Vol. 7, Manuscript ID es20240008, p. 01-27,
2024
Doi: https://doi.org/10.32435/envsmoke-2024-0008
Environmental Smoke, e-ISSN:
2595-5527
“A leading multidisciplinary
peer-reviewed journal”
Full
Article:
HOW TO MEASURE THE
WELL-BEING OF A NATION: A NEW PROPOSAL BASED ON A MULTIDIMENSIONAL APPROACH
Roberto Daffinà1* (https://orcid.org/0009-0005-8851-590X)
1Italian Institute for Environmental Protection and Research, ISPRA (Istituto Superiore per
la Protezione e la Ricerca Ambientale), Rome, Italy.
*Corresponding author: roberto.daffina@isprambiente.it
Submitted
on: 03 Sep. 2024
Accepted
on: 06 Oct. 2024
Published
on: 24 Oct. 2024
License:
https://creativecommons.org/licenses/by/4.0/
Abstract
Measuring the well-being of a
nation means identifying all the tools that enable its individuals to live well
without worsening the lives of their neighbours or those to come
in the future. For many years, the focus has been solely on the economic
dimension, creating critical problems in the social and environmental spheres
that will take years and large investments to remedy. This article gives an
overview of the measurements used over the years in the international arena by
recognised and respected bodies. The application of these indicators to the
realities of countries has made it possible to identify models to be followed in order to enable the growth of the well-being of societies
as a whole.
Keywords: Economic
dimension. Environmental. Virtuous countries. Gross Domestic Product. Social
welfare. Sustainable development. Circular economy.
Introduction
All living beings seek to be well in the
environment in which they live and try to gain satisfaction from the activities
they do throughout their lives. To place a value on each
individual's well-being, it is necessary to analyse subjective aspects
peculiar to each lived experience and objective aspects valid for the whole
community. These evaluations must be contextualized within a broader family and
social sphere in order to obtain collective
evaluations (VANDERWEELE et al.,
2020).
Through this thesis, the
evolution that the research world has made over time to measure these aspects
of societies has been represented. From the earliest economic assessments of
state property, there has been a move to a complex and standardized system of
national accounting that has seen the emergence of quantitative synthetic
indicators that have conditioned countries' decisions for several years
(DELSIGNORE et al., 2023).
An ever-changing economy,
which did not adjust its measurements as fast as the production of goods and
services changed, found itself many times uncovered in front of very large
decreases. Adjustments to these measurement methodologies have been proposed
over the years to try to synthesize economic reality in the best way, adding as
much information as possible. An economic reality that has heavily impacted all
other aspects of social living (MANAGI et al., 2024).
Measuring the collective well-being of a purely agrarian society
requires a different instrument than that used for industrialised societies or
for tertialised societies with a strong technological drive. One cannot think
of measuring such different realities with the same indicator and one cannot
think that a single value can adequately represent complex structures that have
several dimensions to evaluate. The economic dimension must be accompanied by a
social and environmental assessment in order to have a
balance between all the components of human living (LIBÓRIO et al., 2022).
One-dimensional solutions (economic, environmental or subjective) or
multi-dimensional solutions (economic-social-environmental,
economic-subjective-social or economic-social-environmental-subjective) have
been proposed internationally. We will go on to analyse each proposal and see
what countries have achieved with these indicators. In this article we will
look at the one-dimensional propositions of well-being (economic and
environmental) and their overcoming by a multidimensional vision that takes into account the different aspects of human life.
This latter vision has been adopted by the OECD in the United Nations
and by ISTAT in Italy with the creation of the BES. As the economist Stiglitz
points out: ‘If we measure the wrong thing today, we will do the wrong thing
tomorrow. If we do not measure something, it will be ignored, as if the problem
did not exist.’
Economic
Dimension of Well-being
One of the first dimensions of collective well-being to be measured was
the economic one, as it represents a fundamental measure that strongly
conditions, for better or worse, all other dimensions (COHEN KAMINITZ, 2023).
Measuring
National Accounting
Man has
always sought a way to measure the value of objects. Since barter, the search
has never stopped. Even the rulers of states have, over time, sought an ever
more efficient way to measure the wealth they possessed. The forerunner of
these measurements can be traced to William Petty, who in the 1650s attempted
to create a system of national accounting for Great Britain that would serve as
a measure of the nation's wealth (PURWANTO; SISWAHADI, 2021).
A few
decades later came the Physiocratic economists, who assessed a country's wealth
primarily in terms of agricultural production, relegating the production of
goods and services to the margins of the economy. This view was opposed by Adam
Smith, who identified labour and its productivity as the true wealth of the
nation. In the same vein came the thinking of David Ricardo, who identified
productivity as the true value of a commodity. For Marx, this wealth of the
nation was only created by human labour, which was exploited to secure the
surplus value that generated the employer's profit. You have
to go back to the early 1900s to find macroeconomic works that take into
account all the variables related to consumption, investment, government
spending, imports and exports (FIORAMONTI, 2019).
The need
for a synthetic indicator that truly represented the wealth of a country arose
in the period between the two world wars, with Europe threatened by fascism and
nazism, the collapse of the Russian empire and the US
Great Depression. At a time of great social and economic upheaval, there was a
need for an instrument that could point the way forward. In 1934, Simon Kuznets
presented Gross Domestic Product (GDP) to the US Congress, an indicator
designed to help policymakers in their search for the best allocation of
available resources. Thanks to this instrument, the US government was able to
convert part of its civilian industry into a war industry in a very short time,
while keeping the civilian part more productive to satisfy domestic demand
(CARSON, 1975).
