the Nation: how America is really doing? (NY Oxford University Press 1999)
.vassar. Five indicators have improved since 1970: infant mortality. high school dropouts. New York since 1987. the lowest score since 1998. wages. Eleven indicators have worsened since 1970: child abuse. whereas the ISH plummets strongly and permanently. reFereNce
iisp. health insurance coverage. but by the combined effect of many issues.edu/ish. the ISH stood at 54 out of a possible score of 100. and income inequality.2 to 54. poverty.21
Index Social Health – ISH
Institute for Innovation in Social Policy
CHILDREN • Infant mortality • Child abuse • Child poverty YOUTH • Teenage suicide • Teenage drug abuse • High school dropouts • Teenage pregnancy ADULTS • Unemployment • Wages • Health insurance coverage ELDERLY • Poverty. orIgIN The index was developed by Marc and Marque-Luisa Miringoff in the mid 1980s.html M & M-L Miringoff. outof-pocket health costs. homicides. teenage drug abuse. coNteNt The Index is calculated from 16 social variables. adulthood. grouped in five age groups. the index worsened from 69. food stamp coverage. unemployment. the GDP and ISH became no longer equivalents.0. and the elderly – as well as problems that affect all ages. ages 65 and over • Life expectancy over 85 ALL AGES • Homicides
couNtrY USA wHat It IS A composite index that aggregates multiple social variables of the U. Tarrytown. obJectIVe The premise of the Index is that American life is revealed not by any single social issue. teenage suicide. a drop of 22%. affordable housing.
in 1970. The first measures. and was given a weight. The first one is the Living Planet Index. but even so Brazilians consume more than the planet could bear. This index shows us the status of populations of terrestrial species in comparison to what it was in 1970.LPI 22
living planet Index
averaged to create an aggregated index. the Living Planet Index is also monitoring the health of ecosystems. measures humanity’s demand on the biosphere (how many hectares a person needs to produce what he/she consumes per year). This index shows us the current health of the world’s freshwater ecosystems as compared to 1970. exhaustion of ecological assets and large-scale ecosystem collapse become increasingly likely.panda. the network has almost 5 million supporters. and the three trends are then
The information shows several trends. recognized by the government as a public interest institution. is a measure of the state of the world’s biodiversity based on trends from 1970 to 2003 in over 3.
• Marine life in the planet – populations of 274 repre-
sentative marine species are tracked to calculate the Marine Living Planet Index.
Each one of these indices was measured in percentage.br www. orIgIN WWF is the world’s largest environmental network. sentative freshwater species (287 in temperate zones and 51 in tropical zones) are tracked to calculate the Freshwater Living Planet Index. • Freshwater species dropped 28% between 1970 and 2003. reFereNce
assets. reSultS The Living Planet Report 2006 pulls together various data to compile two indicators of the Earth’s well-being.br/downloads/wwf_brasil_planeta_vivo_2006. developed by the WWW Network. Although vertebrates represent only a fraction of known species.”
• Freshwater life in the planet – population of 344 repre-
• Terrestrial species declined by 31% between 1970 and 2003. marine and freshwater species. “At this level of ecological deficit. of which 695 are terrestrial species. and the second index. but drawing down its capital”. the WWF-Brazil covers all the country with the objective of helping the Brazilian society to preserve Nature and harmonize human activities with biodiversity conservation also for the benefit of future generations.wwf. coNteNt Separate indices are produced for terrestrial. states the report. • Marine species fell by 27% in the average of the four oceans between 1970 and 2003.pdf www. Created in 1996 and based in Brasília.org.org. in 1999.
• Terrestrial life in the planet – populations of 695 representative terrestrial species are tracked to calculate the Terrestrial Living Planet Index.org/
. the Ecological Footprint.600 populations of more than 1. 2) Populations of freshwater species. It is present in one hundred countries in the five continents. indicating that there is a clear difference between developed and developing countries. Brazil. WWF-Brazil is part of the network and is a civil society organization. “Humanity is no longer living off Nature’s interest. for instance. 274 marine species. This biennial WWF report showed essentially that the decline in global biodiversity between 1970 and 2003 was 30%. is on the average of global consumption.300 vertebrate species from around the world. calculated in percentage. This index shows us the current health of marine environment in 4 oceans as compared to 1970. Formed by independent and similar organizations in 40 countries. By tracking wild species. obJectIVe The Living Planet Index is an indicator of the overall state of the planet’s ecosystems. it is assumed that trends in their populations are typical of biodiversity overall. and 344 freshwater species. took into account three indicators of the state of natural ecosystems:
1) The planet’s area covered by forests. 3) Populations of marine species.wwf. which includes national and global data of consumption of these natural resources and the increase in pollution effects.
couNtrY Switzerland wHat It IS The Living Planet Index.
responsible competitiveness Index – rcI
was coordinated by AccountAbility with the support of Rockefeller Brothers Fund in association with Fundação Dom Cabral (Dom Cabral Foundation), the UN Global Compact and partners from Africa, Asia, Europe and Latin America. obJectIVe Disclosing which countries are achieving sustainable economic growth based on responsible business practices. coNteNt The Responsible Competitiveness Index provides metric and methodology for exploring the relationship between corporate responsibility and competitiveness, and includes the National Corporate Responsibility Index that measures the national state of corporate responsibility covering 85 countries across five continents, based on criteria that include the level of corruption, civil freedom, corporate governance, and environmental management to set the global ranking.
couNtrY United Kingdom wHat It IS It is an index that builds the relationship between the state of corporate responsibility and the competitiveness of nations. orIgIN In order to develop the index, AccountAbility, an international organi¬zation based in London that works to make companies more transparent about their impacts on people and the planet, first diagnosed the state of corporate responsibility in 80 countries by assessing criteria such as cor¬ruption, environmental management and corporate governance in each one. The research drew on the World Economic Forum’s Growth Competitiveness Index, which defines competitiveness as the ability of a country to reach medium and long-term sustainable growth, to produce the Responsible Competitiveness Index. The innovative National Corporate Responsibility Index and Responsible Competitiveness Index were developed from a Global Policy Dialogue on Responsible Competitiveness, carried out in 2004, in association with the UN Global Compact and partners from Africa, Asia, Europe and Latin America. Production of this Responsible Competitiveness report
reSultS Responsible Competitiveness’s findings are based on a wealth of sector and issue-specific cases from Brazil, Cambodia, Chile, Europe and South Africa, two new innovative country-level indices, and findings emerging from a Global Policy Dialogue on Responsible Competitiveness conducted over two years in association with the UN Global Compact and partners from Africa, Asia, Europe and Latin America. The latest issue of the report “Responsible Competitiveness: Reshaping Global Markets Through Responsible Business Practices – Latin America”, presents the results of studies carried out with the Responsible Competitiveness Index and the National Corporate Responsibility Index (NCRI) “. This report, launched in late 2006, results from the collaborative effort of AccountAbility, FDC and Incae, and the generous support of the Business Forum and Fundemas. The study is based on a wealth of sector and issue-specific cases from Bolivia, Brazil, Central America and Chile, as well as other countries and regions. The report assesses the Latin American progress towards the responsible competitiveness goal. Realizing this goal requires markets and regulation that create a “race to the top” of escalating productivity, human development and environmental responsibility. The potential
exists for such positive relationship, but a competition driven “race to the bottom” remains a very real possibility. Latin America faces a unique set of competitiveness challenges. The latest competitiveness indices show that, while some countries in the region have rapidly improved their medium-term growth potential, others remain static or even show signs of worsening in comparison to their competitors. The facts of pervasive poverty and inequality suggest that the “trickle down” of undirected economic growth will not deliver sustainable development on its own. What is required is a more responsible form of competitiveness. Latin American countries have advanced towards corporate responsibility. In this sense, Latin America’s progress is uneven and varies from intermediate to the lowest levels among the 85 countries that comprise the data. The main findings of the National Corporate Responsibility Index are:
• Nordic countries score well. Although Norway is an exception (12th), the other Scandinavian countries rank among the five top ones (Sweden, first; Finland, second; and Denmark, fourth) • South Africa is the highest ranking emerging economy (excluding Eastern Europe), followed closely by Korea, Chile, Malaysia, Costa Rica and Thailand. • China ranks 66, whereas India, its major Asian competitor, ranks above, at 43. • There are no Latin American countries in the upper third of the Index. • The regional leaders, Chile (29) and Costa Rica (32), are among the top countries in the upper third. • There is an intermediate group of countries, in which Brazil (37), Panama (47), El Salvador (50) and Mexico (54) are included. • The third group of Latin American countries is placed in the lower third of the global ranking. 10 out of 18 countries from this region included in the ranking are in this group.
6. Trade, investment and competition rules need to be sensitized 7. Responsibility standards need to be better aligned with competitiveness opportunities
CAs shown in this report, Latin America has good examples in each area, but there is a lot to be done. The report illustrates how strategies rooted in Responsible Competitiveness can play a significant role in enhancing a country’s economic competitiveness. Based on these practices, governments worldwide, as well as businesses, will increasingly build responsibility issues into their strategies to develop and maintain their national competitiveness. reSpoNSIble coMpetItIVeNeSS... Predicts that governments worldwide, as well as businesses, will increasingly build responsibility issues into their strategies to develop and maintain their national competitiveness. It provides a robust policy framework for this purpose and proposals for both policy and research. Responsible Competitiveness is the precondition for an acceptable, viable globalization that aligns the extension of business opportunities and roles in development with reductions in poverty and inequality, and environmental security. In 2007, AccountAbility and its partners will launch a new Responsible Competitiveness Report to monitor regional and worldwide progress. reFereNce
www.accountability21.net www.accountability21.net/uploadstore/cms/docs/Competitivi dade%20Responsavel.pdf Relatório 2006 (Am. Latina) • Sumário: www.accountability21.net/research/default. asp?pageid=242 • Íntegra: www.accountability21.net/uploadstore/cms/docs/ Competitividad%20Responsable.pdf
Advancing responsible competitiveness requires the development of actions in several fronts:
1. Strategy-aligned corporate responsibility 2. Collaborative approaches to raising the bar 3. Sector-based strategies, including medium-sized and small companies 4. National and regional strategies to build on multi-sector synergies 5. Investor responsiveness
raNKINgS coMparISoNS, growtH coMpetItIVeNeSS INdeX (gcI) aNd NatIoNal corporate reSpoNSIbIlItY INdeX (NcrI)
Latin America Emerging countries Other
70 Argentina 60 Dominican Republic Russia
Peru Colombia Brazil Costa Rica Panama India Uruguay El Salvador Mexico
0 10 20 30 40 50 60 70 80 90
.OThe numerator expresses actual per capita or perorganization contributions to closing or creating this gap.g. 2. What really differentiates the Social Footprint from other sustainability reporting tools is that it is the first quantitative tool for calculating social bottom lines based on rigorous sustainability theory. The tool allows balancing the use of natural resources and social demands.e.
The CSI measures organizational sustainability in terms of Ecological Bottom Lines and Social Bottom Li¬nes.. The organization is particularly interested in promoting sustainability as social learning. . an adjusted employee headcount that reflects the proportion of time workers span
. health and housing). These quotients compare a particular behavior or action to their impacts on ecological capital (limited and not created by man) and anthro capital (unlimited and created by man). The CSI is a non-profit corporation created in 2004 by its founder. Mark W. especially their own. For this purpose.The denominator expresses the per capita or perorganization share of gaps in social conditions required for human well-being. which is limited and which humans do not create. or on what CSI calls anthro capital – a combination of social capital. unlike the Ecological Footprint. calculating a Social bottom line – a 5-step process 1. the Social Footprint deals with the impacts on capital produced by people and that can be grown virtually at will (anthro capital).
couNtrY USA and the Netherlands wHat It IS It is a measurement and reporting system that organizations can use to assess. obJectIVe It is a measurement and reporting tool that quantifies the social sustainability of an organization. Its purpose is to conduct research. development. material things that humans produce in order to meet their needs. manage. and report their impacts on people and society in a broad range of areas. and with. and divide by total population in geographical area of interest (i. orIgIN The SF is the product of a joint development effort between the Center for Sustainable Innovation and the University of Groningen in the Netherlands. such as food. They result in numerical “social bottom lines” or scores and take the form of quotients:
. Determine overall amount of anthro capital needed. multi-bottom line impacts. to arrive at a per capita share of what it would cost to create or supply the required capital in a particular geography) – expressible in dollars “per person” or per “People Foot”1. which measures human use and impact on natural or ecological capital. McElroy. Calculate number of People Feet1 associated with the social system under analysis (e. training. companies around the world interested in achieving sustainability in the conduct of human affairs. it has developed a methodology that defines mathematical quotients for the two aspects – Ecological Quotient and Societal Quotient. ..e. A corporate sustainability accounting method that makes it possible to measure and report on its non-financial. In this way. and consulting for.Quotients less than 1 are unsustainable. human capital and constructed capital (i. Step bY Step
SOCIAL BOTTOM LINES
They are measures of social behavior sustainability – collective organizational behavior in particular.SF
Center for Sustainable Innovation Universidade de Groningen
coNteNt The Social Footprint is a measurement and reporting tool that quantifies an organization’s social impact on people.
sustainableinnovation. also expressible in terms of global hectares per annum.
