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Knowledge Management produced by

Anne Louette

Sustainability Indicators of Nations
A Contribution to Dialogue
Knowledge Management
Sustainability Indicators of Nations

PRODUCED BY REVISION COLABORADOR BRASILEIRO

Anne Louette Assertiva Produções Editoriais
contato@compendiosustentabilidade.com.br
GRAPHICS AND ART EDITING
Team: Report Comunicação
RESEARCH AND FUND-RAISING
Report Design www.reportcomunicacao.com.br
Anne Louette PUBLISHER
Silvia Laudisio Antakarana Cultura Arte Ciência
EDITING AND TEXTS Ltda. / Willis Harman House
Fernando Felício Pachi Filho
PRINT RUN
Prix Consultoria em Comunicação e
Gestão de Prêmios 8.000 copies 1st Edition
ENGLISH TRANSLATION São Paulo, SP
André Alonso Marinho Machado 2009

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.

www.compendiosustentabilidade.com.br
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 CDD - 300.216

Índices para catágolo sistemático:

1. Indicadores de Sustentabilidade de Nações:
Ciências Sociais 300.216
Executive Summary
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 sus-
tainability. 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); Pe-
trobras 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 Sus-
tainability 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, pre-
senting 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 Indi-
cators 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 ackno-
wledgement 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, non-
governmental organizations, academic institutions and women, youth or traditional groups associations. Nevertheless, engagement is not restric-
ted 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.

1
INTRO

Reference to inspiring people
Hazel Henderson – Founder of Ethical Markets Media, profile, whose job is aimed at fostering a desirable future.
LLC, Hazel Henderson is the creator and co-executive Following a career as an artist, and a period of consultancy
producer of its TV series. She is a world-renowned futurist, at corporations, she has been working on (1) arts and artistic
evolutionary economist, a worldwide syndicated columnist, languages to better convey contents and carry out strategies
consultant on sustainable development, and author of The (2) as an advisor focused on Creative Economy and Sustainable
Axiom and Nautilus award-winning book Ethical Markets: Development, working for local governments and multilateral
Growing the Green Economy (2006) and eight other books. bodies in international cooperation. She has founded her own
She co-edited, with Harlan Cleveland and Inge Kaul, The organization Enthusiasmo Cultural (www.enthusiasmo.com.
UN: Policy and Financing Alternatives, Elsevier Scientific, br). Assistant to the UN South-South Cooperation Special
UK 1995 (US edition, 1996). www.hazelhenderson.com Unit’s Creative Economy for Development Programme (http://
ssc.undp.org); Director of the International Cooperation for
Jean Gadrey – French economist, Emeritus Professor the Instituto Pensarte (www.pensarte.org.br); founder of NEF
of Economics at the University of Lille. Critic of both the – Núcleo de Estudos do Futuro (www.nef.org.br)
neoclassical economic theory prevailing in economic
sciences and the ‘neoliberalism’, he has worked in the last Patrick Viveret – Philosopher, adviser at the audit court
years on wealth indicators and the limits of economic growth. and author of the mission ‘New Wealth Factors’, currently
Member of the Scientific Council at Attac (Association for under the French government Interministerial Committee
the tax on the financial affairs and the assistance with the for Innovation and Solidary Economy. He directs the
citizens – an alter-globalization (also referred to as the global International Center Pierre Mendès France and collaborates
justice movement) organization. Besides scientific papers with the Transversales Science-Culture magazine.
and books, he has also authored several essays in magazines,
such as Alternatives Économiques, and newspapers, such as “Let’s stop being deluded by the deadly logic of war, whether
Le Monde and Politis. religious or economic. Let’s stop thinking about our
contemporary issues based on the 19th Century’s geopolitics
José Eli da Veiga – Full professor at the School of or economics, both built upon fierce and obsessive
Economics, Business Administration and Accountancy / competition. Let’s spend most of our energy creating new
University of São Paulo (FEA-USP), where he coordinates ways of planetary citizenship, which will provide the human
the Center for Social and Environmental Economics (NESA). adventure with an opportunity to not only ensure our
Besides collaborating with scientific papers in Brazilian biological survival but also reach a higher quality level of
and international journals and several chapters in books, awareness – because things can get even worse.”
he has authored 13 books, among which: A Emergência
Socioambiental (The Social and Environmental Emergence) Rosa Alegria – Futurist, trends researcher, with a degree
(S.Paulo: Ed. Senac, 2007) Meio Ambiente & Desenvolvimento in Languages from the University of São Paulo – USP,
(Environment & Development) (S.Paulo: Ed. Senac, 2006) Master’s degree in Future Studies from the University of
– O desafio do século XXI e Desenvolvimento Sustentável Houston, vice-president of the Future Studies Center (NEF)
(Sustainable Development – The challenge of the 21st at PUCSP, and Millennium Project’s Brazilian Node Co-
Century) (R.Janeiro: Ed. Garamond, 2005). He also writes chair at the WFUNA – World Federation of United Nations
editorials at newspaper Valor Econômico. www.zeeli.pro.br Associations.

Ladislau Dowbor – Ph. D. in Economic Sciences from Serge Latouche – Works on various groups on the
the Central School of Planning and Statistics of Warsaw, creation of the post development concept. He is also a
full professor at Catholic University of São Paulo-PUC, historical contributor to the magazine La Revue du M.A.U.S.S.
and consultant for several UN agencies. He has authored and professor emeritus at the Jean Monnet Faculty of Law,
‘Democracia Econômica’ (Economic Democracy), Economics and Management at the University of Paris and
‘A Reprodução Social: propostas para uma gestão at the Institut D’études du Développement Économique et
descentralizada’ (Social Reproduction: proposals for a Social (IEDS) in Paris. He is also the director of research for
decentralized management), ‘O Mosaico Partido: a economia the Group in Anthropology, Epistemology, and Economy of
além das equações’ (The Broken Mosaic: For an Economics Poverty (GRAEEP). He is an objector to consumerism and
Beyond Equations), ‘Tecnologias do Conhecimento: os instrumental rationality, against the occidentalization of the
Desafios da Educação’ (Knowledge Technologies: the planet. Latouche is one of the most important proponents of
challenges of Education), all of them published by Editora sustainable degrowth.
Vozes, ‘O que Acontece com o Trabalho?’ (What happens to
work?) (Ed. Senac), besides having co-organized the work “...it is necessary to decolonize in our imagination these economic
‘Economia Social no Brasil’ (Social Economics of Brazil) (Ed. and developmentist meanings (...) re-appropriate virtues of
Senac). www.dowbor.org communal wealth and convivial poverty in the development of
social relations, that is, a lifestyle based on the ethics of simplicity,
Lala Deheinzelin – Lala Deheinzelin is a consultant, frugality, conviviality and solidarity – what some have advocated
lecturer and cultural entrepreneur, with a transdisciplinary under the Gandhi or Tolstoy slogan ‘voluntary simplicity.”

2
INTRO

Presentation of this publication
This publication, sponsored by SESI and Syngenta, beyond the total measurement of economic activities
aims to raise the need for legitimizing the ‘Sustaina- for taking into account to what extent national policies
bility Indicators of Nations’ (which can also be called truly result in better quality of life to all. Finally, we will
‘wealth indicators’ or ‘indicators of well-being, happi- cover indices that relate the state of corporate respon-
ness...’) so we can truly move towards the sustainability sibility to the competitiveness of nations.
of our planet.
In short, this is a new analysis of the state of the world
The idea is to apply sustainable development patterns that measures human development and environmental
that take into account environmental, economic, so- conservation through the Wealth-Well-being Assess-
cial, ethical and cultural aspects. For this purpose, in- ment, where the illusion of the GDP metrics and its
dicators that measure, monitor and assess such sustai- current limitations have become pointless.
nable patterns must be defined in order to guide our
This is a continuous learning and evolution process towar-
future path.
ds the sustainability of the planet that requires everyone’s
The effort of ‘socially responsible’ business networks is understanding and commitment. We need to gather data,
useless if we are governed without indicators consis- measure the indicators and demand their application.
tent with the sustainability movement agenda.
This theme has long been included in the UN agenda –
Despite not being new, this theme is not given enough since 1990 with the HDI and the creation of the Com-
attention, as we will see in the valuable individual con- mission on Sustainable Development (CSD) following
tributions of Hazel Henderson, Rosa Alegria and Lala the ‘Earth Summit.’ The OECD intends to move further
Deheinzelin. by assessing the happiness of all inhabitants of a coun-
try with the aid of more elaborate indicators. The UN
This publication was inspired in the work of Ladislau
is receptive to this issue and is reviewing which new
Dowbor, from PUC, and Jose Eli da Veiga, from USP.
parameters should be included in the next ‘Millennium
The ‘threshold hypothesis’ by Chilean Manfred Max
Development Goals – MDGs after 2015.’
Neef and the ‘degrowth theory’ by French Serge La-
touhe helped us capture the dimension of the theme Concrete examples of governments, companies and
and paved our way. The book ‘The New Wealth Indi- civil society initiatives will show that practice has alre-
cators’ by French writers Jean Gadrey and Florence ady made room for advancing this agenda at the follo-
Jany-Catrice and the work ‘Reconsidering Wealth’ by wing levels:
Patrick Viveret, among others, also contributed to the • International, such as the French government that has
development of this publication. established an Economic Performance and Social Progress
Measurement Commission – CMPEPS;
We will cover the main Sustainability Indicators of Na-
tions being applied abroad (UK, USA, Canada, Swit- • International partnership, such as between the Fondation
France Libertes and the Brazilian State of Acre;
zerland, France, the Netherlands and Bhutan) and in
Brazil to show the broad range of tools available that • State administrations in specific cities, such as the ‘Our
can serve as parameters for the analysis of what is São Paulo’ and ‘Rio, how are we doing’ movements;
going on around the world regarding sustainability. • Local administrations in rural areas/agribusiness, such as
the ‘Legal Lucas’ Project;
These indicators and indices provide information on
• Local administrations in the Amazon, such as the
the state of biodiversity in the world; inequality and ‘Sustainable Juruti’ Project;
poverty; advances towards sustainable societies; actual
progress and quality of life of nations; the use of natural We will also see that several sectors are already de-
resources by individuals, cities, nations and mankind manding action, such as the Global Forum América
in general; environment vulnerability; eco-efficiency Latina, held in November, 2008 in Brazil.
through which human well-being is obtained throu-
Organizations that already take part in the effort to-
ghout the world, by nation or group of nations; and in-
wards a more sustainable world were invited to spon-
dices that classify countries according to their capacity
sor this publication.
to protect the environment along the next decades. We
will also cover monetary indices aimed at replacing the Finally, there is an appendix introducing the world of
GDP as a measure of progress of nations. They go far ‘eco labels’, still an embryonic practice in Brazil

3
INTRO

Letter from the Sponsors

Syngenta
In line with its CSR guidelines, Syngenta feels honored to lutions that continuously optimize the use of natural resources,
participate in and contribute to the production of the publi- such as water and soil.
cation Knowledge Management – Sustainability Compen-
Syngenta promotes sustainable agriculture as a key element for
dium: Sustainability Indicators of Nations.
its own business and its customers, and to ensure the society’s
As an agribusiness company committed to sustainability, future hoping to inspire other companies to engage in this sec-
Syngenta contributes to the supply of food in larger quanti- tor and harvest good results.
ties and of higher quality to future generations. One example Enjoy your reading.
is the permanent search for new technologies to provide so- Syngenta

Itaipu
Changing any situation requires taking responsibility for its cre- the natural environment when managing the world’s largest
ation. When we consider that, regardless of the role each of us hydroelectric power plant. This behavior can be seen insi-
has played, we all have contributed to the planet’s current status, de and outside its walls in the respect for partners, in its
we can become more humble and aware that it is high time we joint work with governments and society, in permanently
adopted a new attitude towards life. This is the time we feel deep feeling responsible for its initiatives or the lack of them, for
inside the urgency of an action that cannot be postponed. The we always change our surroundings, for the best or for the
change starts individually and propagates by example. worst, by action or omission.

All tools available to each segment – whether government, bu- This publication brings the best of what has been created to
siness, academia or civil society – will be useful provided their guide human life towards well-being and harmony with natu-
use is based on the best choices. Attitudes such as respect, re. We feel honored to help this Sustainability Compendium:
cooperation, carefulness and responsibility of human beings Sustainability Indicators of Nations to be inspiring to a larger
towards each other and towards Nature seem to be the basis number of people and adopted as a tool to promote the chan-
of right decisions. ges we need to be happy.

Itaipu Binacional believes in this idea. And since it was cre- Jorge Miguel Samek
ated it has focused its behavior on the human being and Brazilian Director-General of Itaipu Binacional

INSTITUTIONAL SUPPORT

AKATU - Akatu Institute for CES - FGV Center for
Conscious Consumption Sustainability Studies

CEBDS - Brazilian Business Council for
Sustainable Development ETHOS - Ethos Institute – Business
and Social Responsibility

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INTRO

Letter from the Sponsors

SESI
Presented in the “Mapa Estratégico da Indústria 2007-2015” time, raising awareness about the necessary balance of its eco-
(2007-2015 Strategic Map of Industry) – CNI (National Con- nomic, social and environmental aspects, including the need to
federation of Industry) document developed with the help of reduce regional and social inequalities.
all affiliated State Industry Federations and tens of national
It is not by chance that SESI is currently considered as an effec-
associations representing a wide range of industry sectors,
tive social policy maker and manager for the production sector,
besides outstanding business leaders – the industry’s vision
deserving society’s recognition as one of the most respected
of its perpetuity, its role in society and the sustainable de-
organizations in the social area in the country. Present in the
velopment fosters the corporate social responsibility culture
26 States and in the Federal District, its services covering 2,055
and the growing use of social and environmental manage-
municipalities, SESI is not only a pioneer in this area, but also
ment tools.
an agent of change.
In this context, the sustainability indicators presented in this
publication broaden and foster the understanding and imple- Antonio Carlos Brito Maciel
mentation of an economic model that can be sustainable along Diretor-Superintendente do SESI

Shell
The challenge faced by the world is gigantic: we must en- and inclusive future. By presenting in a structured format a
courage development and reduce poverty in a socially and wide range of sustainability tools and instruments available
environmentally responsible manner. Helping respond to in the world, the book Knowledge Management – Sustai-
this challenge and, at the same time, continuing to be a com- nability Compendium: Sustainability Indicators of Nations
petitive company forms the core of Shell’s contribution to will truly contribute to strengthening this dialogue and its
sustainable development. We seek to do it in a creative and resulting experience sharing. The challenges are big and will
innovative way, and, above all, respecting people. only be met if everyone participates, including civil society,
In this sense, we consider dialogue as key to building a solid government and business.

INSTITUTIONAL SUPPORT

Núcleo Andrade Gutierrez de Sustentabilidade
e Responsabilidade Corporativa
FDC - Dom Cabral Foundation GIFE - Group of Institutes,
Fundação Dom Cabral
Foundations and Companies

FIDES - Social and Business Development WHH - Willis Harman House /
Institute Foundation AntaKaranA

5
INTRO

For the Sustainability Compendium, 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. Anne Louette brings deep expertise and insight into the assessment of all these tools for measuring social and
environmental performance of companies, governments and civic organizations worldwide.
This research covers a wide spectrum, identifying the new models, metrics, indicators and methodologies employed in this
paradigm shift toward managing human societies for long-term sustainability. For the accounting and statistical profes-
sions, sustainability reporting represents the greatest revolution since the invention of double-entry bookkeeping.
The early response of statisticians, accountants, business schools and corporate management was to dismiss all the new data
and events provided by changes in the Earth eco-systems, from pollution, losses of biodiversity and desertification to floods,
fires and extreme weather variability which were the earliest signs of climate change. Today, we understand that the planet
is our programmed learning environment, teaching humans directly, holding up a mirror to our behavior, belief-systems
and values. The Earth is showing us which of our ways of being and doing are now unsustainable, from waste and trivial
consumerism to continuous quarterly rises in corporate profits and fantasies of limitless GDP-growth.
One of the deepest errors that sustainability reporting corrects is the worldwide confusion propagated by conventional
economics which equates money with wealth. As we see by the rise in commodity prices, real wealth lies in natural resour-
ces and the services that healthy ecosystems provide to humans. We are learning these lessons in multiple ways, from oil
prices and understandable resource nationalism, that has now brought over 77% of the world’s proven oil reserves under the
control of governments rather than private companies and markets. The geo-politics of the new resource scarcities have
invalidated economic textbook assumptions that air, water and biodiversity were “free goods.”
Wars and military approaches to dispute-settlement are clearly obsolete. Today we see military experts and generals on
TV warning us that there are no military solutions in Iraq, Georgia or in today’s unfolding order where the USA is no lon-
ger the world’s superpower. Multi-lateral negotiations and sustainable forms of development will continue to be the main
geo-politics of the 21st century. Today’s weapons of choice are currencies, natural resources and the race toward universal
education, 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, not against her.
Human societies have been slowly adapting to all these Earth changes – each in their own culturally determined ways. The-
se 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. The rise of
the global information society, thanks to the internet, now is morphing into a new Age of Truth where citizens can expose
corporate and government wrong-doing and damage a company’s brand, reputation and stock price in real time.
Hence, the crucial importance of all the new models, metrics, indicators and other tools for social and environmental ma-
nagement compiled in this volume, which allows comparability, communication between practitioners and acceleration of
methodological advances.
This book also meets the needs of everyday managers, as well as academics who must rapidly overhaul curricula in business
schools worldwide. Here, Brasil has also pioneered through the ground-breaking work of the Instituto Ethos, Uni-Ethos
and such management institutes as Fundacao dom Cabral, Fundação Getulio Vargas and Amana-Key Desinvolvimento y
Educacao, Willis Harman House and the World Business Academy. New media can accelerate social learning as with my
Ethical Markets Media, LLC, in the USA and Europe and our partner, Mercado Etico in Brasil.
While corporations have made much progress in sustainability reporting, 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, together with the Equator Principles and BOVESPAS’s ISE Index. Capital asset pricing models still need
to fully incorporate environmental, social and governance (ESG) criteria, and the Global Reporting Initiative’s triple-bottom
line needs to be extended to all global corporations and security analysis.
The implosion of Wall Street’s risk-analyses models and the reckless use of leverage, derivatives, speculation and short-
selling provide a tragic lesson on the vital role of ethics and trust in all markets. The limits of greed, self-interest, envy,
avarice, accumulation, hoarding and excessive competition, all deadly sins in most religions, are now clear. And at last, after
decades of effort, the childish fantasies of an ever-growing GDP are facing up to reality.

6
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. I presented at the European Parliament’s “Taking Nature into Account” conference in 1995. I created the
Calvert-Henderson Quality of Life Indicators with the Calvert Group in 2000 (updated regularly at www.calvert-henderson.
com). I was honored to present these indicators at the Parliament of Latin America, EUROSTAT and many other venues
in China, Japan, 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.
hazelhenderson.com).
In 2007, 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. Globescan of London and Ethical Markets Media, LLC, con-
ducted a survey in 10 countries for the European Commission on the Beyond GDP issue. Huge majorities in all 10 coun-
tries, including Brasil (69%) supported correcting GDP to help steer countries toward sustainability (www.beyond-gdp.eu).
Even the USA is awakening, and the Senate held hearings in March 2008 on “Re-thinking GDP.”
With this important Sustainability Compendium, all these issues from local to corporate to global come together in a superb
overview to guide us to a better future.
Hazel Henderson
St. Augustine, Florida, September 2008

7
INTRO

The future reinvents values
Since the first edition of the international conference on new sustainability indicators and quality of life, held in Curitiba, Brazil,
in 2003, of which I was one of the organizers, the economy started to shift towards a more systemic and responsible direction.
Considering the theory of complexity that seeks to explain the systems effect of changes, 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.
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.
For believing in the Brazilian potential to embrace the new and in the need to balance economic forces integrated into ecolo-
gical and cultural forces, the futurist Hazel Henderson created the ICONS in partnership with Thais Corral, REDEH (Human
Development Network) coordinator, and myself, at that time acting on behalf of the Future Studies Center (NEF) at PUC-SP. We
were encouraged and supported by the participation of social and economic development organizations (Ethos, Akatu, ABDL,
FIEP, IBGE, IPEA) and a group of world’s leading researchers (Mathis Wackernagel, Paul Epstein, David Berry, Sander Tideman,
Paul Novacek, Eduardo Moreno, among others).
At that time, 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.
Hazel referred to the lack of vision of most politicians in the way they addressed public policy as a factor of social and econo-
mic stagnation and environmental degradation. In her inaugural address, she said: ‘Most politicians still follow old economics
books. They want to decrease unemployment, inflation, deficit and interest rates, but they forget that global interactions are a
woven fabric influencing each one of these rates. Once one goes down, the others go up.’
Sander Tideman, then Bhutan Government consultant for the implementation of the GNH (Gross National Happiness) index,
said human needs should always be met taking happiness into account. He brought the word compassion into the business
world, in the search for well-being to all.
Sustainability has also been submitted to information management and that was highlighted by the economist Ladislau Dow-
bor: ‘We have core technologies and information, but organized knowledge tools have not been developed for citizen action.
Amid all the statistics compendiums and mountains of fragmented media information, we go on essentially confused’, informed
Dowbor.
Among other deep thoughts about the new routes to decision-making, since ICONS 2003 in Curitiba, which became a lan-
dmark in Brazil and worldwide, many other butterflies have been flapping their wings throughout governmental sectors of
the world economy. Conferences such as the ones in Bhutan (GNH) and Belgium (Beyond GDP) enhanced the process of
questioning GDP, putting it in the hot seat and bringing new indicators on the world economy stage. New indicators, such as
Calvert-Henderson, GNH and Ecological Footprints, became important issues in the agendas of several countries and started
to influence public policy development and gather together notable thoughts and practices.
Whether reinventing capitalism or creating new economic systems impelled by the deep 2008 crisis (5 years after ICONS), the
opportunities are huge and numerous: local development, alternative currencies, inclusion of intangibles in public budgets,
ecological assets accounting, the strength of creative economy, cooperative advantages, human capital, the break of patents and
frontiers of knowledge, access to new information technologies, reassessment of what wealth is, and the exhaustion of hyper-
consumerism. All elements sum up in this arena of change and new future, and the big question is: what should we measure to
make the right decisions?
Following the ICONS in Curitiba 5 years ago, many changes have taken place. Now it is time to collect all that has been created,
change our metrics, get mobilized, gather our mental and spiritual energy, 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.
The work of Anne Louette in this Compendium serves as a compass in the creation of a new society. Differently from what
many may think, the future is not meant to be forecast, but collectively imagined and created so we can change the present right
now. Many tools useful in the creation of the future and reinvention of values are presented in this Compendium.
Rosa Alegria

8
INTRO
Creative economy and the reinvention
of the economy
Evolution occurs in leaps and we are in the middle of one. And this is a huge leap that sets the transition of centuries, or even millenniums,
when life was organized around material, tangible matters to an era when the intangible plays an increasingly central role. This is also a
time of natural resources crisis, because land, gold and oil are finite and are being depleted, thus strengthening the importance of intan-
gible resources. Knowledge, culture and creativity not only are resources that cannot be depleted, but the only ones that are renewed and
multiplied by use. If I share an apple with you, each one of us gets half of it. If I share my knowledge with you, it triples: we get mine, yours
and the result of our interaction.

Whereas the tangible/material is finite and limited, the intangible is elastic, unlimited, and can be the way to more inclusive models based
in cooperation. When added to the digital technologies (bits are also infinite), we get a myriad of collaborative options and a new term can
be coined: ‘abundance economy’ – which may originate more solidary lifestyles.

Furthermore, activities based on intangible resources are multi-dimensional and can influence the four dimensions of sustainability: econo-
mic, social, environmental and symbolic/cultural. They sure have a strong economic impact, but can go beyond that, acting as an environ-
mentally correct social interaction factor that strengthens values, edges and credibility of communities and companies.

In theory, it all sounds wonderful, representing a potential that reminds us of a hen that lays golden eggs. The fact is, if we remain stuck with
old models, our policies and structures will end up in a chicken soup of the hen that lays golden eggs.

blic-private sectors, third sector and creative entrepreneurs become aware of the change of times we are going through, the huge potential
if offers, and the necessary shift in mentality and policies so we can take advantage of it. A core theme is the need to change wealth indica-
tors and measurement and assessment methods. Trying to quantitatively measure the intangible resources or the four dimensions of sustai-
nability is like trying to measure water with a measuring tape. It is impossible. We cannot measure multidimensional things in a linear way.

The economy itself calls for revision, since one of its definitions used to be ‘scarce resources management.’ Creativity and culture are abun-
dant resources, mainly in the Southern hemisphere countries, and are an enormous asset that may lead to a thorough change in the concept
of wealth and poverty. Resources go far beyond the idea of having money, and besides the economic dimension, should include the cultural,
social and environmental dimensions as well.

Practice shows that the sustainable development equation is not simply economic. Each dimension has its own capital: human capital, cul-
tural capital, social capital, environmental capital. This leads to a little known and studied currency exchange: investment made in monetary
currency, for instance, may have a return in social currency; investment made in environmental currency may have a return in symbolic
currency, and so on. 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, because these products are sold by street vendors. In this
process, the monetary currency resulting from copyright is not received, but the visibility-currency is received, making the authors well
known and desired, enhancing their market, which in turn generates the constant innovation currency, thus creating a broad and dynamic
process that eventually generates monetary currency.

Measuring the intangible also implies shifting from an exclusively quantitative vision to one that includes the qualitative. 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. Assessing results of music programs in the slums, such as the Affroreggae project, by the number of musicians
that became professionals is like measuring liquid with a measuring tape. 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. For instance, the dance economy is little,
maybe just the small sum of dancers, choreographers and performances. However, the economy of ‘dancing’ is large because it includes
festivals (such as Carnival); nightlife; the entire fitness structure and respective equipment, rooms, contents, costumes, and so on.

The same way that, at the micro level, local projects development and their assessment and measurement methods should be multidimen-
sional and have their ‘capitals’ and ‘currencies’ to represent such dimensions, the macro level should also have wealth and development
indicators to assess governments and nations.

Comprehensive indicators must include natural and cultural wealth and diversity – the pillars of professional and personal relations: ethics,
self esteem, solidarity, trust and other factors that ensure quality of life in a broader sense as proposed by the Gross National Happiness
Index from Bhutan.

After all, for the first time in history we have resources, knowledge and people to create the world we want and deserve. It is a rare oppor-
tunity – made even more urgent and explicit by the crisis caused by the predatory ‘financialism’ – we can seize by reinventing the economy.

We are ending an era of great innovation, when several factors and languages had to become more ‘economy-oriented’. From now on, the
Economy will have to broaden its own sense to justify the Eco it bears – originated from the Greek word Oikos (house, home) as in Ecology.
A New Economy to manage the abundant resources offered by the intangible resources and technology, in a world based on the perception
of our inter-dependency and, consequently, aware that the answer lies in cooperation. A new Inclusive economy, whose dynamics will
result from the harmonious relationship between the macro economy of scale and the micro economy of niches. A new economy that will
require new measures, currencies and indicators.

Lala Deheinzelin

9
INTRO

Indicators: after all, what are we measuring?1
“This publication ‘Sustainability Compendium: Sustainability Indicators of Nations’, by presenting a wide range
of indicators – either used or under review –becomes an important working tool. Similarly, the previous volume
‘Sustainability Compendium: Social and Environmental Responsibility Management Tools’, also organized by Anne
Louette, presented a range of methodologies aimed at assessing corporate social and environmental responsibility. Such
contributions gradually enrich our ability to organize knowledge and ensure a more sustainable development.”

Ladislau Dowbor

If we want to guide the economy, rationally channeling our production efforts to desired results, we must build assessment
tools for such results. Celso Furtado uses the ‘social profitability’ concept, which despite saying fundamental things, may
lead us to mistake the vision of macroeconomic productivity for that of the productivity of sectors usually identified with
the ‘social’ sphere, such as education, health, etc. The systemic productivity2 concept may be more explicit2.
The basic logic is simple: when a large soybean producer forces small farmers away from their land to suburban areas, we
may say there has been an increase in grain production by hectare and agribusiness productivity. The businessperson may
say that he has enriched the town. However, if we measure the costs generated for the society with the slums created and
water pollution, for instance, or even the discomfort of families expelled from their land and unemployment, the result is
quite different. By calculating soybean production increase, but deducting society’s indirect costs, the systemic balance will
be more comprehensive and technically correct. In other words, we must evolve towards an accounting that shows results
in terms of quality of life and actual social progress.
Similarly, when a country sells its natural resources, its accounts shows it as GDP increase, when in fact the country is
selling its inherited natural resources, which was not produced and will not be replenished. Therefore, the country is deca-
pitalizing itself, increasing its short-term wealth at the expense of future difficulties.
What we have inherited, methodologically speaking, is the national accounts system developed in the 1950s by the United
Nations, and altered in 1993, which provides us with the well-known GDP – the sum of values and costs of goods and
services production – therefore restricted to commercial activities. We will not describe here the limitations of this me-
thodology, already obvious3. What matters is that from the 1990s on, with the concepts of Amartya Sen4 and the Human
Development Index (HDI) methodology, 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. In other words, the social aspect is no longer a means to ensure economic objectives; much
on the contrary, the economy becomes a means to improve people’s quality of life. A life with health, education, culture,
leisure, safety, is what everyone expects. The economy must serve these social objectives.
Quality of life is clearly harder to be measured than a company’s total sales volume, or a public school’s overhead, let alone
the economy of volunteer work or household labor. The truth is that as long as we do not adopt generally accepted and
standardized methods to measure the bottom line of our activities, we will neither be able to assess public nor private
policy. Currently, making use of and going beyond the HDI methodologies, we have moved way ahead. Jean Gadrey and
Florence Jany Catrice’s book, Les Nouveaux Indicateurs de Richesse (the new wealth indicators), presents an extremely well
organized systematization of the new conceptual framework for national accounts being devised5. In this way, there is a
distinction between production accounting (outputs) and actual results in terms of social values (outcomes); economic, so-
cial and environmental indicators; objective indicators (such as infant mortality rate) and subjective ones (level of satisfac-
tion); monetary and non-monetary results. This has led to the development of several methodologies that are currently well
structured, such as the Index of Economic Well-being (IEWB) by Osberg and Sharpe, the Index of Sustainable Economic
Welfare (ISEW), the Genuine Progress Indicators (GPV), the World Bank’s Genuine Savings Indicator (GSI), and others.

(1) See ‘Democracia Econômica’, by Ladislau Dowbor, Vozes, 2008)
(2) Everyone has been looking for a concept that better reflects the expected social and economic results, since mere economic productivity is too narrow to express
social objectives. Jörg Meyer-Stamer uses the Systemic Competitiveness Concept in his work on Local and Regional Development Strategy Initiatives; The Economist uses
the ‘social return’ concept to calculate the impact of social investment that make ‘the best possible contribution to society’s problems.’ H. Schmitz uses the ‘collective
efficiency’ concept (in Vázquez-Barquero).
(3) See ‘A Reprodução Social’ by Ladislau Dowbor, Vozes, Petrópolis, 2003
(4) See ‘Development as Freedom’ by Amartya Sen, Random House, New York, 1999
(5) See ‘Les Nouveaux Indicateurs de Richesse’ by Jean Gadrey and Florence Jany-Catrice, La Découverte, Paris 2005 .See also the report ‘Reconsidering Wealth’ by Patrick
Viveret, 2001

10
INTRO

Of special interest, the methodology adopted by Calvert-Henderson Quality of Life Indicators: a New Tool for Assessing
National Trends6, is a true review of national accounts applied to the United States. Instead of simply summing up the
monetary results, the accounts are broken down in 12 domestic sectors, including income, but also human rights, public
safety, environment, and so on. As a result, North-Americans have, for the first time, a tool to evaluate how and in which
areas the country is improving (or getting worse). Neither new indicators nor new surveys were required. The most reliable
existing data were selected and tabulated according to the major axes of practical results expected by the population.
The World Bank itself is rethinking its methodologies. In the World Development Indicators 20037 Table 3.15 that assesses
savings, the Bank now records timber extraction, for instance, not as a positive figure (GDP increase), but as decapitalization
of he country. Following the same logic, oil-exporting countries are now regarded as depleting their natural capital, thus
showing negative savings rate. As for the car manufacturing sector, additional pollution-related health costs are now deduc-
ted. Considering the strong inductive effect of the World Bank’s methodologies, this openness is welcome and will influence
national accounts in several countries.
It is also worth mentioning the work Survey of Existing Approaches to Measuring Socio-Economic Progress, prepared by
INSEE, in Paris, OECD staff and other institutions. The document presents a review of the progress in the development of
methodologies in 20088. The participation of the World Bank, OECD and recent collaborators such as Stiglitz and other
economists attests the maturity and openness to change achieved in the debate.
There are other similarly creative and very practical solutions. In the region of Cascavel (State of Paraná, Brazil), for ins-
tance, 22 towns started developing local quality of life indicators9. 26 relatively simple indicators help evaluate whether the
population’s situation is improving or not, year by year. In this way, people can make informed decisions when voting accor-
ding to actual results in their lives and not according to who has given away more electoral campaign T-shirts. The innova-
tion has not demanded major changes in the calculation, because existing data was used, 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. In other words, economic accounts become a citizenship tool, and the initiatives of several public and private
actors can be evaluated in terms of final results for the society, at least in a more circumscribed territory, where people can
more easily take part in decision-making processes.
Anyway, what we are saying here is that a change in the focus of economic accounts is essential. A bank that misappropriates
our savings and invests them in speculative financial investment shows high profit, which in turn increases the GDP, but
reduces our systemic productivity by decapitalizing the communities and reducing the productive use of our savings. The
German system of financial intermediation, based on small local economic savings, shows small profits, but channels the sa-
vings to socially useful investments, generating better life conditions to all10. ‘Profit’, according to this vision, must be social,
and productivity must be systemic. The evolution of economic sciences towards this comprehensive accounting, rather than
a microeconomic one, is a major advance.
In broad terms, a major advance in economic sciences is the radical change in the way we organize information around results
achieved. While the measure was limited to adding companies’ production value and public services costs, we naturally believed
progress exclusively resulted from business profit, and also that public services were a burden. When we adopt the systemic
evaluation of results for the society as a whole, we reach an intelligent vision of the actual progress achieved. The development of
more realistic evaluation systems of our economic and social progress corrects a structural flaw in economic sciences.
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. The media hysterically demands a few extra percentage points in
the GDP increase, which intensifies the generalized anxiety over unemployment, and distracts our focus from the main
objective – society’s quality of life – leaving everyone confused and misinformed. Of course, badly informed people do not
participate in anything. There is no economic democracy without adequate information about the dynamics and results that
really matter. The development of new indicators of wealth is a particularly important axis in this direction.

Referência
http://dowbor.org

(6) See Hazel Henderson, Jon Lickerman and Patrice Flynn (editors) – Calvert Henderson Quality of Life Indicators: a new tool for assessing national trends. www.
calvertgroup.com
(7) See World Bank – World Development Indicators 2003, Washington, 2003, page 174
(8) See http://www.stiglitz sen fitoussi.fr/documents/Survey_of_Existing_Approaches_to_Measuring_Socio-Economic_Progress.pdf
(9) See Conceito e Metodologia de Aplicação (Application Concept and Methodology) – Versão 1, October, 2001 (paper).
(10) See The Economist, June 26th, 2004, p. 77. (The Economist naturally laments that German regional legislators ‘refuse to authorize the sale of savings institutions,
owned by local communities, to private sector buyers’).

11
INTRO

New indicators to evaluate true wealth

“The social indicator only indicates; it does not replace Following that, in the Brundtland Report (1983) – also
the concept it originated from.” known as Our Common Future, by the United Nations
(Januzzi, 2002) World Commission on Environment and Develop-
ment – the human dimension was strongly enhanced in
“It’s necessary to reflect in order to measure, not to the concept of sustainable development. Besides the en-
measure in order to reflec.” vironmental problems, Brundtland Report showed the
(Bachelard) need for an international awareness of the ‘human con-
dition deterioration’, mainly in terms of extreme poverty
and inequality.
The “environmental, social and economic’ tripod was ac-
cepted and formalized in the United Nations Conferen-
ce on Environment and Development (Earth Summit -
1992), held in Rio de Janeiro in 1992. In this Conference,
1,600 scientists, among whom 102 Nobel Prize laureates
from 70 countries, launched the document ‘World Scien-
tists’ Warning to Humanity”. It warned that: ‘Man and
nature are in a head-on collision. Human activities inflict
harsh and often irreversible damage on the environment
and on critical resources. Mankind must change; changes
must be made immediately in order to reverse the fate of
The Meadows et al. (1972) report, entitled The Limits to a head-on collision”. At the time, the need to develop indi-
Growth, challenged the idea that economic abundance cators able to measure sustainability was raised, since the
and industrial growth had no frontiers: ‘If the present tools available, among which the GNP, did not provide
growth trends in world population, industrialization, enough data for analysis.
pollution, food production, and resource depletion conti- The Conference’s resulting document, Agenda 21, highli-
nue unchanged, the limits to growth on this planet will be ghts in its chapter 40,: “Commonly used indicators such
reached sometime within the next 100 years. The most as the gross national product (GNP) and measurements
probable result will be a sudden and uncontrollable decli- of individual resource or pollution flows do not provide
ne in both population and industrial capacity.’ However, adequate indications of sustainability. Methods for asses-
along with this distressing scenario, the Meadows Report sing interactions between different sectoral environmen-
had already found the key to sustainable development: ‘It tal, demographic, social and developmental parameters
is possible to alter these growth trends and to establish are not sufficiently developed or applied. Indicators of
a condition of ecological and economic stability that is sustainable development need to be developed to provide
sustainable far into the future.’ solid bases for decision-making at all levels and to con-
A short time later, a publication by the International tribute to a self-regulating sustainability of integrated en-
Union for Conservation of Nature and Natural Resources vironment and development systems” (United Nations,
– IUCN – also used the term ‘sustainable development1’ 1992). Since the Agenda 21, 178 signatory countries have
to describe the necessary development model to preserve agreed to correct distortions resulting from evaluations
the planet’s richness. based exclusively on the GNP.