The US
victory in World War II sanctioned the proclamation of GDP as the most
influential tool used by politicians and the mass media to proclaim a country's
success or defeat (FIORAMONTI, 2017). The use of GDP on a global level was also
reinforced by the Bretton Woods conference that in 1944 initiated a process of
international cooperation in both trade and exchange rates in
order to avoid the recurrence of international instability that was one
of the main causes of the outbreak of World War II (KUBISZEWSKI et al., 2013).
Over the
next 90 years, the major international institutions, the World Bank and the
International Monetary Fund pushed economic growth in all countries in an
uncontrolled manner without thinking about the progressive depletion of natural
resources and the impact on all ecosystem services related to natural capital (KUBISZEWSKI et al., 2013).
Methodology
for measuring GDP
GDP is the main indicator used by countries to measure the size of their
economies and represents the value of all new goods and services produced in a
country over a given period - usually one year (HANDOYO; ISNADI, 2023). This calculation excludes goods and services produced abroad by
domestic production, but also includes all foreign production that takes place
in the host country. It also excludes all production of intermediate goods and
services, as these are included in the final product and would therefore be
counted twice.
The word gross means that the value does not take into
account depreciation, i.e. the reduction in the value of an asset due to
physical wear and tear or obsolescence, which producers must incur in order to
replace it. As it is measured over a fixed period, usually a year, it is a flow
variable.
There are three equivalent methods of calculating GDP:
- The expenditure method: Expenditure by households, businesses and
government is added together GDP = private consumption + private investment +
government expenditure + net exports
Investment can be in machinery or production equipment, stocks or
dwellings. Exports are less imports
- Income method: labour income, capital income, depreciation, net
indirect taxes, net income of foreigners are added together.
- Production method: as the sum of value added at each stage of
production. For each enterprise, the difference is made between the value added
of the goods produced and the expenditure incurred in purchasing the
intermediate goods needed for production (STIGLITZ; MARCHIONATTI, 1995; COYLE,
2016).
GDP can be nominal, when current prices are
used without taking inflation into account, or real, when price changes are
included in the calculations to assess the real purchasing power of the
population. In the latter case, the price remains fixed in a base year and the
deviation in GDP is only due to the change in quantity over time. In order to be able to compare the GDP of different
countries that use different currencies and are affected by exchange rate
fluctuations, it was decided to use purchasing power parity. Thus, for a given
year, GDP at constant prices is used to make comparisons between countries with
different currencies. In addition, a per capita value has been used to
adjust the data for population size, which makes it possible to compare
countries with very different population weights.
Figure 1 shows the top 20 countries in terms of
absolute GDP and the top 25 per capita
are represented, with purchasing power parity at constant 2021 prices. The
absolute growth of China over the last 34 years is remarkable, followed by the
United States, the European Union and India. China went from $1.868 trillion in
1990 to $31.227 trillion in 2023, increasing its GDP by 17 times at constant
prices. The United States and the countries of the United Europe reached the
same level of 24 trillion from 11 trillion and 14 trillion, respectively. A
country that has grown a lot in recent years in economic terms (7 times) is
India, from 1,906 in 1990 to 13,104 in 2023. On the other hand, the economies
of Indonesia, Türkiye, South Korea and Egypt have grown four times.
Figure 1. GDP in
purchasing power parity at 2021 prices in absolute terms and per capita.
Source: World Bank, World Development Indicators
Data Base. Access on: https://drive.google.com/file/d/1YZbFoqsEZACp0cdgZC4q8ZJ8X7NnDA5D/preview
Among the top 20 richest
countries, those that have grown the least are Italy, Russia and Japan. Of
these twenty countries, only the United States and Germany are in the top 25 in
terms of GDP per capita, with 73,000 dollars and 62,000 dollars per
annum respectively, with growth of 66% and 45% since 1990. The other top
performers are Luxembourg with $132,000 (+61% since 1990, when it was $82,000),
Singapore with $127,000, Ireland with $115,000, Qatar with $113,000 and Norway
with $99,000. Among these countries, it is worth noting the strong growth of
Ireland, which has almost quadrupled since 1990 (USD 29,000). On the per
capita indicator, Norway, Denmark, Switzerland and Iceland are present and,
as we shall see, they also score well on many social welfare indicators. GDP per
capita is an important variable in determining the well-being of a
population because it is closely linked to health and education services, which
are some of the strongest pillars on which all other needs rest. Unfortunately,
high levels of GDP per capita are often associated with high levels of
environmental degradation, destabilising the foundations on which a community's
well-being rests (TØNNESSEN,
2023). The
challenge is to decouple these last two variables, to have good economic
provision without compromising the environment in which we operate.
Usefulness
and limitations of GDP
Gross domestic product (GDP) is a good
indicator of a country's economic growth. It has the advantage of being
synthetic and easy to understand, even if the calculation is quite complex and
requires the informative contribution of all the economic actors involved in
the production process (MANAGI et al., 2024).
Moreover, thanks to the international
methodology, it is possible to make comparisons over time and space. However,
these advantages are counterbalanced by the many criticisms of the indicator.
The main problem is that it does not count all those activities that do not
have a price and therefore do not enter the market: domestic work, voluntary
work, activities that take place in leisure time in a non-paying space
(FIORAMONTI, 2019).
Economic and demographic growth has found a
valuable ally in technological progress, which has allowed ever greater
exploitation of natural resources without respecting their natural replacement
times. The improved productivity generated by technological progress is
accompanied by a greater destructive impact on the natural resources involved
in the production process (CASTELLUCCI, 2021).