.e. the use of natural capital falls within its bounds of renewal).org/Recasting-TBL.org www. • Quotients less than or equal to 1 (≤1) are sustainable because usage rates either match or fall below natural capital/services production and/or renewal rates (i.sustainableinnovation. such as the Ecological Footprint’s notion of ecologically productive land (in global hectares) used per annum by a society. and possibly depleting.
natural capital use (or its services).
SOCIAL FOOTPINT X ECOLOGICAL FOOTPRINTS
The Social Footprint and the Ecological Footprint are alike in the sense that both are about closing gaps – but the similarity ends there.e.SQ < 1 is unsustainable
.If true.the higher better .SQ 1 is sustainable . In the case of the Ecological Footprint.sustainableinnovation.e. and the Financial Bottom Line has nothing to do with any of this.
ECOLOGICAL BOTTOM LINES • The numerator reflects an organization’s rate of some
QUOTIENTS AS MEASURES OF SUSTAINABILITY ecological bottom lines* Total Ecological Imprint _________________________ Own Share of Supply of Natural Capital Total Social Imprint _________________________ Own Share of Supply Gaps in anthro capital1 Ecological Quotients EQ .If untrue... So-called Economic Bottom Lines are merely types of Social Bottom Lines. • Quotients greater than 1 (>1) are unsustainable because usage or impact rates exceed the production and/or renewal rates of natural capital/services. respectively. thereby diminishing.24
in their lives actually working. Multiply the per capita need calculated in Step 1 by the number of People Feet in the social system of interest per Step 2.. 3. the gaps of interest to us are between resources required and the supply of resources we have decided to make available..eQ 1 is sustainable .
Measuring Organizational Sustainability: Measuring Social and Ecological Bottom Lines. This is the entity’s “Total Social Imprint” (i.org/Global-Warming-Footprint. which is a social system’s Social Bottom Line in the anthro capital area of interest.eQ > 1 is unsustainable
Ecological Quotient (EQ)
Social bottom lines* organizational Sustaintability defined
Societal Quotient = (SQ). an organization) “Own Share of Supply Needs for Anthro Capital” – often expressible in monetary terms. then unsustainable
* We take the position that there are many Ecological Bottom Lines and many Social Bottom Lines. stocks of natural capital/services over time (i. or some other measure.html www.the lower better . reFerêNcIaS
www. each corresponding to impacts on some aspect of ecological and/or anthro capital.pdf www. in the case of the Social Footprint. the gaps of interest to us are between resources used and resources available.pdf
1 People Feet (PF) is a metrical unit that is mainly used to specify the denominator in a sustainability quotient. or what we call The Social Footprint Societal
. the use of natural capital exceeds its bounds of renewal). Divide the numerator by the denominator. 4. This is the social system’s (e.org/the-social-footprint. This results in the Societal Quotient (SQ). then sustainable .net. 5. or at work). McElroy at email@example.com. Measure the size of the social system’s contributions or impacts in the anthro capital area of interest. • The denominator reflects an organization’s proportionate share of the rate of the same natural capital/services production and/or renewal in the ecology.
reSultS The organization requests that comments and assessments be sent to Mark W. the numerator in the Societal Quotient) – also expressible in monetary terms.sustainableinnovation.
Germany ranks 13th. protected areas. reFerêNcIaS
www. freedom. India. education. peacefulness. was developed and tested with the support of the International Development Research Centre (IDRC) and IUCN – The World Conservation Union. communication. air qua-
. energy use. orIgIN The Wellbeing Assessment.WN
the well-being of Nations
The International Research Centre
lity. and Zimbabwe. a method used in The Well-being of Nations. 67 geopolitical maps codified by colors describe the performance of 180 countries on both indices as well as their main indicators. It differs from other approaches to assessing sustainability in its dual focus on human and ecosystem wellbeing and its use of the Barometer of Sustainability to sum a comprehensive set of indicators into the HWI. WI. global atmosphere. wealth. and resource pressures into an Ecosystem Well-being Index – EWI. all data is presented in 160 pages of tables and the highly accessible methodology is described in attachments so that readers can make their own assessments.iucn. But to truly achieve this balance. The Wellbeing Assessment method a wide range of human and ecological aspects than more traditional measures such as the Gross Domestic Product. population. The best performing country is Sweden. water quality. Note Wellbeing Assessment can be used at any level from municipality to the world.doc
World Conservation Union
couNtrY Canada wHat It IS--A new analysis of the state of the world – a survey that ranks 180 countries by measuring human development and environmental conservation through the Wellbeing Assessment method. including Prescott-Allen’s Barometer of Sustainability method. demonstrate the practicality and potential of the Wellbeing Assessment method. species diversity. These approaches were tested and improved during the first phase (1994-1996). and corporations to undertake their own well-being assessments. even though the report considers it an “ecosystem deficit” country: it obtains an advanced standard of living through environmental damage. crime. In more than 140 nations. water supply. communities. ecosystem stress is higher than human well-being – evidence that most people’s efforts to improve their lot are inefficient and overexploit the environment. Zambia. “The report suggests that a high standard of living is possible without ruining the environment by changing the way that development is pursued. Thirty-seven countries are close to striking a good balance between a healthy population and a healthy environment.org/en/news/archive/2001_2005/press/wonback. the United Nations’ Human Development Index or the Environmental Sustainability Index (ESI). Additional tests of the Barometer of Sustainability and the complete method have been conducted in Canada. EWI. and then Prescott-Allen developed the method for the second phase of the IUCN/ IDRC project (1997-99) and The Wellbeing of Nations. It is also intended to raise awareness about the need for simultaneously planning and managing both human development and ecosystem protection. which earned the survey’s top ranking. In addition. and encourage countries. and WSI. Australia 18th. Nicaragua. Director General of IUCN – The World Conservation Union--. obJectIVe It is intended to promote high levels of human and ecosystem well-being. and equity are combined into a Human Well-being Index – HWI and 51 indicators of land wealth. It began as a synthesis of several sustainability assessment approaches. The indices are then combined into the Well-being Index (WI) and the Wellbeing/Stress Index (WSI) that measure the ratio of Human Well-being obtained in each country to ecosystem stress.” says Achim Steiner. coNteNt 36 indicators of health. even these 37 countries must greatly improve their environmental efforts. reSultS The report shows that all countries enjoying high standards of living are placing undue pressure on the environment. Japan 24th and the United States 27th.
índice de Iniciativas
1. 2. Redefining Prosperity CMPEPS Stiglitz. 6. 7. Fitoussi France Libertés Fondation Orbis (Sustainability Indicators Regional Base Observatory) Bogota. 9. 5. 4. How are We Doing Movimento Nossa São Paulo (Our São Paulo Movement: another city) Juruti Sustentável Legal Lucas do Rio Verde Project BAWB – Global Forum América Latina Global Action 87 88 90 92 94 96 100 102 104 108
. 3. 10. 8. Sen.
or are there still ways of achieving it? 3. which basically means total national income in a year. on the other hand. Confronting Structure was about taking the arguments against continuing growth seriously and thinking through the consequences. we help put sustainable development at the heart of Government policy.sd-commission. above all.org. have identified “alternative visions of prosperity” . Wellbeing Policy looked at the evidence about what contributes to people’s wellbeing.un. would it differ greatly from economic policies intended to promote growth? What would the key differences be? Would there be a different approach to work and to the importance of the unpaid activities which keep community and family life going? Would the planning system give greater priority to local democracy and quality of life? reSultS Redefining Prosperity is planned to result in a major report from the SDC. the First Ministers of Scotland and Wales and the First Minister and Deputy First Minister of Northern Ireland. reFereNce
http://www. and asked .what follows? Should we wish for a set of economic policies designed to promote wellbeing? If so.is the Government’s independent adviser on sustainable development. to economic growth. If the economy no longer grows. advice and appraisal. html http://www.WN Redefining Prosperity 1
The Sustainable Development Commission
coNteNt The project is divided into four main parts: 1.org/esa/sustdev/natlinfo/indicators/factsheet. Researchers. sustainability. looks attractive because it links closely with the assumption that most individuals aspire to increase their income. Economic growth. obJectIVe SDC’s project on Redefining Prosperity aims to map out the relationships between these three aims – growth. the ability to repay debt and pay interest. more efficient technologies? Is there any evidence that decoupling is already taking place in Europe and North America? Or is that an illusion created by the fact that we are increasingly importing manufactured goods from Asia and Latin America. reporting to the Prime Minister. two other objectives have moved up the political and policy-making agenda: sustainability and wellbeing. tax revenue. Can government policy aims be revised to better reflect individual wants and hopes? 2. wellbeing – and ask what issues are raised. orIgIN The Sustainable Development Commission – SDC . with cleaner. Through advocacy.uk/pages/redefining-prosperity. which can be more compelling. Does it mean sustainability plus economic growth? Or is it about finding a compromise or balance between some sustainability and some growth? Or does development mean something different from growth? Does it mean progress towards increasing wellbeing? And is it possible at all to define and promote wellbeing?
. Visions of prosperity looked at different views put forward about what prosperity means. company profits and economic competitiveness? Can we imagine any government pursuing this line of thinking? Or will they be forced to because of economic pressures creating long-term recession? 4. measured by increases in Gross Domestic Product. giving them the environmental burden of our consumption? Does that mean decoupling for real is impossible. or grows at a much slower rate. Do we have to choose between these aims? Can we combine them? What sorts of policies or approaches would we need to have? These questions go to the heart of what sustainable development is about.pdf
couNtrY UK wHat It IS The economy is currently geared. Economy Lite looked at the idea of decoupling – separating economic growth from the damaging environmental impacts it normally has. Can that link be broken. However in recent years. what happens to – unemployment.
‘measure something else’. because the existing indicators are based on values that only prioritize commercial economics and monetary policy. • to identify the necessary supplementary information to identify more appropriate indicators. It would be convenient to ask. therefore. It is time to reflect on the procedures and methods to develop this collective construction. knowing. • to determine the most suitable way to present this information. communities and groups within the population. that ‘growth’ is not necessarily a sign of increased well-being of peoples.2 CMPEPS
la commission sur la Mesure des performances Économiques et du progrès Social (cMpepS)
collectif FaIr : Forúm pour d’autres Indicateurs de richesse
Commission on the measurement of economic performances and social progress FAIR Collective: Forum on Other Wealth Indicators
coNteNt This symposium is organized around three themes: Reconsidering the progress of society: Thinking over the measures and dimensions of social well-being and progress. political resolutions and mobilization of surveys are necessary to determine and select the ends to be achieved. The citizens should be given the opportunity to say what ends are to be taken into account. whose participation is relevant to reconsider the progress of society and develop a collective construction. in January 2008:
• to clarify the GDP’s limitations as a tool to measure economic results and social progress. departments. adopting practices derived from current initiatives. as well as to assess the feasibility of alternative measuring tools. orIgIN Created by the President of France. Learning from the existing experiences. countries. The question of ‘what’ to measure is closely linked to ‘why measure’. municipalities. That makes us wonder what the values behind our measures are. Sharing experiences in building indicators. for example. no matter how indispensable the expertise of various areas is.
. if our citizens do not value environmental and social health. there is a need to determine what matters to society and. therefore. a core theme because the local levels (communities. Step bY Step The Commission is organized around three work groups:
• Conventional questions to measure gross domestic product • Sustainability and Environment • Quality of life
couNtrY France wHat It IS A commission that offers a new vision of wealth and sustainable human development. regions…) emerge as places that are home to many collective experiences of developing social indicators that should be shared. Developing a collective construction: Reconsidering that social progress cannot be restricted to expert commissions. Participation of the civil society. for instance. as much as sustainable human development. Nicolas Sarkozy. and the opportunity to participate in discussions about the way to take these ends into account. and to ponder on the corresponding assessment criteria and procedures. The reason we search for other indicators derives from the desire to clarify the ends that are unattainable. Organizing the local indicators: Reflecting on the territories. It is. In this sense.
9. 4. transfers in and out of the economy.org
Quality of life components
1. 2. 8. Unpaid household labor and leisure. guaranteed assistance. Assessment of safety.fr/fr/index. 5. Hedonistic experiences (positive and negative feelings). 2. education and other non-commercial services.
www. 9. Investigating the impact of market failures on classical sustainability monetary measures. if necessary).stiglitz-sen-fitoussi. conflicts.stiglitz-sen-fitoussi. as well as appropriate price indexes. WG THREE.
