Transcript Economics as if People Mattered

Genuine Progress Index for Atlantic Canada
Indice de progrès véritable - Atlantique
The Heart and Stroke Foundation of New Brunswick
6th Workplace Wellness Conference
Economics as if People Mattered
1.
As we enter the new
millennium:
How are we doing as Canadians?
•Are we better off or worse off than our parents?
•Are our communities safer and stronger?
•Are we healthier and wiser?
•Are our jobs and livelihoods more secure?
•Are our air and water cleaner?
•Are our natural resources healthier?
•Are we leaving Canada a better place for our
children?
What kind of world are we
leaving to our children?
We have more “stuff”……BUT
The natural world -- some disturbing
signs:
•Less fish in the oceans
•Fewer old forests
•Depleted soils
•Fewer species of animals and plants
•Are we leaving our children a poorer natural world?
•A dangerously warming world?
What kind of world are we
leaving to our children?
… And some disturbing socio-economic
signs:
•A more insecure world -- less safe, more fearful
•Declining job security and real incomes for many
•Greater inequality and more child poverty
•Higher rates of stress, obesity, childhood asthma
•Voluntary activity declining
•Is this progress……..?
Economics as if People
Didn’t Matter
We currently measure how well off we
are as a society by how fast the
economy is growing.
The language of health: A growing
economy is “robust” “healthy”
“dynamic.”
If people spend less money, consumer
confidence is “weak.”
If economy shrinks, we have a
Current Measures of
Wellbeing Based on GDP:
 Count crime, war, sickness, pollution,
addiction and stress as contributions to
economic growth and prosperity.
• Count the depletion of our natural
resources as gain. The more trees we cut
down, the more fish we catch, the more
fossil fuels we burn, the faster the economy
will grow.
Current Measures of
Wellbeing
• Ignore the value of voluntary work
and unpaid household work.
• Count longer work hours as
contributions to economic growth
and prosperity.
• Ignore the value of free time.
• Assign no value to health, security,
wisdom, environmental quality or
strong communities.
Current Measures of
Wellbeing
• Give no value to equity: The economy
can grow even as inequality and
poverty increase = 1990s
• In sum: Make no distinction between
economic activities that create benefit
and those that cause harm: Misleading
signals to policy makers
• “More” is always “better” when GDP is
used to measure wellbeing
This impacts workplace
wellness
• Measuring success materialistically
(income, possessions, “getting ahead”)/
working poor
• Both lead to culture of long hours, dual
earners, women’s double burden of paid +
unpaid work
• In turn leads to stress, loss of free time,
less time with children, physical inactivity,
obesity (StatCan), voluntary activity down
4% in N.B.
Total Work Hours, Couple with
Children, Canada, 1900 and
2000
1900
2000
Male, paid work
58.5
42
Female, paid work
--
36.5
Male, unpaid work
N.A.
22.4
Indicators are Powerful
 What we measure:
- reflects what we value as a society;
- determines what makes it onto the policy
agenda.
 E.g.: Family-friendly work arrangements (cf
Scandinavia)
 E.g.: Voluntary work decline
 Analogy of student assignments
All that is economics as if
people didn't matter.
Robert Kennedy:
“Too much and too long, we have surrendered community
excellence and community values in the mere
accumulation of material things....The (GDP) counts air
pollution and cigarette advertising and ambulances to
clear our highways of carnage. Yet the gross national
product does not allow for the health of our children, the
quality of their education, or the joy of their play. It
measures neither our wit nor our courage; neither our
wisdom nor our learning; neither our compassion nor
our devotion to our country. It measures everything, in
short, except that which makes life worthwhile.”
There is a better way!
Four hundred leading economists,
including Nobel Laureates, said:
“Since the GDP measures only the quantity
of market activity without accounting for
the social and ecological costs involved, it
is both inadequate and misleading as a
measure of true prosperity....New
indicators of progress are urgently
needed to guide our society....The
Genuine Progress Index (GPI) is an
important step in this direction.”
ECONOMICS as if PEOPLE
MATTERED
• GPI Atlantic founded 1997 to address that
need: independent non-profit.
• Mandate: Create better measures of
progress
• Nova Scotia pilot project for Canada,
working closely with Statistics Canada
• Can provide more accurate and
comprehensive measures of workplace
wellness
Measuring Genuine Progress
In the Genuine Progress Index (GPI):
1 Natural resources are seen as capital
assets subject to depreciation and
requiring re-investment.
2 Crime, sickness, disasters and
pollution clean up are counted as
costs rather than contributions to
well-being.
3 Voluntary work, unpaid household
work, free time, health, educational
attainment are valued.
Measuring Genuine Progress
In the Genuine Progress Index (GPI):
4 Reductions in greenhouse gas
emissions, pollution, crime, poverty,
ecological footprint are signs of
genuine progress that make the index
rise. Unlike measures based on GDP,
"less" is sometimes "better" in the
GPI.