According to the first theorem of welfare
economics, the market achieves the Paretian optimum, the maximum welfare for
the community, when resources, consumption and trade are allocated efficiently.
But hardly any country is concerned about whether the rate of substitution of
natural resources is optimal for the present and future community. For many
countries, exploitation should only work for economic growth, without worrying
about the externalities it creates. Infinite economic growth is inconceivable
if the available natural resources are finite (COSCIEME et al., 2020).
Moreover, as a measure of all the goods and
services that pass through the market, it is inevitable that all those private
expenses, insurances of all kinds, that citizens take out to defend themselves
against malfunctions, pollution or possible accidents are also counted
positively. If we were to compare two productions of the same product with
different negative environmental externalities in terms of GDP growth, it would
be desirable to increase the production of the one with the greater impact, as
it would activate other companies to clean it up. Both activities are carried
out for economic reasons and therefore have their own market, which generates
production and increases the total income of the country.
Counting all production positively, without
distinguishing its quality, creates a perverse system in which the most
polluting production is rewarded because it generates induced security, which
generates other income.
This indicator was created to measure the value
of new goods and services at a time when the agricultural and industrial
sectors were dominant and had a material and quantifiable production. Over the
years, the same indicator has continued to be used, but the predominant sector
has become the tertiary sector, with less material production and therefore
difficult to account for, and with a large number of
services provided free of charge (SEMIENIUK, 2024).
Unfortunately, many non-specialist media and
politicians have used GDP as the sole instrument for measuring the well-being
of the population, contrary to its nature, and have ignored all the assessments
that this indicator cannot take into account: from the
failure to assess the quality of production to the problems of income
distribution. For many years, economic science has stressed that a simple
indicator cannot capture all the information needed to represent complex
economies that are in constant flux and where technological progress has a
strong, albeit heterogeneous, impact on production processes.
As
summarised in table 1, GDP has several positive aspects, but also many
criticalities that need to be corrected whether one wants to use it as an
economic indicator or as an indicator of collective well-being. Most economists
do not consider it suitable for this second function and have intervened over
the past fifty years to make suggestions that would overcome many of the
highlighted criticalities.
Table
1. Summary quality and critical characteristics of GDP
as an economic indicator or indicator of collective well-being.
|
Quality |
Criticality |
Economic
Indicator |
- Economic flow
variable |
- Does not consider
the concentration of distribution |
- Standardised calculation system across the planet |
- Does not measure free services |
|
- Allows temporal
and spatial comparisons |
- Does not assess
quality |
|
- Periodic updating |
- Does not account for black economy, voluntary work and
self-consumption |
|
|
- Positively
considers all market transitions, even externalities or defensive
expenditures |
|
Well-being
Indicator |
- Strong correlation between GDP growth and material well-being in the
short-term |
- Does not consider income distribution in absolute terms and between
generations or genders |
- Standardised and
periodically updated measure |
- Evaluates only
economic aspects without information on quality of life |
|
|
- Negative factors for collective well-being lead
to an increase in the indicator |
The
failure to measure free services, underground and informal economies, as well
as the fact that it does not give information on the concentration of
distribution and the positive accounting of all market transactions, mean that
this indicator is not suitable in measuring the welfare of a community. Its
pivotal function is to measure the growth of a country, over time and relative
to other countries, and it should be used purely to explain this. It should be
taken as a model the way in which this measurement is carried out,
characterised by rigorous and standardised international guidelines that make
its information load appreciated.
Developments
in the measurement of well-being in economics
The first study to improve GDP as a measure of
economic welfare was undertaken by Nordhaus and Tobin in 1972, when they
proposed a measure of economic welfare and asked whether GDP was an appropriate
measure of welfare and therefore whether it should be allowed to grow (NORDHAUS; TOBIN, 1972).
They concluded that there was no reason to stop
growth, even though GDP was an imperfect measure of welfare. Nordhaus and
Tobin's proposals were to start with the national accounts by reclassifying
consumption and investment and adding the values of leisure and housework.
They also proposed to split government purchases into
intermediate consumption, final consumption and net investment, and to
reclassify some private expenditure. They aimed at a measure of collective
consumption even though they could not estimate the correlation between it and
individual happiness, or how gratifying increases in consumption might be as a
function of other people's consumption or as a function of the needs induced by
sellers through advertising (NORDHAUS; TOBIN, 1972).
A few years later, as reported by Kubiszewski, Eisner proposed changing some of
the GDP items: removing items relating to government spending on police,
defence, justice and road repair, and adding domestic work and care for
children and the elderly. In the late 1990s, Cobb and Daly proposed the Technical
Progress Indicator as a replacement for GDP, complementing Tobin and Eisner's
proposals by adding inequality in income distribution and the environmental
costs represented by the depletion of non-renewable resources.
All these indicators were based on GDP and the System
of National Accounts and incorporated social and environmental issues in
monetary terms. In 1993, the United Nations proposed the System of
Environmental-Economic Accounting (SEEA): an accounting structure similar to the System of National Accounts to facilitate the
integration of environmental and economic statistics (UN, 2011).
In 2003, the IMF, OECD, World Bank and Eurostat
identified four categories of national satellite accounts to complement the
System of National Accounts (SNA): Expenditure accounts (spending by industry,
households and government to protect the environment or manage natural
resources), Natural Resource accounts (measuring the amount of resources such
as land, fish, forests, water and minerals), Non-market flow accounts (market
elements are valued and adjusted for the depletion and degradation of natural resources)
and Flow accounts (information on the use of energy and materials as inputs in
the generation of pollutants and solid waste) (UN, 2009).