This commission drafted nine challenges to be faced to revise the GDP:
1.WN CMPEPS 2
WG ONE. adjusted price indexes. 5. as well as its depreciation. Capacity (health. especially considering accountability of the public sector. Examining the way relevant environmental variables (such as air and water quality) contribute to actual well-being both directly and indirectly (through production and health costs). wars). 6. abilities. 3. reflecting changes in quality and other aspects of our changing society.htm www. 5. Average quality of life inequalities. Addressing defense expenditures.pdf www.). 8. trust.). Social environment (such as social links. etc. WG TWO. Education as investment for human capital. Incorporating more comprehensive wealth change measures. 10. OUTLINE OF THE WORKS ON GDP-RELATED ISSUES 1. green NNI. Real income available per consumer unit for the different income classes. 4. Personal safety (such as victimization. Migrating from GDP to net real income available for the whole economy and for the households.
Conditioning factors of quality of life
. Considering unpaid household labor. including those provided by the government. 3. Value judgments (about life as a whole and its main components). environmental degradation.idies. including those guaranteed by the government. including inequalities. 6. including private expenses with safety. etc. Gain/loss of capital/income. especially when guaranteed by the public sector. including inequality measures. Comparing incomes to capital gains and losses. working hours). commuting. Incorporating adjustments for resource depletion and environmental degradation in the various ‘green’ income measures (green GDP. 6. education and other non-commercial services. including depreciation and investment.fr/documents/Issues_paper_VF.org/public/fichiers%20joints/Note_commission_ Stiglitz. 7. From GDP to real income available. Assessing safety. Adequately incorporating uncertainty measurement.idies. 3. Considering education as investment to build human capital.Assessment of different methods to summarize information on all life quality areas. 7. taking into account depreciations. OUTLINE OF THE WORK ON SUSTAINABLE DEVELOPMENT AND ENVIRONMENT 1. 5. and developing specific measurement methods when using a general measure covering all aspects is impossible. pollution. judiciary system). Calculating the real income available per consumer unit (adjusted household) for different income groups and comparing averages to medians. access to public spaces). taking into account depreciation. The measures of volume and value based on results obtained in the domains of health. Natural environment (such as noise exposure. OUTLINE OF THE WORK ON QUALITY OF LIFE
4.fr www. obtaining volume and price measures based on outputs. international income transfer. 2. 4. 2. both in the economy as a whole and on the household level. 9. 3. participation in politics. 7. resource depletion. Institutional environment (such as freedoms. Unpaid household labor and income. 6. For health.stiglitz-sen-fitoussi. Personal activities (such as leisure. fear of criminality. 8. environmental degradation. decreased resources. Considering all defense expenditures. The median income as opposed to average income. Comparing unpaid household labor and leisure. including safety-related public and private expenses. Exploring the use of other measurement methods in order to value environmental changes.
wHat It IS It is an international cooperation program established between the Brazilian Economic and Social Development Council and the France Libertes Foundation aimed at developing new wealth indicators for the State of Acre (Brazil) from a qualitative reflection on our way of factoring in wealth and economic growth: highlighting both social progress and preserving or protecting the environment. the ‘Wealth’ Collective was created in 2001 in France to carry on the work outside the official mission. coNteNt The indicator could respond to three needs that are certainly distinct. very inaccurate about poverty and development in these regions that are rich in natural resources and folklore. poverty and inequalities reduction are some of the many critical aspects of ‘development’ that are not acknowledged by our mainstream indicators. It is formed by individuals and associations operating in the areas of art. including the Amazon Forest. the project will benefit international institutions that work on indicators. Guy Hascoet. an indicator based on the concept of sustainable well-being of the Amazonian population is consistent with the questions and purposes of the Acre Municipalities Sustainability Indicator (ISMAC). humanitarian action and solidary economics. Together with this Collective.htm. Education and family values. popular culture. Given the utmost importance and relevance of the report produced. culture. as well as associations that work in the solidary and social economy area. popular education. but indubitably complementary:
1)An indicator that tracks. a tool developed by the Acre Government during the second phase of regional Ecological-Economic Zoning (ZEE). respect for nature and sustainable use of resources. The proposal of new indicators seeks to create a statistical basis to measure the results of environmental and social policy and economic development policy for the populations of defined states. developing and valuing these new wealth indicators. orIgIN EIn 1998. but an integral part of Nature that depends on it.
.3 France Libertés
France libertés – FdM
‘Florestania’ is an attempt to draw attention to the fact that mankind is not the center. This is the approach already adopted by the ISMAC. Aldem Bourscheit Cezarino ”
www. Likewise. A cooperation agreement was signed in September 2005. ‘Florestania’ seeks a new social and natural pact. strengthen the network around the concept of ‘new types of wealth’ in France and abroad. 2) An indicator that allows tracking the evolution of sustainable well-being for the many municipalities of the region studied. which leads us to a diagnosis that can be. obJectIVe Ultimately. The indicator’s objective is to reflect the population’s well-being and include this well-being in a sustainability logic.org/florestania/ToinhoFlorestania. sometimes. accepted Patrick Viveret’s proposal to make an exploratory work regarding wealth indicators. for each Amazon region. health. In its official mission. This project aims to produce and develop new wealth indicators for Brazil. the changes along time. in parallel with institutional logics and actions. France Libertés engaged in a dialogue with the Brazilian government to propose
an international cooperation agreement aimed at creating. the French Minister of Sustainable Development. It aims to mobilize citizens from different perspectives to give their proactive contribution to define wealth.florestania. value and highlight human wealth and ecological wealth frequently neglected by public policy. ecology. whereby mankind will come to an arrangement with nature. Viveret worked for three years on a report entitled ‘Reconsidering Wealth’.
Poverty 3. in this case) of Brazil based on the triple vision of its economic dynamics and its social and environmental health. Economic inequality of resources 6. the final product could be proposed as:
.Public safety and justice ENVIRONMENTAL DIMENSION 1. Sustainable development of forests (not including diversity) 2. Sustainable development of agricultural resources 3.collectif-richesses. Sustainable forest economy 5. Sustainable development in the Amazon is not an ideological or remote issue (neither in space nor in time). Average standard of living 2. The Acre State Government.Amazon Sustainable Human Development Index . Waste and recycling 6. in parallel with similar initiatives in the State of Amapá. The assassination of Chico Mendes in Xapuri in December 1988 can illustrate the increased level of a social conflict that inextricably links the economic side (exploitation of rubber by communities of rubber tappers) to the environmental factor (that is part of this extractivist operation). Education 2. Health 3. The social conflicts – sometimes violent ones – many times originate in economic issues. This form of development has been considered a pragmatic and attractive solution for social and environmental problems that are common in the Amazon.org/
Note The Acre State Government uses the formula ‘forest government’ to stress that it takes the responsibility for ensuring an ecological system to which man belongs.Sustainable Well-Being Index of the Amazonian Population . The wealth of the state is the wealth of this system. Quality of political and administrative institutions of the civil society 6. reFereNce
http://www.WN France Libertés 3
3) An indicator that allows comparison between the different regions (states. The degradation of nature in the Amazon has very direct and visible social effects: rapid urbanization and poverty are frequently associated with deforestation. ownership rights and forms of exploitation.Amazon Development Quality Index EQUITABLE ECONOMIC DEVELOPMENT 1. Inequalities between genders 5. Sustainable development of water resources 4. Biodiversity conservation 5. Soil quality and desertification
tiveness of sustainable development in the Amazon lies in the interconnected nature of the environmental and social spheres. The main reason that can explain the attrac-
. which are related to the land. Carbon dioxide emissions 7. Employment and unemployment 4. Trade balance of some basic products HUMAN AND SOCIAL DEVELOPMENT 1. has long integrated the vocabulary and ideas of sustainable development in its various actions.
Considering the purposes of indicators. Access to basic services 4. pollution and intensive farming.
Online monitoring system aimed at helping organizations and people that work with social. • Supporting reflection and decision-making processes involving the future of Paraná. analyses and knowledge. and the Development Promotion Institute (IPD). and Millennium Summit / 2000. This led to the creation of ORBIS in 2004. It uses the following main tools:
MODELO – Local Development Monitoring System
wHat It IS It is an organization that uses indicators to monitor. Economic and Social Information
System that allows access to environmental.
Dynamic Report on Local Environmental. charts and tables with social.4
Sustainability Indicators Regional Base Observatory
SESI PR – Paraná Industry Social Service IPD – Paraná Development Institute
orIgIN In October 2003 the ICONS – International Conference on Sustainable Development and Quality of Life Indicators was held in Curitiba gathering specialists from all over the world to discuss alternative indicators to measure prosperity and quality of life on the planet. review and disseminate information related to sustainability and quality of life in the State of Paraná. environmental sustainability. with 191 signatory countries. Global Compact / 1999. also guided by the definitions of the 1992 Rio Declaration / Agenda 21. Habitat II Conference / 1996. demographic and economic indicators that cover the whole State of Paraná. economic
. obJectIVe Contributing to sustainable development in partnership with public and private social actors by: • Organizing and monitoring sustainability indicator systems. separated by mesoregions and municipalities. aimed at helping implement the Habitat Agenda and the Millennium Development Goals. It is supported by the FIEP System (Federation of Industries of the State of Paraná). Kyoto Protocol / 1997. implemented by the UN-Habitat Programme – for Human Settlement. It is certified by the UN Global Urban Observatory (GUO). which leads a global network of urban observatories. Paraná Industry Social Service (SESI PR). economic and environmental development projects to analyze and monitor local development. The information is divided into four major groups: governance. It provides access to and helps create maps. All the update is made by Orbis and the data and indicators are collected from official sources. generating national and local information. Orbis provides information through the website and printed publications to keep the various sectors of society informed about the status of the indicators in the State. economic sustainability. coNteNt The indicators organized by Orbis are guided by the Habitat Agenda and the eight Millennium Development Goals as defined in the 2000 UN General Assembly in New York. and social sustainability. • Developing studies. among other organizations.
and social information about the municipalities of the State of Paraná. social and economic indicators were brought up at state level to support the Fórum Futuro 10. together with folders of the mesoregions and the cities that comprise each one of them. enabling the comparison of information between space distribution of projects.orbis. Porto Alegre (State of Rio Grande do Sul) (2008). regional needs. what enables the information update. besides many cities in Paraná (2007). In 2006. network articulation able to mobilize government and civil society in partnerships to better distribute programs in the State. it launched the first edition of the “Indicadores do Milênio para o Estado do Paraná “(Millennium Indicators for the State of Paraná).564 Brazilian municipalities. state and country whenever possible. to be launched in 2009. containing the Millennium Indicators of the 5. In 2007. Brasília. collection dates. it started a decentralization policy by implementing the Campos Gerais Regional Observatory and. the data was made available to the participants of the Movement’s meetings. Santo André and São Paulo (State of São Paulo). It allows for better definition of the focus and area of work. Anchieta and Vila Velha (State of Espírito Santo). Rio de Janeiro (State of Rio de Janeiro) (2005). Portugal. focus area. it structured the ODM Brazil Portal. Canada and Mexico. In 2008. and stood out as an important regional development promotion tool. Colombia. linked to the Nós Podemos Paraná (We Can Paraná) Movement. reSultS In 2004. In 2005. a strategic reflection process on the future development of the State in the next 10 years. with available data broken down by municipality.
Sources and Access Controls
Orbis was invited to present its urban observatory implementation experience in several national and international events in Germany. indicators used based on these sources. reFereNce
Corporate Social Responsibility Mapping
Mapping of corporate social responsibility projects. publicity about the organizations. and deprived areas. Perception of the Impact of Business Social Actions. Lençóis Paulista. Belo Horizonte. Courses and Consultancy in Information Management. the second edition was launched. in partnership with the UNDP and the UNICEF. Analysis and Interpretation of Indicators.br
Records of institutions that provide information containing periodical researches done. expected update. Maceió.org. types and terms of dissemination. allowing for higher efficiency in the description of metadata. Social Six Sigma for Social Project Management. the survey was used to make the report “Indicadores do Milênio na Região Metropolitana de Curitiba“ (Millennium Indicators in the Metropolitan Area of Curitiba).
. Guarujá (State of São Paulo) (2006). Ecuador. Social Surveys and Field Surveys.