(1) Sustainable development: the idea initially came from the Limits to Growth Report written by the MIT (Massachusetts Institute of Technology), which was
commissioned by the Club of Rome, founded by Aurelio Peccei, and later from the ecodevelopment concept proposed in 1970 by Maurice Strong and Ignacy Sachs, during
the first United Nations Conference on Environment and Development – UNCED (Stockholm, 1972), which originated the United Nations Environment Program – UNEP.
In 1987, the World Commission of Environment and Development, chaired by the Norwegian Prime Minister, Gro Harlem Brundtland, adopted the sustainable development
concept in its report entitled Our Common Future, also known as the Brundtland Report.
The concept was definitely incorporated as a principle during the United Nations Conference on Environment and Development, the 1992 Earth Summit – Rio-92, in Rio
de Janeiro. (www.wikipedia.org.br)

12
INTRO

GDP – Gross Domestic Product – is the most widely tal areas have participated. A large number of proposals
used economic activity indicator. It is in the core of all have been developed.
Systems of National Accounts, and its methodology is
Despite all these initiatives, neither a personal measure nor
strictly defined and regulated, allowing international
a set of indicators have been broadly acknowledged within
comparison and aggregation. GDP combines in a single
the political context and by the general public. Perhaps this
indicator the total market value of all final goods and
is because there has been little consensus about fundamen-
services produced in the economic territory of a country
tal concepts or lack of the analytical simplicity that ensured
within a certain period of time. In most cases, it is calcu-
GDP’s success.
lated on a quarterly or annual basis. GDP changes along
time are the main indicator of macroeconomic activity However, the results of these events show a gradual increa-
growth (www.beyond-gdp.eu). se in the process of warning about the dangers of the GDP,
starting by the warning made by one of its chief architects
Since then, at the dawn of this century, several nations Simon Kuznets (1901-1981), Nobel Prize of Economy lau-
have made serious commitments in this direction in reate in 1971, who cautioned in a 1932 report to the US
numerous global events. Congress that ‘the welfare of a nation can scarcely be infer-
It is also worth mentioning the pioneering contribution red from a measurement of national income.’
of the Measure of Economic Welfare (MEW), by William
Nordhaus and James Tobin (1972). REFERENCE
Information gathered at the France Libertes Fondation
GDP’s shortcomings started to come out, becoming incre- Danielle Mitterrand website www.france-libertes.fr, and
asingly evident at the following events: websites www.stiglitz-sen-fitoussi.fr and www.beyond gdp.eu.
• UN Earth Summit in Rio de Janeiro, 1992;
• Conference sponsored by the European Parliament on the
theme ‘Taking Nature into Account’, 1995;
• ‘Beyond Growth: Policies and Institutions for
Sustainability’, in Santiago, Chile, 1998;
• ‘World Summit on Sustainable Development’, in
Johannesburg, 2002, the so-called Rio+10;
• UN Convention on Biological Diversity, in which the
Millennium Development Goals were set, in Kuala Lumpur.

The latest international conferences held by the Europe-
an Commission, European Parliament, the Club of Rome,
OECD and WWF have helped publicize the initiatives in
force that clarify which indices are most suitable to mea-
sure progress and how they can be integrated into the de-
cision-making processes and brought to public discussion.
As examples, we can mention:
• World Forum on Measuring Well-being and the Progress of
Societies, in Milan, June, 2006;
• OECD World Forum on Measuring and Fostering the
Progress of Societies, in Istanbul, June, 2007;
• EU Conference on Beyond GDP: Measuring Progress,
True Wealth and the Well-being of Nations’ in Brussels,
November, 2007;
• World Forum on ‘Statistics, Knowledge and Policy’, in
Palermo, 2008.

Conferences have always gathered top-class experts and
influential politicians to solve these critical issues. Over
500 people from the economic, social and environmen-

13
INTRO

Criticism of the GDP
The Gross Domestic Product (GDP) is high in the me- In other words, the two societies would have the same
dia and is nowadays an almost world reference for most increase in the GDP, once the GDP computes all resour-
of the analyses. Thousands of opinion-makers and deci- ces as increase in GDP, regardless of their purpose.
sion-makers in the economic, political or scientific fiel-
It would be necessary to suppress the GDP increase of the
ds have their decisions permanently guided by the GDP,
first hypothetical society to better assess the actual cre-
which serves as a compass for their actions.
ation of wealth (the one that contributes to well-being).
The GDP is the total value of all final goods and services
The same idea can be applied to expenses on repairing
produced within a certain region or part of society (i.e.
environmental damage caused by human activities:
countries, states, cities) during a specified period (mon-
pollution, depletion of natural resources, which lead to
th, quarter, year, etc.). It assesses the productive contri-
decreased well-being.
bution of the economic activities.
2. Well-being losses caused by economic growth are
The classical equation to determine the GDP of a region
not measured anywhere. Despite having no commer-
is the following:
cial value, they may have a huge value for our well-
Y=C+I+G+X-M being and that of future generations.
Where The destruction, for instance, of the Amazon Forest is
• Y is GDP an activity that makes the world GDP increase (value
• C is consumption
of the timber harvested and the tractor to cut it down,
etc.). The resulting loss of natural capital, its effects on
• I is gross investment
the climate, biodiversity, and the long-term needs of fu-
• G is government spending ture generations are not measured anywhere.
• X is net exports
In other words, the GDP does not deduct the losses of
• M is net imports
natural capital, but makes additions to account for its
After all, is it true that the higher the GDP, the more organized destruction.
wealth is created by a country?
Besides these examples in which well-being losses are
Defining what a country’s wealth consists of has become not recorded, there are others in which gains – or es-
a task that requires examining various economic, social sential contributions to well-being – are disregarded,
and environmental aspects. From this perspective, high including the following:
GDP indices are no longer a guarantee of sustainable
3. Many activities and resources that contribute to
development.
the well-being are unaccounted for, simply because
Let us then examine some of the main criticisms faced they are not commercial or because they have no di-
by the GDP. (Source: Jean Gadrey. Les nouveaux indica- rect monetary production costs.
teurs de richesse).
Volunteer work and household labor (not only performed
1. Everything that can be sold and has an aggregate at home, mostly by women, but also the broader realm
monetary value will increase the GDP and growth, of our neighborhoods and communities) are examples of
which not necessarily means sustainable develop- forgotten contributions, which, for being unpaid, are not
ment and increased individual and collective well- part of the activities that contribute to the domestic wealth
being. that is measured by the GDP. But is it true that these types
of work do not create wealth and well-being as much as
The GDP positively records all forms of evil and des- the paid work? These are invisible types of work by nature.
truction, such as increase in the number of accidents, Nevertheless, they represent huge volumes and contribute
progression of illnesses stemming from food insecurity, to the well-being as much as the paid work. In developed
pollution… (which, to be offset, requires defensive ex- countries, the time spent in household chores is estimated
penditures) the same way it accounts for common well- to be equal to the total time spent in paid work. If we deci-
being resources (education and participation in cultural ded, for instance, to give it the same monetary value as the
and leisure activities in a society where people are heal- working hour, which could double the GDP, representing
thy, for instance). a considerable amount of ignored wealth.

14
INTRO

4. 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), which are more important
to measure progress. This measure does not indicate
the well-being of a society.
If, in order to reach high growth rates, we force or encou-
rage people to work more and more and to have less leisure
and free time, this phenomenon will be considered as pro-
gress by the GDP, for the GDP does not take into account
that increased free time is a wealth that deserves being va-
lued. This example was not taken by chance: in the United
States, since 1980, the average annual working hours has
risen five hours a year (240 hours), as opposed to what has
happened to almost all European countries. Here is a good
example of an essential contribution to well-being – free
time – that is not part of the wealth accounts.
5. The GDP measurement is also indifferent to the
accounting of wealth distribution, to inequalities,
poverty, economic safety, etc, which are, neverthe-
less, considered almost exclusively as dimensions of
a society’s well-being.
We do not know, by simply looking at the average GDP,
how this income is shared among the local people.
The economic development of a country is a necessa-
ry condition, by is not enough for social development
and improved life conditions of its population to oc-
cur. A 2-3% growth for some years might, as the case
may be, come together with an increase or a reduction
in social inequalities. 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 ge-
nerate more well-being than the same amount in the
pocket of a rich person?
It is definitely not enough to produce more.
It is necessary to consider what (criticism 1), to whom
(criticism 5), how we are producing (criticisms 2, 3 and
4), and what its balance is. It is important to rethink how
we are measuring this wealth. A wealth that leads us to
sustainable development. A development towards com-
mon well-being, as a means and not as an end.
We must redefine the terms of wealth. Sustainable de-
velopment will be possible only if a true reconsidera-
tion of the economic pillar transforms the economic
vision and practice. It is not enough to add an environ-
mental pillar and then a social pillar to an economic
pillar that would remain unaltered.

15
INTRO

The Growth Myth
‘We should remember, in the first place, that the classical economists were all moral philosophers. For them, the economy was well-being-,
human happiness‑oriented. This view changed with the neoclassical thought, at the end of the 19th Century. At that moment, something
unexpected happened: the economy was no longer philosophical and became extremely mathematical, figures-oriented. The more
mathematical it was, the more scientific it would be. From this new perspective, reality reflects the economy and not the contrary. In this
economy, only what can be turned into figures matters. Consequently, the neoclassical economists do not know how to deal with human
needs, which are, therefore, disregarded. They ignore them and guide themselves by preferences, by measuring what is bought at the
supermarket. This model allows plenty of calculations and numbers, but it is totally out of the reality. The neoliberalism, so highly regarded
at the end of the 20th Century, is no more than an offspring of this neoclassical economy, totally detached from reality.’

(Manfred Max Neef ).

ECONOMIC PERFORMANCE OR SOCIAL
PROGRESS? Average $23.000
per-person after-tax $22.000
income in 1995
It is known that a deceleration in economic growth drives $21.000
$20.000
our societies to despair due to unemployment and the ne- $19.000 100%
glect of our social, cultural and environmental programs $18.000 90
that guarantee a minimum quality of life. Imagine how $17.000
80
$16.000
catastrophic a negative growth rate would be! The same $15.000 70
way there is nothing worse than a labor society with no $14.000 Personal
P n Income
n e
60
jobs, there is nothing worse than a growth society with $13.000
$12.000
no growth. Growth for its own sake becomes the primary $11.000
Percentage 50
Very Happy
objective, if not the only one in life. $10.000 40
$9.000
30
In most societies worldwide, there still is consensus that $8.000
$7.000 20
economic growth is the solution for a wide range of social
$6.000
problems, including poverty, pollution and scarce natural $5.000
10 Percentage
describing themselves
resources. A more productive and abundant economy se- $4.000 0 as verry happy
1930 1940 1950 1960 1970 1980 1990 2000
ems to have the power to solve this general malaise. We Ano
can even identify its origin at the start of the 20th Century
in the work of the economist AC Pigou (1920), who sta-
Thailand. They all went through a period of strong eco-
ted that economic well-being followed social well-being.
nomic growth and development for three decades until
‘There is a presumption that qualitative conclusions about
1970. After that, the population’s quality of life level star-
the effect of an economic cause upon economic welfare
ted to drop. This result was achieved by comparing the
will hold good also of the effect on total welfare’’.
GDP growth curve to another index – the GPI (Genuine
It is no easy task to oppose a widespread thought among Progress Indicator), which measures quality of life. Gra-
the political and economic class, which states that our ha- phs’ analysis showed an increasing trend of decrease in
ppiness must necessarily go through more growth, more GPI per capita while there is an increase in GDP per capi-
productivity, more buying power, and therefore, more ta. This phenomenon led Manfred Max-Neef to write the
consumption! ‘Threshold Hypothesis : ‘up to an extent in the economy,
the increase in trade transactions captured by the GDP
IMPACT OF ECONOMIC GROWTH ON OTHER may reflect evolution in wealth, well-being or quality of
FORMS OF WEALTH ECONOMIC GROWTH life. Beyond that, however, the GDP performance is in no
AND OUR WELL-BEING – THE THRESHOLD way an indicator of material progress.
HYPOTHESIS Since the 70s, the economic growth has increased where-
as the GPI has dropped.
According to the threshold theory, created by the Chi-
The high life standard most people from the Northern
lean economist Manfred Max Neef and his colleagues
Hemisphere believe they have has increasingly become
15 years ago, economic growth is aligned with the
an illusion. Of course they spend more in terms of goo-
society’s quality of life up to a certain extent. Beyond
ds and services, but they forget to deduct the increase in
that, it tends to become malignant to the people’s well-
their costs. It has many different faces, commercial and
being: the economic system becomes self-destructive.
non-commercial ones, such as quality of life degradation
This theory has been tested in every country where stu- – non-quantified, but burdensome (air, water, environ-
dies were carried out, such as the United States, England, ment) –, ‘compensation’ expenses (medication, transport,
the Netherlands, Sweden, Austria, Denmark, Chile and leisure) as modern life new needs, price increase in scarce

16
INTRO

goods (bottled water, energy, green areas). illusion. According to Serge Latouche, this ‘new economy’
is, in fact, relatively immaterial or less material, but rather
Manfred Max Neef’s economy is based on six principles: than replacing the old economy with the new one, what we
1. The economy must serve the people, rather than the people find are complementary relationships between them.
serving the economy. In other words, we have broken the planet’s natural life
2. Economic development is about people and not objects. cycle and do not respect it anymore (See the four system
conditions at The Natural Step – tool 6.13 in ‘Knowledge
3. Growth is not the same as development, and development Management – Sustainability Compendium: Social and
does not necessarily require growth. Environmental Responsibility Management Tools’).
4. No economy can exist in the absence of eco-systems. • There is no preservation of Nature’s potential for the
5. An economy cannot have infinite potential, because it exists production of renewable resources (due to systematic
in a finite sub-system of the biosphere. increases in concentrations of substances extracted from
the Earth’s crust by the society);
6. Under no circumstance can any economic process or
interest be above life. • There is no limit to the use of non-renewable resources;
• There is no respect for the capacity of natural cycles to
Current life is totally contrary to these principles. renew themselves (due to the increasing production and
concentration of harmful substances produced by the
IMPACT OF ECONOMIC GROWTH ON OTHER society)
FORMS OF WEALTH ECONOMIC GROWTH AND We do not intend to list here the mounting troubles, but it is not
RESPECT FOR THE ENVIRONMENT by chance that humankind has seen for the first time in history
in a single decade so many gigantic world forums to assess
The industrial development model followed by western issues such as:
countries and based on the orthodox economic theory has • The planet’s environmental depletion (Rio-92);
far too often neglected the impact of economic growth on • Human rights scandals (Vienna-93);
other forms of wealth and well-being. Today, this negligen-
• Demographic boom (Cairo-94);
ce is implicit in most economic debates. In fact, analysts
have for a long time acknowledged the need to take into • Social crisis, currently unsustainable (Copenhagen-95);
account the effects of human economic activity on non- • The tragedy of women stuck in the trap of economic
renewable natural resources. transformations and family breakdown (Beijing-95);
• The global rural exodus that is leading to sprawling cities
In order to reconcile the two opposing imperatives of gro- (Istanbul-96).
wth and respect for the environment, experts believe they
have found the elixir in ecoefficiency, the cornerstone of The UN Human Development Report regards as obs-
‘sustainable development.’ It is all about progressively redu- cene the fortunes of a handful of just over four hundred
cing the ecological impact and intensity of natural resour- people in the world, who possess a fortune equivalent
ces depletion up to a level considered compatible with the to that of about half of the poorest population of the
planet’s acknowledged replenishing capacity. planet. 2% alone hold half of the world’s wealth; the 50%
poorest account for only 1% of the planet’s wealth. This
It is unequivocal that ecoefficiency has improved dramati- wealth accumulation is considered as shameful as sla-
cally, but at the same time, the perpetuation of uncontrol- very and colonialism, with no place in a civilized society.
led growth leads to global degradation. [DOWBOR, Ladislau. Gestão social e transformação da
NOTHING IS CREATED...
sociedade (Social management and society transforma-
tion). In: DOWBOR, Ladislau and KILSZTAJN, Samuel.
• The decrease in impacts and pollution per product unit
made is systematically invalidated by the multiplication of
Economia social no Brasil (Social Economy in Brazil). 1ª
units sold – a phenomenon called the ‘return effect’. ed. São Paulo: Senac, 2011, v.1, p. 17-42)

NOTHING IS LOST... After some decades of uncontrolled misuse, it seems we
• The economic system is not a perpetual motion machine
have reached a stormy zone – in the literal and figura-
that permanently feeds itself in a virtuous cycle with no losses. tive sense... Climate changes are followed by oil wars,
On the contrary, it is a system that turns natural resources into which will be followed by water wars (SHIVA, Vandana.
refuse that cannot be reused, as shown by Georgescu-Roegen La guerre de l’eau. Parangon, 2003), as well as by pande-
in his book The Entropy Law and the Economic Process. mics and essential flora and fauna species extinction as
After all, all indicators show that depletion keeps a consequence of predictable biogenetic catastrophes.
growing [BONAIUTI, Mauro. Nicholas Georgescu-Roegen:
bioeconomia verso un’altra economia ecologicamente e The alternative left is to stick to the blind faith of ortho-
socialmente sostenible. (bioeconomics versus another dox economists who believe the science of the future
ecologically and socially sustainable economy) Torino: will solve all problems and that unlimited replenishing
Bollati Boringhieri, 2003].
of nature is possible by artifice.
EVERYTHING IS TRANSFORMED…
• ‘Dematerialization of the economy’ – by moving the REFERENCE
economic activity axis to the third sector, less demanding of Information from texts written by Serge Latouche and
natural resources, especially of energy – turned out to be an Manfred Max Neef.

17
INTRO

The sustainable degrowth theory
Degrowth is an economic and political concept coined sustainable, once the permanent increase in goods
in the 1970s – partially based on the theory of the Ro- and services production also leads to an increase in
manian economist Nicholas Georgescu-Roegen, crea- the consumption of natural resources, thus speeding
tor of bioeconomics, published in his book The Entro- up their depletion – not to mention that 20% of the
py Law and the Economic Process (1971). world’s population already consumes 85% of the natu-
ral resources.
The degrowth theory is based on the hypothesis that
economic growth – understood as constant increase in
ASSUMPTIONS OF THE DEGROWTH THEORY
Gross Domestic Product (GDP) – is not sustainable for
the global ecosystem. This idea opposes the prevailing • The current economic system depends essentially on
non-renewable resources. Therefore, it cannot be perpetual.
economic thought according to which quality of life im-
Raw material reserves are limited, mainly regarding energy
provement derives from the GDP increase so that the sources, which goes against the GDP principle of unlimited
increase in production value should be a society’s per- growth;
manent goal. • There is no evidence that economic growth can be
separated from an increase in its environmental impact;
The main issue, according to degrowth advocates –
of whom Serge Latouche is the most prominent – is • Wealth produced by economic systems is not restricted to
goods and services. There are other forms of social wealth,
that natural resources are finite. Therefore, there is no
such as the ecosystems’ health, justice and good relations
infinite growth. Quality of life improvement must be among members of a society, the level of equity and the
achieved with no consumption increase, but rather by democratic nature of institutions. The increase in material
changing the dominant paradigm. wealth, measured solely by monetary indicators, can be
detrimental to other forms of wealth;
CRITICISM OF THE MAINSTREAM ECONOMIC • By relying on superfluous consumption, Western societies
THOUGHT are usually unaware of progressive loss of other forms of
wealth, such as quality of life, and underestimate the
According to its critics, the main consequences of pro- reaction of marginalized populations – as is the case of
suburban violence and resentment towards the West from
ductivism – understood as the emphasis on growth and
countries that do not have the same economic development
productivity increase in industrial societies, whether standard.
socialist or capitalist – would be:
• Depletion of energy resources (such as oil, gas, uranium, Sustainable degrowth theorists also believe that the
coal, etc.) in the next century, if the current pace of GDP is only a partial measure of wealth, and if we in-
consumption increase is maintained; tend to reestablish the whole range of possible forms
• Increasing raw materials scarcity; of wealth, we must stop using it as a compass. Alter-
• Environmental degradation: greenhouse effect, global
natively, they suggest the use of indicators such as the
warming, loss of biodiversity and pollution; HDI, the ‘Ecological Footprint’ and the Social Health
• Flora, fauna and human health degradation;
Index (see the chapter on ‘Sustainability Indicators and
Indices of Nations’).
• Improvement in the standard of living in Northern
hemisphere countries at the expense of Southern countries
regarding transport, sanitation, food, etc. REFERENCE
www.decroissance.org
Although productivism has been partially questioned
by sustainable development advocates, the criticism www.decroissance.info
of growth objectors is more radical, since they regard www.degrowth.net
sustainable development itself as an oxymoron1 – so- www.wikipedia.org.br http://pt.wikipedia.org/wiki/
mewhat of a contradiction. Development cannot be P%C3%A1gina_principal

(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.

18
INTRO

Characteristics of new indicators –
New reflections
‘We know that what is measured is done. If of abundant natural resources and popular culture, for
there is no data, we will be only one more instance.
person with one more opinion’ Basically, these new indicators:
• Shall not be regarded as simple tools complementary to
There is consensus that a sustainable development po-
the GDP, but rather an alternative to the GDP;
licy can only be developed with indicators. New indi-
• Shall account for the urgent need for a better distribution
cators are needed to help companies, governments and
of the existing wealth and put an end to its undue
people to see the world more accurately so that the so- accumulation;
cial usefulness of activities can be assessed. This is how
• Shall account for the negative effects of over-exploitation
we can build a sound basis for political decisions and of natural resources and degradation of life due to the
the development of business strategies consistent with devastation caused by the trade of world public assets;
the current state of the world – of scarcity and unsus- • Shall be devised as a way to measure progress of the
tainability. Human Rights.
Hindrances to the creation of such indicators include The GDP has survived far longer than its usefulness!
parameters for conceptualization, implementation and
monitoring of local, national or international systems. WEALTH INDICATORS
There is still little done because the theme is new for the
academic community, and research and test results are The Human Development Index (HDI), devised by the
not available yet, since several works are underway or UNDP, was the first major initiative widely accepted by
simply undergoing a legitimization process. the society. The HDI combines three basic indicators:
life expectancy, income and education level. Still, many
It is also true that the current lack of objective know- side effects of progress are not taken into account, such
ledge about ecosystems prevents the creation of a deve- as unemployment, crime rate increase, new health ne-
lopment index that includes the environmental dimen- eds, environmental pollution and family breakdown,
sion. Well‑being is also hard to be measured, but the among others.
fact is that, unless we adopt standardized and generally
accepted ways to measure our natural resources, the Despite its importance for paving the way, it is no lon-
well-being and the results of the social usefulness of our ger the most advanced tool in the area.
activities, we will neither be able to devise nor assess A growing number of countries have implemented the
public and private policies. Handbook of National Accounting: Integrated Environ-
It is time to reflect on and set new trends to meet sus- mental and Economic Accounting 2003 (SEEA 2003). It
tainability challenges. Building solutions towards sus- is a satellite system of the System of National Accounts.
tainable development requires that we face it from a It brings together economic and environmental infor-
new perspective: What should be changed so we can mation in a common framework. http://unstats.un.org/
become economically, socially and environmentally unsd/envAccounting/seea2003.pdf
sustainable? What should be measured? How should it In 2008, the Commission on the Measurement of Eco-
be measured? What are the necessary indicators? nomic Performance and Social Progress (CMDEPS), an
initiative of the French government, raised 28 propo-
NEW PARAMETERS, NEW PARADIGMS sals (15 of which from international organizations and
13 from academia and national initiatives).
The proposal of new indicators aims to create a sta-
tistical basis to measure results of social and environ- http://www.stiglitz-sen-fitoussi.fr/documents/Survey_of_
mental policies and of economic development policies. Existing_Approaches_to_Measuring_Socio-Economic_ Pro-
Education and family values, popular culture, respect gress.pdf
for nature and sustainable exploration of resources, po-
verty and inequality reduction are some of the many REFERENCE
key aspects of ‘development’ not acknowledged by our Information gathered on the websites of France Libertes
conventional indicators, which often lead us to inac- Fondation Danielle Miterrand www.france-ibertes.fr and at
curate diagnosis of poverty and development in areas www.beyond-gdp.eu

19
INTRO

OECD AND UN

OECD AND SUSTAINABILITY INDICATORS
To realize the dream of a better world, the OECD, with REFERENCE
the support of the Bank of Italy and the Joint Research
Centre (JRC) of the European Commission, gathered Text edited from LExpansion.com - Hugo Lattard.
in Rome a contingent of experts on the theme: ‘Is ha- Excerpt of the Istanbul Declaration
ppiness measurable and what do those measures mean
for policy?’ They discussed up to what extent life satis- ‘We are encouraged that initiatives to measure socie-
faction can affect economic models and governmental tal progress through statistical indicators have been
action. Happiness is not a new idea. However, it is still launched in several countries and on all continents.
hard to be measured. This was also one of the objectives Although these initiatives are based on different me-
of the OECD June 2007 Istanbul World Forum. thodologies, cultural and intellectual paradigms, and
OECD begins with the following assertion: the society is degrees of involvement of key stakeholders, they re-
increasingly concerned with its quality of life. Therefo- veal an emerging consensus on the need to undertake
re, it is important to integrate, when measuring societal the measurement of societal progress in every country,
progress, not only economic indicators like the GDP, going beyond conventional economic measures such as
but also environmental and social concerns. GDP per capita. Indeed, the United Nation’s system of
indicators to measure progress towards the Millennium
National per capita income is not enough. A clear Development Goals (MDGs) is a step in that direction.’
example is that, due to oil income, Republic of Equato-
rial Guinea has a per capita GDP similar to that of Gre- ‘A culture of evidence-based decision making has to be
ece, but the infant mortality rate is thirty-fold higher. promoted at all levels to increase the welfare of societies.
And in the ‘information age,’ welfare depends in part on
OECD intends to go beyond: it wants to assess the level of transparent and accountable public policy making. The
happiness of a country’s population with the aid of more availability of statistical indicators of economic, social,
elaborate indicators. And why not guide public policy and environmental outcomes and their dissemination to
following this criterion? With this in mind, the OECD uses, citizens can contribute to promoting good governance
at an international level, indicators such as life expectancy, and the improvement of democratic processes. It can
infant mortality, obesity, public-private health expenditu- strengthen citizens’ capacity to influence the goals of the
re, youth inactivity, income inequality, prison population, societies they live in through debate and consensus buil-
road network, road motor vehicles and road fatalities, as ding, and increase the accountability of public policies.’
well as tourism (hotel nights), recreation and culture.

20
INTRO

UN AND SUSTAINABILITY INDICATORS:
EARTH SUMMIT – RIO 1992 AND AGENDA 21

The United Nations Conference on Environment and plementation of the Agenda 21 and the Rio Decla-
Development - UNCED (Earth Summit - 1992) raised ration on Environment and Development, as well
the need to develop indicators able to measure sustai- as the implementation of the agreements at the
nability, since the tools available, among which the GDP, local, national, regional and international levels re-
did not provide enough data for analysis. affirmed at the World Summit on Sustainable De-
velopment (WSSD), held in Johannesburg 10 years
The Conference’s resulting document, Agenda 21 – later to evaluate the full implementation of Agenda
chapter 40, highlights: ‘Commonly used indicators such 21 and the Commitments to the Rio principles.
as the gross national product (GNP) and measurements
of individual resource or pollution flows do not provi- The Johannesburg Plan of Implementation, (Chap-
de adequate indications of sustainability. Methods for ter X), and the Commission on Sustainable Deve-
assessing interactions between different sectoral envi- lopment (CSD), at its 11th and 13th sessions, encou-
ronmental, demographic, social and developmental pa- raged further work on indicators for sustainable
rameters are not sufficiently developed or applied. Indi- development by countries, in line with their spe-
cators of sustainable development need to be developed cific conditions and priorities. CSD-13 invited the
to provide solid bases for decision-making at all levels international community to support efforts of de-
and to contribute to a self-regulating sustainability of in- veloping countries in this regard.
tegrated environment and development systems’ (Uni- The third, revised set of CSD indicators was finalized
ted Nations, 1992). in 2006 by a group of experts from developing and
Since the Agenda 21, 178 signatory countries have agre- developed countries and international organizations.
ed to correct distortions resulting from evaluations based The revised edition contains 96 indicators, including
exclusively on the GDP. For this purpose, data on social a subset of 50 core indicators. The guidelines (www.
and environmental resources should be added and data on un.org/esa/sustdev/natlinfo/indicators/guidelines.
predatory activities and wasteful use of resources should pdf) on indicators and their detailed methodology
be subtracted, among other distortions. Only then can sheets (www.un.org/esa/sustdev/natlinfo/indicators/
sustainability and development standards that include methodology_ sheets.pdf) are now available as a re-
economic, social, ethical and cultural aspects be defined. ference for all countries to develop national indica-
tors of sustainable development.
The UN Commission on Sustainable Development
(CSD) was created in December 1992 at the United The CSD indicator set is based on the previous two
Nations General Assembly meeting to ensure effective (1996 and 2001) editions, which have been develo-
follow-up to the UNCED. ped, improved and extensively tested as part of the
implementation of the Work Programme on Indi-
It is responsible for monitoring and reporting on the im- cators of Sustainable Development.

21
INTRO

UN AND SUSTAINABILITY INDICATORS: MILLENNIUM DEVELOPMENT GOALS (MDG)
AND GROSS NATIONAL HAPPINESS (GNH)

Bhutan’ good results made the UN consider its imple- a peaceful political transformation from absolute monar-
mentation in other countries. An International version chy to parliamentary democracy with a gradual set up of
is being developed in Canada to be implemented this democratic institutions and practices. He emphasized the
year. According to Michael Pennock (Director of the need to ‘deepen and strengthen democracy to the grass
Population and Public Health Observatory at the Van- root level and empower people’, which will not only help
couver Island Health Authority in Canada, who worked achieve the MDGs but also strengthen the democratic
on the development of the Genuine Progress Indicator process. Mr. Chhibber highlighted the need for targeted
from Canada and is a UN consultant for the develop- programs that will deliver development benefits directly
ment of the GNH indicators in Bhutan), the GDP me- to the poor, enhancing their human development and
trics are too narrow as a well-being measure. ‘We must addressing the root causes of their impoverishment. Such
rethink the way we measure progress. The GNH is more intervention, he said, will help address the contrasts across
comprehensive than the GDP and, differently from what districts on a number of MDG target areas such as poverty
many would think, is based on scientific methods rather incidence, child malnutrition, food security, net primary
than on philosophical or moral assumptions.’ education enrolment and access to safe drinking water.
Bhutan is among the few countries that have been making Also speaking at the occasion, the UN Resident Coordina-
good progress in achieving the Millennium Development tor, Mr. Nicholas Rosellini, said that Bhutan’s success story
Goals. According to the latest report ‘Bhutan’s progress: on the MDGs is attributed to the strong political will and
Midway to the Millennium Development Goals’ commitment of the Government in integrating the MDGs
http://www.undp.org.bt/mdg/MDG_ into the national planning framework.  He highlighted the
synergy between Bhutan’s development approach of Gross
Midway.pdf, which was launched in Thimphu in No-
National Happiness and the Millennium Declaration, and
vember 2208, Bhutan has already achieved three of the
said that the ‘Millennium Declaration is guided by the uni-
MDG indicators and is on track to meet most of the
versal values of freedom, equality, tolerance, respect for na-
other targets by 2015.
ture and shared responsibilities – ideals which are integral
In a keynote address at the launch, the UN Assistant Se- to Bhutan’s development approach of Gross National Ha-
cretary-General and Regional Director, UNDP, Mr. Ajay ppiness’, which has helped pave the way for Bhutan’s pro-
Chhibber, said that Bhutan presents an exemplary case of gress in the MDGs.

22
INTRO

UN AND SUSTAINABILITY INDICATORS: HUMAN DEVELOPMENT INDEX (HDI)

Since 1990, the UNDP Human Development Index has re. Maybe the most well known distortion, presented
been annually measured and published. Besides the by philosopher Isaiah Berlin in 1956, is the ‘preference
GDP, the HDI aggregates composite indices including adaptation’. It says that people who endure long perio-
life expectancy and education level. The last ranking ds of deprivation develop defense mechanisms against
places Norway first whereas the USA ranked 10th, 6 pla- hardships. They learn how to be content with little.
ces below the GDP per capita ranking. France ranked They do not mind life is hard. When asked about life,
16th. they minimize the problems and, as a rule, show a high
level of happiness.’
‘The UN welcomes this indicator, says the economist
Flavio Comim, of the United Nations Development ‘The problem lies in the fact that the GNH is not only
Programme (UNDP). ‘There are many similarities be- proposed as a measurement of well-being, but, like the
tween the GNH and the set of UN human development GDP, it is regarded as a guide to public policy. What
indicators (such as the HDI - Human Development should we do about those extremely poor people who
Index). Both go beyond income (and GDP) as a well- say they are the happiest people in the world? Should
being measure. Both are concerned with the individual we neglect them? We know we cannot do that. We also
and the multiple dimensions of well-being. Both respect know that only a measure that shows the objective de-
people’s autonomy as the ultimate expression of deve- privations endured by people can bring back a stand
lopment.’ that prioritizes human rights over frivolous preferences.’
‘Nevertheless, the GNH presents some constraints inhe- ‘The GNH is a good starting point, but not necessarily
rent to subjective metrics. Happiness is an intuitive the end. It has some good points that should be used so
concept common to all human beings, but its measu- we can have a better and more equitable measure of
rement is prone to biases, often of psychological natu- well-being’, says Flavio Comim.

GNH AND THE WEST What do we need to do?

GNH conceptual framework It is the beginning of a very exciting period. We must
develop:
The GNH was developed along three conferences – in
• Tools that measure well-being or happiness at national,
Bhutan, Canada and Thailand1 – that gathered empi-
regional and local levels, as well as their respective
ric economists and scientists to identify the main con- conditioning factors;
ditioning factors of happiness, thus adopting a fully
• Public policy tools, such as ‘political lenses’, that can be
scientific approach, and developing an evidence-based
used to evaluate the impact on happiness, so that we can
framework. In other words, the GNH conceptual fra- be more competent in assuring that such policy will really
mework is not based on religious assumptions, but improve happiness; and
rather on science and empiricism. As we, from the
• International collaborators that can share knowledge and
Western world, seek better conceptual framework for promote the GNH within our jurisdictions. Some initiatives
progress, we can now rely on the work done by the are very interesting, but they are only ‘beginnings’ being
Bhutanese. ignited worldwide. We need to work together to gain enough
momentum and keep this movement going ahead.
International GNH version
Excerpt from lecture given by Michael Pennock – Direc-
An international version is underway. It is based on tor of the Population and Public Health Observatory at
the GNH conceptual framework, uses many of the the Vancouver Island Health Authority in Canada, who
core items of the Bhutanese survey and incorporates worked on the development of the Genuine Progress In-
some lessons learned in a similar work carried out by dex for Atlantic Canada, is a UN consultant in the develo-
the GPI Atlantic (Genuine Progress Index) applied in pment of the GNH indicators in Bhutan and coordinator
two Nova Scotia communities. This version can be of the GNH International version implementation.
self-managed, is cross-cultural and takes only 20 – 30
minutes to be filled out. (1) The fourth conference will be held in Brazil in November, 2009

23
INTRO

Need for GNH index
Across the world, indicators focus largely on market licies and programmes. Left at the level of inspirational
transactions, covering trade, monetary exchange rates, discourse, imprecision will allow many conventional in-
stockmarket, growth, etc. These dominant, conven- dicators to play unwitting roles in a GNH society.
tional indicators, generally related to Gross Domestic
GNH indicators are also needed to foster vision and a
Product (GDP) reflect quantity of physical output of a
sense of common purpose. Left at the plane of vision,
society. GDP, along with a host of supporting indicators,
GNH cannot specify the practical programmes and re-
is the most widely used indicator. Yet GDP is heavily
sources needed to attain those visions in quantitative
biased towards increased production and consumption,
terms. In this respect, screening tools for projects and
regardless of the necessity or desirability of such ou-
policies developed by the Centre for Bhutan are expected
tputs, at the expense of other more holistic criterion. It
to used for selection of policies and programmes, which
is biased against conservation since it does not register
are aligned with GNH. People clarify their vision by spe-
conservation or stocks.
cifying targets and indicators that serve to point to areas
 Indicators determine policies. The almost universal use of weakness and strength. Indicators serve as convenient
of GDP-based indicators to measure progress has hel- instruments and yardsticks of evaluation over time.
ped justify policies around the world that are based on
GNH indicators can become tools of accountability. The
rapid material progress at the expense of environmental
sense of common purpose embodied in a coherent set of
preservation, cultures, and community cohesion.
indicators enables ordinary men and women to more re-
Indicators embody values. In general, policy makers tend adily judge, hold accountable their leaders, by checking
to implement policies or programmes based on current whether these the targets are being fulfilled. Without
international development trends, without taking into a common vision concretized through indicators, each
consideration the values that lie behind such trends. individual merely looks to his or her own ends, even
One way to overcome this tendency is by recognizing though welfare is a shared pursuit. Not only do GNH
the fact that between values and policy implementation indicators assist in building vision, they are instrumental
stand indicators. Values, policies and programmes are to that vision being held in common by all citizens, buil-
mediated by indicators. ding a notion of greater interdependence across time
and over space.
Indicators capture the imagination and help convince
lay people about the direction of the country’s goals and Once people are familiar with GNH indicators, they can
development objectives, but it is not always easy for the have a practical effect on consumer and citizens’ beha-
people to discern that indicators are not value neutral, viour. The behaviour changing function can emerge in
and that values and principles underlie and determine significant ways when there are appropriate indicators
programmes and policies. that direct attention towards both the causes of proble-
ms and the manner in which behaviour and decisions can
Indicators actually drive society in certain directions
prevent and solve those problems. This potential beha-
and even determine the policy agendas of governments.
viour changing function of GNH indicators can be valu-
Not only decision makers, but ordinary citizens, tend to
able. For example, certain indicators for GNH gauge the
take social or economic programmes at face-value, and
prevalence rates of negative and positive emotions, from
accept proposed policy implementation without exami-
compassion to anger. The level of trust, volunteerism and
ning the ultimate values underlying those programmes.
safety can also be tracked. Information on their prevalen-
But indicators can help bridge that gap.
ce rates will influence peoples’ behaviour as they begin to
As many contemporary indicators of progress and de- gauge their own traits against the national trends.
velopment do not reflect GNH adequately, the Royal
To qualify as a valid indicator of GNH, an indicator with
Government of Bhutan directed the Centre for Bhutan
respect to any variable has to have either a positive or a
Studies (CBS) to develop GNH index, which will provi-
negative influence on well-being and happiness. The di-
de appropriate indicators for Bhutanese development.
rection of causality on happiness and well-being must be
The Centre for Bhutan Studies constructed a single clear. For examples, less crime, illness, and air pollution
number index for Gross National Happiness that can be have a more positive influence on happiness than more
broken down into individual component indicators that crime, illness, and pollution.
are useful for different sectors for planning and techni-
GNH indicators include both objective and subjective
cal purposes at the ministerial and departmental levels.
dimensions of life. The construction of an index should
Although GNH is a complex concept and ideal, for prac- give equal weight to both the functional aspects of hu-
tical application, GNH philosophy had to be translated man society as well as the emotive side of human expe-
into a metric system. The government expressed the rience. To give just one example, people’s perceptions
need for GNH indicators because without some kind of of their own safety and security are as important in de-
measurement system, GNH cannot guide practical po- termining happiness as objective crime statistics. That

24
INTRO

balance allows good representation of information be- an abstraction from reality, given that from a Buddhist
tween the objective and the subjective. view, they do not exist. What exists in a fundamental
way is relationality (as opposed to subject and object) at
When measuring objective conditions such as educa-
all levels, which can only be assessed by a broad range
tional and medical facilities, or room ratios etc., mea-
of social, economic, cultural, and environmental indi-
sure of the psychological or subjective experience that
cators. Seen in this way, happiness and well-being is
accompanies this condition is important. For example,
ultimately a way of being that is affected by and affects
a student attends a school that scores highly in the con-
relational quality, which changes in meaning over time
ventional educational statistics, but he/she subjectively
with deepening sensitivities to the world around us and
views the educational experience as entirely deficient—
with our understanding of what is important or valuable
the teachers might be oppressive, or the classroom ten-
for us and for all sentient beings.
se. In other words, the process of obtaining the edu-
cation, including the classroom experience, does not Dasho Karma Ura - Butan
promote a sense of well-being in the student, despite
the school’s apparent high objective performance. Self
reporting of experiences along with objective statistics
therefore provides a more accurate picture of well-being
than the objective statistics alone.
As indicators reflect values, and shape programmes,
they become a vital link in providing feed-back on the
effectiveness of existing policies and programmes and
‘feed-forward’ into programme implementation, there-
by allowing the values they embody to be infused into
policies and programmes in a broad based manner.
Thus, in the case of using GNH indicators as evaluative
tools, they can be used not only to check whether pro-
grammes are consistent with GNH indicators but also
to create conditions for a coherent, organic relationship
between professed values on the one hand and actual
policies, programmes and projects on the other. The
ramification of pursuing such an organic relationship
should be recognized for the polity of Bhutan as a who-
le: if it is done successfully, it means that the country’s
economic, political, social, environmental, cultural and
technological environments will be penetrated by GNH
values, and that there will be a natural coherence to the
country’s policies that reflect its cherished values.
At the same time, from a Bhutanese cultural perspective,
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 interdependence of all things, and the non-abi-
ding self of everything, is a key concept. The conventional
subjective versus objective division is an abstraction from
what is actually inter-relational. For GNH indicators, this
cultural concept means that seeing everything as relatio-
nal is more useful than seeing them as separate categories.
In fact, happiness itself dwells in the experience of quality
of relationship. Thus, the various domains are not simply
separate conditions of happiness in and of themselves. Ra-
ther, it is the intimate inter-relationship among these do-
mains that is significant.
The GNH index construction aimed at a deeper repre-
sentation of well-being than conventional indicators.
The distinction between subjective and objective is but

25
2
Indicators and Indices
Indicadores e Índices de Sustentabilidade de Nações

1. Bellagio Principles 28
2. IDH + IPH + IDG + MPG 30
3. GNH – Gross National Happiness 37
4. BIP 40 - Baromêtre des Inegalités et de la Pauvreté 40
5. BCN – Balanço Contábil das Nações 42
(Balance Sheet of Nations)
6. BS - Barometer of Sustainability 44
7. Calvert-Henderson Quality of Life Indicators 47
8. DNA Brasil 48
9. DS – Dashboard of Sustainability 51
10. EF – Ecological Footprint 54
11. EPI – Environmental Performance Index 57
12. ESI – Environmental Sustainability Index 60
13. EVI – Environmental Vulnerability Index 62
14. GPI – Genuine Progress Indicator (IPR) 64
15. GSI – World Bank’s Genuine Saving Indicator 66
16. HPI – Happy Planet Index 68
17. IDS – Indicadores de Desenvolvimento Sustentável IBGE 70
18. IEWB – Index of Economic Well-being 72
19. IPRS – Índice Paulista de RS (São Paulo State 74
Social Responsibility Index)
20. Isew – Index of Sustainable Economic Welfare 76
21. ISH – Index Social Health 78
22. LPI – Living Planet Index 79
23. RCI – Responsible Competitiveness Index 80
24. SF – Social Footprint 83
25. WN – The Well-being of Nations 85

26
Intro 1

Redefining Progress
What are we doing with our survival in this planet? What are we doing with our species?