Furthermore, as Hecht argues, natural assets such as
forests or fisheries must be treated as depletion because the rate at which the
natural resource can be replenished must be taken into
account in order to avoid irreversible losses in terms of ecosystems.
Instead, the SNA considers only the income generated by all the timber or fish
sold, without assessing the rate at which it can be replenished.
Furthermore, not only the commercial income from the
sale of timber should be taken into account, but also
all the services provided by the forest, such as carbon sequestration by
plants, protection of watersheds and recreational activities associated with
forests. The loss of biodiversity associated with logging should also be taken into account (HECHT, 2005).
An early attempt to improve GDP responses was the
calculation of Green GDP in China in 2004. They calculated and valued the
consumption of natural capital in production and the damage caused by economic
growth. Two years later, they published the first results showing that the
environmental impact was about $66 billion, or 3% of GDP (FIORAMONTI, 2017).
In 1997, the World Bank developed Genuine Saving (GS),
a measure that subtracts environmental degradation and natural resource
depletion from GDP, while adding investment in human capital. With this
measure, the World Bank highlighted how a country's wealth is given by an
increase in formal and informal intangible wealth created by people (KUBISZEWSKI, 2013).
One of the first countries to engage in environmental
accounting was Norway, which has an economy strongly linked to natural
resources and which developed monitoring of forests, fisheries, energy and land
use in the 1980s.
In 2001, the Netherlands also attempted to measure a
national disposable income that took into account both
environmental degradation and the depletion of natural resources (KARUNANITHI; BUI; TAN, 2024).
Sustainable Economic
Well-Being Index and the Genuine Progress Indicator
A series of corrections to GDP were proposed with the
Index of Sustainable Economic Welfare (ISEW), which similarly to the Index of
Real Progress added all those items that did not appear in the national accounts, but were important for economic welfare: volunteer
work and housework. Similarly, all private defensive expenditures, the costs of
environmental degradation and the depreciation of natural capital were
subtracted, taking into account the long-term costs of
climate change (CHELLI; CIOMMI; GIGLIARANO, 2013). The formula is:
ISEW = C + G * I
+ W — D — E — N
With:
C= Consumption weighted by the Gini index which is
used to measure income concentration;
G= Government spending on consumer durables, capital
growth and change in net international investment;
W= Domestic work and all items that have no market but
are important for welfare;
D= Defensive private expenditure (increases as crime,
divorce, commuting, road and work accidents increase)
E= Costs of environmental degradation related to
habitat loss, pollution, depletion of non-renewable resources and climate
change
N= Depreciation of natural capital.
In 1994,
Clifford Cobb, Ted Halstead and Jonathan Rowe proposed to modify the ISEW by
adding 25 supporting variables and transforming it into the Genuine Progress
Indicator (GPI). This indicator sought to remove from GDP all environmental and
social costs that are detrimental to collective well-being: the costs of
environmental degradation, the loss of biodiversity and ecosystem services, the
costs of unemployment, the costs of crime and family breakdown. It also
includes the benefits of volunteering and domestic work, and an adjustment for
income distribution (COSTANZA et al., 2018).
Currently,
GDP rewards all forms of pollution, as it increases both when pollution occurs
and when the damage is repaired. With the Genuine Progress Index, these gains
become costs that subtract from national wealth. This index includes
environmental and social variables not covered by GDP, but because of its
subjectivity and difficulty of quantification, it does not allow comparison
between countries and therefore loses its international relevance. The GPI does
not take into account certain aspects of human
well-being, such as a country's political freedom, and the choice of components
to be included is subjective and may vary from country to country. Finally, the
GPI does not have a solid theoretical basis. The main peculiarity of the GPI is
that it measures the present value of economic well-being and not its long-term
potential warmth (COSTANZA et al., 2018).
The GPI
should be used in conjunction with other indicators that capture the quantity
and quality of natural, human and social capital stocks. There is also a need
for an accounting system that standardises and periodically measures the GPI
for different countries (COSTANZA et al., 2018).
Beyond
GDP
In November 2007, the European Commission, the
European Parliament, the Club of Rome, the OECD and the World Wildlife Fund (WWF) organised a conference entitled ‘Beyong
the GDP’ to identify concise and easy-to-understand indicators such as GDP that
could measure climate change, poverty, resource depletion, quality of life and
health in order to integrate them into policy-making (WANG; CHEN, 2022).
In July 2007 the most serious
financial crisis since World War II began, which took all economic actors by
surprise and without the right tools to deal with it. Too many analysts had
blindly relied on the optimistic information of the GDP, which had recorded
significant growth, without taking into account that this was based on a
housing bubble in the American market that had led households and businesses to
consume and invest more than they could, and the state budget had also
benefited by obtaining more revenue (STIGLITZ; FITOUSSI; DURAND, 2021).
The financial analysts did not
adequately evaluate the indicators of the financial and banking system, they
also did not look at the percentage of households that had difficulty
refinancing their mortgages. In this case, the choice of suitable indicators
would have saved a lot of suffering and allowed economic agents to intervene
promptly and effectively (STIGLITZ; FITOUSSI; DURAND, 2021).
In the wake of this crisis,
French President Sarkozy appointed a commission to offer measures beyond GDP.