• Poverty and Equality • Public Finance • Education • Health • Public Services • Urban Mobility • Public Forum • Environment • Responsibility
couNtrY Ecuador wHat It IS “Bogotá Cómo Vamos ” – BCV is a citizenship exercise that periodically and systematically monitors the quality of life evolution. housing. The monitoring measures improved access to goods and services of better quality and takes into account the public perception. orIgIN This initiative took off during the 1997 electoral campaign as a result of the lack of accountability that would allow checking the fulfillment of campaign promises of the mayor-elect and its impact on the city’s quality of life. utilities. the Corona Foundation and the Bogota Chamber of Commerce.” Similarly. and has the public say its perception of quality and access to public services. described as “the set of citizens’ rights. health. participatory and responsible citizen for it discloses assessment reports for the general public. In this sense. it allows for the complementation of existing knowledge and encourages institutional learning. it fosters strategic alliances for the development of policy to improve quality of life. communicating the results of this survey to the citizens. it fosters a better informed.5
Bogota. How are We Doing
“bogotá cómo Vamos”
Bogota. the general public and the expert groups working in favor of the city. it can change over time and according to the conditions of the city
. By promoting a permanent discussion forum for discussion on Bogota. The 1991 Constitution provided that citizens should exercise social control over the management of collective issues by monitoring the accountability of their local administration. it fosters an effective and transparent government because it requires accountability from the District Administration. The project is the result of an interinstitutional alliance between Casa Editorial El Tiempo. environment. which are the State’s duties. and then have this information assessed by experts and citizens. it is understood that quality of life is a dynamic concept. How are We Doing
and debate aimed at having an effect on the Public Administration. which seeks to communicate to the public the results of all the analysis and assessment exercise. Finally. Likewise. creating forums for debate and knowledge in order to potentialize the efforts and resources of the different actors that assess and carry out the city monitoring. provided for in the 1991 Constitution. The assessment and monitoring exercise carried out by BCV has quality of life as its core concept. Consequently. encouraging it to generate information needed for this accountability. such as the access to quality services in the following areas: education. obJectIVe The objectives of Bogotá Como Vamos are to create positive impact on the quality of life as it builds knowledge of the city. focusing on the accomplishment of the District Administration Development Plan. It consists of a forum for analysis
Step bY Step
Assessing and Disseminating the Strategies of Bogotá Como Vamos
BCV has two core strategies to enable the achievement of its objectives: the first is the assessment strategy whose core pillar is the concept of quality of life and the second is the dissemination strategy.
the citizen can benefit from the set of public organizations and their main programs in terms of image. timely. Similarly. Likewise. for instance.org http://www. the BCV organizes roundtables and
. which can count on better information that is more relevant. In this sense. The results of technical indicators are those that account for the impact of the management results and. or else.bogotacomovamos. The perception indicators show the citizen’s opinion about the assessment areas. the number of schools built. called ‘Conselho Como Vamos’ (‘Congress. the average transport time. This survey covers the Bogota urban area. therefore. That means the BCV does not assess. as well as monitoring of the main issues and problems (key projects of the Administration and problems of the population). age and gender groups. in the case of traffic. this information is validated by a panel of experts.
forums with the District Administration to carry out the monitoring for the development.WN Bogota. the District Administration has made its own accountability processes complementary to the project. there are 8 years (since 1998) of records of the citizens’ perception. trust and management. Currently there are replications of the Project in the cities of Cartagena. but the actual increase in access to education. reSultS The main accomplishments of the Project are related to its impact on the District Administration. problems and proposed solutions. divided into zones. opinionmakers and the local Administration. to assess the institutional performance of the Bogota Congress. according to the Project’s records. How are We Doing 5
In order to carry out the assessment. Once provided by the Administration. and their corresponding coherence along time. How are We Doing’). The city has a set of indicators that will support the existence of the project as it continues. These indicators are related to the access to quality classification of basic goods and services as well as to the successes and shortcomings of the public and private schools’ accountability. The public perception has been recorded since the first BCV Annual Perception survey was conducted in 1998. and was chosen to be presented in the World Bank’s Second Regional Meeting on Social Accountability in the Dominican Republic in 2003 and in the Universal Forum of Cultures in Barcelona. the perception indicators can show the opinion of the city dwellers about public goods and services and go beyond the technical indicators of result.org
The communication strategy focuses on bringing periodical quality information on the city. which are used in decision-making and in its management self-assessment. Cali. the District Government receives feedback not only from the assessment reports. regular and result-oriented. the Project has received many awards: it was given the Dubai International Award for Best Practices to Improve the Living Environment in 2000 and 2002. the observations and proposals made by the BCV have been increasingly taken into account by the District Administration. On the other hand. The information on the public perception since 1998 has enabled the project to make trend analyses in classification and provision of basic goods. reFereNce
info@bogotacomovamos. implementation and execution of the Bogota Development Plan. which show the city’s change. its advances. show the coverage and quality of basic goods and services. In this sense. In addition. the project makes use of technical indicators and perception of results. Medellin and Barranquilla. Finally. instead of the number of kilometers of roads built. Likewise. by the perception indicators. but also from the annual perception survey. and the operation of the BCV’s sister project. The purpose of publicizing the information is to help qualifying the decisions of citizens and bring analysis tools to the experts.
especially those focused on the city of São Paulo. Housing. It aims to turn São Paulo into a safe. which contribute cash or donate equipment. coNteNt
Guidelines I – INDICATORS AND GOALS PROGRAM – HOW WE ARE AND WHERE WE CAN GET: THE OTHER SÃO PAULO WE DESIRE
couNtrY Brazil wHat It IS Non-partisan. peace. the institute relies on the financial support of private companies of various segments and areas. . The Institute’s purposes are as follows:
. the Movement seeks the participation of all the society to gather ideas and propose actions that can contribute to an equitable and sustainable development of the city in key areas like Education. The movement has been legally organized as Instituto São Paulo Sustentável-ISPS (Sustainable São Paulo Institute).” Antonio Carlos Gomes da Costa
cracy in Brazil has been shaken. a non-profit institution qualified as a public interest civil society organization. projects and programs that foster sustainable. healthy. Environment. and the end is an equitable and sustainable São Paulo. human rights. ethics and participatory democracy.6
Our São Paulo Moviment
our São paulo Movement: another city
Sustainable São Paulo Institutel
“The basis is the ethics of co-responsibility. inter-religious participatory process that works for a ‘sustainable’ city based on successful experiences previously carried out in Bogota and Barcelona. economic. obJectIVeS The Movement intends to build a political. beautiful.Coordinating the administrative actions of data and information collection to support civic and social mobilization initiatives. orIgIN The Movimento Nossa São Paulo (Our São Paulo Movement) was born from the perception that the credibility of political activity. the means is mobilization and participation. as well as citizens interested in participating in the process of building a new São Paulo. In addition. citizenship. solidary and truly democratic city. . initiatives. succes-
. Labor. public institutions and demo-
Selecting and organizing the main indicators of quality of life in the city (for each administrative unit). and that it is necessary to foster initiatives that can bring back to the society values such as sustainable development. Health and Services. so that they can be used as a basis for political parties. social and economic power able to commit the society and successive governments to an agenda and a set of goals so as to provide all the city’s inhabitants with better quality of life. Transport.
In order to achieve these purposes. It is supported by hundreds of community leaders.Supporting movements. democracy and other universal values. among others.Fostering ethics. Leisure and Culture.Conducting studies and polls related to the abovementioned activities. social and environmental urban development. Safety. . civil society entities and organizations.
IV – PARTNERSHIPS
I. Housing 6. political parties and successive governments to commit to programs and goals for São Paulo. How Are We Doing).
Supporting the development of new movements in
. Social work 5. city administrative units and departments to implement the Citizen Culture actions and campaigns and also to support more urgent social programs (enhancing the day-care centers and other public services that will be able to receive new support to eliminate their deficits). Labor and income 4. environmental. HOW ARE WE DOING
other cities and regions of Brazil. improving self-esteem and the feeling of belonging to a city that is everyone’s asset and should be kept by everyone (communication programs. The data was organized by theme areas. Selecting and systematizing the main indicators of quality of life in the areas covered by the city administrative units. whose website is www. charts.br. Organizing a database of best urban sustainability initiatives. Monitoring
Promoting partnerships between companies. WGs and Networks. nongovernmental organizations. How Are We Doing’ website as the Movement’s media.
III – CITIZEN CULTURE
Forums. so that they can be used as a basis for the civil society. with periodical and regular updating. Education 3. Conducting annual public opinion polls to learn and publicize the population’s perception of the different municipal actions in all the city’s administrative units.org. Example: indicators A set of 130 social.
VII . The relevant figures. Step bY Step The movement’s performance is around 4 major theme areas:
Indicators and goals program:
Carrying out actions and campaigns aimed at changing the population’s behavior. economic. Support Group: to Forums. Sports 12. so they can be systematically monitored by all the society. many companies and several technicians and experts gathered in 14 Work Groups (WGs) for about four months to provide the city with this path. which will be studied. Holding in São Paulo the Sustainable Cities Conference. How Are We Doing’ website. the evolution of indicators of quality of life in each city administrative unit. tens of civil society organizations. Transport and urban mobility 7. II. adding value to the public environment.P. with definitions and sources.
V – ENHANCING THE NETWORKS / SOCIAL MOBILIZATION
Continuously fostering the incorporation of new leaders. educational campaigns and participatory actions). Work Groups.
1. Culture 10 Budget 11.. Keeping and updating the ‘Our São Paulo’ portal and the ‘São Paulo. Health 2. continuous maintenance and updating of the ‘Our São Paulo’ portal and the ‘São Paulo. Partnering with the media to better publicize monitoring of the indicators and goals and to contribute to the educational campaigns and participatory actions.INFRASTRUCTURE
Continuously communicating and publishing on the website São Paulo Como Vamos (São Paulo. assessed and monitored in the next years. backgrounds and other data are available at Observatório Cidadão Nossa São Paulo (Our São Paulo Citizen Observatory). Systematically monitoring the works of the City Council. political and cultural indicators of the city of São Paulo and each one of its 31 administrative units. Organizing a database of best urban sustainability initiatives. proposals for S.WN Our São Paulo Moviment
sive governments and the civil society to commit to programs and goals for an equitable and sustainable São Paulo. Establishing forums in all the areas covered by the city administrative units. companies and social organizations into the movement.
II – CITIZEN MONITORING – SÃO PAULO.
VI – EXEMPLARITY
The process of developing and choosing the indicators involved hundreds of people. Environment 9.nossasaopaulo. Violence 8. Social Networks.
Inclusion and citizenship
Note In February 2008. 30 was passed. within 90 days after taking office. with periodical and regular updating.Making them available to all the society.
. Example: 1st perception poll “Viver em São Paulo” (Living in São Paulo) carried out in the City of São Paulo in January 2008. Changes in the population’s behavior II. The key objective is to assess. 2008 elections 9. nossasaopaulo.Forming a Latin-American network of sustainable cities. . Trust in institutions Citizen education:
I. economic. Conducting annual public opinion polls to learn and publicize the population’s perception of the different municipal actions in all the city’s administrative units. The Goals Program will have to be separated by city administrative units and districts. Discrimination and prejudice 10. The City Council has strong power over the municipal administration. IV.Process of mobilizing the society to make proposals for the main social. its transparency and its distribution among administrative units. II. states and regions of Brazil. Public education 6. the social policy and the municipal public administration. III. Fostering the incorporation of new leaders. so they can be systematically monitored by all the society. Cultural and leisure activities 11. II. The monitoring of the City Budget was also included in the indicators and is an area where the municipal administration needs to improve its data. Quality of life in the city 3. Improving self-esteem and the feeling of belonging to a city that is everyone’s asset and should be kept by everyone Example: 2007 World Carfree Day
I. Continuously communicating and publishing. political. IV. Public health 5. Municipal administration and national political panorama 12.br) as an effective communication channel between networks. year on year. requiring that mayors publicize a detailed government plan. according to the guidelines of the electoral campaign. The amendment also establishes the accountability of goals achievement to the population every six months.6
Our São Paulo Moviment
The main objective of the Citizen Observatory (www.br/observatorio) is to monitor the municipal public administration and provide the society with tools to influence public policy. companies and social organizations into the movement. the quality of life in the city. Establishing forums in all the areas covered by the city administrative units.
I.nossasaopaulo. Creating exemplarity to other cities. including the public powers and the political parties that will participate in the next local elections. amendment to the Organic Law of the City no. Other services 7. Main issues highlighted:
1. This rule shall be effective for the mayor whose tenure starts in January 2009. Weather and image 2. consequently. Example: I Our São Paulo Forum – Proposals for an Equitable and Sustainable City
. among others. Keeping the ‘Our São Paulo’ portal (www.org. Adding value to public environment III. so as to provide the civil and political societies with the necessary resources to exert a decisive influence on the public policy goals to make their priority become the construction of an equitable and sustainable city.org. Mobilizing the population to monitor the City Budget. over the quality of life in the city
8. Public safety 4. Systematically monitoring the works of the City Council. environmental and urban challenges of São Paulo. . its budget priorities and. Another area that will be monitored through a specific methodology is the city’s legislative power. the evolution of indicators of quality of life in each city administrative unit. press and the civil society as a whole. III.