Our (economic) thermometers no longer Most experts agree that we need to social and environmental variables in
allow an accurate reading. They are lite- update our economic metrics, and they the production and economic develop-
rally making us sicker. They are leading are working in this direction. These stu- ment model adopted.
us to the wrong direction. We must cor- dies are increasing in number and depth,
The trade/financial model that is spre-
rect the route for the sake of our survival. and the UN has been the main supporter
ading around the world worsens ine-
of this process, in an attempt to include
This distortion comes from the fact that qualities, threatens our survival and the
social and environmental variables in su-
the generations and societies that pre- cohesion of our societies. Redesigning a
ggested national accounting principles.
ceded us did not have the same proble- social, environmental and political pact
ms. Production was the key point. That There is a large number of initiatives worldwide would mean changing our
explains the GDP metrics, which was that create “alternative economic in- vision and ways of thinking, rethinking
exclusively focused on the monetary dicators” aimed at improving the GDP the wealth that will add true value to
amount produced in the post-war pe- metrics by incorporating, in most ca- life. Finally, a new accounting and new
riod. In other words, the GDP was cre- ses, new economic, environmental and statistics will allow a different reading to
ated to be a measurement tool directly social sustainability measures into the our routes, in line with our social and
determined by the cost of manufactu- data, besides including happiness / qua- environmental challenges and self-des-
ring industry and the war. lity of life assessment parameters. truction risks.
Currently, due to the big environmental The objective is to offer more com- Nowadays, one of the clearest pieces
and human challenges we face, we need prehensive economic data that can be of evidence, provided by international
new thermometers that can help us more intelligible to the population and studies on future risks (global warming,
change our production and consump- more relevant to policy makers, by taking poverty, water scarcity…), is that it is
tion models, adjusting them to the natu- into account factors like environmen- not a question of technical, monetary or
ral resources available. It is a considera- tal degradation and quality of life, thus physical problems. It is all about politi-
ble change in the way of life, a change in changing our political priorities to build cal choices.
attitudes regarding the structure and the more equitable and happy societies.
And we are the ones to choose the poli-
dimensions of a development model, as
The biggest challenge is to reach a con- ticians that will make these choices.
well as more appropriate regulatory ins-
sensus on the ways to assess and mea-
truments. It is no longer an alternative
sure the objective – not the subjective – Tip
activity, but a vital need.
perceptions of well-being, rating them,
The current financial crisis, which has as it was done in the HDI measures of Global Directory to Indicator Initiatives.
been shaking the world economy, shows education, health and standards of li- Compendium of Sustainable Develop-
that our economic metrics are deficient. ving. We must raise the status of these ment Indicator Initiatives is a worldwi-
We now have, therefore, a unique op- indicators to the level enjoyed by the de directory of sustainability indicators.
portunity to change this situation. If we GDP today. It is an initiative carried out by several
want to be sustainable and have quality partners and donors, including the In-
These are constraints currently faced ternational Institute for Sustainable De-
of life, we need reliable indicators that
when trying to monetize public goo- velopment (IISD), Environment Canada,
can lead us to this direction. After all,
ds, such as water and air: exhaustion Redefining Progress, World Bank, and
what matters has to be measured, and
of natural resources by predatory ex- the United Nations Division for Sustai-
what is measured is manageable.
ploitation, environmental degradation nable Development.
It is high time we reconsidered develo- through pollutant production processes
pment theories based solely on econo- (negative externalities that impact on
mics and restricted to the GDP concept. soil, air and water), etc. Such task is key
We must rethink our wealth measure- to planning a development that does not
ment by including economic, social and focus only on the economic dimension.
environmental sustainability, and even Therefore, it is a question of trying to
happiness (quality of life / well-being). show the interdependence of economic,

27
1 IISD

Bellagio
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.
Principles Principles 2 through 5 include the content of any asses-
sment, Principles 6 through 8 deal with key issues of the
process of assessment, while Principles 9 and 10 deal
International Institute with the necessity for establishing a continuing capacity
for assessment.
for Sustainable The principles that guide the stages of the sustainable
Development – IISD development measurement process and their content
are as follows:

1. Guiding Vision and Goals
Assessment of progress toward sustainable develop-
ment should be guided by a clear vision of sustainable
development and goals that define that vision.
COUNTRY
2. HOLISTIC PERSPECTIVE
Canada Assessment of progress toward sustainable develop-
ment should:
WHAT IT IS • include review of the whole system as well as its parts;

Principles to measure and assess progress toward sustai- • consider the well-being of social, ecological, and
economic sub-systems, their state as well as the direction
nable development. These principles serve as guidelines and rate of change of that state, of their component parts,
for the whole of the assessment process including the and the interaction between parts;
choice and design of indicators, their interpretation and • consider both positive and negative consequences of
communication of the result. They are interrelated and human activity, in a way that reflects the costs and benefits
should be applied as a complete set. for human and ecological systems, in monetary and non-
monetary terms.
ORIGIN
3. ESSENTIAL ELEMENTS
These principles are the result of the work of an inter-
national group of measurement practitioners and rese- Assessment of progress toward sustainable develop-
archers from five continents gathered by the Interna- ment should:
tional Institute for Sustai¬nable Development – IISD • consider equity and disparity within the current population
and between present and future generations, dealing
in 1996 at the Rockefeller Foundation’s Study and Con-
with such concerns as resource use, over-consumption
ference Center in Bellagio, Italy, aiming to synthesize and poverty, human rights, and access to services, as
insights on the main aspects related to sustainability appropriate;
assessment. • consider the ecological conditions on which life depends;
• consider economic development and other, non-market
OBJECTIVE activities that contribute to human/social well-being..

The principles were developed both to start sustaina- 4. Adequate Scope
ble development assessment processes and to evaluate Assessment of progress toward sustainable develop-
existing processes in any institution, from local com- ment should:
munities and companies to international institutions.
• adopt a time horizon long enough to capture both hu-
man and ecosystem time scales, thus responding to ne-
CONTENT
eds of future generations as well as the current ones to
TThere are 10 Bellagio principles, and they cover all short-term decision-making;
stages of the sustainability measurement indicators • define the space of study large enough to include not
development process. Principle 1 deals with the star- only local but also long distance impacts on people and
ting point of any assessment - establishing a vision of ecosystems;

28
IISD 1

• build on historic and current conditions to anticipa- determine trends;
te future conditions - where we want to go, where we • be iterative, adaptive, and responsive to change and
could go. uncertainty because systems are complex and change
frequently;
5. Practical Focus • adjust goals, frameworks, and indicators as new insights
are gained;
Assessment of progress toward sustainable develop-
ment should be based on: • promote development of collective learning and feedback
to decision-making.
• an explicit set of categories or an organizing framework
that links vision and goals to indicators and assessment 10. Institutional Capacity
criteria;
• a limited number of key issues for analysis; Continuity of assessing progress toward sustainable de-
velopment should be assured by:
• a limited number of indicators or indicator combinations
to provide a clearer signal of progress; • clearly assigning responsibility and providing ongoing
• standardizing measurement wherever possible to permit support in the decision-making process;
comparison • providing institutional capacity for data collection,
• comparing indicator values to targets, reference values, maintenance, and documentation;
ranges, thresholds, or direction of trends, as appropriate.
• supporting development of local assessment capacity.
6. Openness Source: Adapted from Brunvoll et al. (2002).
Assessment of progress toward sustainable develop-
ment should: RESULTS

• make the methods and data that are used accessible to all; Even though everyone acknowledges the key role
played by indicators in measuring sustainable deve-
• make explicit all judgments, assumptions, and
lopment, it is difficult to foresee any way to measure
uncertainties in data and interpretations.
sustainable development that is widely accepted and
7. Effective Communication complies with the ten Bellagio principles. In the words
Assessment of progress toward sustainable develop- of Universidade de São Paulo professor José Eli Veiga:
ment should: “Establishing these ten principles may have been too
high an aspiration. However, even if only the fifth cri-
• be designed to address the needs of the audience and set terion is used as a reference point – Practical focus:
of users; Assessments should be based on an explicit set of ca-
• draw from indicators and other tools that are stimulating tegories that links vision and goals to indicators – one
and serve to engage decision-makers; must admit that there are still conceptual and opera-
• aim, from the outset, for simplicity in structure and use of tional differences and constraints preventing it from
clear and plain language. being accomplished”.
José Eli Veiga USP.BR
8. Broad Participation

Assessment of progress toward sustainable REFERENCE
development should: www.ead.fea.usp.br/Semead/9semead/resultado_semead/
• obtain broad representation of key grass-roots, trabalhosPDF/331.pdf
professional, technical; and social groups , including youth, www.iisd.org/mesure/compendium
women, and indigenous people - to ensure recognition of
diverse and changing values;
• ensure the participation of decision-makers to secure a
firm link to adopted policies and resulting action.

9. Ongoing Assessment

Assessment of progress toward sustainable develop-
ment should:
• develop a capacity for repeated measurement to

29
2 HDI + HPI + GDI + GEM

HDI
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.
UNDP
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 simi-
larly conceived everywhere, it is necessary to use indi-
cators that allow the expression of these life conditions.
• Life expectancy at birth - Life expectancy at birth –
WHAT IT IS number of years newborn babies can be expected to live
if prevailing patterns of mortality at the time of birth
The Human Development Index (HDI), introduced were to stay the same throughout the child’s life.
by the United Nations Development Programme
Minimum value: 25 years
(UNDP), is important because it combines three basic
indicators: life expectancy at birth, income and edu- Maximum value: 85 years
cation attainment. Despite being published for the
• Adult literacy rate - is the percentage of people aged 15
first time in 1990, the index was recalculated for the
previous years, as of 1975. The HDI has gradually be- and above who can, with understanding, both read and
come a world reference. write a short, simple statement on their everyday life.
Minimum value: 0%
ORIGIN Maximum value: 100%
Since the 1990s, the UNDP has developed and disclo- • Combined gross enrolment ratio for primary, secondary
sed the HDI for 175 countries, aiming to express in and tertiary education - measures the percentage of stu-
figures and solidify the idea of Human Development, dents enrolled in the three education levels, regardless
which is based on the premise that, besides the eco- of age, in relation to the total number of people in the
nomic dimension, other social, cultural and political age group that officially corresponds to each one of the-
characteristics that influence the quality of human life se education levels.
should be taken into account in order to measure the
progress of a population. Working for the UNDP, the Minimum value: 0%
Pakistani economist Mahbub ul Haq (1934-1998) con- Maximum value: 100%
ceived the report. It is currently published in dozens of
languages and in over 100 countries. STEP BY STEP

OBJECTIVE Minimum and maximum values (goalposts) are chosen
for each underlying indicator.
The objective of the Human Development Index is to
offer a counterpart to a very popular index, the Gross These goalposts are fixed and are based on the indica-
Domestic Product (GDP) per capita, which consi- tor behavior trends for the next 25 years. The difference
ders only the economic dimension of development. between the actual value observed and the minimum
Created by Mahbub ul Haq with the help of Indian value corresponds to the progress made by a society in
economist Amartya Sen, 1998 Nobel Prize winner that specific indicator. The difference between the ma-
in Economics, the HDI intends to be a general, con- ximum and minimum values corresponds to the com-
cise measure of human development. It neither en- plete pathway to be followed by a society in that specific
compasses all aspects of development nor represents indicator.

30
IDH + IPH + IDG + MPG 2

For each indicator the following index is calculated: HPI-1 – Human Poverty Index for developing countries
HPI-2 – Human Poverty Index for a group of select high-
(actual value – minimum) income OECD countries
Index = ----------------------------------------------------- GDI – Gender-related Development Index
(maximum – minimum)
GEM – Gender Empowerment Measure
Determining the HDI is straightforward. It is a simple ave-
rage of the three dimensional indices that shows the path Note
followed by the society as compared to the path yet to be
The HPI-1 and the HPI-2 consider the same dimen-
followed for a certain indicator.
sions of the HDI in their calculations – a long and
healthy life, access to knowledge, and a decent stan-
WEIGHTED AVERAGE dard of living –, with the addition of another dimen-
Three indices are, then, composed and all of them will sion: social exclusion.
have the same weight (1/3) in HDI composition:
RESULTS
• Life Expectancy Index - exclusively composed by the
Life Expectancy at Birth indicator; It is a key index of the UN Millennium Development
• Education Index - composed by the indicators “Adult
Goals (http://www.pnud.org.br/odm/) and, in Brazil, it
Literacy Rate”, with two-thirds weight, and Combined has been used by the federal government and by the local
Gross Enrollment Ratio for Primary, Secondary and Ter- administrations: the Municipal Human Development
tiary Schools, with one-third weight; Index (IDH-M), which can be accessed at the Atlas do
Desenvolvimento Humano no Brasil (http://www.
• GDP Index - exclusively composed by the GDP per pnud.org.br/atlas/), is an online database with social and
capita* indicator. economic information on the 5,507 municipalities in the
country, the 26 states and the Federal District.
Minimum value: 100 PPP US dollars.
Maximum value: 40 thousand PPP US dollars. The IDH-M is developed in the same way as the HDI,
from the same dimensions: a long and healthy life, ac-
CALCULATION cess to knowledge, and a decent standard of living.

All three dimensions/aspects of the HDI are equally The indicators used in the IDH-M are not the same as
valuable and desirable. For this reason, all indices re- in the HDI:
presenting them have the same weight (1/3) in the HDI • Longevity Index - Life expectancy at birth in the muni-
composition. cipality indicator.
Aggregation Method: The three indices are added, with • Education Index - Adult literacy rate indicator, with two-
equal weight, and divided by 3. thirds weight, and Gross school attendance rate by muni-
The value of the indices ranges from 0 to 1. Therefore, cipality inhabitants indicator, with one-third weight.
the HDI value also ranges from 0 to 1. The closer to 1 • Income Index - Average family per capita income in the
the HDI value is, the higher the human development municipality indicator.
level of a city, region or country.

VALUES HDI evolution in Brazil

Low human development: HDI lower than 0.5. Since 1990 – has risen 14 places among the 177 coun-
Medium human development: HDI between 0.5 and 0.8. tries assessed;
High human development: HDI higher than 0.8. 2005 – ranked 65th (index = 0.792 or medium human
development);
In order to complement the information on human de-
2006 (November) – ranked 69th (index = 0.792; pre-
velopment in the world, the UNDP has developed other
vious index = 0.788 ranking 68th);
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.

31
2 HDI + HPI + GDI + GEM

CRITICISM
Year HDI
HDI is still limited, for it does not take into account the
1975 0,643 so-called side effects of progress, such as unemploy-
1980 0,678 ment, crime, new illnesses, environmental pollution,
family breakdown, among others.
1985 0,691

1990 0,712 Quote

1995 0,738 I must admit I did not initially see much merit in the
HDI itself, which, as it happens, I was privileged to
2000 0,747
help devise. At first I had expressed to Mahbud ul Haq,
2001 0,75 the originator of the Human Development Report,
considerable skepticism about trying to focus on a cru-
2002 0,757
de index of this kind, attempting to catch in one simple
2003 0,778 number a complex reality about human development
and deprivation. (…) But after some initial hesitation,
2004 0,792
Mahbub persuaded himself that the dominance of
2005 0,802 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 dimen-
sions 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 achie-
vement 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.

http://www.pnud.org.br/pobreza_desigualdade/reportagens/index.php?id01=2388&lay=pde

32
IDH + IPH + IDG + MPG 1.3
2

People would look at them respectfully, he argued, but THE ENVIRONMENTAL HDI
when it came to using a summary measure of develop-
If the UN started to build the environmental variable into
ment, they would still go back to the unadorned GNP,
the annual assessment made by the UNDP, a sort of ro-
because it was crude but convenient. (…) Mahbub got
tation of nations would occur. The United States would
this exactly right, I have to admit, and I am very glad
plummet in the ranking, whereas Brazil would climb some
that we did not manage to deflect him from seeking a steps. The Environmental HDI, a hybrid index calculated
crude measure. By skilful use of the attracting power of by the BNDES technicians, is a combination of the indica-
the HDI, Mahbub got readers to take an involved inte- tors that comprise the HDI and the variables of the Envi-
rest in the large class of systematic tables and detailed ronmental Sustainability Index (ESI). In the Environmen-
critical analyses presented in the Human Development tal HDI ranking, Brazil goes up from the 54th to the 39th
Report. place. Biggest world polluters, the United States, in turn,
Amartya Sen, 1998 Nobel Laureate in Economics, in plummet from the eighth place in the traditional HDI to
the foreword to the 1999 HDR. the 15th position in the Environmental HDI. Emerging
power China ranks 129th in the environmental indicator.
Source:
REFERENCE O Globo, Mar 25, 2007, Financial news, pages 33 and 34.
Ranking de municípios no Brasil
www.pnud.org.br
www.pnud.org.br/idh/ In order to complement the information on hu-
www.pnud.org.br/atlas/ranking/IDH-M%2091%2000%20R man development in the world, the UNDP has
anking%20decrescente%20(pelos%20dados%20de%202 developed other indices besides the HDI:
000).htm
• HPI-1 – Human Poverty Index for developing
Human development report 2005 countries
hdr.undp.org/reports/global/2005/pdf/presskit/HDR05_PKE_
HDI.pdf • 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 (>0.9); brown, the lowest (<0.3).

33
2 HDI + HPI + GDI + GEM

Human CONTENT

The HPI-1 and the HPI-2 make use of the same di-

Poverty Index mensions as the HDI in their calculations, and one
additional dimension for the HPI-2: social exclusion,
reflected by the long-term unemployment rate.

The HPI-1 measures deprivation in the same dimen-
sions of basic human development as the HDI.

The variables used are:
• Long and healthy life. Percentage of people not expected to
survive to age 40;
• Knowledge. Percentage of adults who are illiterate; and
• Decent standard of living. 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 HPI-2 focuses on deprivation in the same three di-
mensions as the HPI-1.
The variables are:
• Long and healthy life. Percentage of people not expected to
survive to age 60;
WHAT IT IS
• Knowledge. Percentage of people whose ability to read and
The Human Poverty Index – HPI measures depriva- write is far from adequate; and
tion in the three essential elements of human life: ex- • Decent standard of living. Proportion of people with
pected to die before age 40, the percentage of adults disposable incomes of less than 50% of the median.
who are illiterate and deprivation in overall economic
• Social Exclusion: Proportion of long-term unemployed (12
provisioning, reflected by the percentage of people
months or more).
without access to health services and safe water and
the percentage of underweight children under five.
RESULTS
ORIGIN Developing countries:

Indicator derived from the HDI and published since In the Human Poverty Index (HPI), calculated only for
1997 by the UNDP. developing countries, Brazil ranked 20th out of 103
countries and territories.
OBJECTIVE Uruguay is the highest scoring country, and Niger is the
The HPI measures deprivation in human development. lowest.
Therefore, while the HDI measures overall progress in a This indicator measures deprivation in three aspects:
country in achieving human development, the human
• Short life (represented by the probability of not surviving
poverty index (HPI) reflects the distribution of progress
to age 40);
and measures the backlog of deprivations that still exists.
The HPI is conceived for developing countries (HPI-1) • Lack of basic education (measured by the percentage of
adults who are illiterate);
and for developed countries (HPI-2). A separate index
was developed for industrialized countries because hu- • Lack of access to public and private resources (measured
man deprivation varies with the social and economic by the unweighted average of the percentage of the
conditions of the community, and in order to take ad- population without access to safe water and the percentage
vantage of high data availability in these countries. of underweight children for their age).

34
HDI + HPI + GDI + GEM 2

The better the position in this ranking, the lower the hu- The Gender-related Development Index (GDI)
man poverty presented by the country or territory. measures achievement in the same basic capabilities
NOTE: Due to the lack of data from developing coun- as the HDI does, but takes note of inequality in
tries, the HPI measures only 78 countries. achievement between women and men. The greater
the gender disparity in basic capabilities, the lower
Developed countries: a country’s GDI compared with its HDI. The GDI is
Despite having one of the highest per capita incomes simply the HDI discounted, or adjusted downwards,
in the world, the United States has the worst human for gender inequality.
poverty index among the rich countries. The result
of the study shows that Sweden is the country that In a ranking with 140 countries, Brazil ranks 52nd,
has evolved the most in this aspect, coming before just before Belarus (53) and Mauritius (54), and right
Norway, Finland, the Netherlands, Denmark, Ger- after Romania (51) and Malaysia (50). However, as the
many, Luxembourg, France, Spain and Japan. Italy HDI ranking has 177 countries, if we add the coun-
ranks 11th, followed by Canada, Belgium, Australia, tries that would come before Brazil in the HDI list to
United Kingdom, Ireland, and the United States, whi- the GDI list, the country ranks 64, that is, only one
ch ranked 17th.
position below its position in the HDI ranking. That
The UNDP notes that Sweden, despite a lower per capi- shows a virtual gender equality in the country (wo-
ta income than the United States, has, on average, more men live longer and have more education, but lower
adults who are functionally literate and fewer living in income reduces living conditions for them). As well as
poverty. According to the statistics, 7.5% of the Swedish in the HDI list, Norway tops the GDI list and Niger is
population between 16 and 65 is functionally illiterate, at the bottom.
whereas in the United States this figure is over 20%. In
Sweden, 6.3% of the population lives below the poverty The Gender Empowerment Measure (GEM) evalu-
line (with US$ 11 per day, which is the reference point ates progress in advancing women’s standing in poli-
for this group of countries), whereas in the United Sta- tical and economic forums. It examines the extent to
tes this figure reaches 13.6%. which women and men are able to actively participate
in economic and political life and take part in decision-
REFERENCE making. It verifies the number of seats in parliament
www.pnud.org.br held by women, number of female legislators, senior
http://www.dhnet.org.br officials and managers, and female professionals and
technical workers. It also includes the gender disparity
in earned income, reflecting economic independence.

The nordic countries and the Netherlands top the GEM,
Equality between men and women is an while countries in the Arabian region are among those
important part of human progress, but this is with the lowest ranking. High income does not ensure
neither reflected in the Human Development gender equality: when it comes to GEM, Japan ranks be-
Index nor in the Human Poverty Index. low the Philippines and Botswana.
Gender inequalities are measured in the
Gender-related Development Index (GDI) and
in the Gender Empowerment Measure (GEM).

35
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, highlighting both their similarities and their differences. The text on the following
pages provides a detailed explanation.

DIMENSION A long and A decent standard
HDI healthy life Knowledge of living
Life expectancy Adult literacy rate Gross enrolment ratio GDP per capita
INDICATOR at birth (GER) (PPP US$)
Adult literacy index GER index

DIMENSION Life expectancy Education index GDP index
INDEX index

Human development index (HDI)

DIMENSION A long and
HPI-1 healthy life Knowledge A decent standard of living
Probality at birth of Adult iliteracy rate Percentage of population Percentage of children
INDICATOR not surviving not using an improved under weight-for-age
to age 40 water source

Deprivation in a decent
standard of living

Human poverty index
for developing countries (HPI-1)

DIMENSION A long and A decent Social
HPI-2 healthy life Knowledge standard of living exclusion
Probality at birth of Percentage of adults Percentage of people living Long-term
INDICATOR not surviving lacking functional below the poverty line unemployment rate
to age 60 literacy skills

Human poverty index
for selected OECD countries (HPI-2)

DIMENSION A long and A decent standard
GDI healthy life Knowledge of living
Female life Male life Female adult Male adult Female estimated Male estimated
INDICATOR expectancy expectancy literacy rate Female literacy rate Male earned income earned income
at birth at birth GER GER

Female life Male life Female Male Female Male
DIMENSION expectancy expectancy education education income index income index
INDEX index index index index

EQUALLY Equaly Equally distributed
DISTRIBUTED distributed life education index Equaly distributed
INDEX expectancy index income index

Gender-related development index (GDI)

DIMENSION Political participation Economic participation Power over
GEM and decision-making and decision-making economic resources
Female and male shares Female and male Female and Female and male
INDICATOR of parliamentary seats shares of positions male shares of estimated earned
as legislators, senior professional and income
officials and managers technical positions

EQUALLY EDEP for EDEP for economic EDEP for income
DISTRIBUTED parliamentary participation
EQUIVALENT representatition
PERCENTAGE
(EDEP) Gender empowerment measure (GEM)

36
GNH 3

GNH – Gross
Majesty King Khesar underlined that the ultimate goal
for social, economic, political changes in Bhutan is the
fulfillment of GNH.
National Happiness The constitution of Bhutan describes the state and the
government as having responsibilities to pursue GNH.

The Centre for GNH should become a serious arbitrator of public po-
licies and plans.

Bhutan studies Finally, the GNH index was developed by the Centre for
Bhutan Studies, a non-aligned and non-profit research
institution based in Thimphu, Bhutan

OBJECTIVE
GIH aims to connect the international efforts which are
COUNTRY
taking place in the field of developing alternative deve-
Bhutan lopment indicators, human economics and happiness
psychology, so that individual efforts can benefit from
WHAT IT IS each other and that collectively these efforts can more
strongly impact on the international development agenda.
GNH indicators serve as evaluative tools to track de-
velopmental progress over time. GNH indicators as CONTENT
targets display a common sense of purpose, offering us
The GNH comprises 72 indicators that cover nine di-
direction to the programs and policies which are cohe- mensions considered as the main components of happi-
rent with the values of GNH. ness and wellbeing in Bhutan. The nine dimensions are
The Gross National Happiness index is generated to re- equally weighted. Within each dimension, the indica-
flect the happiness and general well-being of the Bhuta- tors are equally weighted, but since each dimension has
nese population more accurately and profoundly than a different number of indicators, they can take different
a monetary measure. The measure will inform both weights when calculating the overall measurement.
the Bhutanese people and the wider world about the The nine dimensions are:
current levels of human fulfillment in Bhutan and how 1. Psychological wellbeing
these vary across districts and across time, and will also 2. Time use
inform government policy. 3. Community vitality
How do we identify who is happy? 4. Culture
5. Health
The Bhutanese understandings of happiness are much
broader than those that are referred to as “happiness” in 6. Education
the Western literature. The GNH takes what is known as 7. Ecology
the ‘union’ approach to identification in the literature on 8. Living standards
multidimensional measurement. A person who has achie- 9. Good governance
ved sufficiency in all 9 dimensions is considered happy.
In this perspective ‘happiness’ comprises having suffi-
ORIGIN cient achievements in each of the nine dimensions.
“Gross National Happiness is more important than 1. Psychological Wellbeing Indicators
Gross Domestic Product” was coined by His Majesty 1 General health questionnaire
the 4th King of Bhutan – Jigme Singye Wangchuck HM 2 Frequency of prayer recitation
– (in the 1970s), who is the author of GNH.
3 Frequency of meditation
Coinciding with the coronation of the 5th King of Bhu- 4 Taking account of karma in daily life
tan, His Majesty Jigme Khesar Namgyel Wangchuck, 5 Frequency of feeling of selfishness
in November 2008, the Royal Government of Bhutan
6 Frequency of feeling of jealousy
has adopted the GNH index. In December 2006 he
proclaimed that fulfilling the vision of GNH would be 7 Frequency of feeling of calmness
one of the four main responsibilities of his reign. His 8 Frequency of feeling of compassion

37
3 GNH

9 Frequency of feeling of generosity 7 Difficulty in contributing to community festivals
10 Frequency of feeling of frustration 8 Postponement of urgent repairs and maintenance of house
11 Occurrence of suicidal thought 7.Time Use Indicators
2. Ecology Indicators 1 Total working hours
1 Pollution of rivers 2 Sleep hours
2 Soil erosion 8. Community Vitality Indicators
3 Method of waste disposal 1 Sense of trust in neighbors
4 Names and species of plants and animals 2 Neighbors helping each other in the community
5 Tree plantations around your farm or house 3 Labor exchange with community members
3. Health Indicators 4 Socializing with friends
1 Self reported health status 5 Members of your family really care about each other
2 Long term disability 6 You wish you were not part of your family
3 Number of healthy days in the past 30 days 7 Members of your family argue too much
4 Body Mass Index 8 There is a lot of understanding in your family
5 Knowledge of transmission of HIV/AIDS virus 9 Your family is a real source of comfort to you
6 Duration for a child to be breast fed only 10 No. of relatives living in the same community
7 Walking distance to health care center 11 Victim of crime
12 Feelings of safety from human harm
4. ducation Indicators
13 Sense of enmity in the community
1 Level of education
14 No. of days volunteered
2 Literacy rate
15 Amount of donation in cash value
3 Ability to understand Lozey (Dzongkha language)
16 Availability of social support
4 Historical literacy (Knowledge on local legend and folk
stories) 9. Good Governance Indicators
5. Cultural Indicators 1 Performance of central government in reducing income gap
1 Speaking first language 2 Performance of central government in fighting corruption
2 Frequency of playing traditional games 3 Right to freedom of speech and opinion
3 Zorig chusum skills 4 Non-discrimination on the basis of race, sex, religion,
language, politics or other status
4 Teaching children importance of discipline
5 Trust in central ministries
5 How important is it for children to learn to be impartial
towards rich, poor, different status, etc. 6 Trust in dzongkhag administration1
6 Knowledge of mask and other dances performed in 7 Trust in media
tshechus
(1) Wangdue Phodrang, Thimphu, Haa, Tsirang, Zhemgang, Samdrup Jongkhat,
7 Importance of reciprocity as a life principle Tashi Yangste, Samtse, Pemagatshel, Dagana, Gasa and Tashigang.
8 Attitude towards killing
9 Attitude towards stealing STEP BY STEP
10 Attitude towards lying The Gross National Happiness Index (GNH) is construc-
11 Attitude towards sexual misconduct ted in 2 steps: identification and aggregation.
12 No. of days spent in a year attending community • Identification: The first step is to define whether each
festivals household has attained sufficiency in each of the nine
dimensions. This is done by applying a sufficiency cutoff
6. Living Standards Indicators to each dimension. The fact that it may be difficult to set
1 Household income an exact cutoff should not obscure the reasonableness of
setting some sufficiency cutoff.
2 Income sufficiency to meet everyday needs
• Aggregation: The second step is to aggregate to the data
3 Food insecurity of the population a decomposable measure that is sensitive
4 House ownership to the ‘depth’ as well as ‘severity’ of achievements.
5 Room ratio Having calculated the indices in the nine dimensions,
6 Purchase of second hand clothes it is time to calculate the number of people who have

38
GNH 3

not reached cutoff in each indicator, divided by the the sufficiency cutoff is deepening or narrowing across time.
number of deprivations pointed out by the popula-
tion. This number shows the percentage contribution Methodology > http://grossnationalhappiness.com/
to the lack of happiness. screeningTools/screeningTools.aspx

The GNH can be used as an instrument of policy, and RESULTS
can capture a great deal of interconnected information.
Here are some of the conclusions of GNH in Bhutan:
It is compared:
• Men are usually happier than women.
• in different districts surveyed.
• Among the 12 Dzonkhags, the happiest are Wangdue
• across time to see if GNH is decreasing or increasing after Phodrang and Thimphu, and the least happy are Gasa and
we conduct future surveys. Tashigang.
• by gender, by occupation, by age group etc., to see how • Out of the nine dimensions, “time use” and “good
shortfalls in GNH vary across disaggregated levels. This governance” had the higher frequency.
information reveals immediately in what dimensions of life
shortfalls from sufficiency are most acute.
Referência
• by dimension, monitoring GNH decomposition to decrease
any dimension, if necessary. www.grossinternationalhappiness.org

• severity of deprivations, to identify whether the gap below

TIP: the Gross International Happiness Project (“gih”)

WHAT IT IS countries and companies that have started to implement sustainability and

The Gross International Happiness Project (‘GIH’) is based on the insight that corporate social responsibility, while collecting international research and

conventional development concepts such as GNP and Per Capita Income do practices around sustainable development indicators, which account for en-

not properly reflect the general well-being of the inhabitants of a nation. In vironmental and social values. The concept of GNH is meant to incorporate
these values, yet it also transcends them by including values reflecting gene-
order to develop real progress and sustainability and to effectively combat tren-
ral well-being over a longer time horizon. A possible GNH Index could beco-
ds which compromise the planet’s natural and human ecosystems, GIH aims
me the next level of innovation of indices, improving upon those measuring
to develop more appropriate and inclusive indicators which truly measure the
environmental and social values.
quality of life within nations and organizations.
The GIH Project is a collaboration by the following institutions:
ORIGIN
• Bhutan Sustainable Development Secretariat (SDS) and Center of
GIH is inspired by the concept of Gross National Happiness (GNH) propo- Bhutan Studies, Bhutan
sed by the King of Bhutan, which puts the well-being of individuals on top • Spirit in Business, USA and the Netherlands
of the national development agenda. Rooted in Buddhist philosophy and • Social Venture Network Asia, Thailand
values, GIH presents a radically different development paradigm, but one • ICONS, Redefining Progress & Implementing New Indicators on
that holds a promise for achieving real sustainability. Sustainable Development, Brazil
• Inner Asia Center for Sustainable Development, the Netherlands
OBJECTIVE • The Government of Mongolia
GIH aims to connect the international efforts which are taking place in the • The Values Center, USA
field of developing alternative development indicators, human economics • Society for Ecology and Culture, UK and Ladakh, India
and happiness psychology, so that individual efforts can benefit from each • Genuine Progress Indicators, GPI Atlantic, Canada
other and that collectively these efforts can more strongly impact on the • New Economics Foundation, UK
international development agenda.
Referência
CONTENT www.grossinternationalhappiness.org

The GIH Project consists of a series of conferences, seminars, researches Book: First GNH Conference in Bhutan

and publications around the world. The first meeting will be held in Bhutan This seminar is the first national initiative on exchanging ideas
deriving from various areas and sectors.
(February 2004), followed by conferences in Mongolia (July 2004) and the
Netherlands (2005). www.grossinternationalhappiness.org/downloads/Book-GNH-I-1.pdf
Report on the GNH Conference, held February 18-20, 2004 in Bhutan.
An international project on research and dialogue aimed at developing
STEP BY STEP policy and indicators focused on true values, sustainable development
The GIH Project is guided by a select group of experts, forming a Task For- and well-being for nations and organizations.
ce. The GIH Project draws on the best practices of the growing number of www.grossinternationalhappiness.org/downloads/GIH_report_18-2-04.doc

39
4 BIP 40

Bip 40 – Inequity
4. Education (5 indicators)
5. Housing (5 indicators)

and Poverty Barometer 6. Justice (4 indicators)

EMPLOYMENT INDEX
• working conditions index;
Network of Warning about • unemployment index;

Inequality and Poverty • precariousness index; and
• professional relations index.

INCOME INDEX
• wages index;
• consumption index;
• income and tax inequalities index; and
• poverty index.