This commission produced a report in three chapters analysing GDP, quality of
life and sustainable and environmental development. For each of the aspects
analysed, the main characteristics were identified, the alternatives available
and recommendations to follow in order to have correct
measurements (STIGLITZ; SEN; FITOUSSI, 2009).
The Commission urges countries
and international organisations, which play a key role in standardising
measurements, to invest in statistical information that gives decision makers
the information they need.
The report they produced is
based solely on the issue of measurement and not on policies that are useful
for society to move forward.
It is emphasised that it is
useful to keep GDP measurement, because it provides important information on
monitoring economic activities and relations with other economic variables, but
net national product should be used in parallel because it takes
into account depreciation and real household and consumption income.
Furthermore, it is recommended
to take into account real household income rather than
per capita income, to which should be added the economic wealth of
households and the distribution within households of income, consumption and
wealth. Maintaining this household dimension recommends accounting for all
non-market activities by measuring how people use their time, both in time and
space, paying particular attention to the amount of leisure time (STIGLITZ; SEN; FITOUSSI,
2009).
It focuses on measuring quality of life by identifying eight dimensions
along which well-being can be assessed using both objective and subjective
measures through specific surveys. Quality of life depends on health,
education, daily activities, the right to decent work and housing,
participation in the political process, and the social and natural environment
in which one lives (WANG; CHEN, 2022).
These assessments must take into account
inequalities between genders, generations and groups. The Commission's most
recent recommendations are to measure sustainability through a set of
appropriate indicators that assess changes in stocks of natural, human, social
and physical resources. At a later stage, these could be converted into a
monetary equivalent, although the operation has considerable methodological
difficulties. (STIGLITZ;
SEN; FITOUSSI, 2009).
The Environmental Dimension
Economic and social processes
are constrained by environmental variables that have insurmountable limits to
sustaining the human species. Rockström and 29 other
scientists have identified nine planetary tipping points: climate change, ocean
acidification, ozone depletion, land-use change, alteration of the
biogeochemical cycles of nitrogen and phosphorus, freshwater use, atmospheric
aerosol dispersal, chemical pollution and loss of biosphere integrity. All
these limits are interrelated, and for four of them we have reached the zone of
maximum risk (biogeochemical fluxes of nitrogen and phosphorus, destruction of
biodiversity, land-use change and climate change) (ROCKSTRÖM; WIJKMAN, 2014).
Ecological Footprint and
Living Planet Index
Many indicators have also been
proposed to measure the well-being of the population, with particular emphasis
on environmental variables, without taking into account
the economic variable, even if only marginally.
At the other end of the
spectrum from GDP is the measurement of the Ecological Footprint (EF) (WWF,
2022), which is the difference between the hectares used for human consumption
and its waste, and the hectares needed to regenerate the land or sea. The indicator,
proposed by Wackernagel and Rees in 1996, is based on the equation of the IPAT
model by Ehrlich and Holdren, who claimed in 1972 that environmental impact is
directly proportional to population and GDP growth, while it is inversely
proportional to technological innovation (WACKERNAGEL; REES, 1996).
The advantages of this
indicator are that it is easy to understand and can be calculated for different
spatial scales. Its limitations are that it does not take
into account: the role of technological change, oceans and underground
resources, the ethical problem of fair distribution between present and future
generations. It is also a stock measure and not a flow measure (MOFFATT, 2000).
Globally, biocapacity per
person was 3.1 hectares in 1961 and 1.6 hectares in 2017, as shown in Figure 2,
while the Ecological Footprint increased from 2.3 to 2.7 hectares. This means
that until 1970 there was a biocapacity surplus, whereas since then there has
been a deficit, which has increased every year.
Figure 2. Biocapacity
per capita and Ecological Footprint per capita trends from 1961
to 2022 Source and Elaboration: National
Footprint and Biocapacity Accounts (Data Year 2022); GDP, World Development
Indicators, World Bank 2023; Population, U.N. Food and Agriculture
Organization, 2022. Access on: https://drive.google.com/file/d/1FMdcF5fE9BFdT8NEVj-Etf48cp7SEiZt/preview
At the individual country level, there are considerable differences, as
can be seen in Figure 3, where the balance is positive for 49 countries out of
188 analysed (26%). The remaining 139 countries have an annual per capita
biocapacity deficit, meaning that those nations are either: importing
biocapacity through trade, liquidating national ecological resources or
emitting carbon dioxide into the atmosphere.
Figure 3. Ecological balance and
ecological footprint in 188 countries. Source: National Footprint and
Biocapacity Accounts 2021 edition (Data Year 2017); GDP, World Development
Indicators, The World Bank 2020; Population, U.N. Food and Agriculture
Organization. Access on: https://drive.google.com/file/d/1KZBVv4CbV-i9CWwvYFrvLD-HqlyR-v-h/preview
The ecological
footprint is used by the WWF in its Living Planet Report, and since 1998 it has
enriched its analysis by calculating the Living Planet Index (LPI), which
measures the average annual percentage changes in the population of some 21,000
mammals, birds, fish, reptiles and amphibians across the planet (WWF, 2022).
As can be seen in
Figure 4 from 1970 to 2016 there has been an average decline of 68% in these
populations. For a more complete assessment, the population figures for
invertebrates will also need to be measured. For the tropical sub-regions of
the Americas, the decline was 94% mainly due to ‘conversion of grasslands,
savannas, forests and wetlands, overexploitation of species, climate change and
the introduction of alien species’ (WWF, 2022).