Januária (MG). the network ‘Rede Social Brasileira por Cidades Justas e Sustentáveis’ (Brazilian Social Network for Equitable and Sustainable Cities) was created including the following cities: Belém (PA). São Paulo (SP). At federal level. Maringá (PR). Ilha Bela (SP).br
The ‘Como Vamos’ (How Are We Doing) Network. also called ‘Rede Cidadã por Cidades Justas e Sustentáveis’ (Citizen Network for Equitable and Sustainable Cities).Our São Paulo Moviment
Signed by the 400+ organizations participating in the Movement.nossasaopaulo. Teresópolis (RJ) and Vitória (ES). Peruíbe (SP). In Brazil. Lima (Peru). integrates in Latin America the initiatives from Barranquilla. Bogota.
. Goiânia (GO). Porto Alegre (RS). The final approval is the result of intense articulation of the Movement with the City Council leaders in the last six months. reFereNce
www. Santos (SP). Calí. Ilhéus (BA). Curitiba (PR). Niterói (RJ). Florianópolis (SC). Belo Horizonte (MG).org. Ribeirão Bonito (SP). Rio de Janeiro (RJ). Buenos Aires (Argentina). Holambra (SP). Brasília (DF). Recife (PE). Cartagena and Medellin (Colombia). Salvador (BA). São Luis (MA). the network started with the Our São Paulo Movement. Quito (Ecuador) and Santiago (Chile).
which partnered with the Brazilian Biodiversity Fund to create a sustainable local development model for Juruti and surrounding area due to changes brought about by the arrival of this company in the area. respecting the time required for adjustment and engagement of the local and regional population. face-toface public consultation in Juruti and surrounding area and on the Internet. consolidation of results and first diagnosis in Juruti and surrounding area. coNteNt In 2006.
couNtrY Brazil wHat It IS Sustainable local development model for Juruti and surrounding area due to changes brought about by the arrival of a company in the area. Many foresee opportunities for growth and economic prosperity. developed from supporting data. For the population of the town and surrounding area. and characterized as a first baseline for monitoring local development. the process includes a comprehensive research on the knowledge and experiences in Brazil and abroad around the development and sustainability theme.
. Carried out in Nov 2007. Creation of a local development forum with effective participation of all stakeholders to discuss a common public interest future. diagnosis of the baseline. development of metrics. Santarém and Belém for preliminary indicators development. 2. orIgIN In December 2005. Creation of sustainable development indicators to monitor the development of Juruti and surrounding area and enhance the public decision-making processes. ALCOA contacted the Getúlio Vargas Foundation (FGV). with the purpose of supporting participatory construction. and valuing the development process as well as the results reached. Carried out in Nov 2007. preparatory visits. Juruti has one of the largest deposits of high quality bauxite in the world. workshops in Juruti. uncertainties and memories of past mining experiences in the Amazon. including a detailed survey of the local and regional policies and initiatives. make a preliminary diagnosis of the area. The model is structured around three pillars: 1. prioritize actions and set a longterm agenda. so as to contextualize the project in the local reality. The activities of the indicators development process consist of: reference research. as well as a technical-academic monitoring of the indicators developed aimed at devising metrics and protocols to support the future tool. design of appropriate information material. protocols and traceability of indicators proposed. workshops using participatory techniques. Others are concerned with the risk of impacts on the quality of life and the environment. the arrival of ALCOA brings a lot of expectations. In parallel with the participatory and informed development.
• Reference research and draft proposal of development indicators created from survey and detailed review of global experiences.7
Funbio – Fundo Brasileiro para a Biodiversidade (Brazilian Biodiversity Fund) FGV – Fundação Getulio Vargas
obJectIVe The creation of development indicators for Juruti and surrounding area is fundamentally based on broad and democratic participation of all stakeholders through preparatory visits. economic and environmental baseline of the municipality of Juruti. a report entitled Juruti Sustentável: Diagnóstico e Recomendações (Sustainable Juruti: Diagnosis and Recommendations) was issued and it showed a model for the implementation of a sustainable local development agenda. • Diagnosis of social.
Document for Public Consultation 1. Carried out in Jan 2008. • First Development Diagnosis of Juruti and Surrounding Area.
3. DIMENSION: ENVIRONMENT Theme: Conservation and Use of Biodiversity Theme: Mineral Resources Theme: Land Use Theme: Soil Occupancy Theme: Environmental Quality 2. Mini-workshops carried out on Jul 7 – 23.WN Juruti Sustentável
• Workshops to create development indicators for Juruti and surrounding area together with the local population and regional actors (Carried out in Jan 2008 in Juruti.fgv.br/ces/juruti/indicadores/consulta/
. • Public Consultation of the indicators created in the workshops on the Internet and through mini-workshops in rural communities – from the wetlands and the plateau – of the municipality of Juruti. and ALCOA to monitor and actively participate in the process of building the indicators. DIMENSION: HUMAN BEING AND SOCIETY Theme: Fundamental Conditions Theme: Citizenship and Democracy Theme: Population 3.
http://www. • Indicators’ Verification and Traceability Metrics and Protocols • Consolidation of Results: Final version of the development indicators for Juruti and surrounding area with respective metrics and protocols. Feb 2008 in Santarém. local representatives from the Juruti town hall. and Apr 2008 in Belém). Creation of a local and regional development fund to raise funds and invest in actions based on monitoring results of the development of Juruti and surrounding area and priority goals identified in the forum. 2008. • Monitoring Group. with monthly meetings since then. Juruti’s social organizations. DIMENSION: ECONOMY AND INFRASTRUCTURE Theme: Economy Theme: Basic Sanitation Theme: Infrastructure. made from primary and secondary data. 2008 / Public Consultation available on the Internet on Aug 4 – Sep 20.
The Nature Conservancy (TNC) is one of the largest and oldest environmental NGOs in the world. will have as its main support an executive order signed by mayor Marino Franz defining the Permanent Preservation Areas as priority ones for governmental action. without labor problems. so as to test development models that ensure harmony between production and environmental conservation. governments at different levels. Lucas do Rio Verde. located 350 km away from Cuiabá (State of Mato Grosso). the Public Prosecutor’s Office and local agricultural engineers for effective assistance and monitoring of APPs recovery and the development of a capacity-building plan for environmental groups to enable a total control over the impacts of the production activity. State Public Prosecutor’s Office. which enables the indication of necessary measures to rectify existing irregularities. Sadia and Fiagril. Working in more than 30 countries. Pantanal and Caatinga) aimed at making the economic and social development compatible with the conservation of natural ecosystems. the project aims at reducing the environmental. the Landowners Union. orIgIN It is an initiative of the Lucas do Rio Verde Town Hall and the TNC – The Nature Conservancy (*). its mission is to preserve the plants. animals and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive. Rainforest. Other support points will be the partnership agreement signed between the City Hall. in partnership with the State Department of Environment (SEMA). the first phase could be completed with a comprehensive and georeferenced mapping of the conditions of each property. civil society and environmental organizations. sanitation and labor liabilities to zero in the agricultural activity and allow the products to be traced and to have free access to the most demanding world markets. research organizations. and using agrochemicals appropriately and safely. In the last few years. Lucas do Rio Verde Rural Union. Step bY Step Broken down into several phases. grows 10% a year. Syngenta. and establishing the isolation and prohibition of agricultural activity within its boundaries starting from the next crop for protection and restoration of the natural vegetation. In other words.
couNtrY Brazil wHat It IS The project (Dec 2006) is a unique partnership in Brazil to make this municipality. sanitation and labor liabilities to zero in the
( *) Founded in 1951. the first one to have all its rural properties legalized pursuant to the Forest Code. it aims to build in Lucas do Rio Verde a new sustainability concept for the country’s agribusiness. which includes a recovery plan for APPs (Permanent Preservation Areas). Sadia Sustainability Institute. Accounting for 1% of the Brazilian soybeans production.8
legal lucas do rio Verde project
TNC – The Nature Conservancy
agricultural activity and allow the products to be traced and to have free access to the most demanding world markets. obJectIVe The project’s main objective is reduce the environmental. in Mato Grosso. an area equivalent to the State of São Paulo. Rio Verde Foundation. Cerrado. The next phase. Present in Brazil since 1988. coNteNt The model to be implemented in this project can be used as a guide to the local and regional development processes for the future regional development of the Amazon with the challenge of setting a common agenda for the production sector. After engaging 100% of the landowners. its actions contributed to the conservation of more than 20 million hectares all over the country. turning Lucas do Rio Verde into one of the few municipalities in the country without social and environmental liabilities in the agricultural sector. it carries out over 20 large initiatives in the main Brazilian biomes (Amazon.
Lucas do Rio Verde is the evidence that economic growth and environmental respect are not irreconcilable. The integrated efforts of companies.WN Legal Lucas
The project also provides that environmental liabilities can be offset by collective mechanisms.000 hectares of permanent preservation areas and seeking a solution for the forest reservation areas to be protected. in Goiás. thus maximizing the areas of connected native ecosystems under protection. Syngenta product solutions contribute to the development of agribusiness. Following this guideline. Syngenta employs more than 21 thousand people in more than 90 countries. With products in the areas of pesticides. is considering the adoption of this model.tnc. Next goals: Reforesting 2. always aiming at sustainability and the population’s quality of life. Syngenta helps producers all over the world to raise their productivity and address the growing demand for food and fuel. the company offers information. seeds and urban pest control. TNC. technology and new opportunities for thousands of farmers all over the country through its social and environmental projects. organized by Jornal do Brasil and Revista JB Ecológico (JB Ecology Magazine) in partnership with Gazeta Mercantil and Forbes Brazil Magazine. including legal reservations in condominium. With the help of Syngenta. That is how Syngenta helps to cultivate respect for the environment and for people everyday. 13 municipalities are discussing the details to close an ambitious environmental pact to create financial incentives for the preservation of forests – an unprecedented project in the whole world. The Lucas project is encouraging other towns to follow the same path. reFereNce
Syngenta is a world-leading agribusiness committed to sustainable agriculture through innovative research and technology. reSultS Goals achieved in 2007: Recording of the 670 rural properties and notification of landowners that they must replant deforested areas near water springs. The project is a municipal highlight in the first edition of the “Prêmio Brasil de Meio Ambiente” (Brazil Environmental Award). and ranks third in the high-value commercial seeds market. the town of Catalão. Sales in 2007 were approximately US$ 9. pursuant to laws in force. In the North of Mato Grosso. state and local governments are expected to build a legalization process that should benefit both the environment and the landowners. The company is a leader in crop protection.2 billion.
renowned business professors.9
bawb – global Forum américa latina /call for action
Fiepr – Federation of Industries of the State of Paraná
The main objective of the BAWB . “Willingness is not enough. in Curitiba – Brazil. the UNINDUS – FIEP/PR System’s Industrial Companies University.A. in response to a recommendation of the GF-BAWB Call for Action in Cleveland. Acting cooperatively. 3. understood as a selfdriven and social education in which the subjects cooperatively take charge of learning. Toyota and Unilever. create their own initiatives and contribute to a sustainability actions database. set up the Global Forum on Business as an Agent of World Benefit. colleges and business schools should update their curricula to keep up with the challenges of the national and global situation. The BAWB-Global Forum América Latina. offers this perspective. 2. For this vision to be implemented. among others. obJectIVeS
1. It is more specifically a call for action intended to identify and implement innovative actions in the field of education by using the Appreciative Inquiry methodology1. 5. president of the Fiepr System. which necessarily means innovation and creativity. organized the BAWB-Global Forum América Latina. 4. Generating a conscious intention and a common vision for the development of leaders and citizens dedicated to a sustainable society of the future. which gathers approximately 19. committed people that can give their vital contribution to developing this collective thinking project and to disseminating it for further development”. Rodrigo da Rocha Loures. Rodrigo da Rocha Loures ” Universities. Capability is necessary.W. organizations and the society towards a sustainable world. holistic vision. the Case Western Reserve University. it is certainly necessary more specific actions with common goals and principles. environmental and economic sustainability.000 management teachers from 90 different countries and around 4. has been since then the largest summit able to call and attract more than 1. The B. orIgIN In 2006. social leaders and young students from all over the world. and that translates into a well-designed project.000 executives from corporations as big as Alcoa. in partnership with the Academy of Management. Sharing strengths and celebrating innovations and strategies for social. held in Brazil. Ro” drigo da Rocha Loures. managers in charge of public policy making.
“The objective is to foster a shared vision of ways to provide students with values and tools that make them able to act according to the requirements of sustainability.