HEALTH INDEX
• life expectancy at birth;
• life expectancy gap between executives and workers;
• rate of health expenditure in the GDP;
COUNTRY • rate of health expenditure borne by families; and
• disparity of regional medical expenses.
France.
EDUCATION INDEX
WHAT IT IS
• access to course completion;
Combined indicator of inequalities and poverty. • dropout;
• inequalities in the French language level;
ORIGIN • inequalities in the Mathematics level; and
Disclosed in 2002 by the Network of Warning about • proportion of children of executives to children of
Inequality and Poverty. workers in college entrance exams.

OBJECTIVE HOUSING INDEX
• weight of housing expenditure in families’ overall
Encompassing several dimensions of inequalities and consumption;
poverty, building one indicator for each dimension
• property rental price index to consumer price index;
(being this indicator itself a result of several indica-
• percentage of housing finance;
tors) so that the evolution of corresponding inequali-
ties can be monitored along time, and, finally, consoli- • rate of housing allowance in housing overall
dating (or aggregating) these indicators so as to reach expenditure; and
a global index. • number of legal claims of landlords for not receiving the
rents.

CONTENT
JUSTICE INDEX
There are six dimensions (58 indicators):
• rate of imprisonment,
1. Employment and work (24 indicators broken into • rate of pre-trial detention,
four categories)
• percentage of prisoners convicted to over 5 year of
2. Income (15 indicators broken into four categories) imprisonment, and
3. Health (5 indicators) • rate of grant of refugee status

40
BIP 40 4 1.6

STEP BY STEP RESULTS
The indicator is built in two steps. The first step con- For the third year straight, inequalities and poverty
sists of grading each indicator 0-10. The lowest value increased in France in 2004. After a reduction in 2000
observed in the period is given a 0, whereas the highest and 2001, inequalities rose again in 2002, especially af-
value is given a 10. An increase in the index will mean ter the summer of 2003, and continued to increase in
the inequality or poverty has become worse. 2004, year in which inequalities have reached its peak
The second step consists of giving different weights to in 20 years
the six dimensions. Bip 40 gives more importance to
income and employment indices, each of them with Referência
one-fourth weight, whereas the other indices are given www.bip40.org
one-eighth weight.
The weighted addition of these indicators produces an
index that translates the trend in the evolution of ine-
qualities and poverty observed year on year.
It is possible to calculate your Bip 40 by making your
own weighting system.
www.bip40.org/bip40_2003.xls

BIP 40
Evolution of the Inequity and Poverty Barometer as of 1983
6,00

5,50

5,00

4,50

4,00

3,50

3,00

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

41
5 BCN

Balance Sheet
liabilities correspond to environmental preservation
ones, and the equity means the residual part designed
to reestablish the natural reservations for the current
of Nations and future generations.
Assets are monetarily assessed (US$), adopting as op-
portunity cost the gross domestic product - purchasing
power parity (GDP-ppp), adjusted by the average ener-
gy consumption in tons of oil equivalent (TOE). Equity
is measured by the residual balance of carbon (CO2)
emissions minus sequestration for each country or re-
gion, calculated based on the expected cost of carbon
sequestration and on the scenarios forecast in IPCC’s
Special Report on Emission Scenarios (SRES). Liabili-
ties are determined by equivalence. 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, and,
WHAT IT IS therefore was defined as assets assessment parameter.
The purchasing power parity (ppp) method is adopted
The Balance Sheet of Nations is a methodology for fi- by the UN and the World Bank and allows for a better
nancial reporting of countries or regions through the comparability between countries. Due to the limita-
inquired balance sheet method and the basic accoun- tions of this economic growth measurement, its adjust-
ting equation: ment by energy consumption was suggested.
assets minus liabilities equals equity, consisting of phy- Average energy consumption (in TOE): It is directly
sical (forest resources) and financial data. related to GHG emissions, especially CO2 ones, and
the level of economic and social development of the
ORIGIN countries. It is unevenly distributed, as follows: the
world average (1.69 TOE), USA (8.45), Germany (4.2),
The model was created by a group formed by resear- Japan (4.05), Russia (3.5), Brazil (1.09), China (0.66),
chers of the Department of Accounting and Actuaries India (0.32), Bangladesh (0.15). It means that, to ge-
of the University of São Paulo School of Economics, nerate the same amount of $ in a given country, CO2
Business Administration and Accountancy, the Yoko emissions and environmental degradation are uneven.
Civilization Research Institute (YCRI), the USP En- In countries where this consumption is lower than
vironmental Science Graduate Program (PROCAM/ one TOE, illiteracy, infant mortality, and fertility ra-
USP), and the USP Energy and Nuclear Research Insti- tes are high, whereas life expectancy and the human
tute (IPEN/USP). development index (HDI) are low. Therefore, despite
the urgent need for reducing energy consumption, it
OBJECTIVE is critical that poor countries surpass the 1 TOE level
(GOLDEMBERG, 2007).
The Balance Sheet of Nations aims to unveil the burden
that each citizen will have to bear as a result of the glo- CO2 residual balance: Forest carbon stocks contained
bal climate change and global warming due to increased in the soil biomass and organic compounds represent
greenhouse gas (GHG) concentration. It shows supera- deposits of carbon avoided in the atmosphere and have
vit or deficit scenarios and allows for individual and col- been converted into Million Tons of Carbon (MtC),
lective reflections on global, regional and local actions according to the areas of biomes of each country and
related to environmental preservation mechanisms. respective stock levels suggested by IPCC (2000). The
residual balance is determined by subtracting the
CONTENT amount of accumulated carbon emissions, according
to the various combinations of IPCC SRES’s A1B1 and
The Environmental Balance Sheet of each country A2B2 scenarios for 2050, covering deforestation, use of
has its assets represented by its forest resources. The technologies, and compliance with the Kyoto Protocol.

42
BCN 5

STEP BY STEP
The basic procedures to determine the Balance Sheet of
Nations of a given country or region are the following:
1. Collecting data: gross domestic product (GDP ppp),
average annual energy consumption (TOE), number of
inhabitants, forest area of biomass and organic compounds,
carbon stock levels, and cost suggested by the UN of the
avoided carbon.
2. 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).
3. 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). Finally, the balance in MtC is converted
into $ using the cost suggested in the UN reports.
4. Measuring the Environmental Liabilities: obtained by
equivalence.

RESULTS
The results of this model show the per capita environ-
mental situation for each country or region studied in
the form of an ‘Environmental Balance Sheet’.
This pioneering study of USP was presented during the
award ceremony of the 2008 ECO Award, promoted by
the American Chamber of Commerce for Brazil, as part
of the lecture given by Minister Roberto Mangabeira Un-
ger on ‘Myths and realities of the Amazon’. It covered a
sample of seven countries of BRIC (Brazil, Russia, India
and China) and developed countries of America, Europe
and Asia (USA, Germany and Japan), which account for
68% of the GDP, 50% of the population and 48% of the
energy consumption, and the main economic blocs.
The consolidated balance sheet for the planet, deriving
from this study, was in deficit, with a negative net equi-
ty, that is, an unsecured environmental liability equiva-
lent to $ 2.3 thousand per year for each of the 6.6 billion
inhabitants. In this insolvent scenario, Brazil and Russia
will play a key role since they should present ‘environ-
mental superavit’, an advantage primarily conditioned
to urgent actions against the current deforestation.

THE USP TEAM
José Roberto Kassai (FEA/USP and YCRI) – jrkassai@usp.br
Rafael Feltran-Barbieri (PROCAM/USP) – rafaelfb@usp.br
Francisco Carlos B. Santos (IPEN/USP) – fcarlos@usp.br
L. Nelson Carvalho (FEA/USP) – lnelson@usp.br
Yara Cintra (FEA/USP) – yaracintra@usp.br
Alexandre Foschine (YCRI) – afoschine@uol.com.br

43
6 BS

Barometer
level, from local to global.

CONTENT
of Sustainability It is the only performance scale designed to measure
human and ecosystem well-being together without
submerging one in the other. Its two axes – one for
The World Conservation human well-being, the other for ecosystem well-being
– enable socioeconomic and environmental indicators
Union (IUCN) e to be combined independently, keeping them separate
The International to allow analysis of people-ecosystem interactions.
The tool combines a series of environmental and so-
Development Research cial indicators (selected by the community), such as,
Centre (IDRC) for instance: water quality, employment, economy,
education, crime, violence, etc., using performance
scales. Good or fair are defined as one end of the scale
and bad or poor as the other end, as well as the po-
sition of indicators can be outlined within this scale.
The result is a set of performance measures, all using
the same general scale, thus enabling the combination
and joint use of indicators.
COUNTRY The definition of indicators is based on some key prin-
Canada. ciples such as the consideration that people are part of
the ecosystem and, therefore, people and ecosystems
must be treated jointly and equally; and that raising
WHAT IT IS
relevant issues within a context is critical and must
A methodology for assessing and communicating pro- be done by a group of people linked with this context
gress toward sustainable societies, which consistently (community engagement) and that are willing to col-
combines various social and environmental indicators, lectively ask and learn, since the lack of knowledge of
disclosing an assessment of the state of people and the people-ecosystems relations is a well-known fact.
environment through a scale of indices.
Prescott-Allen believes it is a logical way to turn ove-
rall concepts of sustainable development, well-being
ORIGIN and progress into a set of real human and ecological
Developed by several specialists, mainly those linked conditions.
with The World Conservation Union (IUCN) and The
International Development Research Centre (IDRC). STEP BY STEP
Prescott-Allen is one of the main researchers involved in
In order to calculate or measure progress towards
the development of this tool.
sustainability, values are calculated for the social well-
being and ecosphere well-being, as well as the sub-in-
OBJECTIVE dices, if any. The ecosystem wellbeing index identifies
It is a systems sustainability measurement model. It pro- trends of the ecological function along time. It is a
vides clear, rapidly communicated pictures of the con- function of water, land, air, biodiversity and resource
dition of the environment, the condition of the people use. The human wellbeing index represents the ove-
and, when analyzed in combination, the overall progress rall level of well-being of society and is a function of
towards sustainability. It also compares human and well-being concerning the individual, health, educa-
ecosystem well-being within societies, the rate and di- tion, unemployment, poverty, income, crime, as well
rection of change, and major strengths and weaknesses. as human business and activities. It is a two-dimensio-
nal graph where human and ecosystem well-being sta-
The Barometer of Sustainability is designed, according tes are placed in relative scales ranging from 0 to 100,
to its authors, to governmental and non-governmen- indicating a situation that varies from bad to good in
tal agencies, decision-makers and people involved with relation to sustainability. A point defined by these two
sustainable development-related issues at any system’s axes within the two-dimensional graph shows a mea-

44
BS 6

sure of sustainability or unsustainability of the system. O BAROMETER OF SUSTAINABILITY
The graphic representation of the results obtained from 100
the use of this tool are shown in the Figure.
Good
The indices calculated for each of the system’s dimen-
H 80
sions are plotted in the graph from their respective axes. U
The intersection point of these indices, represented in- M Fair
side the graph, portrays the system’s sustainability. The A
trends may represent progress or not of a certain city, N 60 30 40 Argentina
Chile
state or nation. Medium
55 55
W 36
42 56
E 40 Brazil 45 Ecuador
The scale used in the Barometer of Sustainability for 43 43
L Colombia
each of the axes ranges from 0 to 100, consisting of 100 L Poor
points and a 0 baseline. It is divided into five sectors of B
20 points each, plus its baseline equivalent to 0. Each E 20
sector corresponds to a color, which varies from red to I
N Bad
green, as shown by the figure above.
G
0
Bad Poor Medium Fair Good
RESULTS
20 40 60 80 100
There is a need to test the Barometer as a prototype me-
ECOSYSTEM WELLBEING
asurement instrument in ecosystem health under very
different cultural and ecological conditions. The testing Fonte: Prescott-allen, 2001
ground involves a process known as sentinel communi-
ty surveillance (SCS), which represents a combination
Referências
of quantitative and qualitative measurement techni-
ques. This provides for dialogue between communities www.idrc.ca
and public services; and, with the IDRC support, is now http://www.iucn.org/
operational in 37 countries worldwide. This proposal Prescott-Allen, R. The Wellbeing of Nations: a country-
will field test the Barometer in at least one district wi- by-country index of quality of life and the environment.
thin four selected countries: Costa Rica, Uganda, Nepal, Washington: Island Press, 2001.
and Mexico. It will address key questions of how the An Approach to Assessing Progress toward Sustainability:
Barometer leads to action; what is behind the reading; Tools and Training Series. IUCN - Publication Services
and how a changing situation is reflected in an evolving Unit, 219, C Huntington Road, Cambridge CB 3 ODL, UK
instrument. It will also address the optimization of in-
formation input; the balance of qualitative and quanti-
tative data; and the balance of the human health condi-
tion versus the ecosystem condition. Insofar as it can be
linked to governance, an assessment of the ability of the
Barometer to become an important tool in community
mobilization based on sound evidence will be assessed.

SUMMING INDICATORS UPON System
THE IUCN BAROMETER OF
SUSTAINABILITY HIERARCHY
Subsystem
Ecosystem People

Category
Biodiversity Land Water Air Resouce Needs Social Equity
use
Supply Quality Quantity Criterion

Indicator
Coliform bacteria

45
6 BS

A screening form for sustainability

Indicate whether the system or technology has a negative (-), positive (+), or
neutral (n) impact on the listed criteria.

ECOSYSTEM
Biodiversity Water
• Wildlife diversity • Water access
• Rare or endangered species • Water supply
• Species abundance • Water quantity
• Wild plant diversity • Water quality
• Crop diversity • Drainage pattern
• Introduces exotic species? If yes,
this could be a negative (-) impact.
Air
Land • Air quality
• Wildlife habitat
• Vegetation cover
• Soil texture
• Nutrient recycling Resouce use
• Soil fertility • Land use
• Soil structure • Conservation of natural resouce
• Soil or slope stability (e.g., erosion) • Resouce use

People
Human needs Social self-determination
• Diverse outputs (productivity) • Family structure
• Food security • Gender roles
• Yeld (efficiency) • Popular growth
• Risk • Education
• Income or income distribution • Local culture
• Capital requirements • The rights of local communities
• Economic return, profit margin • Community health
• Labour requirements • Local economy / capital flow
• Maintenance / learning requirements • Local (re)investment
• Self-reliance (uses local materials?) • Community infrastructure (e.g., roads)
• Control over output and process • Community harvesting
• Living conditions (e.g., shelter) • Access to community resources (e.g. water, grazing lands)
• Human healt (e.g., sanitation, toxicity) • Community cultural landmarks
• energy supply (e.g., wood, fuel) • Community recreational activities
• Land tenure

Equity Questions (Yes = positive impact)
Who benefits?
• Does the system or technology respond to problems and
• women constrains identifed by villagers?
• Girls
• Were local people involved in all stages of the project planning
• Old
/ development?
• Poor
• Illiterate • Is the system or technology supported by the local power
• Men structure?
• Boys • Is the system or technology compatible with current local
• Young practices, preferences, and wisdom?
• Rich • Does the system or technology build on local practices and on
• Literate existing capacity?
• Does the system or technology supported by other factors
(e.g., land tenure, macro policy) ?

46
CALVERT 7

Calvert-Henderson CONTENT
A systems approach is used to illustrate the dynamic

Quality of Life state of our social, economic and environmental quality
of life. The 12 Indicators are:
• Education

Calvert Group • Employment
• Energy
• Environment
• Health
• Human Rights
• Income
• Infrastructure
• National Security
• Public Safety
• Re-Creation
• Shelter
COUNTRY Each of these specific areas is unfolded into more one-
USA off indicators that, overall, manage to cover the uni-
verse of information necessary to develop a new way
WHAT IT IS to conceive quality of life, with a depth that would be
unfeasible with classical indicators.
It is an index to measure the quality of life in nations
that takes into account social, economic and environ- It was decided not to aggregate data so as to turn them
mental trends and results through a systems approach. into a monetary coefficient that would measure the va-
lue of ecological assets. Instead, a free and multidisci-
ORIGIN plinary methodology was chosen to present data in an
ordinary format, but not centered on a single figure. As
The Calvert-Henderson Quality of Life Indicators grew a result, people can focus on the details of each field.
out of a relationship between an international futurist,
Hazel Henderson, an asset management firm, Calvert RESULTS
Group, and 12 scholars with expertise in quality of life
dimensions. For the first time the North-Americans have a tool to
assess how and in which areas the country is improving
The Indicators, first published in 2000 in book format, (or worsening). For such purpose, it was not necessary to
are the result of an extensive six-year study by a mul- build new indicators or carry out new research: the study
ti-disciplinary group of practitioners and scholars from made use of existing data and selected the most reliable
government agencies, for-profit firms, and nonprofit ones. Then these data were crossed according to the ma-
organizations who see the need for more practical and jor axes of practical results expected by the population.
sophisticated metrics of societal conditions.
REFERENCE
OBJECTIVE
www.calvert-henderson.com
Contributing to the worldwide effort to develop com- www.calvertgroup.com
prehensive statistics of national well-being that go
beyond traditional macroeconomic indicators. “Our
goal was to systematically measure and illuminate key
aspects of quality of life,” explains Hazel Henderson.
“This study outlines statistical data trends. We hope it
is an invaluable resource for citizens, businesses and the
local officials engaged in debates about quality of life.”

47
8 DNA

The Brazil DNA Index
4. Education
5. Health
6. Basic social protection
Brazil DNA Institute 7. Social cohesion

STEP BY STEP
A geometric shape was defined to sum up the compa-
rison of dimensions included in the study, based on fo-
WHAT IT IS recasts made by participants of the meeting organized
This index aims to measure the real progress and quali- by the Brazil DNA Institute in October 2004, to which
ty of life in the country as compared to an ideal scenario was given value 1.
forecast for 2029.
Worse scenarios for the same Brazilian indicator are
given a value below 1. Better scenarios, if any, are gi-
ORIGIN
ven a value above 1. The set of points defined by the
Brazil DNA Index is the result of a joint reflection on Brazilian indicators presented in 2004 and referring to
the Brazilian development carried out by the Brazil DNA the year 2002 had the shape of a polygon that can be
Institute and the NEPP (University of Campinas Center compared to the forecasts made by the participants in
for Public Policy Studies). NEPP is supported by resear- the referred meeting.
chers of the Economics Institute (IE) and the Center of
Studies on Population (NEPO), of the same university. It Due to the amount of indicators, the (external) area of
was established with the help of participants in the Brazil the forecast polygon resembles the shape of a circle,
DNA Institute of the first annual meeting, held in 2004. which was adopted to facilitate its graphic visualiza-
tion. In 2005, the information was updated and most of
OBJECTIVE it refers to 2003 data. The comparison with forecasts to
2029 was made, thus enabling the new relative scena-
It aims to: rio of Brazil to be visualized against the forecasts.
• Visualize reality through indicators integrating various
The participants of that first meeting were asked to fo-
dimensions;
recast, for each indicator, one desirable and realistic
• Compare the Brazilian reality with future expectations and scenario to be achieved in 2029 from the actual Brazi-
the situation of other countries; lian situation portrayed by the 2002 information.
• Measure the mobilization of public/private actors involved in
development projects. RESULTS
The ultimate objective of the Brazil DNA Index is to In its first measurement, the index showed that Brazil
create a national mobilization around a project for so- was rating 46.8% out of the forecast 100%. Due to cor-
cial and economic development of the country, highli- rections in the indicators, this index was later changed
ghting the problematic issues and setting parameters to 47.6%. In other words, 52.4 percentage points sepa-
with the maximum seriousness and scientific orienta- rated the Brazil of 2004 from the Brazil the Institute’s
tion to guide the development of policies and the action board members forecast as plausible and rationally
of individual and institutional players. desirable.
In 2005, the index improved a little, up to 49.3%. In
CONTENT its third update, in 2006, it kept this trend, and had a
The Brazil DNA Index goes beyond the dimensions small increase to 51.4%.
used by the HDI – Human Development Index (inco-
me, longevity and education), and measures its result REFERENCE
based on seven social and economic dimensions (wi- www.dnabrasil.org.br
thout disregarding the demographic dimensions of the
2004 Summary index = 46.8% (PDF file)
Brazilian reality): 
www.nepp.unicamp.br/dnabrasil/sintese.pdf
1. Economic well-being
2004 Full index (PDF file)
2. Economic competition www.nepp.unicamp.br/dnabrasil/referencia.pdf
3. Social and environmental conditions

48
DNA 8

DIMENSIONS AND INDICATORS HEALTH
SELECTED IN 2005 Potential Years of Life Lost (APVP)
Child Mortality
ECONOMIC WELL-BEING Mortality rates due to Cardiovascular Disease and
Per Capita Income and its Interregional Distribution Cerebrovascular Accidents (CVAs)
Ratio of Women’s to Men’s Average Earnings
Ratio of Black people’s to White people’s Earnings BASIC SOCIAL PROTECTION

Formal Employment Rate Social Security Coverage for People over 65
Health Care Funding
ECONOMIC COMPETITIVENESS
World Exports: Evolution of Brazil’s Share, with Special SOCIAL COHESION
Emphasis on Medium-High-Technology and High- Interpersonal Income Distribution
Technology Products or Sectors Homicide Rate for Men aged 15-24
Percentage of Teenage Mothers
SOCIAL AND ENVIRONMENTAL CONDITIONS Tax Justice
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

Brazil DNA Index: 49.3%

The Brazil we are and the Brazil we would like to be

Per Capita Income
Tax Justice Formal Employment Rate
Teenage Mothers (%) Ratio of Women’s to Men’s Earnings
Income Distribution Inequality Ratio of Black to White Earnings

Homicide Rate for Men aged 15-24 1,0 Exports Share
0,8
Health Care Funding by Public Power (%) 0,6 Medium-High Technology and
0,4 High Technology Share

Per Capita Health Care Funding Appropriate Sewage Systems

Social Security Coverage – 65 Appropriate Destination of Waste

Mortality rates due to Sewage Treatment
Cardiovascular Disease – Female

Mortality rates due to High School Schooling Rate
Cardiovascular Disease – Male
Child Mortality High School Graduates at Expected Age
Potential Years of Life Lost - Female Student’s Performance at PISA
Potential Years of Life Lost – Male

Dimensions A. Economic Well-being C. Social and Environmental E. Health G. Social Cohesion
B. Economic Competitiveness D. Education F. Social Protection

49
8 DNA

Brazil DNA Index 2004/2005

Comparison between the 2004 Index (gray) and the 2005 Index (black)

Per Capita Income
Tax Justice Formal Employment Rate
Teenage Mothers (%) Ratio of Women’s to Men’s Earnings
Income Distribution Inequality Ratio of Black to White Earnings

Homicide Rate for Men aged 15-24 1,0
Exports Share
0,8
0,6
Health Care Funding by Public Power (%) Medium-High Technology and
0,4 High Technology Share

Per Capita Health Care Funding Appropriate Sewage Systems

Social Security Coverage – 65 Appropriate Destination of Waste

Mortality rates due to Sewage Treatment
Cardiovascular Disease – Female

Mortality rates due to High School Schooling Rate
Cardiovascular Disease – Male
Child Mortality High School Graduates at Expected Age
Potential Years of Life Lost - Female Student’s Performance at PISA
Potential Years of Life Lost – Male

2004 = 47,6% 2005 = 49,3%

Actual Brazil DNA Index: 55,3%

O What the “Actual Brazil” wants

Per Capita Income
Tax Justice Formal Employment Rate
Teenage Mothers (%) Ratio of Women’s to Men’s Earnings

Income Distribution Inequality Ratio of Black to White Earnings

Homicide Rate for Men aged 15-24 Exports Share
1,0
0,8
Health Care Funding by Public Power (%) G A
A 0,6 Medium-High Technology and
G 0,4 High Technology Share
DDF F
Social Security Coverage – 65 BB Appropriate Sewage Systems
EE C
C
Mortality rates due to Appropriate Destination of Waste
Cardiovascular Disease – Female

Mortality rates due to Sewage Treatment
Cardiovascular Disease – Male
High School Schooling Rate
Child Mortality
High School Graduates at Expected Age
Potential Years of Life Lost - Female
Student’s Performance at PISA
Potential Years of Life Lost – Male

Dimensions A. Economic Well-being C. Social and Environmental E. Health G. Social Cohesion
B. Economic Competitiveness D. Education F. Social Protection

50
DS 9

Dashboard
mental, social and economic data. The latest addition to
the collection of Dashboard presentations is the Millen-
nium Development Goals Dashboard (MDGs).
of Sustainability
OBJECTIVE

International Institute Using the metaphor of a vehicle’s instrument panel,
it displays country-specific assessments of economic,
for Sustainable environmental, social and institutional performance
toward (or away from) sustainability. It is suitable for
Development – IISD decision-makers and others interested in sustainable
development, as it is an online tool designed to be un-
derstood by experts, the media, policy-makers and the
general public.

The new edition promotes the Millennium Develop-
ment Goals (MDGs) indicators — especially for deve-
COUNTRIES loping countries. These indicators help define Poverty
Reduction Strategies and monitor the achievement of
Canada and otherss
the MDGs
WHAT IT IS
CONTENT
It is an aggregated index of several economic, environ-
mental and social indicators that visually displays coun- Initially, the framework was made functional for the
try-specific advances in these three dimensions toward comparison of countries by using 46 indicators to
(or away from) sustainability by using the metaphor of compose the three main clusters: the environmental
a vehicle’s instrument panel. area, with 13 indicators, the economic area, with 15
indicators, and the social area, with 18 indicators.
These indicators comprise the database of the Consul-
ORIGIN
tative Group on Sustainable Development Indicators,
It was developed by the Consultative Group on Sustai- which covers more than 100 countries.
nable Development Indicators, an international team of
sustainability experts, coordinated by International Ins- Each of the indicators within the sustainability scopes
titute for Sustainable Development – IISD (Canada). or dimensions proposed by the system can be assessed
both in terms of sustainability1 and decision-making
The Consultative Group on Sustainable Development process2 from two main elements: relevance and per-
Indicators developed in 1998 an aggregated conceptual formance. The relevance of a certain indicator is shown
system to supply information on the direction of de- by the size it takes against others in the visual represen-
velopment and its sustainability level, the Compass of tation of the corresponding system. As for the indica-
Sustainability. In 1999, the group focused on linking its tor performance, it is measured by a color code ranging
work with the sustainability indicator initiative of the from deep red to deep green.
Bellagio Forum for Sustainable Development (one of
the main sponsors of the work). As a result of this in-
tegration, this group created the dashboard metaphor
that resulted in the model named Dashboard of Sustai-
nability. The Dashboard of Sustainability has garnered
international attention and displays the United Nations’ 1 An additional function calculates the average of displays (economic,
core set of sustainability indicators. As a contribution social and environmental performance), so that a global sustainability
to the World Summit on Sustainable Development in index or Sustainable Development Index –SDI can be reached.
2002, IISD expanded the Dashboard to provide users 2 In case the objective is to assess the decision-making process, the Po-
with the functionality to compare 10 years of environ- licy Performance Index, PPI is calculated.

51
9 DS

A recent graphic representation of the Dashboard of cal stocks. In this sense, the indicators tend to faci-
Sustainability system is built through a visual dash- litate the process of communication of sustainable
board with three displays corresponding to three development, turning this concept into numerical
clusters of indicators that measure the status of the data, descriptive measures and guiding signs.
environment, the economy, and the social well-being
Currently, according to the authors, all indicators
of a nation. The current performance of the system is
within each of the scopes have equal weight.
communicated using a simple color code from deep
green (“very good”) to deep yellow (“acceptable”) to A typical Dashboard view – a map of Africa, using
red (“very bad, critical”). A graph seeks to reflect the a color code ranging from deep red (“critical situa-
change in that performance over time; and there is a tion”) to deep green (“excellent”).
gauge showing the amount remaining of certain criti-

Figura 1 - O Dashboard of Sustainability

U S T E N TA B
R ALL S ILI
O VE TY

OM ENTAL QUA IAL HEALTH MIC PERFORMA
VIR LIT SOC ONO NC
EN Y E C E

RES C A P I TA L S
ERVES ASSETS

! ! !
Enviromental Alerts Social Alerts Economic Alerts
Water Poverty Inflation

Fonte: adaptado de Hardi & Zdan, 2000.

52
DS 9

Indicator: Ratio of literate females to males

Kenia
Latest year
Source
Morocco Tunisia World Bank
Women in Girls to boys
parliament in education
Algeria Libyan Arab
Gender Jamahiriya
equality and Morocco Egypt
78% ages 15 - 24
empowerment 453 points
of women Cape Verde
Mauritania
Senegal Mali
Niger Chad Eritrea
Sudan
Women Female Cape Verde
93% ages 15 - 24 Burkina Faso Djibouti
employment literacy 653 points Guinea Benin
Siera Leone Nigeria
Ghana Central African Republic Ethiopia
Liberia
EPH UPE GEW ChM IMH HMD EES GPD O Togo Cameroon
Ivory Coast Kenia
Rwanda Equatorial Guinea Republic
Congo Rwanda Uganda Somalia
Gabon
Latest year São Tome and Principe
Burundi
% ages 15 - 24 Congo. Dem. Rep.
Tanzania
Women in Girls to boys 119 Comoros
parliament in education 109 .. 104 Angola
Malawi
102 .. 95 Mayotle
Zambia
Gender 94 .. 86
equality and Namibia Zimbabwe
Mozambique
85 .. 78
empowerment Botswana
of women 76 .. 71

67 .. 62

Women Female .. Swaziland
employment literacy South Africa Madagascar 92%
52 .. 44
ages 15 - 24,
no data Lesotho 640 points

STEP BY STEP countries, but it can also be applied for urban and regio-
nal indices. These indicators comprise the database of the
The Dashboard of Sustainability is a free, non-com- Consultative Group on Sustainable Development Indica-
mercial software package. This tool links a free sof- tors, which covers more than 100 countries.
tware package to a flexible international database,
enabling each individual, association, advocacy group, REFERENCE
etc. to consult numerous data, create panels on me-
www.iisd.org/cgsdi/
asurement, as well as building one or more national
www.iisd.org/cgsdi/dashboard.asp
combined indicators, changing the number and wei-
Download the Dashboard
ghting of variables at its own discretion. esl.jrc.it/envind/dashbrds.htm

RESULTS
The tool is meant to be used for comparison between

53
10 EF

Ecological Footprint
print Standards has started. In this edition the Foot-
print Committees will expand the Standards to more
specifically address organizational Footprints, as well
as the Footprint of Products, Processes and Services.
Mathis Wackernagel e The Committees are in the final stages of drafting the
William Rees da University Certification process for Footprint assessments.

of British Columbia 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. These accounts help indivi-
duals, organizations, and governments frame policies,
set targets, and track progress toward sustainability.
From a sustainability perspective, when humanity’s Foo-
tprint exceeds the amount of renewable biocapacity, a
draw down in natural capital is required and this is con-
COUNTRY sidered unsustainable. Global Footprint accounts over
USA the last forty years indicate a twenty-five year growth
trend beyond the amount of renewable biocapacity. In
short, humanity’s Ecological Footprint appears to have
WHAT IT IS
breached ecological limits and is thus unsustainable.
It is a tool to manage the use of natural resources by
Keeping track of the compound effect of humanity’s
individuals, cities, nations and humanity as a whole. It
consumption of natural resources and generation of
measures the extent to which humanity is using nature’s
waste is one key to achieving sustainability.
resources faster than they can regenerate.
CONTENT
ORIGIN
This resource accounting tool measures the extent to
Developed by the team of Mathis Wackernagel and
which humanity is using nature’s resources faster than
William Rees at the University of British Columbia in
they can regenerate. It illustrates who uses how much
1993, the Ecological Footprint methodology has ma- of which ecological resources, with populations defined
tured considerably over the past years. Development either geographically or socially. It also shows to what
and standardization of this accounting method are extent humans dominate the biosphere at the expense
currently coordinated by Global Footprint Network, of wild species.
founded in 2003, and its 50 partner organizations.
Global Footprint Network is committed to fostering The Footprint of a population is the total amount of bio-
a world where all people have the opportunity to live logically productive land and water area that the popula-
satisfying lives within the means of Earth’s ecological tion requires to produce the resources it consumes and
capacity. absorb the waste it generates, using current technology.
Since people consume resources and ecological servi-
Footprints vary widely by region. Global Footprint ces from all over the world, their Footprint is the sum of
Network, with its partner WWF International, have these areas, regardless of where they are located on the
published reports for Europe and Asia, and recently planet.
released a report for Africa in partnership with Swiss
Agency for Development and Cooperation. PUBLISHED STUDIES
The first release of the Standards, Ecological Footprint Among the most recent studies are “Europe 2005: The
Standards 2006, was issued in June of this year with
Ecological Footprint” and “Asia-Pacific 2005: The Eco-
focus on Sub-National Population studies.
logical Footprint and Natural Wealth” (both in part-
Development of the next edition of Ecological Foot- nership with WWF); “Global Footprint Network 2005

54
EF 10

Annual Report” and “Africa’s Ecological Footprint: Footprint studies to be certified. In other words, all
Human Well-Being and Ecological Capital” (in part- standards (unless they are not applicable) must be met
nership with the Swiss Agency for Development and in order to qualify for certification. Global Footprint
Cooperation). The results of studies in 150 countries Network will establish a certification system based on
have also been published. these standards.

Ecological Footprint Standards 2006 – The publication • Guidelines are recommended practices which are not
of standards used to measure the ecological footprint required for study certification.
aimed at guaranteeing the scientific integrity of the me-
Online information – there are many studies available
thodology and to produce consistent and comparable
at www.footprintnetwork.org, including:
data. This first release of the standards has two parts:
• Humanity’s Footprint 1961-2002 – Ecological Foo-
I. Applications Standards - define requirements for
tprint accounts estimate how many Earths were nee-
calculating Footprint results, to ensure that Footprint
ded to meet the resource requirements of humanity for
calculations are conducted in a consistent manner, so
each year since 1961, when complete UN statistics be-
that results are reproducible and comparable with other
came available.
studies employing common boundary definitions.
1. 1. Consistency with National Footprint Accounts
• National Footprint Accounts currently exist for
over 150 countries in hectares and acres, for each year
2. Definition of Study Boundaries from 1961 to 2002. Totaling the national Footprints of
3. Sub-National Population Calculations each country provides us with the global analysis.

4. (Place holder for organizational and product studies: Not
STEP BY STEP
released)
The Ecological Footprint can be applied at scales ran-
5. Derivative Conversion Factors
ging from single products to households, organizations,
6. Consistency of Components cities, regions, nations, and humanity as a whole.
7. Use of Non-Standard Elements in Footprint studies ECOLOGICAL FOOTPRINT ACCOUNTS AND THE CURRENT
FIGURES:
8. (Place holder for calculation methods: Not Released)
In order to calculate the Ecological Footprint it is neces-
9. Error Estimates (GUIDELINE)
sary to estimate the consumption of goods and services
II. Communication Standards - define requirements and the production of residues by the population unit
for reporting Footprint results, to ensure that project under study. Those goods and services include various
reports do not distort the intention nor misrepresent categories, such as food, clothing, transport, energy,
the limitations of the National Accounts. leisure, housing, wood products (firewood, paper, fur-
niture…), etc. Afterwards, the area required for the
10. Traceability to National Footprint Accounts
production of each item is estimated, dividing the ave-
11. Glossary, Definitions and Versions rage annual consumption of that item by the measure
12. Separation of Analytical Footprint Results from of its productivity. Each one of those areas is considered
Normative or Values-based Interpretations.
equivalent to a type of biologically productive area, and
13. Footprint Scenarios its sum constitutes the Ecological Footprint.
14. Footprint Study Limitations
The footprint is a rectangle. The base is proportional to
15. Explanation of Link between Sustainability and Footprint
the number of inhabitants, and the height represents
16. Citation of sources and description of methodologies the per capita consumption of resources. By multi-
17. Reference to Standards and Certifying Bodies plying the base by the height, we get the consumption
18. Communication style (GUIDELINE) of resources of this population. In 1999, the per capita
The Ecological Footprint Standards contain both com- productive area available was 1.9 hectares and the per
capita area able to provide for the resources consumed
pulsory Standards and voluntary Guidelines.
that year was 2.3 hectares. This corresponds to an over-
• Standards are those elements that are required for dimensioning: we would require 120% of the Earth area

55
10 EF

to bear our lifestyle, that is, the humanity is using 120% Nowadays, the Ecological Footprint exceeds the rege-
of the Earth’s capacity. nerative capacity of the planet by 23%. In other words,
more than one year and three months are necessary
The National Footprint and Biocapacity Accounts
for the Earth to regenerate what is used in a single
provide the basis for all Ecological Footprint analyses.
year. Maintaining or increasing this gap will result in
Information is presented in consistently formatted ba-
the exhaustion of the natural resources of the planet.
lance sheets, which use extensive data sets largely from
This is an underestimated major threat that has not
United Nations agencies. With over 4,000 data points
and 10,000 calculations per country per year, national been properly addressed.
Footprint accounts document the natural resources Source: www.panda.org/livingplanet/lpr00/ecofoot.cfm
(e.g., cropland, pasture, forests and fisheries) available
within the country as well as the country’s demand on REFERENCE
these resources. www.footprintnetwork.org
www.rprogress.org/newprojects/ecolFoot.shtml
TO CALCULATE YOUR ECOLOGICAL FOOTPRINT
www.eea.europa.eu/highlights/Ann1132753060
Individual Footprint – a quiz (Ecological Footprint Quiz)
on habits and attitudes, available at www.myfootprint.org.

RESULTS
Today, most countries, and the world as a whole, are
running ecological deficits. The world’s ecological defi-
cit is equal to its ecological overshoot1.

Ecological Footprint by Region, 1996

12 –

10 – North America
Western Europe
Área units per person

8– Central and Eastern Europe
Middle East and Central Asia
6–
Latin America and the Caribbean

4–
Asian/Pacific
Africa
2–

0–
299 384 343 307 484 3.222 710
OECD
Non-OECD

Population (milions)

1
When humanity’s ecological resource demands exceed
what nature can continually supply, we move into what is
termed ecological overshoot.

