Transcript Going Beyond GDP and Measuring Poverty Inna Šteinbuka Director, Social and Information Society Statistics Eurostat Summer Course, St Sebastian 5 July 2010 Outlines  Why going beyond.

Going Beyond GDP and Measuring
Poverty
Inna Šteinbuka
Director, Social and Information Society Statistics
Eurostat
Summer Course, St Sebastian 5 July 2010
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Outlines
 Why going beyond GDP?
 Key international and European initiatives in
measuring well-being and sustainable development
 European platform against poverty in the EU 2020
strategy
 Vulnerable groups of European population
 Measuring poverty and inequalities
 Multidimensional measuring of quality of life:
statistical challenges
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Life satisfaction and GDP per capita (PPS), 2007
9
8.5
DK
FI SE
NL
Life satisfaction
8
ES
FR BEUK
SI EU15 DE
CY
EU27 AT
PL
EE CZ EL IT
RO
SK
LT PO
LV
MT
7.5
7
6.5
6
NO
LU
IE
HU
5.5
5
BG
4.5
4
0
10000
20000
30000
40000
50000
60000
70000
80000
GDP per capita in PPS
Source: Eurostat, EU-SILC and Eurofound, EQLS 2007
Note: For readability, some country's labels have been slightly repositioned
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Going Beyond GDP: Recent initiatives
 Renewed EU Sustainable Development strategy in 2006
 OECD global project on measuring societies
(Istanbul declaration in June 2007)
 EU: Beyond GDP conference in Nov 2007;
« GDP and Beyond » communication in Sept 2009
 Commission on the measurement of
economic performance and social progress
(« Stiglitz-Sen-Fitoussi » report in Sept 2009)
 Europe 2020 strategy (First half 2010)
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Sustainable Development is an Overarching
Objective of the European Union
Stiglitz
GDP/beyond
recommendations
EU 2020
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The EU 2020 strategy - what is it about?
 Successor of the current Lisbon strategy
 ‘where the European Union should be in 2020’?
 An economy based on smart, sustainable (green) and
inclusive growth
smart = economy based on knowledge and innovation
sustainable = promoting a resource efficient, green
and competitive economy
inclusive = fostering high employment & social
cohesion
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The EU 2020 strategy: key initiatives
 The Commission is proposing 7 flagship initiatives:
1. Innovation Union
2. Youth on the move
3. A digital agenda for Europe
4. Resource efficient Europe
5. An industrial policy for the globalisation era
6. An agenda for new skills and jobs
7. European platform against poverty
 EU strategy sets measurable targets to be achieved by the
EU by 2020. The EU targets should be translated into national
targets and trajectories
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The EU 2020 strategy - common targets for 2020
1. 75% of the population aged 20-64 should be employed
2. 3% of EU’s GDP should be invested in R&D
3. The ‘20/20/20’ climate / energy targets should be met
4. The share of early school leavers should be under
10% and at least 40% of the younger generation
should have a tertiary degree
5. 20 million less people should be at risk of poverty
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Vulnerable groups of population
 The Council adopted (17/6/2010) the target of reducing by 20
million the number of persons at risk of poverty or social
exclusion
– At risk of poverty
• 16 % of the EU population
– Materially deprived
• 8 % of the EU population
– Being in a household with low work intensity:
• 9 % of the EU population
– NB: there are large overlaps between the three
dimensions
 Overall, it concerns 120 millions Europeans
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At risk of poverty, in % of the population
2008 At-risk-of-poverty rate
2008 At-risk-of-poverty threshold
30
18000
14000
20
12000
10000
15
8000
10
6000
4000
5
2000
0
0
CZ
IS
NL
SK
NO
DK
HU
AT
SI
SE
FR
LU
F
BEI
DE
M
T
IE
C
EU Y
27
PL
PT
EE
IT
UK
EL
ES
LT
BG
RO
LV
At-risk-of-poverty rate in %
25
At-risk-of-poverty threshold in PPS
16000
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At risk of poverty rates before and after social transfers
40
Before social transfers
After social transfers
35
30
25
20
15
10
5
IE
H
U
SE
K
O
D
FI
N
AT
BE
Z
SI
C
LU
K
FR
IS
U
E
L
N
D
PL
M
T
R
O
EU
27
PT
SK
LT
Y
C
EE
IT
BG
LV
ES
EL
0
Increasing effect
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Children at risk of poverty
35
Total population
30
Children(0-17)
25
20
15
10
5
More risk
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K
FI
D
Y
C
O
EE
N
SI
LV
E
IS
D
L
SE
N
IE
AT
BE
LT
EL
U
K
EU
27
FR
Z
ES
C
PT
PL
M
T
BG
IT
SK
U
LU
H
R
O
0
Less risk
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Material deprivation
 Those who experience at least 4 out of 9 deprivations:
people cannot afford
i) to pay their rent or utility bills,
ii) to keep their home adequately warm,
iii) to face unexpected expenses,
iv) to eat meat, fish, or a protein equivalent every second day,
v) a week of holiday away from home once a year,
vi) a car,
vii) a washing machine,
viii) a colour tv, or
ix) a telephone.