“This moment requires a global. in partnership with the Center for Sustainability Studies – Getúlio Vargas Foundation (EAESP/ FGV) and the Case Western Reserve University (USA). Focused on a transforming education. Developing initiatives that use the strengths of the academia (universities and schools) and the corporate world to help build a sustainable and prosperous society. a movement in which the Global Forum is inserted.Global Forum summit was to align theory and practice so that these domains would come up with the understanding that sustainability could become the greatest business opportunity of the 21st Century.B – Business as an Agent of World Benefit. The young people
.000 companies worldwide joined by the United Nations Global Compact. wHat It IS The BAWB / Global Forum América Latina / Call For Action (GFAL) is a movement that aims to tap into the creativity of its participants to foster cooperation among institutions. In 2008. coNteNt Participants were invited to take part in initiatives addressing their areas of interest. Raising awareness about the existing opportunities for building multi-sectoral alliances aimed at education for sustainable development.
Margarita Bosch (Fiepr) Marilda Schiller de Moraes (WBA – Willis Harman House)
wHat IS aN apprecIatIVe INQuIrY? Appreciative Inquiry. as well as in forms of political management. It centrally involves the mobilization of inquiry through the crafting of the “unconditional positive question” often involving hundreds or sometimes thousands of people. in a central way. engaged participation of the civil society)
• Planning and Implementation Center for Sustainable Strategic Projects in Distributed Network • Pre-electoral forum for sustainability • Creation of a cross-cutting and intersectoral capacitybuilding and education center for sustainability
In Brazil. The curricula should address the sustainability theme in a cross-cutting way. covering the Northern Region. in collective reflection. more like a mystery to be unraveled. some of the countless initiatives that have been dreamed of and planned. Appreciative Inquiry allows building knowledge in group from what is best in people. the Global Forum América Latina has been held in the States of Paraná and São Paulo. In AI. gathering Federations of Industries from the nine states of the Northeast.WN BAWB
that are currently in the university will be performing. and heighten positive potential. in João Pessoa. in social construction and in forms of consumption. and are now in place. Learn more at www. reFereNce
www. and human terms. in a totally different economic.com. In May 2010. and becomes the solution. social and business reality.globalforum.
. anticipate. The Global Forum Social Network was created and expects to gather representatives from all sectors to carry on the discussions and put forward actions on sustainability education. Appreciative Inquiry involves. In April 2009. in forms of production. citizenship. the art and practice of asking questions that strengthen a system’s capacity to apprehend. In short. inspired by cooperation with a shared objective. in the next decades. It is a cooperative search for the best in people.globalforum. ethics. besides incorporating new teaching technologies. thus fostering the development of proposals for innovation and change in education. education. The organization is no longer perceived as a problem to be solved. State of Amazonas.br
• Creation of Sustainable Responsibility principles/ guidelines for the State of Paraná • Review of the legislation • Effective Shared Management between Civil Society and Government • Kaleidoscope – Rediscovering Values • Recovering Moral and Civic Values (values. can be defined as a positive approach to change management and organizational development. People hold meetings to make a list of problems and then they search for the causes to come up with solutions.com. It involves systematic discovery of what gives “life” to a living system when it is most alive. most effective. and most constructively capable in economic. developed in the United States by David Cooperrider. a Global Forum/Call for Action will take place in Manaus. the Global Forum/Call for Action Northeast will take place. the focus is not on the problem. but on building a desired future based on existing powers. providing knowledge sharing and identifying sustainability-centered business practices as a business opportunity for the 21st Century. There is a big difference between this method and Appreciative Inquiry. reSultS Participants of the BAWB-Global Forum América Latina discussed actions that would help strengthening the relations between the corporate world and the academia. Next. State of Paraíba. Many organizations consider themselves as a problem to be solved. their organizations and the relevant world around them. ecological.
measured by quantitative and qualitative metrics.9
STEP BY STEP OF AN APPRECIATIVE INQUIRY SUMMIT
People work on what they share a passion about. shared leadership. It is the destiny stage in which positive images of the future are sustained. decisions and collaborations of the organization. • Dream: creating a clear results-oriented vision in relation to discovered potential. and searching for meanings. processes. People self-manage their work and use dialogue – not problem solving – as the main tool. It is a time for continuous learning. Below is the work presentation of Roundtable 36 comprising 17 members: the creation of a Multidimensional Wealth Index – IMR. It is time to develop the ‘appreciative eye’ of the organization in all its systems.
Process application has four key stages:
• Discovery: mobilizing a whole system inquiry into the positive change core through stakeholder engagement with the articulation of strengths and best practices. things that enable us to succeed when we are at our best. Before jointly imagining the future possibilities. adjustment and improvisation in the service of shared ideals. • Destiny: initiates a series of inspired actions in order to implement the discovery. environmental. We start with an approach to change based on strengths. CURRENCIES AND FLOWSS
Out of the countless work fronts proposed. Common ground and narrative rich interaction rather than “conflict management” or negotiation as the frame of reference. and the design. systems. It is systems or systemic inquiry in the positive core. as well as in forms of political management.
. what they most care about and believe will make the difference.
The whole system participates – a cross-section of as many interested parties as is practical. That means more diversity and less hierarchy than usual in a working meeting. procedures and work methods.
This methodology is based on five principles:
• The Constructionist Principle • The Principle of Simultaneity • The Poetic Principle • The Anticipatory Principle • The Positive Principle
worK FroNt created at gFal IN SÃo paulo IN NoVeMber 2008
REINVENTING THE ECONOMY: IMR . in forms of production. the dream. Inspired action on behalf of the whole – Because the “whole system” is involved it is easier to make more rapid decisions. and voluntary initiative. creativity and culture). the ones that received the most votes by the participants were chosen for the creation of work groups to perform them either individually or in group. and direction in stories that honor and connect us to our “history as positive possibility”. The movement to action is guided by internal inspiration. social and cultural dimensions. challenging the status quo. thus fostering the development of proposals for innovation and change in education. • Design: creating possibility propositions from the positive core alive in all of its strategies. It visualizes the highest potentials of the organization for positive influence and effect on the world. first we reconnect to our main success factors. and to make commitments to action in a public way – in an open way that everyone can support and help make happen. meeting its objectives of generating public and private policy based
Participants of the BAWB-Global Forum América Latina discussed actions that would help strengthening the relations between the corporate world and the academia. and a chance for each person to be heard and to learn other ways of looking at the task at hand. The new model in place prioritizes human values and intangible resources (knowledge. in social construction and in forms of consumption. It is the design of the organization’s social-technological architecture. providing knowledge sharing and identifying sustainability-centered business practices as a business opportunity for the 21st Century. That means helping each other do the tasks and taking responsibility for our perceptions and actions. that is. The IMR is a set of indicators and new currencies that allow for balance in managing the four dimensions of Whole Sustainability: the economic.MULTIDIMENSIONAL WEALTH INDEX: NEW INDICATORS. That means honoring our differences rather than having to reconcile them.
including ‘users’ and ‘researchers’ (balance between theory and practice). law. WHO IS AND SHOULD BE INVOLVED: • Multisectoral (public.
• Year 1: first draft presented: next. State) – start awareness/mobilization campaign at even higher levels: abroad – Design of communication/ mobilization campaign to lay the ground for the change. • Optional: a series of articles that can lay the ground for the issue. Human and cultural capital. • Year 3: implementation of beta version at higher level (eg. Some vectors of this success have been multisectoral management. will reach a balance among the material. Indicators Module. innovation. The Group should include many areas besides the economic one. • Seed Group: people and institutions of cross-cutting nature and focused on human and sustainable development that already work on the theme.br
. when covering the four dimensions of Whole Sustainability. crosscutting education. private. politics. municipality). organized civil society. traditional knowledge and actions. MEDIUM-TERM ACTIONS: • Distribution of preparatory material resulting from the research. to be conducted by the society already mobilized • Year 2: pilot experience (eg. creative people) and cross-cutting Task Force to design the basis of the process that would be then developed by cross-cutting work groups. development. social and environmental flows that will enable the application of IMR.
The Multidimensional Wealth Index includes:
aa) Currencies/metrics related to the four dimensions of Whole Sustainability (economic. commerce. Creative Economy and Sustainable
Lala Deheinzelin www. development.com. WHO AND WHAT IS NECESSARY FOR IT TO BE SUCCESSFUL: • Institution that can host and coordinate the start of the process. monitoring. environmental. solidarity. collaborative production. culture. tangible and intangible sides aimed at quality of life. ICONS 2003. selection of professionals with cross-cutting profile from educational institutions (environment. articulation. network action and community empowerment. showing its relevance. GNH.WN BAWB
on the concept of interdependence and aimed at quality of life of humanity on the planet. SHORT-TERM ACTIONS:
Reinventing the Economy: “Multidimensional Wealth Indicators generate Whole Sustainability for mankind and the planet.enthusiasmo. c) Legislation and policies that transform and rule the economic. Axis: sustainability. • Preparatory research carried out by the seed group.”
Development. Measuring development and sustainability only by the economic value is like trying to measure liters with a ruler. technological and environmental capital enable the cultural and natural diversities. cooperation. with resources and power of engagement to set up the Seed Group to start the process. and creativity to integrate the sustainable development equation. Sustainability Indicators of Nations and other publications. b) Set of wealth indicators guided by the concept of interdependence and human values and that. and of the seed group. a campaign to lay the ground. social and cultural) that allow for their measurement. social capital. • Definition of the parent institution that will coordinate the process. necessary adjustments – campaign multiplies results reached and starts laying the ground for others. • Institutions whose work is already related to the theme. SHORT-TERM ACTIONS: • Search for institutions and names to integrate the initial Task Force (Currencies Module. • First meeting of the Task Force to define the bases of the project and decide on the work groups in each module. and exchange. etc). assessment. • Antecedents: experience in and information on the theme (eg. to be run simultaneously with the work groups. It is about reconsidering wealth as “abundance that does not generate scarcity.”
Work groups in the three modules. Flow Regulation Module). Solidary Currency).
health. dreams and stories to tell. reSult Over 12. Dalmo de Abreu Dallari ”
wHat It IS Global Action consists of a collective effort to offer essential.10
ação global (global action)
“He who does not have citizenship is either marginalized or excluded from social life and decision-making. one that stands out is Global Action. The program is offered to the public simultaneously in all states of Brazil and in the Federal District. leisure. education and citizenship. In the last decade only. work and a house to live in. unable to interfere in their own reality for lack of access to one or more basic rights of every citizen. orIgIN It has been a SESI initiative in partnership with Globo Network since 1991. education. They are in our homes. This perception reveals the exclusion experienced by Brazilians that get to the event and allows mapping the program’s impact on their lives in the short and medium term. The event benefits thousands of Brazilians every year and ensures free access to a number of services that foster citizenship. in rural areas. leisure and professionalization.01 points.
How can we talk about wealth and happiness indicators of nations in a country where part of its population is formally excluded from society.4% have family income lower than two minimum wages. They are.
coNteNt In order to have many outcast Brazilians recover their citizenship. such as health. feeling inferior within the social group. the program has rendered over 35 million services. Passport to Citizenship SESI – Industry Social Service. On a scale ranging from minus 65 points (total lack of rights) to plus 65 points (full citizenship). they do not exist for the society. therefore. Participants’ profile: 66. participants reached minus 2. obJectIVe The Global Action’s mission is to help reduce the social inequalities in Brazil. the event provides easy access to essential rights. and 76. below the minimum level of citizenship required to live (zero point). therefore. However.4 million people have been benefited and more than 26 million services have been rendered. in practice.6% are women. but they go unnoticed. They are men and women that spend a lifetime in limbo. 59. Lack of money is far from being the main problem for more than one million Brazilians that annually attend the Global Action.
. with no access to basic citizen rights. without any basic citizen rights? They have families. conducted in 2007. showed that people get to the event without access to basic citizen rights. Being a social outcast. especially because they are unaware of the exclusion of which they are victims. It was originally created by the Minas Gerais SESI and was later expanded nationwide in 1995. our stores. and being. Coming across these Brazilians is not hard. integrated and free of charge services by volunteer professionals in the areas of health. Over 40 services in one single place with quality infrastructure and performance. a true ‘Passport to Citizenship’ . Among the projects undertaken by SESI (Industry Social Service).8% of adult visitors are between 18 and 39 years old. unable to overcome this situation in the short term is worse than living in poverty. leisure. Four basic rights of any citizen are made available to the public free of charge: documentation. The 1st Global Action Impact Assessment Scientific Research.