Figure
4. Global trend of the Living Planet Index from 1970 to
2016 Source and elaboration: WWF (World Wide Fund for
Nature), ZSL, Living Planet Report, 2020, page 7. Access on: https://drive.google.com/file/d/1SpKvS_ey84LnlitSjwt1DAUqt_4Zz6JB/preview
Through this
indicator, despite its limited representativeness of the welfare problem, the
numerous impacts that humans have had on nature and especially on the poor
preservation of biodiversity have been highlighted.
Environmental Performance Index
Another prominent indicator in the environmental dimension is the
Environmental Performance Index (EPI) from Yale and Columbia University in 2002
(BLOCK et al., 2024). This is an indicator composed of 32 other indicators that
analysed the performance of 180 countries in 2020. This indicator takes into account environmental risk exposure, air and
water quality, water treatment, nitrate use in agriculture, forest cover, fish
stocks, marine and terrestrial protected areas, protected species and CO2
trends. Prior to the EPI, Yale University and Columbia University had proposed
the Environmental Sustainability Index (ESI) consisting of 21 different
indicators (WENDLING et al., 2020).
As can be seen in Figure 5, the countries that score better on the index
also have a better GDP per capita, and this can be explained by the huge
investments needed in infrastructure to provide adequate drinking water and
sanitation, as well as to reduce environmental pollution and control hazardous
waste. The price these countries have to pay, with
more industrialisation and urbanisation, is high air and water pollution but
high-risk perception and therefore the implementation of policies to mitigate
these impacts (WENDLING et al., 2020).
Figure 5. EPI
index situation in 2019. Source: Yale University, Environmental Performance
Index, 2020, page 32. Access on: https://drive.google.com/file/d/1jHI3_DlspCxw4FMdyIpTsbt2WMOxhPsM/preview
Being a composite index, the EPI
for each country aggregates and weights the indicator scores, as seen in Figure
6, into 11 categories: Air Quality, Sanitation and Drinking Water, Heavy
Metals, Waste Management, Biodiversity and Habitats, Ecosystem Services,
Fisheries, Climate Change, Pollutant Emissions, Water Resources and
Agriculture. This indicator is a good measure of the environmental dimension of
well-being and should therefore be taken together with other indicators
relating to economic, social and subjective dimensions.
Figure 6. Weights
associated with each of the 32 indicators that make up the EPI. Source: Yale
University, Environmental Performance
Index, 2020, page 17. Access on: https://drive.google.com/file/d/1RkUX7Hht-sYenLz_7ptng06atEX9GgAy/preview
Other parameters such as GDP per
capita, population and urbanisation rate are given for each country, but
these parameters are not explicitly intersected with the environmental
variables, providing no indication of their links. Interesting is the
indication of how each country's environmental variable has changed compared to
the previous ten years, indicating what evolution is taking place. On each
country's page, EPI comparisons are also made between similar countries for
certain characteristics such as GDP per capita, political stability,
regulatory quality or other characteristics.
Being a composite index, the EPI
for each country aggregates and weights the indicator scores, as seen in Figure
6, into 11 categories: Air Quality, Sanitation and Drinking Water, Heavy
Metals, Waste Management, Biodiversity and Habitats, Ecosystem Services,
Fisheries, Climate Change, Pollutant Emissions, Water Resources and
Agriculture.
This indicator is a good measure
of the environmental dimension of well-being and should therefore be taken
together with other indicators relating to economic, social and subjective
dimensions. Other parameters such as GDP per capita, population and
urbanisation rate are given for each country, but these parameters are not
explicitly intersected with the environmental variables, providing no
indication of their links.
Interesting is the indication of
how each country's environmental variable has changed compared to the previous
ten years, indicating what evolution is taking place. On each country's page,
EPI comparisons are also made between similar countries for certain
characteristics such as GDP per capita, political stability, regulatory
quality or other characteristics.
The countries that excel in the
EPI indicator are those that have invested heavily in water sanitation and
optimal waste management, as well as significant investments in energy
decarbonisation that have had a significant impact on air quality. Unfortunately,
they are still lagging behind in biodiversity
management, marine protection, ecosystem services and the creation and
management of protected areas. This is despite the fact that
biodiversity and ecosystem services have an economic value of USD 125 billion
and that one million species are threatened with extinction in the coming
decades (WENDLING et al., 2020).
Multidimensionality
The decision to use more than one
dimension to measure the well-being of a nation is based on the complexity of
the object of research, which is composed of many different variables and conditioned
by both objective and subjective elements.
Sustainable Society Index
The
Sustainable Society Index (SSI) is a complex indicator developed by the
Sustainable Society Foundation in 2006, based on the Brundtland definition and
comprising 21 indices measuring human, environmental and economic well-being.
Human
well-being is measured by ten indicators: the number of undernourished people,
the number of people with sustainable access to water, the number of people
with sustainable access to sanitation, life expectancy at birth in years, air
pollution affecting humans (PM2.5) and surface water quality,
enrolment in primary, secondary and tertiary education, the gender gap index,
and the ratio of income of the richest 10% to the poorest 10% of the
population. Environmental well-being is populated by six indicators: SO2
emissions, size of protected areas, annual water withdrawal as a percentage of
renewable water sources, carbon footprint minus carbon balance, renewable
energy, CO2 emissions per capita. For economic well-being,
five indicators are used: organic farming, real savings, gross domestic
product, labour force unemployment and public debt (SAISANA; PHILIPPAS, 2012).