56
EPI 11

Environmental OBJECTIVE
The EPI provides a powerful tool for improving policy-
Performance making and shifting environmental decision making
onto firmer analytic foundations. It centers on two bro-

Index - EPI ad 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
Yale University and and 2) protecting ecosystem vitality.
Columbia University CONTENT

The EPI identifies targets for environmental perfor-
mance and measures how close each country comes
to these goals using the best data available, thus pro-
viding benchmarks for current national pollution
control and natural resource management results. The
issue-by-issue and aggregate rankings facilitate cross-
country comparisons both globally and within rele-
vant peer groups.
COUNTRY The 2006 EPI ranks 133 countries on 16 indicators tra-
USA cked in six established policy categories: Environmen-
tal Health, Air Quality, Water Resources, Biodiversity
WHAT IT IS and Habitat, Productive Natural Resources, and Sus-
tainable Energy. Incomplete data excluded 60 coun-
It is a method of quantifying and numerically scaling
tries from the 2006 EPI.
the environmental performance of a set of companies
or countries. The 2006 EPI generates a number of policy conclu-
sions. A country’s wealth emerges as a significant de-
ORIGIN terminant of environmental outcomes. But at every
The Pilot 2006 Environmental Performance Index was level of development, some countries achieve envi-
developed by a team of environmental experts at the ronmental results that far exceed their peers, demons-
environment school at Yale University and the Earth trating that policy choices also affect performance.
Institute at Columbia University in collaboration with The Index reveals that nations at all levels of economic
the World Economic Forum and the Joint Research development face serious environmental challenges.
Centre of the European Commission. This measure of Industrialized countries often suffer from pollution
the environmental performance of countries was for- and degraded ecosystems. Developing countries must
mally released in Davos, Switzerland, at the annual me- confront the additional challenge of managing envi-
eting of the World Economic Forum in January 2006. ronmental health stresses such as water-borne disea-
Data constraints and limitations in methodology make ses and indoor air pollution.
this a work in progress. Further refinements will be un-
dertaken in the coming year as the EPI project moves ENVIRONMENTAL PERFORMANCE INDEX
beyond its pilot phase. CRITERIA
General objectives
NOTE
Environmental Health
The EPI is not an update of the Environmental Sustai-
Ecosystem vitality
nability Index (ESI), but rather a new effort to gauge
Policy-related categories
countries against a set of 16 specific environmental po-
licy targets. Environmental Health

57
11 EPI

AIR QUALITY Water consumption
Water resources Wilderness protection
Biodiversity and habitat Ecoregion protection
Productive natural resources Timber harvest rate
Sustainable energy Agricultural subsidies
Overfishing
Indicadores Energy efficiency
Child mortality Renewable energy
Indoor air pollution CO2 per GDP
Drinking water
Adequate sanitation RESULTS
Urban particulates The top-ranked countries all commit significant re-
Regional ozone sources and effort to environmental protection, re-
Nitrogen loading sulting in strong performance across most of the po-

INDICATORS POLICY CATEGORIES BROAD OBJECTIVES OVERAL PERFORMANCE

Child Mortality

Indoor Air Pollution

Drinking Water Enviromental Health

Adequate Sanitation
Enviromental Health
Urban Particulates

Regional Ozone Air Quality

Nitrogen Loading Water Resouces
Water Consuption
Enviromental
Wilderness Protection Performance Index
Biodiversity and Habitat
Ecoregion Protection

Timber Harvest Rate

Agricultural Subsidies Productive Natural
Resouces Ecosystem Vitality
Overfishing

Energy Efficiency

Renewable Energy Sustainable Energy

CO2 Per GDP

58
EPI 11

licy categories. New Zealand ranked first, followed, infrastructure (such as drinking water and sanitation
respectively, by Sweden, Finland, Czech Republic, systems) and weak regulatory systems.
and the United Kingdom. The United States ranked
28th, which reflects top-tier performance on envi- REFERENCE
ronmental health issues, but also indicates that the www.yale.edu/epi/
US is under-performing on critical issues such as re- beta.sedac.ciesin.columbia.edu/es/epi
newable energy, greenhouse gas emissions, and water
resources.
Among the middle-rank countries, performance is of-
ten uneven. Brazil, for example, ranked 34th, has very
high water scores but low biodiversity indicators.
The lowest-ranked countries – Ethiopia, Mali, Mau-
ritania, Chad and Niger – are underdeveloped na-
tions with little capacity to invest in environmental

Pilot 2006 Enviromental Performance Index

Overall EPI Score by country Quintile

78.8 - 88.1 69.6 - 78.7 60.3 - 69.5 51.7 - 60.2 25.6 - 51.6 no data

59
12 ESI

Environmental OBJECTIVE
The ESI is a cross-country benchmarking tool, inclu-

Sustentability ding the following dimensions:
• Environmental systems: air quality, water quality, water

Index – Esi
quantity, etc.
• Reducing environmental stress: reducing pollution, lower
stress on the ecosystem, etc.
• Reducing human vulnerability: basic sanitation.
YCELP • Social and institutional capacity: corporate governance,
science and technology.
Center for Environmental • Global stewardship: international agreements, cooperation
Law and Policy in environmental agreements, etc.

Each dimension has its corresponding concept.

CIESIN of • Firstly, vital environmental systems must be maintained at
healthy levels rather than deteriorating;

Columbia University • It is also essential that the levels of anthropogenic stress
are low and do not cause harm to its environmental systems;
Center for International Earth • Thirdly, food and health should not be vulnerable to
environmental disturbances;
Science Information Network • In the fourth place, there must be institutions and
underlying social patterns of skills, attitudes, and networks
that foster effective responses to environmental challenges;
• Finally, there must be cooperation among countries to
manage common environmental problems and reduce
negative transboundary environmental impacts.

The index serves as a basis that makes cross-country
comparisons possible, at each version, allowing asses-
COUNTRY sment of sustainability practices evolution. It helps to
USA warn the member countries about future problems
such as natural resources scarcity or their misuse, and
risk management.
WHAT IT IS
The Environmental Sustainability Index (ESI) bench- CONTENT
marks the ability of nations to “protect the environment The ESI is calculated by integrating 76 data sets into 21
over the next several decades.” It is used by around 140 indicators of environmental sustainability.
countries and consists of 21 weighted core indicators,
each of them building on between two and eight va- I ENVIRONMENTAL SYSTEMS
riables that allow the assessment of environmental sus- 1. Air quality
tainability performance nationwide including air and 2. Biodiversity
water quality, biodiversity and natural resources mana-
3. Land
gement..
4. Water quality
5. Water quantity
ORIGIN
II REDUCING ENVIRONMENTAL STRESSES
The ESI is an Initiative of the Yale Center for Envi-
ronmental Law and Policy – YCELP (www.yale.edu/ 6. Reducing air pollution
envirocenter) and the Center for International Earth 7. Reducing ecosystem stress
Science Information Network – CIESIN of Columbia 8. Reducing population pressure
University (www.ciesin.columbia.edu), in collaboration 9. Reducing waste and consumption pressures
with the World Economic Forum (www.weforum.org)
10. Reducing water stress
and the Joint Research Centre of the European Com-
mission (www.jrc.cec.eu.int/uasa). 11. Natural resource management

60
ESI 12

III REDUCING HUMAN VULNERABILITY RESULTS
12. Environmental health
A study carried out by Yale University, USA and Co-
13. Basic human sustenance lumbia University, USA, and released in early 2005, pla-
14. Reducing environment-related natural disaster ced Brazil 11th in the ESI.
vulnerability
For the sake of comparison, it is worth mentioning
VI SOCIAL AND INSTITUTIONAL CAPACITY some positions and scores in the ESI ranking and score:
15. Environmental governance Uruguay (3rd, 71.8 points), Argentina (9th, 62.7 points),
16. Eco-efficiency
Brazil (11th, 62.2 points), Australia (13th, 61.0 points)
and the United States (45th, 52.9 points).
17. Private-sector responsiveness
18. Science and technology The top five countries are Finland, Norway, Uruguay,
Sweden and Iceland, considered rich in natural resour-
V GLOBAL STEWARDSHIP ces, whereas the lowest ranking countries are North
19. Participation in international collaborative efforts Korea, Iraq, Taiwan, Turkmenistan e Uzbequistan.
20. Greenhouse gas emissions
21. Reducing transboundary environmental pressures REFERENCE
sedac.ciesin.columbia.edu/es/esi/
By using strict rules aimed at avoiding mistakes, the
sedac.ciesin.columbia.edu/es/esi/ESI2005.pdf
survey provided a full and unbiased picture of the re- (completo)
ality. sedac.ciesin.columbia.edu/es/esi/ESI2005_policysummary.pdf
(resumo)
The ranking is made from pre-established scores for each sedac.ciesin.columbia.edu/es/esi/ESI2005_Main_Report.pdf
one of the 21 indicators, being top ranked the ones achie- www.yale.edu/epi/2006EPI_Rankings.pdf
ving the highest scores (Brazil stands out positively in wa- www.ciesin.org/
ter quality and quantity and scores poorly in air quality) www.yale.edu/epi/
www.econ.fea.usp.br/zeeli/artigos_valor/052_2005_07_19.htm

ENVIROMENTAL SUSTENTABILITY INDEX COUNTRY SCORES BY QUINTILE

59.7 - 75.1
52.5 - 59.8
46.6 - 52.4
40.5 - 48.2
29.2 - 40.0

61
13 EVI

Environmental
processes that can negatively influence the sustainable
development of countries.

Vulnerability The EVI provides a rapid and standardized method for
characterizing vulnerability in an overall sense, and
identifying issues that may need to be addressed within
Index – EVI each of the three pillars of sustainability, namely envi-
ronmental, economic and social aspects of a country’s
development.
SOPAC Development is often achieved through trade-offs be-
tween these pillars. Therefore, in order to promote sus-
South Pacific Applied tainability, it has become increasingly important to be
Geoscience Commission able to measure how vulnerable each aspect is to dama-
ge and to identify ways of building resilience. With this
information to hand, the outcome for countries could
UNEP be optimized for their unique situations and develop-
ment goals.
United Nations
CONTENT
Environment Programme
Healthy, productive and protective environments, so-
cial systems and economies are the basis of sustainable
development and human welfare. While the environ-
ment is the source of all raw materials used by society,
it also absorbs all the pollution generated by our ac-
tivities. By taking care of daily economic and social
issues, we convert natural resources and services to
give us support.
COUNTRIES
The problem is that all of these systems can be dama-
New Zealand, Norway, Ireland, Italy;
ged, overloaded, or prevented from meeting our needs.
United Nations Environment Program. By our choices we can, to a large extent, determine our
own quality of life, the condition of our lands and op-
WHAT IT IS portunities for future generations.
It is an Environmental Vulnerability Index that takes EThis is the proposal of the EVI methodology: un-
into account human well-being as a whole. derstanding and measuring the vulnerabilities of
the environment means foreseeing greater and irre-
ORIGIN versible damage that may endanger mankind’s futu-
re well-being.
EVI has been developed by the South Pacific Applied
Geoscience Commission (SOPAC), the United Nations The EVI is based on 50 indicators for estimating the
Environment Programme (UNEP), and their partners. vulnerability of the environment of a country to future
The index was developed through consultation and shocks. These indicators are combined by simple ave-
collaboration with countries, institutions and experts raging and reported simultaneously as a single index, a
across the globe. While further refinements and im- range of policy-relevant thematic sub-indices and as a
provements will always be necessary, the index is now profile showing the results for each indicator.
ready for application at country level. It is designed for
use in all countries. 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
OBJECTIVE
utility of the index. This overview with drill-down struc-
The EVI reflects the extent to which the natural envi- ture means that, in addition to an overall signal of vulne-
ronment of a country is prone to damage and degra- rability, the EVI can be used to identify specific problems.
dation. It is designed to be used with economic and Each indicator is classified into a range of sub-indices
social vulnerability indices to provide insights into the including the three aspects of hazards; resistance and

62
EVI 13

damage and into policy-relevant sub-indices including: Results
Climate Change = CC 235 countries received scores according to their environ-
Biodiversity = CBD mental level of vulnerability/resilience as calculated by
the EVI, thus building a world ranking.
Water = W
It is important to highlight that the scores considered
Agriculture and fisheries = AF
valid were those from countries who supplied data for
Human health aspects = HH over 80% of the 50 EVI indicators. The countries with
insufficient data (less than 80% of the 50 indicators) were
Desertification = CCD
classified as prone to environmental vulnerability.
Exposure to Natural disasters = D
Each country was classified in one of the following
Each indicator is also accompanied by a short form key catego¬ries: Extremely Vulnerable; Highly Vulnerable,
name, detailed definition, keywords and a description Vulnerable, At Risk, or Resilient.
of the main signals for which it is a proxy as well as the
indicators policy relevance. Among the countries with valid indices, Argentina,
Brazil, United States, New Zealand and Sweden were
SUMMARY EVI INDICATOR LISTI classi¬fied as vulnerable. Australia, Bolivia, Canada,
www.vulnerabilityindex.net/EVI_Indicators.htm Mozambique, Paraguay and Uruguay are among those
www.vulnerabilityindex.net/Files/EVI%20Descriptions%202 consi¬dered at risk. Austria, Belgium, Italy, Israel, Japan
005.pdf
and United Kingdom are classified as extremely vulne-
1. High winds 26. Fragmentation rable, whereas only ten countries, mostly in the African
2. Dry periods 27. Degradation continent, were considered resilient.
3. Wet periods 28. Reserves
REFERENCE
4. Hot periods 29. MPA’s
www.vulnerabilityindex.net/
5. Cold periods 30. Farming
6. SST 31. Fertilizers
EVI SCORES FOR ALL COUNTRIES
7. Volcanoes 32. Pesticides (includes data deficient countries)
8. Earthquakes 33. Biotech
90 -
9. Tsunamis 34. Fisheries
81
10. Slides 35. Fishing effort 80 -

11. Land area 36. Water 70 -
62
12. Dispersion 37. Air 60 -
13. Isolation 38. Waste
50 -
14. Relief 39. Treatment 43
40 - 35
15. Lowlands 40. Industry
30 -
16. Borders 41. Spills
17. Imbalance 42. Mining 20 -
14
18. Openness 43. Sanitation 10 -

19. Migrations 44. Vehicles 0-
Resilient At risk Vulnerable Highly Extremely
20.Endemics 45. Population
vulnerable vulnerable
21. Introductions 46. Growth
EVI classification
22. Endangered 47. Tourists
23. Extinctions 48. Coastal
24. Vegetation 49. Agreements
25. Loss of cover 50. Conflicts

63
14 GPI

Genuine Progress
Factors considered by the GPI as opposed to the GDP
calculation:

Indicator – GPI I. Crime and Family Breakdown – Factors that take a lar-
ge economic toll on individuals and society in the form
of fines, medical expenses, lost property, etc. The GDP
addresses such expenses as additions to well-being,
Redefining Progress whereas the GPI deducts them.
II. Household Work and Volunteer Work – Highly rele-
vant contributions to society that go unmeasured in
the GDP, because they are not done for pay. The GPI
corrects such omission and adds, among other things,
the value of household work through an estimate of the
cost of hiring someone to do equivalent work.
III. Income distribution – Increase in income does not
mean improvement for all, because inequality between
the very rich and the least well off may also be rising.
COUNTRY The GPI increases when the poor receive a higher per-
centage of the national income, and decreases with a
USA lower percentage.
WHAT IT IS IV. Depletion of Resources – Once the current eco¬nomic
activity depletes the natural capital necessary for future
Index to measure a nation’s progress considering well- activities, it is not truly contributing to well-being. On
being and environmental parameters, as an alternative in- the contrary, it is shifting a cost to future generations
dicator to the GDP. that should be borne in the present as a resource rent.
In the GDP accounts, such rents are part of the cur-
ORIGIN rent income, whereas the GPI counts the depletion or
The GPI was created in 1995 by Redefining Progress, a degradation of wetlands, forests, farmland and non-re-
non-profit public policy organization founded in 1994, newable minerals (including oil) as a current cost.
which put forward solutions aimed at helping people, pro- V. Pollution - For the GDP, pollution is a double bene-
tecting the environment and developing the economy. fit to the economy since GDP increases with polluting
activities and then again with clean-ups. The GPI, on
ObjeCtiVE its turn deducts air and water pollution, measured ac-
The GPI measures economic growth of a country as- cording to the current harm on human health and the
sociated with increase in the well being of its inhabi- environment.
tants. The index proposes a comparison with the GDP, VI. Long-term Environmental Damage – Climate chan-
seeking to show to what extent traditional economic ge and nuclear waste management are two long-term
growth is compromising the planet’s future life. costs generated from fossil fuel and nuclear energy use.
These costs are not accounted for in traditional econo-
CONTENT mic calculations. The same occurs with ozone deple-
The indicator uses the same calculation methodology tion, caused by substances such as the chlorofluoro-
as the GDP, but unlike the GDP, it makes deductions carbons (CFCs). For this reason, the GPI addresses the
to account for costs derived from factors such as cri- consumption of certain sources of energy and ozone-
me, pollution, environmental de¬gradation, depletion depleting substances as costs.
of non-renewable resources and other forms of natu- VII. Loss of Leisure Time – As a nation gets richer, people
ral capital such as water supply. On the other hand, it should be able to choose between spending more time
makes additions to account for items such as household on the job or having more time for family, chores or lei-
and volunteer labor. sure. However, much the opposite has occurred in the
Both the GDP and GPI are measured in monetary ter- last few years. The GDP ignores the loss of leisure time,
ms, which allows comparisons. The index is updated but the GPI considers leisure very valuable. When lei-
annually to provide an accurate and true portrait of sure time increases, the GPI goes up; otherwise it goes
economic progress. down.

64
GPI 14

VIII. Defensive Expenditures – The GDP considers the PERSONAL CONSUMPTION
money spent by people on prevention of decrease in
Economic costs
quality of life or compensation for the externalities as
Unequal income distribution
an increase in well-being. Examples of such expenses
Net foreign lending or borrowing
are medical expenses, damage or economic loss due
Cost of consumer durables.
to automobile accidents, cost of commuting, and hou-
sehold pollution abatement, such as water filters. The Social costs
GPI accounts these “defensive” expenditures as costs Cost of crime
instead of benefits. Cost of automobile accidents
Cost of commuting
IX. Cost of Consumer Durables and Public Infrastructure
Cost of family breakdown
– The GDP mistakes the money generated by consu-
Loss of leisure time
mers’ purchases, such as household appliances, for the
actual value consumers receive from them. This hides Cost of underemployment
the loss of well-being due to the fact that these pro- Environmental costs
ducts are made to last little. Because of this, the GPI Cost of household pollution abatement
treats the services of household capital as a benefit and Cost of water pollution
the initial purchase price as a cost. This also applies to Cost of air pollution
public infrastructure and services of highways. Cost of noise pollution
Loss of wetlands
X. Net Foreign Borrowing – If a nation allows its capi-
tal assets to decrease or relies on foreign funding to fi- Loss of farmlands
nance its current consumption, it is living beyond its Depletion of non-renewable resources
own resources. The GPI considers net lending as posi- Cost of long-term environmental damage
tive contributions to the well-being and net borrowing Cost of ozone depletion
from abroad as deductions. If wealth borrowed is in- Loss of old-growth forest
vested, the negative effects are cancelled, but if they are Benefits added to the GPI
used to fund consumption, the GPI drops. Value of household and parenting
Value of volunteer work
RESULTS Services of consumer durables
Services of highways and streets
Surveys carried out in the U.S. show that the Genuine
Net capital investment
Progress Index has stagnated since the 1970s, whereas
the GDP has increased. This means, according to the GIP Result
GPI logic, that growth is in fact a myth for what increa-
ses at one end strongly decreases at the other end. REFERENCE
www.rprogress.org
A study published by Redefining Progress in late 2001 www.rprogress.org/projects/gpi/
compares the North American GDP per capita evolu- www.redefiningprogress.org/projects/gpi/
tion in the last 50 years with the GPI figures. The fin- www.redefiningprogress.org/newpubs/2004/gpi_
dings suggest that although the North American per march2004update.pdf
capita GDP, in constant values, has increased by 79%
in this period, the index measured by the GPI rose only
2% in the same period. Measure of economic Economic Aspects
Welfare (MEW) of Welfare (EAW)
The organization provides the example of the use of oil Nordhaus and Tobin, 1972 Zolotas, 1981
for energy production. Its growing consumption incre-
ases the GDP, but reduces the GPI. That is because oil is
non-renewable, pollutes the environment and creates
health problems among other negative factors to the Index of Sustainable
well-being. Economic Welfare (ISEW)
Daly and Cobb, 1989
Example of the North American GPI calcula-
tion structure: from household expenses to the
GPI. (source: C.Cobb, M.Glickman Et C. Ches-
Genuine Progress
log: The Genuine Progress Indicator Update) Indicator (GPI)
Redefining Progress, 1995

65
15 GSI

Genuine Saving OBJECTIVE

The indicator aims to denote the rate at which national

Indicator – GSI wealth (broadened to include natural capital and human
capital) is being created or destroyed. This indicator of
progress or setback to genuine savings aims to provide
World Bank a combined measure of a country’s sustainable develo-
pment by adding or subtracting several non-economic,
mainly environmental, resources from a basis formed by
the national savings.

Genuine savings = net savings (i.e., gross domestic sa-
vings – consumption of fixed capital) + Educational
expenditure – (energy depletion, mineral depletion, net
forest depletion, CO2 damage).
• 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).
It is the so-called resource rent. It remunerates both mine
owners (mines, wells, etc.) and extractors.
• For the carbon dioxide emissions, an estimate of the
marginal social cost by emitted ton, calculated as a
treatment cost, is used.
• Forest destruction is calculated based on stumpage
value (average logging cost) of the amount destined for
commercial use and for fuel, extracted beyond the limits of
natural growth.

Such rates are annually published in the World Bank
Indicators and used by countries in policy discussions.
COUNTRY (publications.worldbank.org/ecommerce/catalog/product?item_
id=5424413)
Estados Unidos
CONTENT
WHAT IT IS
Genuine Savings defines a nation’s wealth more broadly
Genuine Savings is a simple indicator devised by World than orthodox national accounts, taking into account
Bank researchers to assess an economy’s sustainability. accounting methodologies that include human and
environmental capital to estimate the net savings of a
ORIGIN country. The Genuine Saving Indi¬cator (GSI) measu-
res the value of the net change in the whole range of
Environmental economists David Pearce and Giles
assets that are important for development: produced
Atkinson first developed the principle of applying en-
assets, natural resources, environmental quality, human
vironmental accounting methods (*). However, it was
resources and foreign assets, thus showing whether the
World Bank environmental economist Kirk Hamilton,
economy is sustainable or not.
formerly with Statistics Canada and a PhD student of
David Pearce, who introduced the term “genuine sa- If the GSI is negative, the country’s welfare will decrea-
ving” (**). se and the development will be unsustainable.

(*) Capital Theory and the Measurement of Sustainable Development: an Indicator of Weak Sustainability’, in Ecological Economics, 8(2), 1993.
(**) Green Adjustments to GDP’ in Resources Policy 20 (3) 1994.

66
GSI 15

If the GSI is positive, the quality of life will improve.

The indicator differs from standard national accounts
calculations in that they:
a) deduct the value of depletion of natural resources (where
forests, water and other assets are unsustainably managed);
b) deduct pollution damages, including lost welfare in the
form of human sickness and health;
c) treat current expenditure on education (on books,
teachers’ salaries, etc.) as saving rather than as
consumption, as it increases countries’ human capital;
d) deduct net foreign borrowing and add net official
transfers;
e) deduct the value of resource depletion.

The formula for genuine savings is given in World De-
velopment Indicators, World Bank, 1998, as the follo-
wing equation:

GDP – public and private consumption – Net foreign
borrowing – depreciation of produced assets + current
spending on education – resource depletion – pollution
damage.

The World Bank suggested further research “in the
field of Genuine Saving to include water as natural ca-
pital in the AGS concept”.
http://www.fz-juelich.de/ste/datapool/Preprint2005/Preprint-
2-2005.pdf (pg 6).

This document presents the new concept: Adjusted
Genuine Saving/Water, which considers water as na-
tural 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. The Rent rate is calculated as
follows: rent rate = (market price of water – produc-
tion cost) / market price of water).

Referências
www.worldbank.org/
www.brettonwoodsproject.org/topic/environment/gensavings.
pdf (pg 3)

67
16 HPI

The Happy Planet OBJECTIVE
It is the first ever index to combine environmental impact

Index – HPI with well-being to measure the environmental efficiency
with which country by country, people live long and ha-
ppy lives. The results are surprising, even shocking, but
there is much to learn from what they show.
NEF The HPI reflects the average years of happy life produced
The New Economics Foundation by a given society, nation or group of nations per unit of
planetary resources consumed. Put another way, it re-
presents the efficiency with which countries convert the
earth’s finite resources into well-being experienced by
their citizens.

NOTE
HPI differs markedly from the central indicator of natio-
nal income usually used to measure its success – Gross
Domestic Product (GDP). And it also has a different ratio-
nale to the various alternative indicators that begin with
COUNTRY GDP, and then subtract social and environmental costs to
UK create a more accurate measure of economic success.

WHAT IT IS CONTENT
It is an innovative new measure that shows the ecolo- The Index does not reveal the ‘happiest’ country in the
gical efficiency with which human well-being is delive- world. It shows the relative efficiency with which na-
red around the world (by a specific nation or group of tions convert the planet’s natural resources into long
nations). and happy lives for their citizens. The nations that top
the Index are not the happiest places in the world, but
those that score well show that achieving long, happy
ORIGIN
lives without over-stretching the planet’s resources is
NEF (the New Economics Foundation) was founded possible. The HPI shows that around the world, high
in 1986 by the leaders of The Other Economic Summit levels of resource consumption do not reliably produce
(TOES), which forced issues such as international debt high levels of well-being (life satisfaction), and that it is
onto the agenda of the G7 and G8 summits. possible to produce high levels of well-being without
excessive consumption of the Earth’s resources. It also
As an independent think-and-do tank that inspires and reveals that there are different routes to achieving com-
demonstrates real economic well-being, it aims to im- parable levels of well-being. The model followed by the
prove quality of life by promoting innovative solutions West can provide widespread longevity and variable life
that challenge mainstream thinking on economic, envi- satisfaction, but it does so only at a vast and ultimately
ronment and social issues. It works in partnership and counter-productive cost in terms of resource consump-
puts people and the planet first. tion.
NEF works with all sections of society in the UK and The Happy Planet Index (HPI) strips the view of the
internationally – civil society, government, individuals, economy back to its absolute basics: what we put in
businesses and academia – to create more understan- (resources), and what comes out (human lives of di-
ding and strategies for change. It works on specific pro- fferent length and happiness). The resulting Index of
ject areas through practical pilots and tools for change, the 178 nations for which data is available, reveals that
in-depth research, campaigning, policy discussion. the world as a whole has a long way to go. In terms of
delivering long and meaningful lives within the Earth’s
The Happy Planet Index (HPI) was launched in July
environmental limits – all nations could do better. No
2006 and NEF’s report, The Happy Planet Index: An
country achieves an overall ‘high’ score on the Index,
index of human well-being and environmental impact,
and no country does well on all three indicators.
was published in association with the nonprofit institu-
tion Friends of the Earth. No single country listed in the Happy Planet Index has

68
HPI 16

everything right. We have to acknowledge from the than that of the USA. “People can live long and be ha-
start that, while some countries are more efficient than ppy without having to use more than their fair share of
others at delivering long, happy lives for their people, the planet’s natural resources”, according to the report
every country has its problems and no country perfor- released on the foundation’s website.
ms as well as it could. Yet, fascinatingly, it is possible
to see patterns emerging that point to how we might Cuba and Vietnam, countries that represen¬ted the
better achieve long and happy lives for all, whilst living “red scare” in the 1960s, are now happiness paradises,
within our environmental means. ranking more than 100 positions above the USA.
According to the survey, the USA and Germany show
The challenge will be whether we can learn the lessons
similar satisfaction and life expectancy levels, although
of the HPI and apply them.
the Germans, who ranked 81st, have an “ecological re-
The index is built from three different indicators, two serve” or an area to support its population, half the size
of which are objective: life expectancy and the ecologi- of the USA’s.
cal footprint – a measure of our use of environmental
Among the G8 members, Italy was the highest ranked
goods and services. The third indicator is people’s sub-
country, in the 66th position, whereas Russia was the
jective well-being or “life satisfaction”. (Note that the
worst at 172nd, near the lowest ranking in the world.
way people report their life satisfaction corresponds
Among the wealthy nations, Japan, Canada and France
to objective factors such as their mental and physical
ranked 95th, 111th, and 129th, respectively.
health).
The Central American countries accounted for nine out
STEP BY STEP of the ten first positions of the happiest countries. The
African economies, including Swaziland and Equatorial
How it is calculated: Guinea, are among the last ten.
The HPI incorporates three separate indicators: ecolo- Brazil ranked 63rd (HPI of 48.6), way behind Argenti-
gical footprint, life satisfaction and life expectancy. The na, 47th (HPI of 52.2). Colombia ranked 2nd (HPI of
statistical calculations that underlie the HPI are quite 67.2). The unhappiest country in the world, Zimbabwe,
complex. However, conceptually, it is straightforward ranked last (HPI of 16.6).
and intuitive:
Based on these findings, NEF proposes a global ma-
nifesto for a happier planet. NEF highlights the policy
Satisfação com a vida x expectativa de vida
HPI = areas on which countries with low life expectancy, poor
Pegada ecológica life satisfaction or high ecological footprint must focus,
so that we can all live within our environmental limits
The HPI is calculated by multiplying life expectancy by and increase well-being for all.
life satisfaction. This result is then divided by the en-
vironmental impact of each country, including CO2 REFERENCE
emissions. www.neweconomics.org/gen
PDF: www.neweconomics.org/gen/uploads/dl44k145g5scuy
RESULTS 453044gqbu11072006194758.pdf

The index was compiled for two months with the help Calculate you own HPI
http://www.itint.co.uk/hpisurvey
of data from the World Health Survey (UN), published
in 2003, the statistics of the World Database of Happi-
ness, 2005, and a research on consumption and envi-
ronmental impact carried out by World Footprint.
178 countries, whose information was available, parti-
cipate in the HPI ranking.
On a 0 to 100 scale, Vanuatu ranked first with an HPI
of 68.2, whereas the USA reached an HPI of 28.8 and
ranked 150th. The UK achieved HPI of 40.3 and was
ranked 108th. The Vanuatu islands residents live around
69 years, nearly eight years less than the North-Ameri-
cans and their per capita GDP is US$ 2,944, 13-fold less

69
17 IDS

Sustainable OBJECTIVE

This set of information is valuable for understanding re-

Development levant themes regarding the country’s sustainable deve-
lopment. It allows interregional comparisons in Brazil,

Indicators – IDS as well as comparisons among countries, and indicates
needs and priorities for making and assessing develop-
ment policies.

IBGE CONTENT
Brazilian Institute of The latest version (2004) gathers 59 indicators, inclu-
Geography and Statistics ding 12 new ones regarding emerging issues, thus ena-
bling a more comprehensive assessment of the sustai-
nable development.
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,

• Efficiency: rational use of resources,

• Adaptability: diversification, alternative production
processes;

Country • Attention to future generations: resources and economic,
ecological and human assets for future generations.
Brazil
They provide, within the environmental dimension, in-
formation on the use of natural resources and environ-
WHAT IT IS mental degradation, organized in the following themes:
Sustainable Development Indicators of Brazil providing atmosphere, land, fresh water, oceans and coastal areas,
information on the Brazilian reality, including social, en- biodiversity and sanitation.
vironmental, economic and institutional dimensionsl. ENVIRONMENTAL DIMENSION
01 - Industrial consumption of ozone-depleting substances
ORIGIN 02 – Concentration of air emissions in urban areas
The development of sustainable development indica- 03 – Use of fertilizers
tors in Brazil is part of the international efforts to con- 04 – Use of pesticides
solidate ideas and principles set forth by the Agenda 05 – Agrosylvopastoral systems
21, adopted at the United Nations Conference on En- 06 – Forest burning and fire
vironment and Development held in Rio de Janeiro in 07 – Deforestation in the Legal Amazon
1992, regarding environment, development and deci- 08 – Remnant area and deforestation in the Rain Forest and
sion-making infor¬mation. coastal vegetation formations
09 – Desertification and drought
First developed in 2002, it follows the guidelines pro-
10 – Quality of inland waters
posed by the Commission on Sustainable Development
11 – Bathing quality of the beaches
(UNCSD).

70
IDS 17

12 – Marine and continental fish production 44 – Trade balance
13 – Coastal areas population 45 – Degree of indebtedness
14 – Extinct and endangered species 46 – Energy consumption per capita
15 – Protected areas 47 – Energy intensity
16 – Wildlife traffic, breeding and trade
48 – Share of renewable sources in energy supply
17 – Invasive species
49 – Mineral consumption per capita
18 – Access to residential waste collection services
50 – Useful life of mineral reserves
19 – Final waste disposal
51 – Recycling
20 – Access to water supply system
52 – Selective waste collection
21 – Access to sewage system
22 – Sewage treatment 53 – Radioactive nuclear waste: generation and storage

As for the social dimension, the indicators address The institutional dimension, on its turn, broken into
themes such as population, labor and income, health, the themes institutional framework and institutional
education, housing, and safety, all of them related to capacity, provides information on political orienta-
human needs satisfaction, quality of life improvement, tion, ca¬pacity and efforts made towards the neces-
and social justice. sary changes for the implementation of sustainable
development.
SOCIAL DIMENSION
INSTITUTIONAL DIMENSION
23 - Population growth rate
54 - Ratification of global agreements
24 – Indigenous population and land
55 – Existence of local councils
25 – Gini Index on income distribution
56 – Research & development expenditure
26 – Unemployment rate
57 – Public expenditure on environmental protection
27 – Per capita family income
58 – Access to telephone services
28 – Average monthly income
59 – Access to Internet
29 – Life expectancy at birth
30 – Infant mortality rate The indicators are presented in tables, charts and maps,
31 – Total malnutrition prevalence whose variables used in their construction, the rationale
32 – Immunization against infectious diseases in children and, in some specific cases, methodological comments
were previously described in a form. The end of the pu-
33 – Contraceptive methods use rate
blication brings a glossary of terms used, and includes
34 – Basic health care provision
information on history, the country, the states and, when
35 – Environmental sanitation-related diseases possible, follow up and analysis of phenomena taking
36 – Schooling rate place in the country along time.
37 – Literacy rate
The current version presents an additional matrix of re-
38 – Schooling
lationships between indicators, which shows the links
39 – Adequate housing among these data, a chart providing an indicators over-
40 – Homicide rate view and a list of indicators according to guidelines for
41 – Coefficient of mortality from transport accidents the transition to sustainable development, with referen-
The indicators’ economic dimension seeks to portray ce to equity, efficiency, adaptability and attention to fu-
the macroeconomic and financial performance, ture generations.
impacts on material resources consumption, and Information is available in the CD-ROM that accompa-
energy use by addressing the themes economic nies the publication.
outlook and production and consumption patterns.
Referências:
ECONOMIC DIMENSION
www.ibge.gov.br
42 - Gross domestic product per capita
www.ibge.gov.br/home/geociencias/recursosnaturais/ids/
43 – Investment rate default.shtm

71
18 IEWB

Index of Economic OBJECTIVE

This index of economic well-being, more realistic

Well-being – IEWB and comprehensive than the GDP2, aims to help the
in¬dividuals of a society to evaluate and decide whe-
ther the decisions and public policy adopted in one
Centre for the Study country can bring effective societal improvements.

The goal of the IEWB is not to summarize the economic
of Living Standards well-being of society in a single objective figure, but to
provide a well-organized and manageable set of objec-
tive data which individual analysts can use to come to
a summative judgment of social outcomes, i.e. to give
individuals a way to “add it all up” and come to their
own conclusions.

Well-being has multiple dimensions, and individuals
may have different subjective weightings of the compo-
nents of economic well-being because they have diffe-
rent personal values. Considering that individuals are
called to exercise their personal choices on themes that
affect the society as a whole (such as voting), an index
like this can help citizens assess other collective issues
– such as answering whether or not a given public po-
licy may bring effective benefits to society.

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 re-
COUNTRY
sources”. However, the criteria traditionally used to
Canada measure economic progress, such as GDP per capita,
assume that some representative agents can define
WHAT IT IS well-being of the society as a whole and consider only
the present income flows, without distinguishing be-
ÍIndex aimed at measuring the economic component of tween present consumption flows and accumulation of
social well-being in a more realistic and comprehensive assets that will guarantee future consumption flows.
way than traditional indices, such as the GDP.
The index consists of a weighted average of four com-
ORIGIN bined indicators on consumption flows, wealth (eco-
nomic, human and environmental), inequalities and
Developed in 1998 by the Centre for the Study of Living economic security (within a present and future pers-
Standards1 IEBW was based on a paper written by Lars pective). Each component (with a 25% weight) articu-
Osberg for the MacDonald Commission entitled The lates data regarding national accounts and social statis-
Measurement of Economic Welfare. tics. They are the following:

(1) A non-profit, national, independent organization that seeks to contribute to a better understanding of trends in and determinants of productivity, living standards and
economic and social well-being through research.
(2) For the Centre for Study of Living Standards, GDP measures consumption incompletely, ignoring the value of leisure and longer life spans, and it also ignores the
value of accumulation for future generations. Furthermore, since it is an average, 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.

72
IEWB 18

1) Effective per capita consumption flows, including
consumption of marketed goods and services; gover-
nment services; effective per capita flows of household
production; leisure; and changes in life span.

2) Net societal accumulation of stocks of productive re-
sources, including net accumulation of tangible capital;
housing stocks; net changes in the value of natural re-
sources stocks; environmental costs; net changes in the
level of foreign indebtedness; accumulation of human
capital; and the stock of R&D investment.

3) Income distribution, including the intensity of poverty
(incidence and depth) and the inequality of income.

4) Economic security from job loss and unemployment,
illness, family breakup, and poverty in old age.

The overall IEWB is calculated as the weighted average
of the four scaled components, with aggregation weight
determined subjectively according to individual views
on relative importance of each.

Dimensions of Economic Well-being or Command over Resouces

Concept Present Future
“Typical Citizen” or Average Flow of Current Aggregate Accumulation
“Representative Agent” Income of Productive Stocks
Distribuition of Potential
Heterogeneity of Insecurity of Future
Consuption - Income
Experiences of all Citizens Incomes
Inequality and Poverty

RESULTS

The index was calculated for Canada, United States and
some OECD member countries. Complete results can
be accessed at: www.csls.ca/iwb.asp.

REFERENCE
www.csls.ca/iwb/macdonald.pdf
www.csls.ca/iwb.asp
www.csls.ca/iwb/iewb-guide.pdf

73
19 IPRS

São Paulo State
indicator was then developed aimed at identifying the
development stage of a particular municipality conside-
ring the three HDI dimensions: income, schooling and
Social Responsibility longevity.

Index
During the publicity work carried out in 2003, main-
ly during regional meetings, attended by over 3 thou-
sand people, comments and suggestions were made to
improve the variables and indices that comprise the
Seade Foundation IPRS. Through the Legislative Forum for Sustainable
Economic Development, the State Capitol, together
with the Seade Foundation, promo¬ted a series of de-
bates with technicians and specialists in economics,
health and education, aiming to improve both the IPRS
methodolo¬gy and applicability.