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Material deprivation
35,0
30,0
25,0
20,0
15,0
10,0
5,0
0,0
LU SE NL
DK ES
FI
MT UK EE DE FR
IE
BE
AT
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SI
CZ
IT
CY EU PT GR SK
LT
PL HU LV BG RO
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At-risk of poverty rates and material deprivation rates, 2008
At-risk-of-poverty rate (% of the population)
30
LV
25
RO
BG
20
ES
15
FI
UKEE
10
IT
EU15IE
BE MTDE
LU DK
SE
NO NL
IS
FR
AT
EL
LT
PO
EU27
PL NMS12
CY
SI
HU
SK
CZ
5
0
10
20
30
Material deprivation rate
40
50
60
(% of the population)
Source: Eurostat, EU-SILC
Note: For readability, some country's labels have been slightly repositioned
Enforced lack of 3 items or more
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Low work intensity (LWI)
 Those living in households exploiting ¼ or less of their
working capacities
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Low work intensity
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
CY LU SK LV
EE
LT
SE ES
SI
PT CZ
FI
GR NL DK AT MT FR BG RO
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IT
EU DE BE
PL
IE
UK HU
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80 million at-risk-of poverty
40 million materially deprived
47
11
19
61
18
22
120 million in vulnerable groups
8
3
14
19
For EU 27
43 million in low work intensity
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16 % at-risk-of poverty
8 % materially deprived
10 %
2%
4%
25 % in vulnerable groups
2%
1%
3%
4%
For EU 27
9 % in low work intensity
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16 % at-risk-of poverty
8 % materially deprived
10 %
2%
4%
25 % in vulnerable groups
2%
1%
3%
4%
9 % in low work intensity
For EU 27
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33 % materially deprived
24% at-risk-of poverty
8%
12 %
17 %
45 % in vulnerable groups
1%
3%
1%
3%
8 % in low work intensity
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For RO
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16 % at-risk-of poverty
8 % materially deprived
10 %
2%
4%
25 % in vulnerable groups
2%1%
3%
For EU 27
4%
9 % in low work intensity
33 % materially deprived
24% at-risk-of poverty
8%
12 %
17 %
45 % in vulnerable groups
3%
1%
1%
3%
in 2010
low work intensity
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July
For RO
22
10 % at-risk-of poverty
2 % materially deprived
7%
<1 <1 %
<1 %
<1 %
15% in vulnerable groups
2%
4%
For NL
7 % in low work intensity
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10 % at-risk-of poverty
16 % at-risk-of poverty
8 % materially deprived
2 % materially deprived
7%
10 %
2%
4%
<1 <1
% groups
15% in vulnerable
%
25 % in vulnerable groups
2%
2%1%
3%
<1<1 %
4%
For EU 27
For NL
7 % in low work intensity
4%
9 % in low work intensity
33 % materially deprived
24% at-risk-of poverty
8%
12 %
17 %
45 % in vulnerable groups
3%
1%
1%
3%
in 2010
low work intensity
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July
For RO
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17 % at-risk-of poverty
4 % materially deprived
11%
1%
4%
27 % in vulnerable groups
1% 1%
3%
7%
For UK
14 % in low work intensity
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16 % AROP
8 % MD
10 % AROP
2 % MD
10 %
2%
7%
4%
25 % in vulnerable groups
<1<1 %
<1 <1
% groups
15% in vulnerable
%
2%1%
2%
3%
4%
4%
9 % LWI
7 % LWI
EU 27
NL
UK
RO
17 % AROP
24% AROP
33 % MD
4 % MD
11%
1%
4%
8%
12 %
17 %
45 % in vulnerable groups
27 % in vulnerable groups
1 %1 %
3%
3%
1%
14 % LWI
7%
1%
3%
8 % LWI
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50,0
45,0
LWI
40,0
MD
35,0
AROP
30,0
25,0
20,0
15,0
10,0
5,0
0,0
EE LU ES SE FI MT CY DK IT DE PT GR LV NL FR BE SI EU LT UK AT IE CZ SK PL RO BG HU
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0%
100%
BG 75%
25%
50%
HU
SK
50%
PL
LT
CZ
75%
IE
UK
100%
0%
D
<M
<L
WI
RO
25%
50%
AROP >
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LV
SI PT CY
AT
EU GR
FR
IT
BE DE MT
FI
NL DK SE
75%
25%
EE
ES
LU
0%
100%
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Eurostat-INSEE Project on Measuring Progress,
Wellbeing and Sustainable Development
Focus: building strategic consensus on measuring
sustainability among producers of statistics
Scope:
1. Households perspective and distributional aspects of
income, consumption and wealth. Measuring
inequalities
2. Environmental sustainability
3. Multidimensional measures of quality of life
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Households Perspective and Distributional
Aspects of Income, Consumption and wealth
 Promoting already existing information on NA
 Using the household survey to provide macro-economic
information on the distribution of income, consumption
and wealth
 Fostering the compilation of the balance sheets
accounts of households
 Broaden income measures to non market domestioc
activities
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Environmental Sustainability
 Revising sustainable development scoreboard with
focus on the indicators of environment sustainability
 Complementing NA with integrated environmental
economic accounts
 Linking NA and energy accounts
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Quality of Life – What Should be Measured?
Multidimensional definition of quality of life
 Material living standards (income, consumption and wealth)
 health,
 education,
 personal activities (paid work, unpaid domestic work,
commuting, leisure, housing),
 political voice and governance,
 social connections,
 environmental conditions,
 personal insecurity,
 economic insecurity.
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Europe 2020
Stiglitz
Commission
Recommendations
Poverty and social inclusion
At risk of poverty
Material deprivation
Low work intensity HH
Education
Early school leavers
Tertiary attainment
Labour Market
Employment rates
Qol
GDP & Beyond
QoL & Well being
Social indicators
Distributions and inequalities
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Quality of Life: Statistical Challenges
 Establishing objective indicators of quality of life on
the basis oh household surveys and relevant
administrative sources
 Assessing the life inequalities
 Aggregating the different inequality dimensions
(composite indicators)
 Measuring subjective well-being
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Thank you for
attention
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