The
indicators are expressed in different units and therefore have different ranges
and variances. They are therefore standardised by subtracting each value from
its mean and dividing it by the mean square deviation. In this way, the mean is
cancelled out and the standard deviation is equal to one. All indices thus have
the same range from zero to one and the highest scores are those that give the
best results. Cross-country comparisons can also be made easily in this way
(SAISANA; PHILIPPAS, 2012).
The
same weight is assigned to each indicator and the simple arithmetic mean is
used for aggregation. Due to the different sign correlations between the three
dimensions analysed, it is considered not useful to generate a single synthetic
index. Should one wish to obtain a single measure, to be averaged, one could
use the geometric mean of the eight topics analysed and not of all 21 indices
(SAISANA; PHILIPPAS, 2012).
Preliminary
2020 data are published at the end of 2021 on the Th-Koeln
website, which has replaced the Sustainable Society Foundation since 2018. One
of the problems with this indicator is the delay in which data is provided, an
important variable when policy decisions have to be
made.
Figure 7 shows the comparison, in
the macro-regions of the planet, between the values of 2006 and 2019 in order to understand how the values of the individual
indices vary.
Figure 7. Comparison of SSI indices by
macro-regions in the years 2006 and 2019. Source: FAO, World Bank,
World Economic Forum, Global Footprint Network, EIA, Fibl.
Elaboration: Technology Arts Sciences TH Koln, Data Base 2021. Access on: https://drive.google.com/file/d/14_ZUu4IVKFyvDCawGQc0v_RvjVpkqYn0/preview
One of the most deficient indices
over the 13 years analysed is the Biodiversity Index, which in this case is
measured by the change in forest area and the size of protected areas in
relation to the total area of the country.
This index shows a worrying trend
in Europe (except in the East), North America and East Asia (including China,
Japan and the two Koreas, according to the UN classification). On the other
hand, the countries of Africa, Asia and Central and South America have
difficulties with primary energy use, i.e. the sum of domestic production and
imports minus exports.
Happy Planet Index
The Happy Planet
Index (HPI) is a measure of sustainable well-being developed by the New
Economics Foundation in 2006. It aims to rank countries according to how well
they manage to provide a long and happy life by making efficient use of the
limited environmental resources available. This indicator is made up of three
variables: average life expectancy in years, a score from zero to ten on
quality of life as measured by the Gallup World Poll, and the ecological
footprint per capita measured in hectares (WEAll,
2024).
The
rich countries of the West perform well in terms of life expectancy and
subjective well-being, but their excessively high environmental costs weigh
heavily on the Happy Planet Index. A good example comes from the countries of
Latin America, which without having a large ecological footprint and with a
good life expectancy and subjective well-being rating are at the top of the
ranking.
The
Covid-19 pandemic increased the global HPI by three points because: there was
also a 6.5% decrease in the ecological footprint due to reduced travel, while
the reduction in life expectancy was not high because mostly elderly people
died. In contrast, subjective well-being, as measured by Gallup surveys,
decreased for 40% of countries, including Latin America and Europe, while it
increased for 32%, including China, India and Germany (WEAll,
2024).
From
the downloadable data (Happy Planet Index) it is possible to see the
indicator's trend from 2006 to 2020 for each of the 160 countries analysed and
the aggregations by macro-regions.
As
can be seen in Figure 8, Latin America leads all other macro-regions, although
it has experienced a slight drop in the index over the past year. On the other
hand, the trends in Africa, Europe and Central Asia are significantly
increasing.
Figure 8. Trend by macro-regions of the Planetary
Happiness Index from 2006 to 2020. Source: UNDP, Gallup World Pool, Global Footprint
Network, World bank. Elaboration: Wellbeing Economy Alliance (WEAll), Data base online. Access
on: https://drive.google.com/file/d/15bOcIIqsk8KooG9MTUwzk-ZxKy0AWdhc/preview
The Wellbeing Economy Alliance has identified classes for each indicator
in order to establish an optimal, a sufficient and a
poor situation. The optimal situation is when life expectancy is greater than
75 years, the subjective rating is greater than 6 and the ecological footprint
is less than 1.56 hectares. The worst situation is when life expectancy is less
than 65 years, subjective well-being less than 5 and ecological footprint
greater than 3.12 hectares.
In between is a situation of sufficiency. An analysis of the 2019 data,
the 2020 data is not complete, shows that: 32% of countries perform well on
life expectancy and subjective well-being at the same time and 2% perform well
on life expectancy and ecological footprint.
Only the Philippines, performs well on subjective well-being and
footprint simultaneously while life expectancy is 71 years so 4 years less than
the 75-year limit. If the indices are analysed individually, as can be seen in
Table 2, we have 47% of the countries that have a good measure on life
expectancy, 39% perform well on subjective well-being and 28% on ecological
footprint.
Table
2. Breakdown of the 152 countries according to
exceedance of HPI limits.
|
Expectation |
Welfare |
Education |
Expectation |
OK:
47% KO:
20% |
OK:
32% KO:
16% |
OK:
2% KO:
0% |
Welfare |
|
OK:
39% KO:
33% |
OK:
1% KO:
1% |
Education |
|
|
OK:
28% KO:
40% |
Source:
New Economics Foundation, 2020.
The worst situations concern the 16% of countries that do not exceed the
limits on life expectancy and subjective well-being at the same time, while
Türkiye is the only country with poor results on subjective well-being and
ecological footprint. The ecological footprint indicator impacts 40% of the
analysed countries individually while subjective well-being is poor for 33% of
the total.