OBJECTIVE
The current version, based on 2002 data, provides a
portrait of the social and economic situation of the mu-
nicipalities, their recent history and main challenges, as
well as analyses and com¬parisons of the index evolu-
tion in each State municipality or region regarding we-
alth generation and impact on its social indicators.

CONTENT
The IPRS is composed of four indicators: three com-
bined sectoral indicators (*), which measure the cur-
COUNTRY rent conditions of a municipality regarding income,
schooling and longevity – allowing a ranking of the 645
Brazil São Paulo State municipalities according to each one
of these dimensions; and a typology composed of five
WHAT IT IS groups called IPRS groups (**), which summarizes the
municipalities’ situation according to the three axes,
The IPRS is a system of social and economic indicators
but without ranking them.
of each municipality of the State of São Paulo aimed at
providing information for the development and asses- The three combined indicators are presented on a scale
sment of public policy created to help develop the sta- ranging from 0 to 100, in a linear combination of a set
te mu¬nicipalities. It is not an ordinary development, of specific variables. The weighting structure was achie-
but one the society participates in and benefits from ved following a factorial analysis model to study the in-
in search of better governmental economic and social terdependency level among the different variables.
balance.
(*) THREE COMBINED SECTORAL INDICATORS:

ORIGIN I Municipal Wealth
• CResidential electric energy consumption
The Seade Foundation was commissioned by the São
Paulo State Capitol, at the São Pau¬lo Forum, in 2000, • Agriculture, commerce and services electric energy
consumption
to develop an indicator to measure human development
in all state municipalities. The indicator should provide • Average wage of formally employed and public sector
a detailed portrait of the State of São Paulo regarding workers
development, sharing the same belief as the Human • VAF (a local tax-related economic health index) per capita
Development Index (HDI) that human development is II Longevity
a complex process that should consider social and qua-
• Perinatal mortality
lity of life dimensions alongside economic aspects. An

74
IPRS 19

• Infant mortality more detailed view of the municipality, identifying the
• Mortality of people aged 15 to 39 areas of significant poverty concentration.
• Mortality of people over 60
REFERENCE
III Schooling
www.seade.gov.br/produtos/iprs/
• Percentage of teenagers aged 15 - 17 who completed
www.seade.gov.br/produtos/iprs/pdf/metodologia.pdf
middle school
www.seade.gov.br/produtos/iprs/pdf/informativo.pdf
• Percentage of teenagers aged 15 - 17 with at least four
years of schooling
• Percentage of teenagers aged 18 - 19 who completed
high school
• Percentage of children aged 5 - 6 who attend pre-school
(**) TYPOLOGY MADE OF FIVE IPRS GROUPS:
Group 1: municipalities showing high wealth level and good
social indicators levels.
Group 2: municipalities which, although showing high
wealth level, do not have good social indicators.
Group 3: municipalities showing low wealth level, but good
indicators in the other dimensions.
Group 4: municipalities showing low wealth level and
intermediate longevity and/or schooling levels.
Group 5: deprived municipalities, both in terms of wealth
and social indicators.

RESULTS

The São Paulo State Social Responsibility Index has
already had two editions, in 2000 and 2003. In 2000,
results from 1992 and 1997 were presented and, in
2003, regarding the year 2000. The 2004 edition, which
presents the 2002 results, incorpora¬ted some changes
aimed at its improvement as an effective tool for asses-
sing and monitoring public policy. Such changes caused
the need to redo the 2000 IPRS indicators, in order to
allow comparisons between 2000 and 2002. Therefore,
all results presented already have the methodologi¬cal
changes, thus expressing the reality of 2002.

Note
By ranking the State of São Paulo municipalities accor-
ding to different development levels, the IPRS do not
fully answer questions concerning existing equity and
poverty in the referred locations. This is because, even
in better positioned municipalities within the groups,
particularly the larger ones such as São Pau¬lo and
Campinas, there are portions of their territories with
large segments of population exposed to different con-
ditions of social vulnerability. From this realization, the
Seade Foundation and the State Capitol created the
IPVS – Índice Paulista de Vulnerabilidade Social (State
of São Paulo Social Vulnerability Index), which allows a

75
20 ISEW

Index of Sustainable OBJECTIVE

The ISEW is one of the most advanced attempts to

Economic Welfare create an indicator of economic welfare – a more sui-
table social well-being index than the GDP (merely a

ISEW gross tally of products and services bought and sold,
which badly reflects people’s well-being), that allows
comparisons between countries through a homoge-
neous methodology.
Friends of The Earth
It is an attempt to measure the portion of economic
activity which delivers genuine increases in our qua-
CES lity of life – in a sense, “quality” economic activity.
Centre for Environmental Strategy For example, it makes a subtraction for air pollution
caused by economic activity, and makes an addition
to count unpaid household labor – such as cleaning
NEF or child-minding. It also covers areas such as income
inequality, other environmental damage, and deple-
The New Economics Foundation tion of environmental assets.

The Index creators believe the ISEW or an equivalent
should be one of the main economic indicators in the
Government’s Indicators strategy.

CONTENT

COUNTRY The ISEW, Index of Sustainable Economic Welfare, me-
asures a nation’s economic performance based on 20
United Kingdom indicators, aggregating conventional measures — such
as capital investment growth — with social and envi-
WHAT IT IS ronmental elements — such as, for instance, income
It is a monetary index aimed at replacing the GDP as a distribution, household labor, air and water pollution,
measure of nations’ progress, going far beyond the total agriculture soil degradation and loss of natural resour-
measure of economic activities for it takes into account ces. In other words, it includes distributive economic
the extent to which national policies truly lead to better issues and a series of environmental and social variables
quality of life for all. of great im¬portance to the aggregated well-being.

Instead of simply adding up all expenses, like in the
ORIGIN
GDP, consumption expenditure is offset by factors such
Friends of the Earth is working with the Centre for as income distribution and pollution-related costs, as
Environmental Strategy (CES) , the New Economics well as other economically unsustainable costs. Natio-
Foundation (NEF) and others to put forward alternative nal progress calculation takes into account the econo-
economic indicators to GDP. The most advanced is the mic, political and social activities’ negative contribu-
Index of Sustainable Economic Welfare (ISEW), which tions (social and environmental costs related to income
has been calculated for 9 countries, and has just been inequality, pollution, noise, loss of natural capital, non-
revised in the UK by CES, NEF and Friends of the Earth. renewable resources depletion; ozone depletion, etc.)
The index is based on the ideas presented by Nordhaus and positive contributions (household labor and public
and Tobin in their Measure of Economic Welfare. It expenditure on health and education).
was first coined in 1989 by Daly and Cobb. They later
In general terms, the ISEW can be defined by the follo-
went on to add several other “costs” to the definition of
wing formula:
ISEW.

76
ISEW 20

ISEW = personal consumption + public expenditure not Chilean ISEW
related to defense and safety.
1000000
- private expenditure on safety

Pesos per capita 1990 prices
+ capital formation 800000
+ household labor services
600000
- costs of environmental degradation
- natural capital depreciation
400000

RESULTS 200000
Besides the United States, the Daly and Cobb methodo-
0
logy has been adopted in countries like the Netherlands,
1965 1970 1975 1980 1985 1990 1995 2000
United Kingdom, Austria, Australia, Ita¬ly, Switzerland,
Germany and Chile, A common trend has been noticed
for all countries: national welfare has diverged from the GDP ISEW
GDP since 1970.
Calculations based on the new index showed that, whi-
le the North American GDP increased substantially
between 1950 and 1985 (measured by the traditional Swedish ISEW

formula), the ISEW has remained the same since 1970. 1000000
According to Daly & Cobb Jr. (1989), as natural capital
SEK per capita (1985 prices)

stock degradation, pollution-related costs, and perverse 75000
effects of income inequality are taken into account, the
North American economy is not regarded as having re-
ached substantial welfare improvements. 50000

This evidence is critical not only for the U.S. but for any
country concerned with inaccuracies regarding growth 25000
accounts performed exclusively in economic terms, that
is, disregarding environmental degradation. In the event 0
a country ignores deductions on its natural capital stock, 1950 1960 1970 1980 1995 2000
substantial welfare losses could be incurred even if tradi-
tional measures would point to substantial improvements. GDP ISEW

EXAMPLES
Italian ISEW
1000000 TIP
Lire (m) per capita (1985 prices)

800000 Friends of Earth has developed a tool, available on the
Internet at www.foe.org, which allows anyone to create
600000 their own ISEW (Index of Sustainable Economic Wel-
fare), valuing the variables as adequately as possible to
400000 each situation. Friends of the Earth: http://www.foe.
co.uk
200000

0 REFERENCE
1960 1970 1980 1990 www.foe.co.uk/campaigns/sustainable_development/progress

GDP ISEW
Book: Herman Daly & John Cobb, Jr - “For the Common
Good: Redirecting the Economy Toward Community, the
Environment, and a Sustainable Future,” 1989, Beacon
Press, Boston, Massachusetts, USA.

77
21 ISH

Index Social
CHILDREN
• Infant mortality

Health – ISH
• Child abuse
• Child poverty

YOUTH

Institute for Innovation • Teenage suicide
• Teenage drug abuse
in Social Policy • High school dropouts
• Teenage pregnancy

ADULTS
• Unemployment
• Wages
• Health insurance coverage

ELDERLY
• Poverty, ages 65 and over
• Life expectancy over 85

ALL AGES
• Homicides
COUNTRY • Alcohol-related traffic fatalities
• Affordable housing
USA
• Income inequality

WHAT IT IS
RESULTS
A composite index that aggregates multiple social va-
As of 1973, the GDP and ISH became no longer equiva-
riables of the U.S.A.
lents. The GDP continues to increase, whereas the ISH
plummets strongly and permanently.
ORIGIN
Five indicators have improved since 1970: infant mor-
The index was developed by Marc and Marque-Luisa tality, high school dropouts, poverty, ages 65 and over,
Miringoff in the mid 1980s, and has been under the res- homicides, and alcohol-related traffic fatalities.
ponsibility of the Fordham Institute for Innovation in
Social Policy of Fordham University, Tarrytown, New Eleven indicators have worsened since 1970: child abu-
York since 1987. se, child poverty, teenage suicide, teenage drug abuse,
unemployment, wages, health insurance coverage, out-
OBJECTIVE of-pocket health costs, ages 65 and over, food stamp
coverage, affordable housing, and income inequality.
The premise of the Index is that American life is revea-
led not by any single social issue, but by the combined In 2004, the latest year full data was available, the ISH
effect of many issues, acting on each other. In looking at stood at 54 out of a possible score of 100, the lowest
social problems that affect Americans at each stage of score since 1998. Between 1970 and 2004, the index
life – childhood, youth, adulthood, and the elderly – as worsened from 69.2 to 54.0, a drop of 22%.
well as problems that affect all ages, the Index seeks to
provide a comprehensive view of the social health of REFERENCE
the nation. iisp.vassar.edu/ish.html
M & M-L Miringoff., the social Health of the Nation: how
CONTENT America is really doing? (NY Oxford University Press 1999)

The Index is calculated from 16 social variables, grou-
ped in five age groups, as follows:

78
LPI 22

Living Planet Index
averaged to create an aggregated index. Although ver-
tebrates represent only a fraction of known species, it
is assumed that trends in their populations are typical
WWF of biodiversity overall.
By tracking wild species, the Living Planet Index is also
monitoring the health of ecosystems.
• Terrestrial life in the planet – populations of 695 repre-
sentative terrestrial species are tracked to calculate the
Terrestrial Living Planet Index. This index shows us the
status of populations of terrestrial species in compari-
son to what it was in 1970, calculated in percentage.
• Marine life in the planet – populations of 274 repre-
COUNTRY sentative marine species are tracked to calculate the
Switzerland Marine Living Planet Index. This index shows us the
current health of marine environment in 4 oceans as
WHAT IT IS compared to 1970.
• Freshwater life in the planet – population of 344 repre-
The Living Planet Index, developed by the WWW Ne- sentative freshwater species (287 in temperate zones
twork, is a measure of the state of the world’s biodiver- and 51 in tropical zones) are tracked to calculate the
sity based on trends from 1970 to 2003 in over 3,600 Freshwater Living Planet Index. This index shows us
populations of more than 1,300 vertebrate species from the current health of the world’s freshwater ecosystems
around the world, of which 695 are terrestrial species, as compared to 1970.
274 marine species, and 344 freshwater species.
RESULTS
ORIGIN
The Living Planet Report 2006 pulls together various data
WWF is the world’s largest environmental network. to compile two indicators of the Earth’s well-being. The
Formed by independent and similar organizations in 40 first one is the Living Planet Index, and the second index,
countries, the network has almost 5 million supporters. It the Ecological Footprint, measures humanity’s demand
is present in one hundred countries in the five continents. on the biosphere (how many hectares a person needs to
WWF-Brazil is part of the network and is a civil society produce what he/she consumes per year).
organization, recognized by the government as a public
interest institution. Created in 1996 and based in Brasília, This biennial WWF report showed essentially that the
the WWF-Brazil covers all the country with the objecti- decline in global biodiversity between 1970 and 2003
ve of helping the Brazilian society to preserve Nature and was 30%. “Humanity is no longer living off Nature’s inte-
harmonize human activities with biodiversity conserva- rest, but drawing down its capital”, states the report. “At
tion also for the benefit of future generations. this level of ecological deficit, exhaustion of ecological
assets and large-scale ecosystem collapse become incre-
OBJECTIVE asingly likely.”
The Living Planet Index is an indicator of the overall • Terrestrial species declined by 31% between 1970 and
state of the planet’s ecosystems, which includes natio- 2003.
nal and global data of consumption of these natural re- • Marine species fell by 27% in the average of the four
sources and the increase in pollution effects. The first oceans between 1970 and 2003.
measures, in 1999, took into account three indicators of • Freshwater species dropped 28% between 1970 and
the state of natural ecosystems: 2003.
1) The planet’s area covered by forests; The information shows several trends, indicating that
2) Populations of freshwater species; there is a clear difference between developed and deve-
3) Populations of marine species; loping countries. Brazil, for instance, is on the average
of global consumption, but even so Brazilians consume
Each one of these indices was measured in percentage, more than the planet could bear.
in 1970, and was given a weight.
REFERENCE
CONTENT
assets.wwf.org.br/downloads/wwf_brasil_planeta_vivo_2006.pdf
Separate indices are produced for terrestrial, marine www.wwf.org.br
and freshwater species, and the three trends are then www.panda.org/

79
23 RCI

Responsible
was coordinated by AccountAbility with the support of
Rockefeller Brothers Fund in association with Fundação
Dom Cabral (Dom Cabral Foundation), the UN Global
Competitiveness Compact and partners from Africa, Asia, Europe and La-
tin America.

Index – RCI OBJECTIVE
Disclosing which countries are achieving sustainable
Accountability economic growth based on responsible business prac-
tices.

CONTENT
The Responsible Competitiveness Index provides me-
tric and methodology for exploring the relationship
between corporate responsibility and competitiveness,
and includes the National Corporate Responsibility In-
dex that measures the national state of corporate res-
ponsibility covering 85 countries across five continents,
based on criteria that include the level of corruption,
civil freedom, corporate governance, and environmen-
tal management to set the global ranking.
COUNTRY
RESULTS
United Kingdom
Responsible Competitiveness’s findings are based on a
WHAT IT IS wealth of sector and issue-specific cases from Brazil,
Cambodia, Chile, Europe and South Africa, two new
It is an index that builds the relationship between the innovative country-level indices, and findings emerging
state of corporate responsibility and the competitive-
from a Global Policy Dialogue on Responsible Compe-
ness of nations.
titiveness conducted over two years in association with
the UN Global Compact and partners from Africa,
ORIGIN
Asia, Europe and Latin America.
In order to develop the index, AccountAbility, an interna-
tional organi¬zation based in London that works to make The latest issue of the report “Responsible Competiti-
companies more transparent about their impacts on pe- veness: Reshaping Global Markets Through Responsi-
ople and the planet, first diagnosed the state of corporate ble Business Practices – Latin America”, presents the
responsibility in 80 countries by assessing criteria such as results of studies carried out with the Responsible
cor¬ruption, environmental management and corporate Competitiveness Index and the National Corporate
governance in each one. The research drew on the World Responsibility Index (NCRI) “. This report, launched in
Economic Forum’s Growth Competitiveness Index, which late 2006, results from the collaborative effort of Ac-
defines competitiveness as the ability of a country to rea- countAbility, FDC and Incae, and the generous support
ch medium and long-term sustainable growth, to produce of the Business Forum and Fundemas. The study is ba-
the Responsible Competitiveness Index. sed on a wealth of sector and issue-specific cases from
The innovative National Corporate Responsibility Index Bolivia, Brazil, Central America and Chile, as well as
and Responsible Competitiveness Index were developed other countries and regions.
from a Global Policy Dialogue on Responsible Competi-
The report assesses the Latin American progress towar-
tiveness, carried out in 2004, in association with the UN
Global Compact and partners from Africa, Asia, Europe ds the responsible competitiveness goal. Realizing this
and Latin America. goal requires markets and regulation that create a “race
to the top” of escalating productivity, human develo-
Production of this Responsible Competitiveness report pment and environmental responsibility. The potential

80
RCI 23

exists for such positive relationship, but a competition 6. Trade, investment and competition rules need to be
driven “race to the bottom” remains a very real possi- sensitized
bility. 7. Responsibility standards need to be better aligned with
competitiveness opportunities
Latin America faces a unique set of competitiveness
challenges. The latest competitiveness indices show CAs shown in this report, Latin America has good
that, while some countries in the region have rapidly examples in each area, but there is a lot to be done.
improved their medium-term growth potential, others
The report illustrates how strategies rooted in Res-
remain static or even show signs of worsening in com-
ponsible Competitiveness can play a significant role in
parison to their competitors. The facts of pervasive po-
enhancing a country’s economic competitiveness. Ba-
verty and inequality suggest that the “trickle down” of
sed on these practices, governments worldwide, as well
undirected economic growth will not deliver sustaina-
as businesses, will increasingly build responsibility is-
ble development on its own. What is required is a more
sues into their strategies to develop and maintain their
responsible form of competitiveness.
national competitiveness.
Latin American countries have advanced towards cor-
porate responsibility. In this sense, Latin America’s RESPONSIBLE COMPETITIVENESS...
progress is uneven and varies from intermediate to the
lowest levels among the 85 countries that comprise the Predicts that governments worldwide, as well as busi-
data. nesses, will increasingly build responsibility issues into
their strategies to develop and maintain their national
The main findings of the National Corporate Respon- competitiveness. It provides a robust policy framework
sibility Index are: for this purpose and proposals for both policy and re-
• Nordic countries score well. Although Norway is an search.
exception (12th), the other Scandinavian countries rank
among the five top ones (Sweden, first; Finland, second; and Responsible Competitiveness is the precondition for
Denmark, fourth) an acceptable, viable globalization that aligns the ex-
• South Africa is the highest ranking emerging economy tension of business opportunities and roles in develo-
(excluding Eastern Europe), followed closely by Korea, Chile, pment with reductions in poverty and inequality, and
Malaysia, Costa Rica and Thailand. environmental security.
• China ranks 66, whereas India, its major Asian competitor,
ranks above, at 43. In 2007, AccountAbility and its partners will launch a
new Responsible Competitiveness Report to monitor
• There are no Latin American countries in the upper third of
the Index. regional and worldwide progress.
• The regional leaders, Chile (29) and Costa Rica (32), are
among the top countries in the upper third. REFERENCE
• There is an intermediate group of countries, in which Brazil www.accountability21.net
(37), Panama (47), El Salvador (50) and Mexico (54) are www.accountability21.net/uploadstore/cms/docs/Competitivi
included. dade%20Responsavel.pdf
• The third group of Latin American countries is placed in the Relatório 2006 (Am. Latina)
lower third of the global ranking. 10 out of 18 countries from
this region included in the ranking are in this group. • Sumário: www.accountability21.net/research/default.
asp?pageid=242
Advancing responsible competitiveness requires the de- • Íntegra: www.accountability21.net/uploadstore/cms/docs/
velopment of actions in several fronts: Competitividad%20Responsable.pdf
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

81
23 RCI

RANKINGS COMPARISONS, GROWTH COMPETITIVENESS INDEX (GCI) AND
NATIONAL CORPORATE RESPONSIBILITY INDEX (NCRI)

90
Latin America
Emerging countries
Other
80

70

Argentina
Dominican Republic
60 Peru Russia
Colombia

50 Panama
GCI Ranking

Brazil
India Uruguay

Costa Rica El Salvador
40 Mexico
China

30

20
Chile

10

0
0 10 20 30 40 50 60 70 80 90

NCRI Ranking

82
SF 24

Social Footprint CONTENT

The Social Footprint is a measurement and reporting
tool that quantifies an organization’s social impact on
CSI people, or on what CSI calls anthro capital – a combi-
Center for Sustainable Innovation nation of social capital, human capital and construc-
ted capital (i.e., material things that humans produce
Universidade de Groningen in order to meet their needs, such as food, health and
housing).

In this way, the Social Footprint deals with the impacts
on capital produced by people and that can be grown
virtually at will (anthro capital), unlike the Ecological
Footprint, which measures human use and impact on
natural or ecological capital, which is limited and whi-
ch humans do not create. The tool allows balancing the
use of natural resources and social demands.

The CSI measures organizational sustainability in terms
COUNTRY of Ecological Bottom Lines and Social Bottom Li¬nes.
USA and the Netherlands For this purpose, it has developed a methodology that
defines mathematical quotients for the two aspects –
WHAT IT IS Ecological Quotient and Societal Quotient. These quo-
tients compare a particular behavior or action to their
It is a measurement and reporting system that organi- impacts on ecological capital (limited and not created
zations can use to assess, manage, and report their im- by man) and anthro capital (unlimited and created by
pacts on people and society in a broad range of areas.
man).

ORIGIN
STEP BY STEP
The SF is the product of a joint development effort be- SOCIAL BOTTOM LINES
tween the Center for Sustainable Innovation and the
University of Groningen in the Netherlands. A cor- They are measures of social behavior sustainability – col-
porate sustainability accounting method that makes lective organizational behavior in particular. They result
it possible to measure and report on its non-financial, in numerical “social bottom lines” or scores and take the
multi-bottom line impacts. form of quotients:
The CSI is a non-profit corporation created in 2004 by - The denominator expresses the per capita or per-
its founder, Mark W. McElroy. Its purpose is to con- organization share of gaps in social conditions required for
human well-being.
duct research, development, training, and consulting
for, and with, companies around the world interested - OThe numerator expresses actual per capita or per-
in achieving sustainability in the conduct of human organization contributions to closing or creating this gap.
affairs, especially their own. The organization is parti- - Quotients less than 1 are unsustainable.
cularly interested in promoting sustainability as social
Calculating a Social Bottom Line –
learning.
A 5-step Process
1. Determine overall amount of anthro capital needed, and
OBJECTIVE divide by total population in geographical area of interest
(i.e., to arrive at a per capita share of what it would cost
It is a measurement and reporting tool that quantifies
to create or supply the required capital in a particular
the social sustainability of an organization. What really geography) – expressible in dollars “per person” or per
differentiates the Social Footprint from other sustainabi- “People Foot”1.
lity reporting tools is that it is the first quantitative tool 2. Calculate number of People Feet1 associated with the
for calculating social bottom lines based on rigorous sus- social system under analysis (e.g., an adjusted employee
tainability theory. headcount that reflects the proportion of time workers span

83
24 SF

in their lives actually working, or at work). natural capital use (or its services), such as the Ecological
Footprint’s notion of ecologically productive land (in global
3. Multiply the per capita need calculated in Step 1 by the
hectares) used per annum by a society.
number of People Feet in the social system of interest per
Step 2. This is the social system’s (e.g., an organization) • The denominator reflects an organization’s proportionate
“Own Share of Supply Needs for Anthro Capital” – often share of the rate of the same natural capital/services
expressible in monetary terms. production and/or renewal in the ecology, also expressible in
terms of global hectares per annum, or some other measure.
4. Measure the size of the social system’s contributions or
• Quotients less than or equal to 1 (≤1) are sustainable
impacts in the anthro capital area of interest. This is the
because usage rates either match or fall below natural
entity’s “Total Social Imprint” (i.e., the numerator in the capital/services production and/or renewal rates (i.e., the
Societal Quotient) – also expressible in monetary terms. use of natural capital falls within its bounds of renewal).
5. Divide the numerator by the denominator. This results in • Quotients greater than 1 (>1) are unsustainable because
the Societal Quotient (SQ), which is a social system’s Social usage or impact rates exceed the production and/or renewal
Bottom Line in the anthro capital area of interest. rates of natural capital/services, thereby diminishing, and
possibly depleting, stocks of natural capital/services over
Measuring Organizational Sustainability: Measuring time (i.e., the use of natural capital exceeds its bounds of
Social and Ecological Bottom Lines. renewal).

ECOLOGICAL BOTTOM LINES
• The numerator reflects an organization’s rate of some

QUOTIENTS AS MEASURES OF SUSTAINABILITY

Ecological Total Ecological Imprint - The lower better
_________________________ = Ecological Quotient - EQ 1 is sustainable
Bottom
(EQ) - EQ > 1 is unsustainable
Lines* Own Share of Supply
of Natural Capital

Social Total Social Imprint Societal Quotient - The higher better
Bottom _________________________ = (SQ), or what we call - SQ 1 is sustainable
Lines* Own Share of Supply The Social Footprint - SQ < 1 is unsustainable
Gaps in Anthro capital1

Organizational Societal
Sustaintability Ecological - If true, then sustainable
are 1 AND Quotients are 1
Defined Quotients EQ - If untrue, then unsustainable
SQ

* We take the position that there are many Ecological Bottom Lines and many Social Bottom Lines, each corresponding to impacts on some aspect of ecological and/or
anthro capital, respectively. So-called Economic Bottom Lines are merely types of Social Bottom Lines, and the Financial Bottom Line has nothing to do with any of this.

SOCIAL FOOTPINT X ECOLOGICAL FOOTPRINTS RESULTS
The organization requests that comments and assess-
The Social Footprint and the Ecological Footprint are
ments be sent to Mark W. McElroy at mmcelroy@ver-
alike in the sense that both are about closing gaps – but
montel.net.
the similarity ends there. In the case of the Ecological
Footprint, the gaps of interest to us are between re- Referências
sources used and resources available; in the case of the www.sustainableinnovation.org
Social Footprint, the gaps of interest to us are between www.sustainableinnovation.org/the-social-footprint.html
resources required and the supply of resources we have www.sustainableinnovation.org/Global-Warming-Footprint.pdf
decided to make available. www.sustainableinnovation.org/Recasting-TBL.pdf

1 People Feet (PF) is a metrical unit that is mainly used to specify the denominator in a sustainability quotient.

84
WN 25

The Well-being
lity, species diversity, energy use, and resource pressures
into an Ecosystem Well-being Index – EWI.

of Nations The indices are then combined into the Well-being Index
(WI) and the Wellbeing/Stress Index (WSI) that measure
IDRC the ratio of Human Well-being obtained in each country
to ecosystem stress. 67 geopolitical maps codified by co-
The International Research Centre lors describe the performance of 180 countries on both
indices as well as their main indicators. In addition, all
IUCN data is presented in 160 pages of tables and the highly
accessible methodology is described in attachments so
World Conservation Union that readers can make their own assessments.

NOTE
Wellbeing Assessment can be used at any level from
COUNTRY municipality to the world. It differs from other approa-
Canada ches to assessing sustainability in its dual focus on hu-
man and ecosystem wellbeing and its use of the Baro-
WHAT IT IS--- meter of Sustainability to sum a comprehensive set of
A new analysis of the state of the world – a survey that indicators into the HWI, EWI, WI, and WSI.
ranks 180 countries by measuring human development The Wellbeing Assessment method a wide range of hu-
and environmental conservation through the Wellbeing man and ecological aspects than more traditional mea-
Assessment method. sures such as the Gross Domestic Product, the United
Nations’ Human Development Index or the Environ-
ORIGIN mental Sustainability Index (ESI).
The Wellbeing Assessment, a method used in The
Well-being of Nations, was developed and tested with RESULTS
the support of the International Development Research The report shows that all countries enjoying high standards
Centre (IDRC) and IUCN – The World Conservation of living are placing undue pressure on the environment.
Union. It began as a synthesis of several sustainability Thirty-seven countries are close to striking a good balance
assessment approaches, including Prescott-Allen’s Ba- between a healthy population and a healthy environment.
rometer of Sustainability method. But to truly achieve this balance, even these 37 countries
These approaches were tested and improved during the must greatly improve their environmental efforts.
first phase (1994-1996), and then Prescott-Allen deve-
loped the method for the second phase of the IUCN/
IDRC project (1997-99) and The Wellbeing of Nations. The best performing country is Sweden, which earned the
Additional tests of the Barometer of Sustainability and survey’s top ranking, even though the report considers
the complete method have been conducted in Canada, it an “ecosystem deficit” country: it obtains an advanced
India, Nicaragua, Zambia, and Zimbabwe. standard of living through environmental damage.
Germany ranks 13th, Australia 18th, Japan 24th and the
OBJECTIVE United States 27th. In more than 140 nations, ecosystem
It is intended to promote high levels of human and ecosys- stress is higher than human well-being – evidence that
tem well-being, demonstrate the practicality and poten- most people’s efforts to improve their lot are inefficient
tial of the Wellbeing Assessment method, and encourage and overexploit the environment.
countries, communities, and corporations to undertake “The report suggests that a high standard of living is possi-
their own well-being assessments. ble without ruining the environment by changing the way
It is also intended to raise awareness about the need for that development is pursued,” says Achim Steiner, Director
simultaneously planning and managing both human de- General of IUCN – The World Conservation Union--.
velopment and ecosystem protection.
Referências
CONTENT www.iucn.org/en/news/archive/2001_2005/press/wonback.doc
36 indicators of health, population, wealth, education,
communication, freedom, peacefulness, crime, and
equity are combined into a Human Well-being Index –
HWI and 51 indicators of land wealth, protected areas,
water quality, water supply, global atmosphere, air qua-

85
3
Índice de Iniciativas

1. Redefining Prosperity 87

2. CMPEPS Stiglitz, Sen, Fitoussi 88

3. France Libertés Fondation 90
Orbis (Sustainability Indicators Regional Base
4. 92
Observatory)
5. Bogota, How are We Doing 94
Movimento Nossa São Paulo (Our São Paulo
6. 96
Movement: another city)

7. Juruti Sustentável 100

8. Legal Lucas do Rio Verde Project 102

9. BAWB – Global Forum América Latina 104

10. Global Action 108

86
WN 1
Redefining Prosperity

Redefining Content
The project is divided into four main parts:

Prosperity 1. Visions of prosperity looked at different views put
forward about what prosperity means. Economic gro-
wth, measured by increases in Gross Domestic Pro-
The Sustainable duct, which basically means total national income in
Development Commission a year, looks attractive because it links closely with the
assumption that most individuals aspire to increase
their income. Researchers, on the other hand, have
identified “alternative visions of prosperity” , which
can be more compelling. Can government policy aims
be revised to better reflect individual wants and hopes?
2. Economy Lite looked at the idea of decoupling –
separating economic growth from the damaging envi-
ronmental impacts it normally has. Can that link be
broken, with cleaner, 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
Country importing manufactured goods from Asia and Latin
America, giving them the environmental burden of our
UK
consumption? Does that mean decoupling for real is
impossible, or are there still ways of achieving it?
What it is
3. Confronting Structure was about taking the ar-
The economy is currently geared, above all, to economic guments against continuing growth seriously and
growth. However in recent years, two other objectives thinking through the consequences. If the economy
have moved up the political and policy-making agenda: no longer grows, or grows at a much slower rate, what
sustainability and wellbeing. happens to – unemployment, tax revenue, the ability
to repay debt and pay interest, company profits and
Origin economic competitiveness? Can we imagine any go-
vernment pursuing this line of thinking? Or will they
The Sustainable Development Commission – SDC - is
be forced to because of economic pressures creating
the Government’s independent adviser on sustainable
long-term recession?
development, reporting to the Prime Minister, the First
Ministers of Scotland and Wales and the First Minister 4. Wellbeing Policy looked at the evidence about what
and Deputy First Minister of Northern Ireland. Throu- contributes to people’s wellbeing, and asked - what
gh advocacy, advice and appraisal, we help put sustai- follows? Should we wish for a set of economic policies
nable development at the heart of Government policy. designed to promote wellbeing? If so, would it differ
greatly from economic policies intended to promote
Objective growth? What would the key differences be? Would
there be a different approach to work and to the impor-
SDC’s project on Redefining Prosperity aims to map out
tance of the unpaid activities which keep community
the relationships between these three aims – growth, sus-
and family life going? Would the planning system give
tainability, wellbeing – and ask what issues are raised. Do
greater priority to local democracy and quality of life?
we have to choose between these aims? Can we combi-
ne them? What sorts of policies or approaches would we
Results
need to have?
These questions go to the heart of what sustainable develo- Redefining Prosperity is planned to result in a
pment is about. Does it mean sustainability plus economic major report from the SDC.
growth? Or is it about finding a compromise or balance
between some sustainability and some growth? Or does Reference
development mean something different from growth?
http://www.sd-commission.org.uk/pages/redefining-prosperity.
Does it mean progress towards increasing wellbeing? And html
is it possible at all to define and promote wellbeing?
http://www.un.org/esa/sustdev/natlinfo/indicators/factsheet.pdf

87
2 CMPEPS

La Commission CONTENT
This symposium is organized around three themes:
sur la Mesure des Reconsidering the progress of society: Thinking over
the measures and dimensions of social well-being and
Performances progress, knowing, for instance, that ‘growth’ is not
necessarily a sign of increased well-being of peoples.

Économiques et du In this sense, there is a need to determine what mat-
ters to society and, therefore, ‘measure something
else’. That makes us wonder what the values behind
Progrès Social our measures are. The question of ‘what’ to measure is
closely linked to ‘why measure’. The reason we search
for other indicators derives from the desire to clarify
(CMPEPS) the ends that are unattainable, because the existing
indicators are based on values that only prioritize
commercial economics and monetary policy. It would
Collectif FAIR : Forúm pour be convenient to ask, for example, if our citizens do
not value environmental and social health, as much as
d’Autres Indicateurs de sustainable human development.

Richesse Developing a collective construction: Reconside-
ring that social progress cannot be restricted to ex-
pert commissions, no matter how indispensable the
Commission on the measurement expertise of various areas is. The citizens should be
of economic performances and given the opportunity to say what ends are to be taken
into account, and the opportunity to participate in
social progress discussions about the way to take these ends into ac-
count. Participation of the civil society, political reso-
FAIR Collective: Forum on Other lutions and mobilization of surveys are necessary to
Wealth Indicators determine and select the ends to be achieved, and to
ponder on the corresponding assessment criteria and
procedures. It is time to reflect on the procedures and
methods to develop this collective construction.
Organizing the local indicators: Reflecting on the
country territories, communities and groups within the po-
pulation, whose participation is relevant to reconsi-
France
der the progress of society and develop a collective
construction. Learning from the existing experiences,
WHAT IT IS adopting practices derived from current initiatives.
A commission that offers a new vision of wealth and Sharing experiences in building indicators. It is, the-
sustainable human development. refore, a core theme because the local levels (com-
munities, municipalities, departments, countries,
ORIGIN regions…) emerge as places that are home to many
collective experiences of developing social indicators
Created by the President of France, Nicolas Sarkozy, in that should be shared.
January 2008:
STEP BY STEP
• to clarify the GDP’s limitations as a tool to measure
economic results and social progress; The Commission is organized around three work
• to identify the necessary supplementary information to groups:
identify more appropriate indicators; • Conventional questions to measure gross domestic product
• to determine the most suitable way to present this • Sustainability and Environment
information, as well as to assess the feasibility of alternative
measuring tools. • Quality of life

88
WN 2
CMPEPS

WG ONE. OUTLINE OF THE WORKS 4. Personal activities (such as leisure, commuting, working
ON GDP-RELATED ISSUES hours).
1. From GDP to real income available, both in the economy 5. Personal safety (such as victimization, fear of criminality,
as a whole and on the household level, taking into conflicts, wars).
account depreciation, decreased resources, environmental 6. Social environment (such as social links, trust,
degradation, international income transfer, adjusted price guaranteed assistance, if necessary).
indexes, reflecting changes in quality and other aspects of
our changing society. 7. Institutional environment (such as freedoms,
participation in politics, judiciary system).
2. Real income available per consumer unit for the different
income classes. The median income as opposed to average 8. Natural environment (such as noise exposure, pollution,
income. access to public spaces).
3. The measures of volume and value based on results Cross-cutting themes
obtained in the domains of health, education and other
non-commercial services, including those provided by the 9. Average quality of life inequalities.
government. 10.Assessment of different methods to summarize
4. Gain/loss of capital/income. information on all life quality areas.

5. Unpaid household labor and income, including inequality This commission drafted nine challenges to be faced to
measures. revise the GDP:
6. Unpaid household labor and leisure. 1. Migrating from GDP to net real income available for
7. Education as investment for human capital, including the whole economy and for the households, taking into
depreciation and investment. account depreciations, resource depletion, environmental
degradation, transfers in and out of the economy, as well as
8. Assessment of safety, especially considering
appropriate price indexes;
accountability of the public sector.
2. Calculating the real income available per consumer
9. Addressing defense expenditures, including safety-related
unit (adjusted household) for different income groups and
public and private expenses. comparing averages to medians;
WG TWO. OUTLINE OF THE WORK ON SUSTAINABLE 3. For health, education and other non-commercial services,
DEVELOPMENT AND ENVIRONMENT including those guaranteed by the government, obtaining
volume and price measures based on outputs;
1. Examining the way relevant environmental variables (such
as air and water quality) contribute to actual well-being 4. Comparing incomes to capital gains and losses;
both directly and indirectly (through production and health 5. Considering unpaid household labor, including
costs). inequalities;
2. Investigating the impact of market failures on classical 6. Comparing unpaid household labor and leisure;
sustainability monetary measures. 7. Considering education as investment to build human
capital, as well as its depreciation;
3. Exploring the use of other measurement methods in order
to value environmental changes. 8. Assessing safety, especially when guaranteed by the
public sector;
4. Incorporating adjustments for resource depletion and
environmental degradation in the various ‘green’ income 9. Considering all defense expenditures, including private
measures (green GDP, green NNI, etc.). expenses with safety.