68 point variation in only 24 hours. serving a total of 2. a network that is present in the 26 Brazilian states and in the Federal District. unemployment compensation. they can enter the desired formal market. it has served the industrial workers with great care. working for their well-being and health.92 points. and to the government severance indemnity fund (FGTS). The reason is quite simple: those who are healthy and have a résumé – two of the indicators assessed in this survey – have far more chance of finding a job. If they have an employment book (document issued immediately by the Global Action). they will be entitled to social security. One example of this line of action is PSQT – SESI Quality at Work Award. thus contributing to competitiveness and sustainable development in Brazil. among other countless data. SESI fosters socially responsible management in the companies. besides the physical structure with activity centers. Ensuring the exercise of citizenship by industrial workers and their families is SESI’s challenge.sesi. SESI is not only a pioneer. They get to the event at almost minus eight points in the Citizenship Scale and leave at around plus seven points.Global Action 10
The study showed. leisure and professionalizing activities – helped increase by 11.org. these people crossed the line that separates access to minimum citizen rights and are in the positive side of the scale with 9. The young people are the main beneficiary of the Global Action. the Industry Social Service was born together with key achievements for the worker’s quality of life. that some of the services offered by the Global Action – such as the access to documentation and medical appointments. health and education are the pillars of the network’s investments. In the last 60 years. summer camps and worker’s clubs. Health promotion initiatives integrate SESI’s initiatives agenda. which encourage the industrial worker to live a healthier life. For this purpose. SESI has won the trust of thousands of Brazilians thanks to an ethical and transparent work committed to social inclusion. This structure gives SESI a regular presence in the worker’s life
. Founded during the Vargas Era. the institution offers programs like the Global Action and Cozinha Brasil (Brazil Kitchen).006 municipalities. the rest is machinery. The Global Action is a program directly related to the Reduction in Regional and Social Inequalities result referred to in the Industry Strategic Map. Everything started out as a simple vision: people are the driving force and the reason why industrial companies exist. As a complement to the service rendered to the industrial community. but an agent of change. Once hired. For over 60 years. let alone the increase in income. which uses the GINI Index and the HDI as indicators reFereNce
www.93 points the rate obtained by men and women assisted by the program in 2007. headed by the CLT – Labor Code. Leisure. Two months after being provided with one or more services by the Global Action.br 1ª Pesquisa Científica de Avaliação de Impacto da Ação Global (1st Global Action Impact Assessment Scientific Research)
a global 10 Social responsibility in Brazil has developed side by side with SESI’s history. That is a 14. Why is this evolution so important? Specialists are unanimous in saying that citizenship is the basic pre-requisite for anyone to grow as a person and professionally.
ecolabeling initiatives in the world
•1 •4 5• • •• • •• •2 • • •14 •16 21• •22 •3 •15 •23 •17 •18 •19 •20 •24
•6 •7 • 10 • 12 11 • 8••9 • 13
• 1 – Canada • 2 – United States • 3 – Brazil • 4 – Sweden • 5 – Scandinavia • 6 – Netherlands • 7 – Czech Republic • 8 – Slovakia
• 9 – Croatia • 10 – Hungary • 11 – Austria • 12 – France • 13 – Spain • 14 – Israel • 15 – Zimbabwe • 16 – India
• 17 – China • 18 – Korea • 19 – Japan • 20 – Taiwan • 21 – Thailand • 22 – Singapore • 23 – Australia • 24 – New Zealand
Croatia.gr. Greece. Canada. natural. International co-ordination is to promote a progressive development of eco-label programmes in the individual states. While these have attracted consumers looking for ways to reduce adverse environmental impacts through their purchasing choices. GEN fosters information exchange about national eco-label activities around the world.html
wHat It IS The Global Ecolabelling Network. Czech Republic. For further information and elaboration on ecolabelling strategies. In 1994. Brazil. issues and practices. recyclable. couNtrY GEN’s head office is in Canada. an ecolabel is awarded by an impartial third-party in relation to certain products or services that are independently determined to meet environmental leadership criteria. thereby stimulating the potential for marketdriven continuous environmental improvement. obJectIVe The organisation was formed in 1994 with the aim of improving and developing ecolabelling worldwide. to encourage the demand for and supply of those products and services that cause less stress on the environment. The International Organization for Standardization (ISO) has identified three broad types of voluntary labels. some countries united to form the Global Ecolabelling Network (GEN) . low energy. multi-countries) level.voluntary programs that provide quantified environmental data of a product. the ISO has identified that these labels share a common goal. under pre-set categories of parameters set by a qualified third party and based on life cycle assessment. the various national organisations exchange information and offer each other technical assistance. and verified by that or another qualified third party
tions providing third-party labelling. There are many different voluntary (and mandatory) environmental performance labels and declarations.gr. eco-friendly.gen. is a non-profit organisation comprising members from ecolabelling organisations from all over the world.gen. Currently. the 28 GEN member organisations include organisations from Belgium. with ecolabelling fitting under the Type I designation.. consult the following references: www. United Kingdom. GEN. India. recycled content. Voluntary Environmental Performance Labelling -ISO Definitions
Type I -.WN Intro 1
“Ecolabelling” is a voluntary method of environmental performance certification and labelling that is practised around the world. coNteNt The common goal of these labels is to inform consumers about environmentally friendly products thereby giving global support to a product-related environmental protection. Denmark. third party program that awards a license that authorizes the use of environmental labels on products indicating overall environmental preferability of a product within a particular product category based on life cycle considerations Type II -.g.” The roots of ecolabelling can be found in growing global concern for environmental protection on the part of governments. that is not misleading.). As businesses have come to recognize that environmental concerns may be translated into a market advantage for certain products and services. Korea.jp/publications. such labelling has taken the form of ecolabels awarded to products approved by an ecolabelling program operated at a national or regional (i. especially in those countries which still wish to introduce an eco-labelling system.jp
Further. In contrast to “green” symbols or claim statements developed by manufacturers and service providers.through communication of verifiable and accurate information.informative environmental self-declaration claims Type III -.a non-profit interest group composed of eco-label organisations throughout the world. Israel. Luxembourg. consumers may not be certain that the companies’ assertions guarantee that each labelled product or service is an environmentally preferable alternative. Hong Kong (HKFEP).a voluntary. Hong Kong (Special Administrative Region). An “ecolabel” is a label which identifies overall environmental preference of a product or service within a specific product/service category based on life cycle considerations. China. Through GEN. etc. Hungary. Spain. reFereNcIaS
www. various environmental declarations/claims/labels have emerged on products and with respect to services in the marketplace (e.e. Sweden (SIS). they have also led to some confusion and scepticism on the part of consumers. businesses and the public. multiple-criteria based. Germany. Japan. In many instances. United States of America. orIgIN After the introduction of Germany’s Blue Angel as the first environmental label world-wide in 1978 other European and non-European countries followed this example and introduced their own national and supra-regional environmental labels. on environmental aspects of products and services.. which is:”. Thailand. Zimbabwe. Without guiding standards and investigation by an independent third party. Sweden (TCO). This concern with credibility and impartiality has led to the formation of both private and public organiza-
. Sweden (SSNC). New Zealand. Norway.
KOREA ECO-LABEL (1992) An initiative from the government of the Republic of Korea. a private company. The program is managed and controlled by TerraChoice Environmental Marketing Inc.environmentalchoice.umweltzeichen.hr/default.aela.org.terrachoice.kela.gov.com
FEDERAL ENVIRONMENTAL AGENCY Site: www.or. UMWELTZEICHEN-BÄUME (1990) Austria’s Environment Ministry. ECP is the second oldest world environmental standard and certification organization.org. in cooperation with the government.cn/ www. Certification criteria for 51 product groups.mzopu. website: www. website: www.000 companies.1 Intro
Iniciativas de selos ecológicos no mundo
ECOLOGOM (1988) Environmental Choice Program (ECP). Criteria for 50 products.aspx?id=5145.au/homefront.ca/ www. Website: www.org.kr/english
ENVIRONMENTALLY FRIENDLY (1993) Designed after the EU flower and German’s Blue Angel.au/mrachina.. Websites: www.htm
HUAN” (193) Environmental Protection Administration Chinês.br Ministry of Environmental Protection and Physical Planning. just after German Blue Angel.cn/english english.sepa.zhb. Good Environmental Choice Australia Ltd Certification criteria for 20 product groups. website: www.de
ENVIRONMENTAL CHOICE (1991) “Environmental Choice Australia” was launched in 2001.abnt.
. The label is granted mainly based on product life cycle analyses. websites: www. The Consumer Information Association (für Konsumenteninformation de Verein . Environmental Protection Division and the Department for EU Integration and International Projects of Croatia Used by 12 manufacturers in 26 product categories. website: www. Over 12. The label is granted based on product life cycle analyses.VKI) manages and sets the criteria.000 products from 2.at Controlled and organized by the Korea Environmental Labeling Association (KELA).blauer-engel.aela.
3000 products from 120 categories. QUALIDADE AMBIENTAL (1993) Brazilian Association of Technical Standards (ABNT).gov. Certification criteria for 85 categories and approximately 700 products.
300 products from 31 categories.greenseal. Website: www.epic. Another specific characteristic is that the draft criteria are disclosed.aenor. The Spanish program is very similar to the French program.php?id=785
AENOR MEDIO AMBIENTE (1993) Associación Espanola de Normalización y Certificación (AENOR).okocimke.org. nongovernmental organization.asp?tipop=2#1
KÖRNYEZETBARÁT TERMÉK (1994) Ministry of the Environment and Regional Development. 11 product groups and 400 accredited products.sazp. it is controlled by the independent foundation Clean & Green Foundation.nic. websites: www.org/
ENVIRONMENTÁLNE VHODNÝ VÝROBOK (1996) Slovakian Environment Ministry.afnor.es/desarrollo/certificacion/productos/ tipo.org
“GREEN LABEL” (2000) Controlled and granted by the Green Council (GC). in cooperation with the Hong Kong Productivity Council (HKPC). 43 product categories and 270 products. The system is controlled and managed by the Hungarian standards organization. which is controlled and managed by a standards authority.org/
HONG KONG FEDERATION OF ENVIRONMENTAL PROTECTION (HKFEP) Nongovernmental organization.sk/public/index/go. nonprofit.hu/ angism.hu/public_ eng/?ppid=2200000 ou www. Certification criteria for 35 product groups.kornyezetbarat-termek. a nongovernmental organization.kvvm.menlh. an institution reporting to the Spanish Ministry for Industry and Energy.asp?Lang=English
EKOLABEL INDONESIA Ministry of Environment Site: www.fr/portail. website: www. government-supported standards systems. although its principles are similar to those of national.greencouncil.greencouncil.htm
GREEN CHOICE PHILIPPINES (2001) Initiative of the government of the Philippines. website: www. This close cooperation system between the government and the standards organizations are repeatedly adopted by other ecolabeling programs. Certification criteria for 16 types of product. 400 products under 10 licensed categories.html “NF ENVIRONNEMENT” (1992) Initiative of the French government in cooperation with the French standards organization AFNOR.Intro 1
GREEN SEAL (1989) Green Seal. website: envfor. website: www.htm ECOMARK (1991) India is one of the few countries that grant its label to food products.ph/product. website: www. Certification criteria for 16 types of products.go.in/cpcb/ecomark/ecomark. Website: www. Inc.id
. 29 products from 21 groups bear the label. website: www. independent.
Finland. Criteria for 35 product groups and 300 licensed products.cz/ENG/
ECO MARK (1989) Japan Environment Association (JEA). Certification criteria for 35 product groups.nl/nl-NL/default. Scandinavia and Canada.nz At the same time. Criteria for 32 product groups and 75 companies.sg/greenlabel_htm/greenlable_ frameset. Certification criteria for 64 product groups and 5. ENVIRONMENTAL CHOICE NEW ZEALAND (1990) New Zeland’s Environment Ministry.il/siisite.nu/Eng/
.milieukeur. Sweden NGO since 1987.snf. Accomplished and controlled by Terlac.cfm Nordic Council of Ministers. website: www. Since 1995.ekoznacka. the program has also included environmental criteria for agricultural products. an authority responsible for technical tasks. Iceland and Denmark. it has been controlled by the Singapore Environmental Council. Stichting Milieukeur is responsible for setting the criteria and monitoring.enviro-choice. a nongovernmental organization. together with Germany. to introduce ecolabeling systems. website: www. Product criteria for 13 product groups. a multinational body comprised by Sweden. a private organization.nl www. website: www. (1993) Certification criteria for 11 product groups and a total of approximately 82 licensed products. The two programs coexist in a healthy competition. Japan was one of the first countries.se/bmv/english-more. in cooperation with Stichting Milieukeur. Norway. Criteria have been set for 60 product groups and 630 products. Sweden has also launched its “White Swan” label. it is not a national label as it is not a governmental initiative. accreditations and certification.aspx BRA MILJÖVAL (1992) Swedish Society for Nature Conservation (SSNC). Like India. Like the American label Green Seal. website: www. website: www. website: www.jp/english/
GREEN LABEL SINGAPORE (1992) Singapore’s Environment Ministry. There are 120 licensed products within 25 categories.sii. not including food products.org. website: www.000 products.sec. the draft criteria are disclosed. Since 1999. website: www. in cooperation with the Ministry of Environment and a Japanese environmental association.milieukeur.ecomark. quality systems.org.htm
MILJÖMÄRKT THE WHITE SWAN” (NORDIC SWAN LABEL) (1989) MILIEUKEUR (1992) Ministry of Environment and Economics.svanen.nsf/Pages/GreenMark
EKOLOGICKY SETRANY VYROBEK (1993) Czech Environment Ministry One characteristic of the system is that the environment minister decides on the granting criteria for product groups.org.1 Intro
GREEN LABEL – THE STANDARDS INSTITUTION OF ISRAEL Organized and controlled by the Environment Ministry Committee and the Standard Institute of Israel (SII).