5 Growing equity makes the GPI go up.
Nova Scotia Genuine Progress Index: Twenty-two Components
Natural Capital:
• Soils and Agriculture
• Forests
• Marine Environment/Fisheries
• Water Resources / Water Quality
• Nonrenewable Subsoil Assets
Nova Scotia Genuine Progress Index: Twenty-two Components
Environment:
• Greenhouse Gas Emissions
• Sustainable Transportation
• Ecological Footprint Analysis
• Air Quality
• Solid Waste
Nova Scotia Genuine Progress Index: Twenty-two Components
Time Use:
• Value of Civic and Voluntary Work
• Value of Unpaid Housework &
Childcare
• Work Time and Underemployment
• Value of Leisure Time
= Vital issues for Workplace
Wellness
Nova Scotia Genuine Progress Index: Twenty-two Components
Socioeconomic:
• Income Distribution
• Debt, External Borrowing and Capital
Movements
• Valuations of Durability
• Composite Livelihood Security Index
Nova Scotia Genuine Progress Index: Twenty-two Components
Social Capital:
• Health and Wellness (5 reports)
• Educational Attainment
• Costs of Crime
• Human Freedom Index
Work to Date
• 35 full reports: 13 of 22 components
complete
• Community GPI (two rural
communities)
• Beyond Nova Scotia
– National Round Table, Health Canada
– Alberta, Saskatchewan,
Newfoundland, BC
– Replications (e.g. Cost of Obesity in
Partnerships
• Statistics Canada, Environment Canada,
National Crime Prevention Centre, Canadian
Population Health Initiative, HRDC, many
community groups
• Dalhousie Univ. Population Health Research
Unit
• St. Mary’s University Time Use Research
Program
• Maritime Centre of Excellence for Womens
Health
Examples of GPI Results for
NB:
Valuing Voluntary Work
• New Brunswickers contribute 105 million
hrs/yr
• Equivalent of 55,000 full-time jobs
• Services worth $1.4 billion / year, invisible
in our conventional measures of progress
• 1990s: voluntary work down 4% - time
stress
Valuing Equity:
GDP tells us
how much income, but not how income is
shared:
Disp. Income: Richest 20% : Poorest 20%
1990
1998
7.1
8.5
Canada
N.S.
6.2
8.5
Quebec
6.9
7.9
Ontario
7.1
8.3
N.B.
6.1
7.0
Alberta
7.4
10.4
B.C.
7.6
8.0
NBBC
Cost of Obesity in New
Brunswick
• Overweight rates up 2.5 times since
1985
• 41% have BMI >27, highest in Canada
(29%), compared to 16.5% (1985);
youth rates double
• = 750 preventable deaths/year =
3,000 PYLL
• Health care direct cost = $96 million
= 7.5%
Other Risk Factors in
N.B.
• 1/2 exercise regularly (3+ times per week);
27% never exercise or exercise < 1x / week
• Average 3 hours 23 minutes TV / day
• Eat out more; spend 28% less time
preparing food than 1992
• More than 25% = high levels chronic stress
Costs of Second-Hand
Smoke in the Workplace
• 30% of Nova Scotians smoke, the highest rate
of any province in the country (CTUMS
2000).
• 38% of 20-44 year olds smoke.
• 42% of children under 12 are regularly
exposed to environmental tobacco smoke
(ETS) in the home.
• 24% of Nova Scotians are exposed to ETS at
work.
“The Deadly and Costly Effects of
Smoking”
• Smoking kills 1650 Nova Scotians a year
• Smoking costs NS $168 million/year in health
costs
• Second-hand smoke kills 200 Nova Scotians a
year,(140 from heart disease, 60 from cancers).
• Second-hand smoke costs $21 million a year in
health costs and $57 million in productivity
losses
The Deadly Effects of ETS
• ETS causes heart disease, lung
cancer, nasal sinus cancer and
respiratory ailments in adults.
• ETS causes sudden infant death
syndrome, fetal growth impairment,
bronchitis, pneumonia, middle ear
disease and asthma exacerbation in
infants and children.
Recent Research Also Shows:
• ETS has been linked to cervical and
breast cancer, stroke, and
miscarriages in adults; and to asthma
induction, decreased lung function,
cystic fibrosis, and cognition and
behaviour problems in children
Restaurant, Bar and Casino
Workers Most at Risk
• In restaurants, second-hand smoke levels are twice as high
as in other workplaces without smoke bans. In bars and
casinos they are 3-6 times as high.
• Food service workers have a 50% higher rate of lung
cancer than the general population.
• Excess mortality for workers in smoking lounges, bars,
restaurants, casinos and bowling alleys is 15-26 times
higher than OSHA’s “significant risk” level.
• “Establishment of smoke-free bars and taverns was
associated with a rapid improvement of respiratory
health….” Eisner, 1998
Costs of Second-Hand Smoke,
NS, 1999
• Deaths
200
• Potential years of life lost 2,900
• Hospitalizations
• Hospital Days
1,400
15,000
Direct Health Care Costs of
ETS ($1999 mill.)