5. Incorporating more comprehensive wealth change
measures, and developing specific measurement methods
REFERENCE
when using a general measure covering all aspects is www.stiglitz-sen-fitoussi.fr
impossible. www.stiglitz-sen-fitoussi.fr/documents/Issues_paper_VF.pdf
6. Adequately incorporating uncertainty measurement. www.stiglitz-sen-fitoussi.fr/fr/index.htm

WG THREE. OUTLINE OF THE WORK ON QUALITY OF LIFE www.idies.org/public/fichiers%20joints/Note_commission_
Stiglitz.pdf
Quality of life components www.idies.org
1. Hedonistic experiences (positive and negative feelings).
2. Value judgments (about life as a whole and its main
components).
3. Capacity (health, abilities, etc.).

Conditioning factors of quality of life

89
3 France Libertés

France Libertés – FDM
‘Florestania’ is an attempt to draw attention to the fact that mankind is not the
center, but an integral part of Nature that depends on it. ‘Florestania’ seeks a new
social and natural pact, whereby mankind will come to an arrangement with
nature.” Aldem Bourscheit Cezarino
www.florestania.org/florestania/ToinhoFlorestania.htm.

WHAT IT IS an international cooperation agreement aimed at crea-
ting, developing and valuing these new wealth indica-
It is an international cooperation program established tors. A cooperation agreement was signed in Septem-
between the Brazilian Economic and Social Develo- ber 2005.
pment Council and the France Libertes Foundation
aimed at developing new wealth indicators for the OBJECTIVE
State of Acre (Brazil) from a qualitative reflection
on our way of factoring in wealth and economic gro- Ultimately, the project will benefit international insti-
wth: highlighting both social progress and preserving tutions that work on indicators, as well as associations
or protecting the environment, including the Ama- that work in the solidary and social economy area.
zon Forest. The indicator’s objective is to reflect the
This project aims to produce and develop new weal-
population’s well-being and include this well-being in
th indicators for Brazil; value and highlight human
a sustainability logic. Likewise, an indicator based on
wealth and ecological wealth frequently neglected by
the concept of sustainable well-being of the Amazo-
public policy; strengthen the network around the con-
nian population is consistent with the questions and cept of ‘new types of wealth’ in France and abroad.
purposes of the Acre Municipalities Sustainability In-
dicator (ISMAC), a tool developed by the Acre Go- The proposal of new indicators seeks to create a sta-
vernment during the second phase of regional Ecolo- tistical basis to measure the results of environmental
gical-Economic Zoning (ZEE). and social policy and economic development policy
for the populations of defined states. Education and
ORIGIN family values, popular culture, respect for nature and
sustainable use of resources, poverty and inequalities
EIn 1998, the French Minister of Sustainable Develop- reduction are some of the many critical aspects of ‘de-
ment, Guy Hascoet, accepted Patrick Viveret’s proposal velopment’ that are not acknowledged by our mains-
to make an exploratory work regarding wealth indicators. tream indicators, which leads us to a diagnosis that
In its official mission, Viveret worked for three years on a can be, sometimes, very inaccurate about poverty and
report entitled ‘Reconsidering Wealth’. Given the utmost development in these regions that are rich in natural
importance and relevance of the report produced, the resources and folklore.
‘Wealth’ Collective was created in 2001 in France to carry
on the work outside the official mission. It is formed by CONTENT
individuals and associations operating in the areas of art,
culture, ecology, health, popular education, humanitarian The indicator could respond to three needs that are cer-
action and solidary economics. It aims to mobilize citi- tainly distinct, but indubitably complementary:
zens from different perspectives to give their proactive 1)An indicator that tracks, for each Amazon region, the
contribution to define wealth, in parallel with institutio- changes along time;
nal logics and actions. 2) An indicator that allows tracking the evolution of
sustainable well-being for the many municipalities of the
Together with this Collective, France Libertés engaged region studied. This is the approach already adopted by the
in a dialogue with the Brazilian government to propose ISMAC;

90
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France Libertés

3) An indicator that allows comparison between the tiveness of sustainable development in the Amazon lies
different regions (states, in this case) of Brazil based on the in the interconnected nature of the environmental and
triple vision of its economic dynamics and its social and
social spheres. The social conflicts – sometimes violent
environmental health.
ones – many times originate in economic issues, which
Considering the purposes of indicators, the final pro- are related to the land, ownership rights and forms of
duct could be proposed as: exploitation.
- Sustainable Well-Being Index of the Amazonian Population
The assassination of Chico Mendes in Xapuri in De-
- Amazon Sustainable Human Development Index cember 1988 can illustrate the increased level of a so-
- Amazon Development Quality Index cial conflict that inextricably links the economic side
(exploitation of rubber by communities of rubber ta-
EQUITABLE ECONOMIC DEVELOPMENT
ppers) to the environmental factor (that is part of this
1. Average standard of living extractivist operation). The degradation of nature in the
2. Poverty Amazon has very direct and visible social effects: rapid
3. Employment and unemployment urbanization and poverty are frequently associated with
4. Sustainable forest economy deforestation, pollution and intensive farming. Sustai-
nable development in the Amazon is not an ideological
5. Economic inequality of resources
or remote issue (neither in space nor in time).
6. Trade balance of some basic products

HUMAN AND SOCIAL DEVELOPMENT REFERENCe
1. Education http://www.collectif-richesses.org/
2. Health
3. Access to basic services
4. Inequalities between genders
5. Quality of political and administrative institutions of the
civil society
6.Public safety and justice

ENVIRONMENTAL DIMENSION
1. Sustainable development of forests (not including
diversity)
2. Sustainable development of agricultural resources
3. Sustainable development of water resources
4. Biodiversity conservation
5. Waste and recycling
6. Carbon dioxide emissions
7. Soil quality and desertification

NOTE
The Acre State Government uses the formula ‘forest go-
vernment’ to stress that it takes the responsibility for en-
suring an ecological system to which man belongs. The
wealth of the state is the wealth of this system.
The Acre State Government, in parallel with similar ini-
tiatives in the State of Amapá, has long integrated the
vocabulary and ideas of sustainable development in its
various actions. This form of development has been
considered a pragmatic and attractive solution for social
and environmental problems that are common in the
Amazon. The main reason that can explain the attrac-

91
4 Orbis

Orbis ORIGIN
In October 2003 the ICONS – International Conference
on Sustainable Development and Quality of Life Indica-
Sustainability Indicators tors was held in Curitiba gathering specialists from all
over the world to discuss alternative indicators to measu-
Regional Base Observatory re prosperity and quality of life on the planet. This led to
the creation of ORBIS in 2004, also guided by the defini-
tions of the 1992 Rio Declaration / Agenda 21; Habitat II
SESI PR – Paraná Industry Conference / 1996; Kyoto Protocol / 1997; Global Com-
Social Service pact / 1999, and Millennium Summit / 2000.
It is certified by the UN Global Urban Observatory
IPD – Paraná (GUO), which leads a global network of urban observa-
Development Institute tories, implemented by the UN-Habitat Programme – for
Human Settlement, aimed at helping implement the Ha-
bitat Agenda and the Millennium Development Goals,
generating national and local information.
It is supported by the FIEP System (Federation of Indus-
tries of the State of Paraná), Paraná Industry Social Servi-
ce (SESI PR), and the Development Promotion Institute
(IPD), among other organizations.

CONTENT
The indicators organized by Orbis are guided by the
Habitat Agenda and the eight Millennium Develop-
ment Goals as defined in the 2000 UN General Assem-
bly in New York, with 191 signatory countries.
Orbis provides information through the website and
printed publications to keep the various sectors of so-
ciety informed about the status of the indicators in the
country
State. It uses the following main tools:
Brazil
MODELO – Local Development Monitoring System

WHAT IT IS Online monitoring system aimed at helping organiza-
tions and people that work with social, economic and
It is an organization that uses indicators to monitor, environmental development projects to analyze and mo-
review and disseminate information related to sustai- nitor local development. It provides access to and helps
nability and quality of life in the State of Paraná. create maps, charts and tables with social, demographic
and economic indicators that cover the whole State of Pa-
OBJECTIVE raná, separated by mesoregions and municipalities. The
Contributing to sustainable development in information is divided into four major groups: governan-
partnership with public and private social actors by: ce, environmental sustainability, economic sustainability,
and social sustainability.

• Organizing and monitoring sustainability indicator All the update is made by Orbis and the data and indica-
systems; tors are collected from official sources.

• Developing studies, analyses and knowledge; Dynamic Report on Local Environmental, Economic and
Social Information
• Supporting reflection and decision-making processes
involving the future of Paraná. System that allows access to environmental, economic

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Orbis 4

and social information about the municipalities of the Orbis was invited to present its urban observatory im-
State of Paraná, with available data broken down by plementation experience in several national and interna-
municipality, state and country whenever possible. tional events in Germany, Ecuador, Rio de Janeiro (State
of Rio de Janeiro) (2005); Colombia, Canada and Mexico;
Corporate Social Responsibility Mapping
Guarujá (State of São Paulo) (2006); Portugal; Anchieta
Mapping of corporate social responsibility projects, and Vila Velha (State of Espírito Santo); Lençóis Paulista,
enabling the comparison of information between space Santo André and São Paulo (State of São Paulo), besides
distribution of projects, focus area, regional needs, and many cities in Paraná (2007); Belo Horizonte, Brasília,
deprived areas. It allows for better definition of the focus Maceió, Porto Alegre (State of Rio Grande do Sul) (2008).
and area of work, publicity about the organizations; ne-
twork articulation able to mobilize government and civil REFERENCE
society in partnerships to better distribute programs in www.orbis.org.br
the State.
Sources and Access Controls

Records of institutions that provide information con-
taining periodical researches done, indicators used ba-
sed on these sources, collection dates, expected update,
types and terms of dissemination, what enables the in-
formation update, allowing for higher efficiency in the
description of metadata.
Courses and Consultancy in Information Management;
Analysis and Interpretation of Indicators; Social Six
Sigma for Social Project Management; Social Surveys
and Field Surveys; Perception of the Impact of Business
Social Actions.

RESULTS
In 2004, the survey was used to make the report “Indi-
cadores do Milênio na Região Metropolitana de Curi-
tiba“ (Millennium Indicators in the Metropolitan Area
of Curitiba). In 2005, social and economic indicators
were brought up at state level to support the Fórum
Futuro 10, a strategic reflection process on the futu-
re development of the State in the next 10 years. In
2006, it launched the first edition of the “Indicadores
do Milênio para o Estado do Paraná “(Millennium In-
dicators for the State of Paraná), linked to the Nós Po-
demos Paraná (We Can Paraná) Movement. In 2007,
the second edition was launched, together with folders
of the mesoregions and the cities that comprise each
one of them; the data was made available to the parti-
cipants of the Movement’s meetings, and stood out as
an important regional development promotion tool. In
2008, it started a decentralization policy by implemen-
ting the Campos Gerais Regional Observatory and, in
partnership with the UNDP and the UNICEF, it struc-
tured the ODM Brazil Portal, containing the Millen-
nium Indicators of the 5,564 Brazilian municipalities,
to be launched in 2009.

93
5 Bogota, How are We Doing

“Bogotá and debate aimed at having an effect on the Public Ad-
ministration, the general public and the expert groups

Cómo Vamos” working in favor of the city.
In this sense, it fosters an effective and transparent go-
vernment because it requires accountability from the
Bogota, District Administration, encouraging it to generate in-
formation needed for this accountability, and then have
How are We Doing this information assessed by experts and citizens. Li-
kewise, it fosters a better informed, participatory and
responsible citizen for it discloses assessment reports
for the general public, and has the public say its percep-
tion of quality and access to public services, communi-
cating the results of this survey to the citizens.
Finally, it fosters strategic alliances for the development
of policy to improve quality of life, 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. By promoting a per-
manent discussion forum for discussion on Bogota, it
COUNTRY
allows for the complementation of existing knowledge
Ecuador and encourages institutional learning.

WHAT IT IS CONTENT
• Poverty and Equality
“Bogotá Cómo Vamos ” – BCV is a citizenship exer- • Urban Mobility
cise that periodically and systematically monitors the • Public Finance
• Public Forum
quality of life evolution, focusing on the accomplish- • Education
• Environment
ment of the District Administration Development • Health
• Responsibility
Plan. • Public Services
The project is the result of an interinstitutional allian-
ce between Casa Editorial El Tiempo, the Corona STEP BY STEP
Foundation and the Bogota Chamber of Commerce. Assessing and Disseminating the Strategies of
The monitoring measures improved access to goods Bogotá Como Vamos
and services of better quality and takes into account
the public perception. BCV has two core strategies to enable the achievement
of its objectives: the first is the assessment strategy who-
ORIGIN se core pillar is the concept of quality of life and the se-
cond is the dissemination strategy, which seeks to com-
This initiative took off during the 1997 electoral campaign
municate to the public the results of all the analysis and
as a result of the lack of accountability that would allow
assessment exercise.
checking the fulfillment of campaign promises of the
mayor-elect and its impact on the city’s quality of life. The The assessment and monitoring exercise carried out by
1991 Constitution provided that citizens should exercise BCV has quality of life as its core concept, described
social control over the management of collective issues by as “the set of citizens’ rights, which are the State’s du-
monitoring the accountability of their local administration. ties, provided for in the 1991 Constitution, such as the
access to quality services in the following areas: educa-
OBJECTIVE tion, health, utilities, housing, environment.” Similarly,
The objectives of Bogotá Como Vamos are to create it is understood that quality of life is a dynamic concept.
positive impact on the quality of life as it builds kno- Consequently, it can change over time and according to
wledge of the city. It consists of a forum for analysis the conditions of the city

94
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Bogota, How are We Doing

Assessment Strategy forums with the District Administration to carry out the
monitoring for the development, implementation and
In order to carry out the assessment, the project makes execution of the Bogota Development Plan.
use of technical indicators and perception of results, as
well as monitoring of the main issues and problems
RESULTS
(key projects of the Administration and problems of
the population). The main accomplishments of the Project are related
to its impact on the District Administration, which can
The results of technical indicators are those that ac-
count for the impact of the management results and, count on better information that is more relevant, ti-
therefore, show the coverage and quality of basic goo- mely, regular and result-oriented. In addition, the Dis-
ds and services. trict Administration has made its own accountability
processes complementary to the project. Likewise, the
That means the BCV does not assess, for instance, the District Government receives feedback not only from
number of schools built, but the actual increase in ac- the assessment reports, but also from the annual per-
cess to education; or else, in the case of traffic, instead
ception survey, which are used in decision-making and
of the number of kilometers of roads built, the average
in its management self-assessment.
transport time.
Once provided by the Administration, this informa- In this sense, the observations and proposals made by
tion is validated by a panel of experts, by the percep- the BCV have been increasingly taken into account by
tion indicators, and their corresponding coherence the District Administration. The city has a set of indi-
along time, according to the Project’s records. cators that will support the existence of the project as
it continues. Likewise, there are 8 years (since 1998)
The perception indicators show the citizen’s opinion of records of the citizens’ perception, which show the
about the assessment areas. These indicators are re-
city’s change.
lated to the access to quality classification of basic
goods and services as well as to the successes and Currently there are replications of the Project in the ci-
shortcomings of the public and private schools’ ac- ties of Cartagena, Cali, Medellin and Barranquilla, and
countability. Similarly, the citizen can benefit from the the operation of the BCV’s sister project, to assess the
set of public organizations and their main programs in institutional performance of the Bogota Congress, cal-
terms of image, trust and management. led ‘Conselho Como Vamos’ (‘Congress, How are We
In this sense, the perception indicators can show the Doing’).
opinion of the city dwellers about public goods and ser-
Finally, the Project has received many awards: it was
vices and go beyond the technical indicators of result.
given the Dubai International Award for Best Practices
The public perception has been recorded since the to Improve the Living Environment in 2000 and 2002,
first BCV Annual Perception survey was conducted in and was chosen to be presented in the World Bank’s
1998. This survey covers the Bogota urban area, divi- Second Regional Meeting on Social Accountability in
ded into zones, age and gender groups. The informa- the Dominican Republic in 2003 and in the Universal
tion on the public perception since 1998 has enabled Forum of Cultures in Barcelona.
the project to make trend analyses in classification
and provision of basic goods.
REFERENCE
Communication Strategy info@bogotacomovamos.org

The communication strategy focuses on bringing perio- http://www.bogotacomovamos.org
dical quality information on the city, its advances, proble-
ms and proposed solutions. The purpose of publicizing
the information is to help qualifying the decisions of ci-
tizens and bring analysis tools to the experts, opinion-
makers and the local Administration.
On the other hand, the BCV organizes roundtables and

95
6 Our São Paulo Moviment

Our São Paulo
cracy in Brazil has been shaken, and that it is necessary
to foster initiatives that can bring back to the society
values such as sustainable development, ethics and par-
Movement: another ticipatory democracy.

city
The movement has been legally organized as Institu-
to São Paulo Sustentável-ISPS (Sustainable São Paulo
Institute), a non-profit institution qualified as a public
interest civil society organization. The Institute’s pur-
Sustainable São Paulo poses are as follows:
- Coordinating the administrative actions of data and
Institutel information collection to support civic and social
mobilization initiatives;
“The basis is the ethics of co-responsibility, - Supporting movements, initiatives, projects and programs
that foster sustainable, economic, social and environmental
the means is mobilization and participation, urban development, especially those focused on the city of
and the end is an equitable and sustainable São Paulo;
São Paulo.” Antonio Carlos Gomes da Costa - Fostering ethics, peace, citizenship, human rights,
democracy and other universal values;
- Conducting studies and polls related to the above-
mentioned activities.

In order to achieve these purposes, the institute relies
on the financial support of private companies of va-
rious segments and areas, which contribute cash or
donate equipment.

OBJECTIVES
The Movement intends to build a political, social and
economic power able to commit the society and suc-
cessive governments to an agenda and a set of goals
so as to provide all the city’s inhabitants with better
COUNTRY quality of life. It aims to turn São Paulo into a safe, he-
althy, beautiful, solidary and truly democratic city. In
Brazil addition, the Movement seeks the participation of all
the society to gather ideas and propose actions that
WHAT IT IS can contribute to an equitable and sustainable develo-
pment of the city in key areas like Education, Environ-
Non-partisan, inter-religious participatory process that
ment, Safety, Leisure and Culture, Labor, Transport,
works for a ‘sustainable’ city based on successful expe-
Housing, Health and Services.
riences previously carried out in Bogota and Barcelona,
among others. It is supported by hundreds of commu-
nity leaders, civil society entities and organizations, as CONTENT
well as citizens interested in participating in the pro- Guidelines
cess of building a new São Paulo.
I – INDICATORS AND GOALS PROGRAM – HOW WE ARE
AND WHERE WE CAN GET: THE OTHER SÃO PAULO WE
ORIGIN DESIRE
The Movimento Nossa São Paulo (Our São Paulo Mo- Selecting and organizing the main indicators of quality
vement) was born from the perception that the credi- of life in the city (for each administrative unit), so that
bility of political activity, public institutions and demo- they can be used as a basis for political parties, succes-

96
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Our São Paulo Moviment 6

sive governments and the civil society to commit to other cities and regions of Brazil; Holding in São Paulo
programs and goals for an equitable and sustainable the Sustainable Cities Conference.
São Paulo. Organizing a database of best urban sustai-
nability initiatives. VII - INFRASTRUCTURE

II – CITIZEN MONITORING – SÃO PAULO, Forums, Work Groups, Social Networks; Support
HOW ARE WE DOING Group: to Forums, WGs and Networks, continuous
Continuously communicating and publishing on the maintenance and updating of the ‘Our São Paulo’ por-
website São Paulo Como Vamos (São Paulo, How Are tal and the ‘São Paulo, How Are We Doing’ website.
We Doing), with periodical and regular updating, the
evolution of indicators of quality of life in each city ad- STEP BY STEP
ministrative unit, so they can be systematically moni- The movement’s performance is around 4 major theme
tored by all the society. Systematically monitoring the areas:
works of the City Council. Conducting annual public
opinion polls to learn and publicize the population’s Indicators and goals program:
perception of the different municipal actions in all the
city’s administrative units. I. Selecting and systematizing the main indicators of
quality of life in the areas covered by the city adminis-
III – CITIZEN CULTURE trative units, so that they can be used as a basis for the
civil society, political parties and successive govern-
Carrying out actions and campaigns aimed at changing ments to commit to programs and goals for São Paulo.
the population’s behavior, adding value to the public envi-
ronment, improving self-esteem and the feeling of belon- II. Organizing a database of best urban sustainability
ging to a city that is everyone’s asset and should be kept initiatives.
by everyone (communication programs; proposals for
Example: indicators
S.P.; educational campaigns and participatory actions).
A set of 130 social, environmental, economic, political
IV – PARTNERSHIPS and cultural indicators of the city of São Paulo and each
Promoting partnerships between companies, non- one of its 31 administrative units, which will be studied,
governmental organizations, city administrative units assessed and monitored in the next years. The data was
and departments to implement the Citizen Culture ac- organized by theme areas, with definitions and sources.
tions and campaigns and also to support more urgent 7. Violence
1. Health
social programs (enhancing the day-care centers and 8. Environment
other public services that will be able to receive new 2. Education
support to eliminate their deficits). Partnering with the 9. Culture
3. Labor and income
media to better publicize monitoring of the indicators 10 Budget
4. Social work
and goals and to contribute to the educational cam- 11. Sports
paigns and participatory actions. 5. Housing
12. Monitoring
6. Transport and
V – ENHANCING THE NETWORKS / SOCIAL urban mobility
MOBILIZATION
The process of developing and choosing the indicators
Continuously fostering the incorporation of new lea- involved hundreds of people, tens of civil society or-
ders, companies and social organizations into the mo- ganizations, many companies and several technicians
vement. Establishing forums in all the areas covered and experts gathered in 14 Work Groups (WGs) for
by the city administrative units. Keeping and updating about four months to provide the city with this path.
the ‘Our São Paulo’ portal and the ‘São Paulo, How Are
We Doing’ website as the Movement’s media. The relevant figures, charts, backgrounds and other
data are available at Observatório Cidadão Nossa
VI – EXEMPLARITY São Paulo (Our São Paulo Citizen Observatory), who-
Supporting the development of new movements in se website is www.nossasaopaulo.org.br.

97
6 Our São Paulo Moviment

The main objective of the Citizen Observatory (www. 8. 2008 elections
nossasaopaulo.org.br/observatorio) is to monitor the 9. Discrimination and prejudice
municipal public administration and provide the so-
10. Cultural and leisure activities
ciety with tools to influence public policy.
11. Municipal administration and national political
The key objective is to assess, year on year, the quality panorama
of life in the city, the social policy and the municipal 12. Trust in institutions
public administration, among others, so as to provi-
de the civil and political societies with the necessary Citizen education:
resources to exert a decisive influence on the public
I. Changes in the population’s behavior
policy goals to make their priority become the cons-
truction of an equitable and sustainable city. II. Adding value to public environment
The monitoring of the City Budget was also included III. Improving self-esteem and the feeling of belonging to a
in the indicators and is an area where the municipal city that is everyone’s asset and should be kept by everyone
administration needs to improve its data, its transpa-
rency and its distribution among administrative units. Example: 2007 World Carfree Day

Another area that will be monitored through a speci- Citizen mobilization:
fic methodology is the city’s legislative power. The I. Fostering the incorporation of new leaders, compa-
City Council has strong power over the municipal ad- nies and social organizations into the movement.
ministration, its budget priorities and, consequently,
over the quality of life in the city II. Establishing forums in all the areas covered by the
city administrative units.
Citizen monitoring:
III. Keeping the ‘Our São Paulo’ portal (www.nossasa-
I. Continuously communicating and publishing, with
opaulo.org.br) as an effective communication channel
periodical and regular updating, the evolution of indica-
between networks, press and the civil society as a whole.
tors of quality of life in each city administrative unit, so
they can be systematically monitored by all the society. IV. Creating exemplarity to other cities, states and re-
gions of Brazil.
II. Systematically monitoring the works of the City
Council. Example: I Our São Paulo Forum – Proposals for an
Equitable and Sustainable City
III. Mobilizing the population to monitor the City Budget.
- Process of mobilizing the society to make proposals for the
IV. Conducting annual public opinion polls to learn and main social, economic, political, environmental and urban
publicize the population’s perception of the different challenges of São Paulo;
municipal actions in all the city’s administrative units. - Making them available to all the society, including the
public powers and the political parties that will participate
Example: 1st perception poll “Viver em São Paulo” (Li- in the next local elections;
ving in São Paulo) carried out in the City of São Paulo - Forming a Latin-American network of sustainable cities.
in January 2008.
Note
Main issues highlighted:
In February 2008, amendment to the Organic Law of the
1. Weather and image
City no. 30 was passed, requiring that mayors publicize a
2. Quality of life in the city detailed government plan, according to the guidelines of
3. Public safety the electoral campaign, within 90 days after taking offi-
4. Public health
ce. The Goals Program will have to be separated by city
administrative units and districts. The amendment also
5. Public education establishes the accountability of goals achievement to the
6. Other services population every six months. This rule shall be effective
7. Inclusion and citizenship for the mayor whose tenure starts in January 2009.

98
Our São Paulo Moviment 6

Signed by the 400+ organizations participating in the
Movement. The final approval is the result of intense
articulation of the Movement with the City Council lea-
ders in the last six months.

REFERENCE
www.nossasaopaulo.org.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),
integrates in Latin America the initiatives from Bar-
ranquilla, Bogota, Calí, Cartagena and Medellin (Co-
lombia), Buenos Aires (Argentina), Lima (Peru), Quito
(Ecuador) and Santiago (Chile).
In Brazil, the network started with the Our São Paulo
Movement. At federal level, 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),
Belo Horizonte (MG), Brasília (DF), Curitiba (PR),
Florianópolis (SC), Goiânia (GO), Holambra (SP), Ilha
Bela (SP), Ilhéus (BA), Januária (MG), Maringá (PR),
Niterói (RJ), Peruíbe (SP), Porto Alegre (RS), Recife
(PE), Salvador (BA), Ribeirão Bonito (SP), Rio de Ja-
neiro (RJ), Santos (SP), São Luis (MA), São Paulo (SP),
Teresópolis (RJ) and Vitória (ES).

99
7 Juruti Sustentável

Juruti OBJECTIVE
The creation of development indicators for Juruti and
Sustentável surrounding area is fundamentally based on broad and
democratic participation of all stakeholders through
preparatory visits, workshops using participatory tech-
Funbio – Fundo Brasileiro para a niques, design of appropriate information material, res-
Biodiversidade pecting the time required for adjustment and engage-
ment of the local and regional population, and valuing
the development process as well as the results reached.
(Brazilian Biodiversity Fund)
In parallel with the participatory and informed develo-
FGV – Fundação Getulio Vargas pment, the process includes a comprehensive research
on the knowledge and experiences in Brazil and abro-
ad around the development and sustainability theme,
including a detailed survey of the local and regional
policies and initiatives, so as to contextualize the pro-
ject in the local reality, make a preliminary diagnosis of
the area, as well as a technical-academic monitoring of
the indicators developed aimed at devising metrics and
protocols to support the future tool.
The activities of the indicators development process
consist of: reference research, diagnosis of the baseline,
preparatory visits, workshops in Juruti, Santarém and
Belém for preliminary indicators development, face-to-
face public consultation in Juruti and surrounding area
and on the Internet, development of metrics, protocols
and traceability of indicators proposed, consolidation
COUNTRY of results and first diagnosis in Juruti and surrounding
area.
Brazil
CONTENT
WHAT IT IS
In 2006, a report entitled Juruti Sustentável: Diagnóstico
Sustainable local development model for Juruti and e Recomendações (Sustainable Juruti: Diagnosis and Re-
surrounding area due to changes brought about by the commendations) was issued and it showed a model for
arrival of a company in the area. the implementation of a sustainable local development
agenda. The model is structured around three pillars:
ORIGIN
1. Creation of a local development forum with effective
In December 2005, ALCOA contacted the Getúlio Var- participation of all stakeholders to discuss a common
gas Foundation (FGV), which partnered with the Bra- public interest future, prioritize actions and set a long-
zilian Biodiversity Fund to create a sustainable local de- term agenda.
velopment model for Juruti and surrounding area due
to changes brought about by the arrival of this com- 2. Creation of sustainable development indicators to
pany in the area. monitor the development of Juruti and surrounding
area and enhance the public decision-making processes.
Juruti has one of the largest deposits of high quality • Reference research and draft proposal of development
bauxite in the world. For the population of the town indicators created from survey and detailed review of global
and surrounding area, the arrival of ALCOA brings experiences, with the purpose of supporting participatory
a lot of expectations, uncertainties and memories of construction. Carried out in Nov 2007.
past mining experiences in the Amazon. Many fore- • Diagnosis of social, economic and environmental baseline
see opportunities for growth and economic prosperity. of the municipality of Juruti, developed from supporting
Others are concerned with the risk of impacts on the data, and characterized as a first baseline for monitoring
local development. Carried out in Nov 2007.
quality of life and the environment.

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Juruti Sustentável 7

• 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, Feb 2008
in Santarém, and Apr 2008 in Belém).
• Monitoring Group, local representatives from the Juruti
town hall, Juruti’s social organizations, and ALCOA to
monitor and actively participate in the process of building
the indicators. Carried out in Jan 2008, with monthly
meetings since then.
• 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. Mini-workshops carried out on Jul
7 – 23, 2008 / Public Consultation available on the Internet
on Aug 4 – Sep 20, 2008.
• 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.
• First Development Diagnosis of Juruti and Surrounding
Area, made from primary and secondary data.

3. 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.
Document for Public Consultation

1. DIMENSION: ENVIRONMENT
Theme: Conservation and Use of Biodiversity
Theme: Mineral Resources
Theme: Land Use
Theme: Soil Occupancy
Theme: Environmental Quality

2. DIMENSION: HUMAN BEING AND SOCIETY
Theme: Fundamental Conditions
Theme: Citizenship and Democracy
Theme: Population

3. DIMENSION: ECONOMY AND INFRASTRUCTURE
Theme: Economy
Theme: Basic Sanitation
Theme: Infrastructure.

REFERENCE
http://www.fgv.br/ces/juruti/indicadores/consulta/

101
8 Legal Lucas

Legal Lucas do
agricultural activity and allow the products to be tra-
ced and to have free access to the most demanding
world markets. In other words, it aims to build in Lu-
Rio Verde Project cas do Rio Verde a new sustainability concept for the
country’s agribusiness.

TNC – The Nature CONTENT

Conservancy 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 agen-
da for the production sector, research organizations,
governments at different levels, civil society and en-
vironmental organizations, so as to test development
models that ensure harmony between production and
environmental conservation.

COUNTRY
STEP BY STEP
Brazil
Broken down into several phases, the project aims at
reducing the environmental, sanitation and labor lia-
WHAT IT IS bilities to zero in the agricultural activity and allow
The project (Dec 2006) is a unique partnership in Brazil the products to be traced and to have free access to
to make this municipality, located 350 km away from the most demanding world markets.
Cuiabá (State of Mato Grosso), the first one to have After engaging 100% of the landowners, the first pha-
all its rural properties legalized pursuant to the Forest se could be completed with a comprehensive and
Code, turning Lucas do Rio Verde into one of the few georeferenced mapping of the conditions of each
municipalities in the country without social and envi- property, which enables the indication of necessary
ronmental liabilities in the agricultural sector, without measures to rectify existing irregularities.
labor problems, and using agrochemicals appropriately
and safely. Accounting for 1% of the Brazilian soybeans The next phase, which includes a recovery plan for APPs
production, Lucas do Rio Verde, in Mato Grosso, grows (Permanent Preservation Areas), will have as its main
10% a year. support an executive order signed by mayor Marino
Franz defining the Permanent Preservation Areas as
ORIGIN priority ones for governmental action, and establishing
the isolation and prohibition of agricultural activity wi-
It is an initiative of the Lucas do Rio Verde Town Hall thin its boundaries starting from the next crop for pro-
and the TNC – The Nature Conservancy (*), in par- tection and restoration of the natural vegetation.
tnership with the State Department of Environment
(SEMA), Rio Verde Foundation, Lucas do Rio Verde Other support points will be the partnership agree-
Rural Union, State Public Prosecutor’s Office, Syngen- ment signed between the City Hall, the Landowners
ta, Sadia Sustainability Institute, Sadia and Fiagril. Union, the Public Prosecutor’s Office and local agri-
cultural engineers for effective assistance and mo-
nitoring of APPs recovery and the development of a
OBJECTIVE
capacity-building plan for environmental groups to
The project’s main objective is reduce the environ- enable a total control over the impacts of the produc-
mental, sanitation and labor liabilities to zero in the tion activity.

( *) Founded in 1951, The Nature Conservancy (TNC) is one of the largest and oldest environmental NGOs in the world. Working in more than 30 countries, 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. Present
in Brazil since 1988, it carries out over 20 large initiatives in the main Brazilian biomes (Amazon, Rainforest, Cerrado, Pantanal and Caatinga) aimed at making the
economic and social development compatible with the conservation of natural ecosystems. In the last few years, its actions contributed to the conservation of more than
20 million hectares all over the country, an area equivalent to the State of São Paulo.

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Legal Lucas 8

The project also provides that environmental liabili-
ties can be offset by collective mechanisms, pursuant Syngenta is a world-leading agribusiness committed
to laws in force, including legal reservations in con- to sustainable agriculture through innovative research
dominium, thus maximizing the areas of connected and technology.
native ecosystems under protection. The integrated The company is a leader in crop protection, and ranks
efforts of companies, TNC, state and local govern- third in the high-value commercial seeds market. Sales
ments are expected to build a legalization process in 2007 were approximately US$ 9.2 billion. Syngenta
that should benefit both the environment and the employs more than 21 thousand people in more than
landowners. 90 countries.

RESULTS With products in the areas of pesticides, seeds and urban
pest control, Syngenta helps producers all over the world
Goals achieved in 2007: Recording of the 670 rural to raise their productivity and address the growing de-
properties and notification of landowners that they mand for food and fuel.
must replant deforested areas near water springs.
Syngenta product solutions contribute to the develop-
Next goals: Reforesting 2,000 hectares of permanent ment of agribusiness, always aiming at sustainability and
preservation areas and seeking a solution for the fo- the population’s quality of life.
rest reservation areas to be protected.
Following this guideline, the company offers information,
Lucas do Rio Verde is the evidence that economic technology and new opportunities for thousands of far-
growth and environmental respect are not irreconci- mers all over the country through its social and environ-
lable. The Lucas project is encouraging other towns mental projects. That is how Syngenta helps to cultivate
to follow the same path. With the help of Syngen- respect for the environment and for people everyday.
ta, the town of Catalão, in Goiás, is considering the
adoption of this model. In the North of Mato Grosso,
13 municipalities are discussing the details to close
an ambitious environmental pact to create financial
incentives for the preservation of forests – an unpre-
cedented project in the whole world.
The project is a municipal highlight in the first edi-
tion of the “Prêmio Brasil de Meio Ambiente” (Brazil
Environmental Award), organized by Jornal do Brasil
and Revista JB Ecológico (JB Ecology Magazine) in
partnership with Gazeta Mercantil and Forbes Brazil
Magazine.

REFERENCE
www.tnc.org/brasil

103
9 BAWB

BAWB –
The main objective of the BAWB - Global Forum
summit was to align theory and practice so that the-
se domains would come up with the understanding
Global Forum that sustainability could become the greatest business
opportunity of the 21st Century. The BAWB-Global

América Latina Forum América Latina, held in Brazil, offers this pers-
pective.

/Call for Action In 2008, in Curitiba – Brazil, the UNINDUS – FIEP/PR
System’s Industrial Companies University, in partner-
ship with the Center for Sustainability Studies – Ge-
Fiepr – Federation of Industries túlio Vargas Foundation (EAESP/ FGV) and the Case
Western Reserve University (USA), in response to a
of the State of Paraná recommendation of the GF-BAWB Call for Action in
Cleveland, organized the BAWB-Global Forum Amé-
rica Latina.

CONTENT
Participants were invited to take part in initiatives
addressing their areas of interest, create their own ini-
tiatives and contribute to a sustainability actions data-
“This moment requires a global, holistic vision. For this base.
vision to be implemented, it is certainly necessary more “Willingness is not enough. Capability is necessary, and
specific actions with common goals and principles.” Ro- that translates into a well-designed project, committed
drigo da Rocha Loures, president of the Fiepr System. people that can give their vital contribution to developing
this collective thinking project and to disseminating it for
WHAT IT IS further development”. Rodrigo da Rocha Loures.
The BAWB / Global Forum América Latina / Call For
Action (GFAL) is a movement that aims to tap into the OBJECTIVES
creativity of its participants to foster cooperation among 1. Raising awareness about the existing opportunities for
building multi-sectoral alliances aimed at education for
institutions, organizations and the society towards a sus-
sustainable development;
tainable world. It is more specifically a call for action in-
tended to identify and implement innovative actions in 2. Sharing strengths and celebrating innovations and
strategies for social, environmental and economic
the field of education by using the Appreciative Inquiry sustainability;
methodology1.
3. Generating a conscious intention and a common vision
for the development of leaders and citizens dedicated to a
ORIGIN sustainable society of the future;

In 2006, the Case Western Reserve University, in part- 4. Developing initiatives that use the strengths of the
academia (universities and schools) and the corporate world
nership with the Academy of Management, which ga- to help build a sustainable and prosperous society;
thers approximately 19,000 management teachers from
5. Acting cooperatively.
90 different countries and around 4,000 companies
worldwide joined by the United Nations Global Com- “The objective is to foster a shared vision of ways to pro-
pact, set up the Global Forum on Business as an Agent vide students with values and tools that make them able
of World Benefit. to act according to the requirements of sustainability. Fo-
cused on a transforming education, understood as a self-
The B.A.W.B – Business as an Agent of World Benefit, a
driven and social education in which the subjects coope-
movement in which the Global Forum is inserted, has been
ratively take charge of learning, which necessarily means
since then the largest summit able to call and attract more
innovation and creativity.” Rodrigo da Rocha Loures
than 1,000 executives from corporations as big as Alcoa,
Toyota and Unilever, among others; renowned business Universities, colleges and business schools should
professors, managers in charge of public policy making, update their curricula to keep up with the challenges
social leaders and young students from all over the world. of the national and global situation. The young people

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BAWB 9

that are currently in the university will be performing, • Planning and Implementation Center for Sustainable
in the next decades, in a totally different economic, so- Strategic Projects in Distributed Network
cial and business reality. The curricula should address • Pre-electoral forum for sustainability
the sustainability theme in a cross-cutting way, besides • Creation of a cross-cutting and intersectoral capacity-
incorporating new teaching technologies. building and education center for sustainability

In Brazil, the Global Forum América Latina has been
RESULTS
held in the States of Paraná and São Paulo.
Participants of the BAWB-Global Forum América La-
In April 2009, in João Pessoa, State of Paraíba, the Glo-
tina discussed actions that would help strengthening
bal Forum/Call for Action Northeast will take place,
the relations between the corporate world and the aca-
gathering Federations of Industries from the nine sta-
demia, providing knowledge sharing and identifying
tes of the Northeast.
sustainability-centered business practices as a business
opportunity for the 21st Century, thus fostering the de- In May 2010, a Global Forum/Call for Action will take
velopment of proposals for innovation and change in place in Manaus, State of Amazonas, covering the
education, in forms of production, in social construc- Northern Region.
tion and in forms of consumption, as well as in forms of
political management. The Global Forum Social Network was created and ex-
pects to gather representatives from all sectors to carry
Next, some of the countless initiatives that have been on the discussions and put forward actions on sustai-
dreamed of and planned, and are now in place. Learn nability education.
more at www.globalforum.com.br
• Creation of Sustainable Responsibility principles/ REFERENCE
guidelines for the State of Paraná www.globalforum.com.br
• Review of the legislation
• Effective Shared Management between Civil Society and
Collaboration
Government
• Kaleidoscope – Rediscovering Values Margarita Bosch (Fiepr)
• Recovering Moral and Civic Values (values, ethics,
Marilda Schiller de Moraes
citizenship, education, engaged participation of the civil
society) (WBA – Willis Harman House)

What is an Appreciative Inquiry?