300 products within 84 categories.ecolabel.Intro 1
TCO (SWEDISH CONFEDERATION OF PROFESSIONAL EMPLOYEES) It is a nongovernmental initiative.greenmark.uk/environment/consumerprod/ecolabel/ index
. Website: www.int/comm/environment/ ecolabel/index. Certification criteria for 32 product groups and 150 products. Website: www. Food and Rural Affairs(Defra) European Union Ecolabel Award Scheme site : www.or.htm
THE PROGRAM FOR DEVELOPMENT OF ECOLOGICAL MARKING IN UKRAINE Living Planet Site: www.tei.epa. Website: www.gov.ua/
European Commission .htm Department for Environment.gov. Managed by the Environment and Development Foundation. easy-to-use and environmentally friendly computers.eu.asp www.org. Label for particularly efficient.tw/english/index.tcodevelopment.org. Certification criteria for 1. TCO 99 is an upgraded version of successful labels such as TCO 92 and TCO 95.defra.DG ENVIRONMENT website: http://europa.th/bep/GL_home. in association with the Ministry of Industry.com
GREEN MARK (1992) Environmental Protection Administration (EPA).tw/
GREEN LABEL: THAILAND (1994) Thailand Environment Institute (TEI).greenmark.
are important as a driving force towards sustainability.se/bmv/english. and at the same time nature’s defence advocate and green consumer ombudsman. or environmental ombudsman. Greening Office Project helps to put up relevant environmental criteria for procurement purposes.SSNC.cfm
wHat It IS Bra Miljöval is the ecolabel of SSNC. We must also think about how the product is made and what happens to it when it has been used and discarded. This method of assessing the total environmental impact of a product is usually called a life cycle analysis. coNteNt The Swedish Society for Nature Conservation is currently involved in eco-labelling products in thirteen different criteria groups: Laundry detergents • stain removers and bleaches • cleaners • toilet cleansers • dishwasher detergents • washing-up detergents • soap and shampoos • paper • nappies and similar products • textiles • electricity supplies • passenger transport • goods transport. couNtrY Suécia orIgIN SSNC started ecolabelling in 1988. The work is divided among 273 local groups and 23 county associations around the country.Swedish Society for Nature Conservation . obJectIVe Decisions on whom to contract and what to buy due to environmental aspects. Step bY Step Every product affects the environment in several ways during the different phases of its life cycle. The SSNC is Sweden’s largest democratic environmental organisation.2
The ecolabelling also includes the internationally introduced labelling system of TCO ‘95 and ‘99 on computers. Is the biggest nature conservation and environmental organisation in Sweden with 170 000 members and 274 local branches across the whole country SSNC acts as a sort of consumer ombudsman. It is referred to as “Good Green Buy” or “Good Environmental Choice”. reFereNce
. We must consider how the raw materials are extracted (or what is consumed in providing a service).snf.
The common goal of these labels is to inform consumers about environmentally friendly products thereby giving global support to product-related environmental protection. among other things.V. The Blue Angel is the first and oldest environment-related label in the world for products and services.600 products and services from approximately 580 label users in Germany and abroad are entitled to bear the Blue Angel. the Blue Angel promotes the concerns of both environmental protection and consumer protection. For example.700 products and services in 80 product categories bear the Blue Angel reSultS After the introduction of Germany’s Blue Angel in 1978 as the first world-wide environmental label. for the development of requirements for the award of the Blue Angel – and the Environmental Label jury has its office in the Federal Environmental Agency.
.de/willkommen/willkommen. It is sponsored and administered by the Federal Environmental Agency and the quality assurance and product labelling institute RAL Deutsches Institut für Gütesicherung und Kennzeichnung e. Nature Protection and Nuclear Safety. a group of 13 persons from environment and consumer protection groups. The Blue Angel provides much of what consumers want. The Federal Environmental Agency is responsible.V. other European and non-European countries followed this example and introduced their own national and supraregional environmental labels. Therefore it is awarded to products and services which are particularly beneficial for the environment in an all-round consideration and which also fulfil high standards of occupational health and safety and fitness for use. The Blue Angel environmental label is the property of the Federal Ministry of the Environment.a non-profit interest group composed of eco-label organisations throughout the world. industry. couNtrY Alemanha orIgIN The certificate has been awarded since 1978 by the Jury Umweltzeichen.wikipedia. The benefits of the Blue Angel for consumers are clear: they are given practical guidance to help them considerably in their selection and their decisions on what to buy.htm
wHat It IS The Blue Angel (Blauer Engel) is a German certification for products and services that have environmentally friendly aspects. – with the participation of the Federal Environmental Agency and the federal state in which the manufacturer or supplier of the respective product or service has its registered office. The success story of the Blue Angel has now continued for almost 30 years. media and churches. some countries cooperated in developing the Global Ecolabelling Network (GEN) . it fits in well with the competition for the best possible ecological properties of products and services. coNteNt Now.Blue Angel
obJectIVe It was designed as an instrument of environmental policy which would harmonise with the market and enable the positive features of products and services to be labelled on a voluntary basis. reFereNce
en. It was created in 1977 on the initiative of the Federal Minister of the Interior and approved by the Ministers of the Environment of the national government and the federal states. unions.org/wiki/Blue_Angel_(certification) www. All technical demands placed on products and services for the award of the Environmental Label are decided by the independent Environmental Label jury. About 3. The award of the Blue Angel is entrusted to the RAL Deutsches Institut für Gütesicherung und Kennzeichnung e. about 3. As a result. In 1994. the Blue Angel helps consumers to save money because they decide to buy products with an excellent quality and a long service life – or by simply saving energy.blauer-engel. trade.
Organically produced feeding stuffs for feeding of livestock with no antibiotics or growth promoters added. such as:
. couNtrY Germany coNteNt
These products must comply with the provisions of the EU Organic Farming Regulation (2092/91).bio-siegel.4
wHat It IS “Bio-siegel” is the label granted by the Federal Ministry for Consumer Protection to organically grown agricultural products and foods.Ban on irradiation of organic food.Ban on genetically modified organisms. which is carried out annually and encompass all the phases between production and packaging. for it determines tight control over the production. The interest of the population for this label has increased considerably in recent years. including:
. processing and sale of agricultural foods. due to “scandals” related to foods that posed risks to public health.Renouncement of mineral fertilizers of low solubility.Appropriate livestock husbandry.
In addition. . . they must comply with several requirements. These products now go through a strict control.Renouncement of crop protection with synthetic chemicals. .de
. .Diversified wide crop rotations.
Step bY Step The attainment of Bio-siegel label is a hard task for the companies willing to bear it. .
krav. scientists. preferably an IFOAM-accredited certification body. such as establishing certifying organizations. which specializes in consultancy work in developing countries. grown without the use of artificial fertilizers and chemical pesticides. taking into account the information and opinion of all stakeholders. Only the companies that have signed a contract with KRAV and are authorized by KRAV may use the name KRAV or the KRAV-label on a product. All certified products are published on the website (only in Swedish): www. environmental and animal welfare interests. and also consumer.se/espanol. Standards available at http://arkiv. reSultS Krav certifies hundreds of products.krav.
wHat It IS Ecolabel that ensures the food is organic. that is.KRAV
Step bY Step The KRAV-label is a registered brand.pdf. Every three years the standards are revised. processors. Krav is authorized by the Swedish National Board of Agriculture and the Swedish National Food Administration to carry out inspection of organic production in Sweden. trade. KRAV also works closely with Grolink AB. It takes an active part in developing the Ifoam standards and also works to influence the EU organic production legislation. The content and formulation are defined by the Krav Standards Committee. The organization has 28 members.krav.se/produktlista/ reFerêNcIaS
www. an umbrella organization which gathers organizations for farmers. obJectIVe Krav is a key player in the organic market in Sweden. Production outside Sweden should be certified by a certification body which KRAV has an agreement with.asp Standards: arkiv. The label shall always be accompanied by the name of the producer. who represent farmers. educationalists and certifiers from almost every country in the world.se/arkiv/regler/ senasteEnglish. couNtrY
orIgIN KrKrav is an active member of IFOAM – International Federation of Organic Agriculture Movements. coNteNt Note: Krav standards ban the use of GMOs and GMO raw materials in certified products. The final decision is made by the Board of Directors.krav.
The label is usually valid for three years. which has produced a set of regulations. The Swan was chosen as a symbol. criteria are revised repeatedly. NMN. The group representatives come from government. obJectIVe The Swan logo demonstrates that a product is a good environmental choice.
• The Swan takes into consideration the product’s impact on the environment from the raw material to waste i. throughout the product’s lifecycle. couNtrY Suécia orIgIN The Swan is the official Nordic ecolabel. after which the criteria are revised and the company must reapply for a licence. trade and industry. • To ensure that a Swan-labelled product is always at the
wHat It IS A product carrying the Swan label meets extremely high environmental standards.nu/Eng/
. Before NMN finalises the proposals. we ensure that products better suited to the environment are constantly being developed. environmental organisations. The Nordic countries work together using the Swan ecolabel. the Nordic Council of Ministers decided to introduce a common. NMN determines which products can be covered by the Swan and the criteria they must meet. Groups of experts from the Nordic countries develop proposals for criteria. Once a criteria document has been finalised. Decisions taken by NMN must always be unanimous. The product must offer at features which are at least as good as other similar products. they are sent out for review. • The Swan also sets criteria with regard to quality and performance.
Step bY Step The Swan checks that products fulfil certain criteria using methods such as samples from independent laboratories. reSultS reFerece
www. Companies applying for a licence to use the Swan label must provide results from independent testing to prove that the criteria have been met.6
The Nordic Swan
the Nordic Swan
coNteNt The green symbol is available for around 60 product groups for which it is felt that ecolabelling is needed and will be beneficial. In this way. This work is co-ordinated by the Nordic Ecolabelling Board. In 1989.e. a variation on the logo of the Nordic Council of Ministers. official environmental label in Nordic. The national offices manage licence applications and grant licences.svanen. “Choose products displaying the Swan label. introduced by the Nordic Council of Ministers.and take a step towards a better environment!”
cutting edge from an environmental point-of-view. certificates and control visits. businesses can apply for the right to use the label on a product which falls into this category.
drink. reFereNce http://www. The European Union Eco-labelling Board consists of representatives of consumer and environment NGOs. industry. Over 250 certificates have been awarded to hundreds of products. and mattresses to office supplies. gardening and Do It Yourself products. products (not including food and medicine). obJectIVe It aims to provide simple and accurate guidance to consumers. trade unions. couNtrY European Union orIgIN The EU ecolabel is managed by the European Union Eco-labelling Board (EUEB). from its production and use to its eventual disposal (cradle-tograve approach). These environmental criteria will take into account all aspects of a product’s life. except food.UE Flower
• Tissue Paper • Copying Paper • Dishwashers • Light Bulbs • Bed Mattresses • Personal Computers • Detergents for dishwashers • Footwear • Portable Computers • Paints and Varnishes • Textile Products • Refrigerators • Laundry Detergents • Soil Improvers • Washing-up Liquid • Tourist Accommodation • Furniture • Hard Floor Coverings • Television • Vacuum Cleaners • All Purpose Cleaners
wHat It IS Ecolabel that distinguishes and tests greener.
Step bY Step The EU Eco-label scheme has drawn up a set of environmental and performance criteria for judging products. The services or products that bear this label are high quality and economical. Only if products meet all the criteria can they be awarded the EU Eco-label. There are currently twenty-three product categories which can receive this award. the Member States of the European Union. and the European Economic Area (EEA). pharmaceuticals and medical devices.com/french/
.eco-label. and is supported by the European Commission. SMEs and commerce. cleaning materials. reSultS Twenty-three different product groups currently exist for the Eco-Label. ranging from tourist accommodation service. coNteNt The EU Eco-label scheme is open to any product or service. more environmentally friendly. All products bearing the “Flower” have been checked by independent bodies for complying with strict ecological and performance criteria. home appliances.