• Hospitals
15.2
• Ambulance Services
0.3
• Physician fees
1.5
• Prescription Drugs
3.2
• Other Health Care Costs
0.3
• Total Direct Health Care Costs
20.5
Indirect Costs of ETS
($1999 millions)
• Productivity loss (sickness)
0.7
• Productivity loss (mortality) (6% discount rate)
57.1
• TOTAL COST TO ECONOMY
77.6
• Sources: Costs based on Canadian Centre for Substance Abuse, The
Costs of Substance Abuse in Canada, Colman, The Cost of Tobacco in
Nova Scotia, pages 15-20, and mortality rates in Glantz and Parmley,
(1995), op. cit., and Steenland, (1992),op. cit..
Smoke-Free Workplaces Will Save
Lives and Money
• 80% of ETS exposure is in the workplace.
• Smoke-free workplaces cut cigarette
consumption among smokers by 20%.
• Smoke-free workplaces can save 400-500
lives a year, $50 million in avoided health
costs, and $150 million in avoided
productivity losses.
And savings to employers:
• It costs Canadian employers $2,280 more to
employ a smoker compared to a non-smoker.
Conference
Board of Canada
• Smoke-free workplaces can save NS employers
$25 million a year in avoided absenteeism and
smoking areas costs, and lower insurance
premiums.
• “Strong economic incentives exist for rapid
adoption of smoke-free workplaces.”
American College of Occupational and Environmental
Medicine
Are Smoke Bans Bad for
Business?
• Without exception, every objective study using actual
sales data finds that smoke-free legislation has no
adverse impact on restaurant, bar, hotel and tourism
receipts. (Studies conducted in California, Colorado,
Massachusetts, New York, Arizona, Texas, Utah, Vermont, North
Carolina, and British Columbia.)
• Two of the 16 studies found an initial decline in
receipts in the first 1-2 months following enactment,
but no overall or aggregate decline in the longer term.
• Several studies find smoke-free legislation is good for
business as non-smokers eat and drink out more
often.
The Researchers Conclude:
– “Legislators and government officials can enact
health and safety regulations to protect patrons
and employees in restaurants and bars from the
toxins in secondhand tobacco smoke without fear
of adverse economic consequences.... these data
further discredit tobacco industry claims that
smoke-free bar laws are bad for the bar business.
Quite the contrary, these laws appear to be good
for business.”
Glantz 1997 and 2000 (California)
The Evidence Clearly Shows:
• Second-hand smoke causes heart disease, cancer and
respiratory illness. Smoke-free workplace legislation will save
the lives of hundreds of Nova Scotians, prevent serious
illnesses, and save $200 million in avoided health costs and
productivity losses.
• Restaurant, bar and casino workers are exposed to the highest
levels of ETS and have the greatest health risks.
• Designated non-smoking areas and ventilation do not work.
Only 100% smoke-free environments protect
employees/patrons.
• Smoke-free legislation will not harm restaurant, bar, hotel and
tourism sales, and may be good for business.
Valuing Natural Capital
For example, forest functions / values include:
• Preventing soil erosion/sediment control
• Protecting watersheds
• Climate regulation/carbon sequestration
• Providing habitat for wildlife / biodiversity
• Recreation, tourism, aesthetic quality
• Providing timber
% Forest Area by Age Class, NS 1958-99
40
35
30
25
20
15
10
5
0
Up to 20
21 to 40
1958
1975-82
41 to 60
61 to 80
1976-85
81 to 100
1979-89
101+
1995-99
Clearcut harvesting and loss of age and
species diversity in NS have resulted in
the loss of:
 valuable species
 wide diameter, clear lumber - fetch
premium prices
 resilience and resistance to insect
infestation
 wildlife habitat, - decreasing populations
of birds
 forest recreation values that impact nature
tourism
 valuable old-growth dependent medicinal
And:
 a decline in forested watershed protection
and a 50% drop in shade-dependent brook
trout
 soil degradation and the leaching of
nutrients that can affect future timber
productivity
 a substantial decline in carbon storage
capacity and an increase in biomass carbon
lossrepresents a substantial depreciation
This
•
of a valuable
natural
capital
asset.
a decline
in other
essential
forest
ecosystem services.
Ecological Footprint
Nova Scotia and Canada, 1961-1999
12
Hectare per Capita
10
8
6
Nova Scotia
Canada
Linear (Nova Scotia)
Linear (Canada)
4
2
0
1960
197 0
1980
1990
2000
Ecological Footprint Projections
Canada 1995-2020
12
Hectares per Capita
10
8
6
4
Energy Footprint
2
Other Footprint
Ecological Footprint
0
1990
1995
2000
2005
2010
2015
2020
2025
Can we do it?
Percentage Waste Diversion in Nova Scotia
60
% Diversion
50
40
30
20
10
0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Competitiveness
and Genuine Progress
Tonnes Disposed
per capita
Diversion Rate (%)
Waste Region
1989
1999/2000
1999/2000
Cape Breton
Eastern
Northern
Halifax
Valley
Sth. Shore/ W. Hants
Western
0.66
0.76
0.64
0.84
0.65
0.63
0.56
0.45
0.40
0.46
0.33
0.31
0.37
0.47
31
48
29
61
53
41
17
Total
0.71
0.38
47