Appreciative Inquiry, developed in the United States by Many organizations consider themselves as a problem
David Cooperrider, can be defined as a positive approach to be solved. People hold meetings to make a list of
to change management and organizational development. problems and then they search for the causes to come
It is a cooperative search for the best in people, their up with solutions. There is a big difference between
organizations and the relevant world around them. It this method and Appreciative Inquiry. In AI, the
involves systematic discovery of what gives “life” to a focus is not on the problem, but on building a desired
living system when it is most alive, most effective, and future based on existing powers. The organization is
most constructively capable in economic, ecological, no longer perceived as a problem to be solved, and
and human terms. Appreciative Inquiry involves, in a becomes the solution, more like a mystery to be
central way, the art and practice of asking questions that unraveled.
strengthen a system’s capacity to apprehend, anticipate,
and heighten positive potential. It centrally involves In short, Appreciative Inquiry allows building
the mobilization of inquiry through the crafting of knowledge in group from what is best in people, in
the “unconditional positive question” often involving collective reflection, inspired by cooperation with a
hundreds or sometimes thousands of people. shared objective.

105
9 BAWB

STEP BY STEP OF AN APPRECIATIVE People work on what they share a passion about, what they
INQUIRY SUMMIT most care about and believe will make the difference.
The whole system participates – a cross-section of as many Methodology
interested parties as is practical. That means more diversity Process application has four key stages:
and less hierarchy than usual in a working meeting, and a
• Discovery: mobilizing a whole system inquiry into the
chance for each person to be heard and to learn other ways positive change core through stakeholder engagement
of looking at the task at hand. with the articulation of strengths and best practices. It is
systems or systemic inquiry in the positive core.
We start with an approach to change based on strengths.
Before jointly imagining the future possibilities, first we • Dream: creating a clear results-oriented vision in relation
to discovered potential. It visualizes the highest potentials
reconnect to our main success factors, that is, things that of the organization for positive influence and effect on the
enable us to succeed when we are at our best. world, challenging the status quo.
People self-manage their work and use dialogue – not pro- • Design: creating possibility propositions from the positive
blem solving – as the main tool. That means helping each core alive in all of its strategies, processes, systems, decisions
and collaborations of the organization. It is the design of the
other do the tasks and taking responsibility for our percep- organization’s social-technological architecture.
tions and actions.
• Destiny: initiates a series of inspired actions in order to
Common ground and narrative rich interaction rather implement the discovery, the dream, and the design. It is
the destiny stage in which positive images of the future are
than “conflict management” or negotiation as the frame
sustained. It is a time for continuous learning, adjustment
of reference. That means honoring our differences rather and improvisation in the service of shared ideals. It is time
than having to reconcile them, and searching for meanin- to develop the ‘appreciative eye’ of the organization in all
gs, and direction in stories that honor and connect us to its systems, procedures and work methods.
our “history as positive possibility”.
This methodology is based on five principles:
Inspired action on behalf of the whole – Because the “who- • The Constructionist Principle
le system” is involved it is easier to make more rapid de- • The Principle of Simultaneity
cisions, and to make commitments to action in a public
• The Poetic Principle
way – in an open way that everyone can support and help
make happen. The movement to action is guided by inter- • The Anticipatory Principle
nal inspiration, shared leadership, and voluntary initiative. • The Positive Principle

WORK FRONT CREATED AT GFAL IN SÃO PAULO Out of the countless work fronts proposed, the ones
IN NOVEMBER 2008 that received the most votes by the participants were
REINVENTING THE ECONOMY: IMR - MULTIDIMENSIONAL
chosen for the creation of work groups to perform
WEALTH INDEX: NEW INDICATORS, CURRENCIES AND them either individually or in group.
FLOWSS
Below is the work presentation of Roundtable 36
Participants of the BAWB-Global Forum América La- comprising 17 members: the creation of a Multidi-
tina discussed actions that would help strengthening mensional Wealth Index – IMR.
the relations between the corporate world and the aca-
The IMR is a set of indicators and new currencies that
demia, providing knowledge sharing and identifying
allow for balance in managing the four dimensions of
sustainability-centered business practices as a business
Whole Sustainability: the economic, environmental,
opportunity for the 21st Century, thus fostering the de-
social and cultural dimensions, measured by quanti-
velopment of proposals for innovation and change in
tative and qualitative metrics. The new model in pla-
education, in forms of production, in social construc-
ce prioritizes human values and intangible resources
tion and in forms of consumption, as well as in forms of
(knowledge, creativity and culture), meeting its ob-
political management.
jectives of generating public and private policy based

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BAWB 9

on the concept of interdependence and aimed at quality Development, Solidary Currency).
of life of humanity on the planet. Some vectors of this • Definition of the parent institution that will coordinate the
success have been multisectoral management, cross- process, and of the seed group.
cutting education, collaborative production, network • Preparatory research carried out by the seed group.
action and community empowerment.
MEDIUM-TERM ACTIONS:  
It is about reconsidering wealth as “abundance that • Distribution of preparatory material resulting from the
does not generate scarcity.” research.

ASPIRATIONAL SYNTHESIS • First meeting of the Task Force to define the bases of the
project and decide on the work groups in each module.
Reinventing the Economy: “Multidimensional Wealth
SHORT-TERM ACTIONS: 
Indicators generate Whole Sustainability for mankind
and the planet.” Work groups in the three modules.
PROTOTYPE: • Year 1: first draft presented: next, a campaign to lay the
ground, to be conducted by the society already mobilized
The Multidimensional Wealth Index includes: • Year 2: pilot experience (eg. municipality), monitoring,
aa) Currencies/metrics related to the four dimensions of necessary adjustments – campaign multiplies results
Whole Sustainability (economic, environmental, social and reached and starts laying the ground for others.
cultural) that allow for their measurement, assessment, • Year 3: implementation of beta version at higher level
and exchange. Measuring development and sustainability (eg. State) – start awareness/mobilization campaign at
only by the economic value is like trying to measure liters even higher levels: abroad – Design of communication/
with a ruler. Human and cultural capital; social capital; mobilization campaign to lay the ground for the change, to
technological and environmental capital enable the be run simultaneously with the work groups.
cultural and natural diversities, solidarity, articulation,
traditional knowledge and actions, and creativity to WHO AND WHAT IS NECESSARY FOR IT TO BE
integrate the sustainable development equation. SUCCESSFUL:
b) Set of wealth indicators guided by the concept of • Institution that can host and coordinate the start of the
interdependence and human values and that, when process, with resources and power of engagement to set up
covering the four dimensions of Whole Sustainability, the Seed Group to start the process.
will reach a balance among the material, tangible and
• Seed Group: people and institutions of cross-cutting
intangible sides aimed at quality of life.
nature and focused on human and sustainable development
c) Legislation and policies that transform and rule the that already work on the theme.
economic, social and environmental flows that will enable
• Optional: a series of articles that can lay the ground for
the application of IMR.
the issue, showing its relevance.
WHO IS AND SHOULD BE INVOLVED: 
• Multisectoral (public, private, organized civil society, CREDITS
creative people) and cross-cutting Task Force to design
the basis of the process that would be then developed by Lala Deheinzelin www.enthusiasmo.com.br
cross-cutting work groups. Axis: sustainability, innovation,
development, cooperation.
• Institutions whose work is already related to the theme;
selection of professionals with cross-cutting profile from
educational institutions (environment; law, commerce,
culture, politics, development, etc), including ‘users’ and
‘researchers’ (balance between theory and practice). The
Group should include many areas besides the economic one.

SHORT-TERM ACTIONS:  
• Search for institutions and names to integrate the initial
Task Force (Currencies Module, Indicators Module, Flow
Regulation Module).
• Antecedents: experience in and information on the theme
(eg. GNH, ICONS 2003, Sustainability Indicators of Nations
and other publications, Creative Economy and Sustainable

107
10 Global Action

Ação Global WHAT IT IS
Global Action consists of a collective effort to offer es-
sential, integrated and free of charge services by volun-
(Global Action) teer professionals in the areas of health, leisure, edu-
cation and citizenship. The program is offered to the
public simultaneously in all states of Brazil and in the
“He who does not have citizenship is either Federal District. Over 40 services in one single place
marginalized or excluded from social life and with quality infrastructure and performance.
decision-making, feeling inferior within the
ORIGIN
social group.” Dalmo de Abreu Dallari
It has been a SESI initiative in partnership with Globo
Network since 1991. It was originally created by the
Minas Gerais SESI and was later expanded nationwide
in 1995.

OBJECTIVE
The Global Action’s mission is to help reduce the so-
cial inequalities in Brazil. The event benefits thousands
of Brazilians every year and ensures free access to a
number of services that foster citizenship. In the last
decade only, the program has rendered over 35 million
services.

How can we talk about wealth and happiness indica- CONTENT
tors of nations in a country where part of its popu-
lation is formally excluded from society, without any In order to have many outcast Brazilians recover their
basic citizen rights? citizenship, the event provides easy access to essential
rights. Four basic rights of any citizen are made availa-
They have families, dreams and stories to tell. Howe- ble to the public free of charge: documentation, health,
ver, in practice, they do not exist for the society. They leisure and professionalization.
are men and women that spend a lifetime in limbo,
unable to interfere in their own reality for lack of ac- RESULT
cess to one or more basic rights of every citizen, such
as health, education, leisure, work and a house to live Over 12.4 million people have been benefited and
in. Coming across these Brazilians is not hard. They more than 26 million services have been rendered.
are in our homes, our stores, in rural areas, but they go
Participants’ profile: 66.4% have family income lower
unnoticed, especially because they are unaware of the
than two minimum wages, 59.8% of adult visitors are
exclusion of which they are victims.
between 18 and 39 years old, and 76.6% are women.
Lack of money is far from being the main problem for
The 1st Global Action Impact Assessment Scientific Re-
more than one million Brazilians that annually attend
search, conducted in 2007, showed that people get to
the Global Action. Being a social outcast, with no ac-
the event without access to basic citizen rights. On a
cess to basic citizen rights, and being, therefore, unable
scale ranging from minus 65 points (total lack of rights)
to overcome this situation in the short term is worse
to plus 65 points (full citizenship), participants reached
than living in poverty.
minus 2.01 points. They are, therefore, below the mini-
Among the projects undertaken by SESI (Industry So- mum level of citizenship required to live (zero point).
cial Service), one that stands out is Global Action, a
true ‘Passport to Citizenship’. This perception reveals the exclusion experienced by
Brazilians that get to the event and allows mapping the
Passport to Citizenship program’s impact on their lives in the short and me-
SESI – Industry Social Service. dium term.

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Global Action 10

The study showed, among other countless data, that
some of the services offered by the Global Action – A Global 10
such as the access to documentation and medical ap-
pointments, leisure and professionalizing activities – Social responsibility in Brazil has developed side by
helped increase by 11.93 points the rate obtained by side with SESI’s history. Founded during the Vargas Era,
men and women assisted by the program in 2007. Two the Industry Social Service was born together with key
months after being provided with one or more services achievements for the worker’s quality of life, headed by
by the Global Action, these people crossed the line that the CLT – Labor Code.
separates access to minimum citizen rights and are in SESI is not only a pioneer, but an agent of change. For
the positive side of the scale with 9.92 points. Why is over 60 years, it has served the industrial workers with
this evolution so important? Specialists are unanimous great care, working for their well-being and health.
in saying that citizenship is the basic pre-requisite for Everything started out as a simple vision: people are the
anyone to grow as a person and professionally. The re- driving force and the reason why industrial companies
ason is quite simple: those who are healthy and have a exist; the rest is machinery.
résumé – two of the indicators assessed in this survey
– have far more chance of finding a job. If they have Ensuring the exercise of citizenship by industrial
an employment book (document issued immediately workers and their families is SESI’s challenge. For this
by the Global Action), they can enter the desired for- purpose, besides the physical structure with activity
mal market. Once hired, they will be entitled to social centers, summer camps and worker’s clubs, the institu-
security, unemployment compensation, and to the go- tion offers programs like the Global Action and Cozi-
vernment severance indemnity fund (FGTS), let alone nha Brasil (Brazil Kitchen). Health promotion initiati-
the increase in income. ves integrate SESI’s initiatives agenda, which encourage
the industrial worker to live a healthier life.
The young people are the main beneficiary of the Glo-
bal Action. They get to the event at almost minus eight As a complement to the service rendered to the in-
points in the Citizenship Scale and leave at around plus dustrial community, SESI fosters socially responsible
seven points. That is a 14.68 point variation in only 24 management in the companies, thus contributing to
competitiveness and sustainable development in Brazil.
hours.
One example of this line of action is PSQT – SESI Qua-
The Global Action is a program directly related to the lity at Work Award.
Reduction in Regional and Social Inequalities result re-
In the last 60 years, SESI has won the trust of thou-
ferred to in the Industry Strategic Map, which uses the
sands of Brazilians thanks to an ethical and transparent
GINI Index and the HDI as indicators
work committed to social inclusion. Leisure, health and
education are the pillars of the network’s investments;
REFERENCE a network that is present in the 26 Brazilian states and
www.sesi.org.br in the Federal District, serving a total of 2,006 munici-
1ª Pesquisa Científica de Avaliação de Impacto da Ação palities. This structure gives SESI a regular presence in
Global (1st Global Action Impact Assessment Scientific the worker’s life
Research)

109
4
Ecolabeling
initiatives in the world
•1 •4

5•

• ••
• • •• •17
•2

•18 •19
•14
•16 •20
21•

•22

•3
•23
•15

•24

• 1 – Canada • 9 – Croatia • 17 – China
•6
•7 • 2 – United States • 10 – Hungary • 18 – Korea
• 12 11 • • 10
8••9 • 3 – Brazil • 11 – Austria • 19 – Japan

• 4 – Sweden • 12 – France • 20 – Taiwan
• 13
• 5 – Scandinavia • 13 – Spain • 21 – Thailand

• 6 – Netherlands • 14 – Israel • 22 – Singapore

• 7 – Czech Republic • 15 – Zimbabwe • 23 – Australia

• 8 – Slovakia • 16 – India • 24 – New Zealand

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Intro

Introduction
“Ecolabelling” is a voluntary method of environmental tions providing third-party labelling. In many instances,
performance certification and labelling that is practised such labelling has taken the form of ecolabels awarded to
around the world. An “ecolabel” is a label which iden- products approved by an ecolabelling program operated
tifies overall environmental preference of a product or at a national or regional (i.e. multi-countries) level.
service within a specific product/service category ba- For further information and elaboration on ecolabelling
sed on life cycle considerations. In contrast to “green” strategies, issues and practices, consult the following
symbols or claim statements developed by manufac- references: www.gen.gr.jp/publications.html
turers and service providers, an ecolabel is awarded by
an impartial third-party in relation to certain products
or services that are independently determined to meet Global Ecolabelling
environmental leadership criteria.
WHAT IT IS
There are many different voluntary (and mandatory) en-
vironmental performance labels and declarations. The The Global Ecolabelling Network, GEN, is a non-profit
International Organization for Standardization (ISO) organisation comprising members from ecolabelling
has identified three broad types of voluntary labels, with organisations from all over the world.
ecolabelling fitting under the Type I designation. COUNTRY
Voluntary Environmental Performance Labelling -- GEN’s head office is in Canada.
ISO Definitions
Type I -- a voluntary, multiple-criteria based, third party
ORIGIN
program that awards a license that authorizes the use After the introduction of Germany’s Blue Angel as the first
of environmental labels on products indicating overall environmental label world-wide in 1978 other European
environmental preferability of a product within a particular and non-European countries followed this example and
product category based on life cycle considerations introduced their own national and supra-regional environ-
Type II -- informative environmental self-declaration claims mental labels.
Type III -- voluntary programs that provide quantified In 1994, some countries united to form the Global Ecola-
environmental data of a product, under pre-set categories of belling Network (GEN) - a non-profit interest group com-
parameters set by a qualified third party and based on life posed of eco-label organisations throughout the world.
cycle assessment, and verified by that or another qualified GEN fosters information exchange about national eco-la-
third party bel activities around the world. International co-ordination
Further, the ISO has identified that these labels share is to promote a progressive development of eco-label pro-
a common goal, which is:”...through communication of grammes in the individual states, especially in those coun-
verifiable and accurate information, that is not mislea- tries which still wish to introduce an eco-labelling system.
ding, on environmental aspects of products and servi- Currently, the 28 GEN member organisations include
ces, to encourage the demand for and supply of those organisations from Belgium, Brazil, China, Denmark,
products and services that cause less stress on the envi- Germany, Greece, United Kingdom, Hong Kong (Spe-
ronment, thereby stimulating the potential for market- cial Administrative Region), Hong Kong (HKFEP), India,
driven continuous environmental improvement.” Israel, Japan, Canada, Korea, Croatia, Luxembourg, New
The roots of ecolabelling can be found in growing glo- Zealand, Norway, Hungary, Spain, Sweden (SIS), Sweden
bal concern for environmental protection on the part of (SSNC), Sweden (TCO), Zimbabwe, Thailand, Czech Re-
governments, businesses and the public. As businesses public, United States of America.
have come to recognize that environmental concerns
may be translated into a market advantage for certain OBJECTIVE
products and services, various environmental declara-
The organisation was formed in 1994 with the aim of im-
tions/claims/labels have emerged on products and with
proving and developing ecolabelling worldwide. Throu-
respect to services in the marketplace (e.g. natural,
gh GEN, the various national organisations exchange
recyclable, eco-friendly, low energy, recycled content,
etc.). While these have attracted consumers looking for information and offer each other technical assistance.
ways to reduce adverse environmental impacts throu-
gh their purchasing choices, they have also led to some CONTENT
confusion and scepticism on the part of consumers. The common goal of these labels is to inform consu-
Without guiding standards and investigation by an inde- mers about environmentally friendly products thereby
pendent third party, consumers may not be certain that giving global support to a product-related environ-
the companies’ assertions guarantee that each labelled mental protection.
product or service is an environmentally preferable alter-
native. This concern with credibility and impartiality has Referencias
led to the formation of both private and public organiza- www.gen.gr.jp

111
1 Intro

Iniciativas de selos CANADA

ecológicos no mundo ECOLOGOM (1988)
Environmental Choice Program (ECP).
ECP is the second oldest world environmental standard and
certification organization, just after German Blue Angel.
The program is managed and controlled by TerraChoice
Environmental Marketing Inc., a private company.
GERMANY 3000 products from 120 categories.
Websites: www.environmentalchoice.ca/
www.terrachoice.com
FEDERAL ENVIRONMENTAL AGENCY
Site: www.blauer-engel.de CHINA

AUSTRALIA
HUAN” (193)
Environmental Protection Administration Chinês.
Certification criteria for 51 product groups. Over 12,000
products from 2,000 companies.
ENVIRONMENTAL CHOICE (1991) Websites: www.zhb.gov.cn/english
“Environmental Choice Australia” was launched in 2001. english.sepa.gov.cn/
www.aela.org.au/mrachina.htm
Good Environmental Choice Australia Ltd
Certification criteria for 20 product groups.
COREIA
Website: www.aela.org.au/homefront.htm

austria
KOREA ECO-LABEL (1992)
An initiative from the government of the Republic of Korea.
Controlled and organized by the Korea Environmental
UMWELTZEICHEN-BÄUME (1990) Labeling Association (KELA).
Austria’s Environment Ministry. The label is granted mainly based on product life cycle
analyses.
The Consumer Information Association (für
Konsumenteninformation de Verein - VKI) manages and sets Certification criteria for 85 categories and approximately
the criteria. 700 products.
Criteria for 50 products. Website: www.kela.or.kr/english
Website: www.umweltzeichen.at
CROACIA
BRAzIL

ENVIRONMENTALLY FRIENDLY (1993)
Designed after the EU flower and German’s Blue Angel.
Ministry of Environmental Protection and Physical
QUALIDADE AMBIENTAL (1993) Planning, Environmental Protection Division and the
Brazilian Association of Technical Standards (ABNT), in Department for EU Integration and International Projects of
cooperation with the government. The label is granted based Croatia
on product life cycle analyses. Used by 12 manufacturers in 26 product categories.
Website: www.abnt.org.br Website: www.mzopu.hr/default.aspx?id=5145.

112
Intro 1

UNITED STATES CHINA

GREEN SEAL (1989)
Green Seal, independent, nonprofit, nongovernmental “GREEN LABEL” (2000)
organization, although its principles are similar to those of Controlled and granted by the Green Council (GC), a
national, government-supported standards systems. nongovernmental organization, in cooperation with the Hong
300 products from 31 categories. Kong Productivity Council (HKPC).
Website: www.greenseal.org Certification criteria for 35 product groups.
Website: www.greencouncil.org/
SLOVAKIA

HONG KONG FEDERATION
ENVIRONMENTÁLNE VHODNÝ VÝROBOK (1996) OF ENVIRONMENTAL PROTECTION (HKFEP)
Slovakian Environment Ministry. Nongovernmental organization. Certification criteria for 16
29 products from 21 groups bear the label. types of product.
Website: www.sazp.sk/public/index/go.php?id=785 Website: www.greencouncil.org/

SPAIN HUNGARy

AENOR MEDIO AMBIENTE (1993)
Associación Espanola de Normalización y
Certificación (AENOR), an institution reporting KÖRNYEZETBARÁT TERMÉK (1994)
to the Spanish Ministry for Industry and Energy. Ministry of the Environment and Regional Development.
The Spanish program is very similar to the French
program, which is controlled and managed by a standards The system is controlled and managed by the Hungarian
authority. standards organization.
11 product groups and 400 accredited products.
43 product categories and 270 products.
Website: www.aenor.es/desarrollo/certificacion/productos/
Websites: www.okocimke.kvvm.hu/public_
tipo.asp?tipop=2#1
eng/?ppid=2200000 ou www.kornyezetbarat-termek.hu/
angism.htm
PHILIPPINESS
INDIA

GREEN CHOICE PHILIPPINES (2001)
Initiative of the government of the Philippines, it is
controlled by the independent foundation Clean & Green ECOMARK (1991)
Foundation, Inc.
India is one of the few countries that grant its label to food
Website: www.epic.org.ph/product.htm products. Another specific characteristic is that the draft
criteria are disclosed.
FRANce Certification criteria for 16 types of products.
Website: envfor.nic.in/cpcb/ecomark/ecomark.html

“NF ENVIRONNEMENT” (1992) INDONESIA
Initiative of the French government in cooperation with the
French standards organization AFNOR.
This close cooperation system between the government and
the standards organizations are repeatedly adopted by other
ecolabeling programs. EKOLABEL INDONESIA
400 products under 10 licensed categories. Ministry of Environment
Website: www.afnor.fr/portail.asp?Lang=English Site: www.menlh.go.id

113
1 Intro

ISRAEL CZECH REPUBLIC

GREEN LABEL – THE STANDARDS
EKOLOGICKY SETRANY VYROBEK (1993)
INSTITUTION OF ISRAEL
Organized and controlled by the Environment Ministry Czech Environment Ministry
Committee and the Standard Institute of Israel (SII). (1993) One characteristic of the system is that the environment
Certification criteria for 11 product groups and a total of minister decides on the granting criteria for product groups.
approximately 82 licensed products. Criteria for 32 product groups and 75 companies.
Website: www.sii.org.il/siisite.nsf/Pages/GreenMark
Website: www.ekoznacka.cz/ENG/

JAPan
SINGAPORE

GREEN LABEL SINGAPORE (1992)
ECO MARK (1989)
Japan Environment Association (JEA), in cooperation with Singapore’s Environment Ministry.
the Ministry of Environment and a Japanese environmental Since 1999, it has been controlled by the Singapore
association. Environmental Council, a nongovernmental organization.
Japan was one of the first countries, together with Like India, the draft criteria are disclosed.
Germany, Scandinavia and Canada, to introduce
ecolabeling systems. Certification criteria for 35 product groups.
Certification criteria for 64 product groups and 5,000 Website: www.sec.org.sg/greenlabel_htm/greenlable_
products. frameset.htm
Website: www.ecomark.jp/english/
SWEDEN
NETHERLANDS
MILJÖMÄRKT
THE WHITE SWAN” (NORDIC SWAN LABEL)
(1989)
Nordic Council of Ministers, a multinational body comprised
MILIEUKEUR (1992) by Sweden, Norway, Finland, Iceland and Denmark.
Ministry of Environment and Economics, in cooperation Criteria have been set for 60 product groups and 630
with Stichting Milieukeur, a private organization. Stichting products.
Milieukeur is responsible for setting the criteria and
monitoring. Since 1995, the program has also included Website: www.svanen.nu/Eng/
environmental criteria for agricultural products.
Criteria for 35 product groups and 300 licensed products,
not including food products.
Website: www.milieukeur.nl
www.milieukeur.nl/nl-NL/default.aspx BRA MILJÖVAL (1992)
Swedish Society for Nature Conservation (SSNC), Sweden
NEW ZEALAND NGO since 1987.
Like the American label Green Seal, it is not a national
label as it is not a governmental initiative.
ENVIRONMENTAL CHOICE At the same time, Sweden has also launched its “White
NEW ZEALAND (1990) Swan” label.
New Zeland’s Environment Ministry. The two programs coexist in a healthy competition.
Accomplished and controlled by Terlac, an authority Product criteria for 13 product groups.
responsible for technical tasks, quality systems, accreditations
and certification. Website: www.snf.se/bmv/english-more.cfm
There are 120 licensed products within 25 categories.
Website: www.enviro-choice.org.nz

114
Intro 1

TCO (SWEDISH
CONFEDERATION OF
PROFESSIONAL EMPLOYEES)
It is a nongovernmental initiative.
TCO 99 is an upgraded version of successful labels such as
TCO 92 and TCO 95.
Label for particularly efficient, easy-to-use and
environmentally friendly computers.
Website: www.tcodevelopment.com

TAIWAN

GREEN MARK (1992)
Environmental Protection Administration (EPA). Managed by
the Environment and Development Foundation.
Certification criteria for 1,300 products within 84 categories.
Website: www.greenmark.epa.gov.tw/english/index.asp
www.greenmark.org.tw/

THAILAND

GREEN LABEL: THAILAND (1994)
Thailand Environment Institute (TEI), in association with the
Ministry of Industry.
Certification criteria for 32 product groups and 150
products.
Website: www.tei.or.th/bep/GL_home.htm

UKRAINE

THE PROGRAM FOR DEVELOPMENT OF
ECOLOGICAL MARKING IN UKRAINE
Living Planet
Site: www.ecolabel.org.ua/

EUROPEAN UNION

European Commission - DG ENVIRONMENT
Website: http://europa.eu.int/comm/environment/
ecolabel/index.htm
Department for Environment, Food and Rural Affairs(Defra)
European Union Ecolabel Award Scheme
site : www.defra.gov.uk/environment/consumerprod/ecolabel/
index

115
2 Bra Miljöval

Bra Miljöval
The ecolabelling also includes the internationally introdu-
ced labelling system of TCO ‘95 and ‘99 on computers.

STEP BY STEP
Every product affects the environment in several ways
during the different phases of its life cycle. We must
consider how the raw materials are extracted (or what
is consumed in providing a service). 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
WHAT IT IS is usually called a life cycle analysis.
Bra Miljöval is the ecolabel of SSNC- Swedish Socie-
ReferencE
ty for Nature Conservation - SSNC. It is referred to as
“Good Green Buy” or “Good Environmental Choice”. www.snf.se/bmv/english.cfm

COUNTRY
Suécia

ORIGIN
SSNC started ecolabelling in 1988. The SSNC is
Sweden’s largest democratic environmental organisa-
tion, and at the same time nature’s defence advocate
and green consumer ombudsman. Is the biggest na-
ture 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, or en-
vironmental ombudsman. The work is divided among
273 local groups and 23 county associations around
the country.

ObjeCtivE
Decisions on whom to contract and what to buy due
to environmental aspects, are important as a driving
force towards sustainability. Greening Office Project
helps to put up relevant environmental criteria for
procurement purposes.

CONTENT
The Swedish Society for Nature Conservation is curren-
tly involved in eco-labelling products in thirteen different
criteria groups: Laundry detergents • stain removers and
bleaches • cleaners • toilet cleansers • dishwasher deter-
gents • washing-up detergents • soap and shampoos • pa-
per • nappies and similar products • textiles • electricity
supplies • passenger transport • goods transport.

116
Blue Angel 3

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. As a result, it fits in well with the com-
petition for the best possible ecological properties of pro-
ducts and services.
The benefits of the Blue Angel for consumers are clear:
they are given practical guidance to help them considera-
bly in their selection and their decisions on what to buy.
WHAT IT IS The Blue Angel provides much of what consumers want.
The Blue Angel (Blauer Engel) is a German certification For example, the Blue Angel helps consumers to save mo-
for products and services that have environmentally ney because they decide to buy products with an excellent
friendly aspects. The Blue Angel is the first and oldest quality and a long service life – or by simply saving energy.
environment-related label in the world for products the Blue Angel promotes the concerns of both environ-
and services. mental protection and consumer protection. Therefore it
is awarded to products and services which are particularly
COUNTRY beneficial for the environment in an all-round considera-
Alemanha tion and which also fulfil high standards of occupational
health and safety and fitness for use.
OrigIN
CONTENT
The certificate has been awarded since 1978 by the
Jury Umweltzeichen, a group of 13 persons from en- Now, about 3,700 products and services in 80 product
vironment and consumer protection groups, industry, categories bear the Blue Angel
unions, trade, media and churches.
Results
It was created in 1977 on the initiative of the Federal
After the introduction of Germany’s Blue Angel in
Minister of the Interior and approved by the Ministers
1978 as the first world-wide environmental label, other
of the Environment of the national government and the
European and non-European countries followed this
federal states.
example and introduced their own national and supra-
The Blue Angel environmental label is the property of the regional environmental labels. The common goal of
Federal Ministry of the Environment, Nature Protection these labels is to inform consumers about environmen-
and Nuclear Safety. It is sponsored and administered by tally friendly products thereby giving global support to
the Federal Environmental Agency and the quality as- product-related environmental protection.
surance and product labelling institute RAL Deutsches
In 1994, some countries cooperated in developing the
Institut für Gütesicherung und Kennzeichnung e.V. All
Global Ecolabelling Network (GEN) - a non-profit inte-
technical demands placed on products and services for
rest group composed of eco-label organisations throu-
the award of the Environmental Label are decided by the
ghout the world.
independent Environmental Label jury. The award of the
Blue Angel is entrusted to the RAL Deutsches Institut für The success story of the Blue Angel has now continued
Gütesicherung und Kennzeichnung e.V. – with the par- for almost 30 years. About 3.600 products and servi-
ticipation of the Federal Environmental Agency and the ces from approximately 580 label users in Germany and
federal state in which the manufacturer or supplier of abroad are entitled to bear the Blue Angel.
the respective product or service has its registered office.
The Federal Environmental Agency is responsible, among ReferencE
other things, for the development of requirements for the
en.wikipedia.org/wiki/Blue_Angel_(certification)
award of the Blue Angel – and the Environmental Label
jury has its office in the Federal Environmental Agency. www.blauer-engel.de/willkommen/willkommen.htm

117
4 Bio-siegel

Bio-siegel

WHAT IT IS
“Bio-siegel” is the label granted by the Federal Ministry
for Consumer Protection to organically grown agricul-
tural products and foods.

Country
Germany

content
These products must comply with the provisions of the EU
Organic Farming Regulation (2092/91).

STEP BY STEP
The attainment of Bio-siegel label is a hard task for the
companies willing to bear it, for it determines tight
control over the production, processing and sale of
agricultural foods, which is carried out annually and
encompass all the phases between production and pa-
ckaging.
The interest of the population for this label has increa-
sed considerably in recent years, due to “scandals” re-
lated to foods that posed risks to public health. These
products now go through a strict control, including:
- Ban on irradiation of organic food.
- Ban on genetically modified organisms.
- Renouncement of crop protection with synthetic
chemicals.
- Renouncement of mineral fertilizers of low solubility.

In addition, they must comply with several require-
ments, such as:
- Appropriate livestock husbandry.
- Organically produced feeding stuffs for feeding of livestock
with no antibiotics or growth promoters added.
- Diversified wide crop rotations.

REFERENCE
www.bio-siegel.de

118
KRAV 5

KRAV STEP BY STEP
The KRAV-label is a registered brand. Only the com-
panies that have signed a contract with KRAV and are
authorized by KRAV may use the name KRAV or the
KRAV-label on a product. The label shall always be ac-
companied by the name of the producer.
Every three years the standards are revised, taking into
account the information and opinion of all stakehol-
ders. The content and formulation are defined by the
Krav Standards Committee. The final decision is made
by the Board of Directors.
WHAT IT IS
Production outside Sweden should be certified by a
Ecolabel that ensures the food is organic, that is, gro- certification body which KRAV has an agreement with,
wn without the use of artificial fertilizers and chemical preferably an IFOAM-accredited certification body.
pesticides.
Results
COUNTRY
Krav certifies hundreds of products. All certified pro-
Sweden ducts are published on the website (only in Swedish):

ORIGIN www.krav.se/produktlista/

KrKrav is an active member of IFOAM – Internatio- Referências
nal Federation of Organic Agriculture Movements, an www.krav.se/espanol.asp
umbrella organization which gathers organizations for Standards: arkiv.krav.se/arkiv/regler/senasteEnglish
farmers, scientists, educationalists and certifiers from
almost every country in the world.
It takes an active part in developing the Ifoam standar-
ds and also works to influence the EU organic produc-
tion legislation. KRAV also works closely with Grolink
AB, which specializes in consultancy work in develo-
ping countries, such as establishing certifying organi-
zations.
The organization has 28 members, who represent far-
mers, processors, trade, and also consumer, environ-
mental and animal welfare interests.

ObjeCtivE
Krav is a key player in the organic market in Sweden.
Krav is authorized by the Swedish National Board of
Agriculture and the Swedish National Food Adminis-
tration to carry out inspection of organic production
in Sweden.

CONTENT
Note: Krav standards ban the use of GMOs and GMO
raw materials in certified products.
Standards available at http://arkiv.krav.se/arkiv/regler/
senasteEnglish.pdf.

119
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.
• The Swan takes into consideration the product’s impact
on the environment from the raw material to waste i.e.
throughout the product’s lifecycle.

• The Swan also sets criteria with regard to quality and
performance. The product must offer at features which are
at least as good as other similar products.

• To ensure that a Swan-labelled product is always at the
WHAT IT IS cutting edge from an environmental point-of-view, criteria
are revised repeatedly.
A product carrying the Swan label meets extremely
high environmental standards.
STEP BY STEP
COUNTRY The Swan checks that products fulfil certain criteria
using methods such as samples from independent la-
Suécia
boratories, certificates and control visits. The label is
usually valid for three years, after which the criteria are
ORIGIN
revised and the company must reapply for a licence. In
The Swan is the official Nordic ecolabel, introduced by this way, we ensure that products better suited to the
the Nordic Council of Ministers. In 1989, the Nordic environment are constantly being developed. Compa-
Council of Ministers decided to introduce a common, nies applying for a licence to use the Swan label must
official environmental label in Nordic. The Swan was provide results from independent testing to prove that
chosen as a symbol, a variation on the logo of the Nor- the criteria have been met.
dic Council of Ministers.
Results
The Nordic countries work together using the Swan eco-
label. This work is co-ordinated by the Nordic Ecolabelling
RefereCE
Board, NMN, which has produced a set of regulations.
www.svanen.nu/Eng/
NMN determines which products can be covered by
the Swan and the criteria they must meet. Decisions
taken by NMN must always be unanimous. Groups
of experts from the Nordic countries develop propo-
sals for criteria. The group representatives come from
government, environmental organisations, trade and
industry. Before NMN finalises the proposals, they
are sent out for review. Once a criteria document has
been finalised, businesses can apply for the right to
use the label on a product which falls into this cate-
gory. The national offices manage licence applications
and grant licences.

ObjeCtivE

The Swan logo demonstrates that a product is a good
environmental choice. “Choose products displaying the
Swan label,and take a step towards a better environment!”

120
UE Flower 7

UE Flower Product groups
• 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
WHAT IT IS
• Washing-up Liquid
Ecolabel that distinguishes and tests greener, more en- • Tourist Accommodation
vironmentally friendly, products (not including food
• Furniture
and medicine). The services or products that bear this
label are high quality and economical. • Hard Floor Coverings
• Television
COUNTRY • Vacuum Cleaners
• All Purpose Cleaners
European Union

STEP BY STEP
ORIGIN
The EU Eco-label scheme has drawn up a set of environ-
The EU ecolabel is managed by the European Union
mental and performance criteria for judging products.
Eco-labelling Board (EUEB), and is supported by the
Only if products meet all the criteria can they be awar-
European Commission, the Member States of the Euro-
ded the EU Eco-label. These environmental criteria will
pean Union, and the European Economic Area (EEA).
take into account all aspects of a product’s life, from its
The European Union Eco-labelling Board consists of
production and use to its eventual disposal (cradle-to-
representatives of consumer and environment NGOs,
grave approach).
trade unions, industry, SMEs and commerce.

Results
ObjeCtivE
Twenty-three different product groups currently exist
It aims to provide simple and accurate guidance to con-
for the Eco-Label. Over 250 certificates have been
sumers. All products bearing the “Flower” have been
awarded to hundreds of products.
checked by independent bodies for complying with
strict ecological and performance criteria.
ReferENCE
ContENT http://www.eco-label.com/french/
The EU Eco-label scheme is open to any product or ser-
vice, except food, drink, pharmaceuticals and medical
devices. There are currently twenty-three product cate-
gories which can receive this award, ranging from tourist
accommodation service, home appliances, cleaning ma-
terials, and mattresses to office supplies, gardening and
Do It Yourself products.

121
patrocínio

patrocínio cultural lei rouanet

apoio institucional