Human Development Index and the Sustainable Development Index
The Human Development Index (HDI) is an indicator
developed in 1990 by Pakistani economist Mahbub ul
Hab and used since 1990 by the United Nations to assess the quality of life in
any country (HICKEL, 2020).
The index has been calculated since 2010 as the
geometric mean of three indices related to: life expectancy at birth,
educational attainment and per capita income at constant prices (UN,
2021).
The indicator is calculated as follows:
With:
- LE= Life Expectancy in years
(minimum 20, maximum 85);
- MYS= Mean years of schooling
(minimum 0, maximum 15);
- EYS= Expected years of schooling
(minimum 0, maximum 18);
- GNI= Gross national income per capita in dollars with Purchasing Power
parity as of 2017.
As
can be seen, minimum and maximum values are determined for each variable and
then compared with the current value (UN, 2021). The biggest criticism of the
Human Development Index is the absence of any indicator of environmental
sustainability, which makes it impossible to record such a profound climate
crisis on the planet.
In
2009, Rockström and 29 other earth science experts
identified planetary boundaries that should not be crossed to keep the planet
in a climate-stable state. The nine tipping points were: climate change,
stratospheric ozone depletion, atmospheric aerosol dispersion, ocean
acidification, changes in the biogeochemical cycles of nitrogen and phosphorus,
global freshwater use, land use change, loss of ecological functions, and the
rate of extinction of animal and plant species (BUTERA, 2021).
Humanity
has already crossed four of these critical thresholds: climate change, loss of
biodiversity, and changes in the chemical load of nitrogen and phosphorus in
soils. Several modifications have been proposed to address this shortcoming of
the HDI indicator: Bravo in 2014 proposed a Sustainable Human Development Index
with the inclusion of the index of CO2 emissions per capita,
while Biggeri and Mauro in 2018 proposed the
inclusion of a social indicator related to freedoms in addition to CO2
emissions (HICKEL, 2020).
However,
all the proposed variants consider only one ecological variable, neglecting all
those that are part of the planetary limits and cannot be exceeded. To overcome
these shortcomings, the use of the material footprint has been proposed, which
allows the extraction of natural resources from the sea and land to be measured
and allows the inclusion of a wide range of ecological impacts that are
strongly correlated with this indicator. In addition, this indicator, together
with the calculation of CO2, takes into account
both the environmental balance associated with the activities of exporting and
importing raw materials, and the carbon dioxide emissions that occur in a
country but are generated in the production of goods and services for export
(HICKEL, 2020).
Human
Development Index indicators have been observed to increase the Ecological
Footprint exponentially. Furthermore, the material footprint of countries with
a very high HDI exceeds the sustainability limit by a factor of four, while the
average CO2 per capita is six times higher. To attempt to
decouple income and environmental impact, action should be taken on the energy
component by switching from fossil fuels to renewable energy, while improving
the efficient use of energy. In high-income countries, action should be taken
on economic variables: promoting a better distribution of income, shortening
the working week, improving wages and investing more in public services
(HICKEL, 2020).
As
Figure 9 shows, the countries with a high HDI index are all high-income
countries, so the link between this indicator and per capita income is
very strong. Almost all countries have improved their index over the years:
Norway went from 0.85 to 0.96, while Ireland, thanks to its remarkable economic
leap, is in second place, going from 0.77 to 0.95. Singapore has followed a
similar path, rising from 0.72 to 0.94 over the last 27 years.
Figure 9. HDI index trend from 1990
to 2017 for the top 40 countries. Source:
UNDP, Data Base online. Access on: https://drive.google.com/file/d/1nqk_lu8JIo7OVd8UhgciVdqjbVLSQKhA/preview
To correct some
shortcomings, such as the absence of the environmental dimension, of the Human
Development Index, the Sustainable Development Index (SDI) was proposed. In
addition to modifying the upper limit of per capita income, lowering it
from $75,000 to $20,000, it considers an ecological impact index that considers
CO2 emissions and material footprint in relation to their specific
planetary boundaries. Countries that achieve more than $20,000 do not increase
their score or ranking. This income sufficiency threshold brings this index in
line with other human development indices (HICKEL, 2020).
The sustainable development index
is calculated using the following formula:
With:
- LE= Life Expectancy in years (min. 20, max. 85);
- MYS= Mean years of schooling (min. 0, max. 15);
- EYS= Expected years of schooling (min. 0, max. 18);
- GNI= Gross national income per capita in dollars with Purchasing Power
parity as of 2017;
- MF= Material
footprint
- CO2=
Carbon dioxide emissions
- MF limit= Material
footprint limit assumed to be 6.8t
- CO2
limit= Limit on carbon dioxide emissions is assumed to be 1.74t
This expression is
referred to as the Ecological Impact Index: Link
to this formula
Then (Link
to this formula) >4 the exponential disappears, and the index becomes
this square root minus 2. Note that the material footprint and CO2
emissions are both divided by the planetary boundary, which varies from year to
year depending on the size of the population.
If either ratio is <1, it is
assumed to be equal to 1, so that the two limits do not cancel each other out.
If the overshoot is four times the planetary boundary, the Ecological Impact
Index is set to 2, halving the Development Index (HICKEL, 2020).
The inclusion of indices
measuring literacy and infant mortality was considered, but as they have a
strong correlation with life expectancy, it was not appropriate to include
them. These indices, along with access to food, electricity, sanitation and housing,
are part of the seventeen goals identified by the United Nations in the 2030
Agenda for Sustainable Development. It has been observed that all nations that
score well on life expectancy and education also score well on other basic
needs (HICKEL, 2020).
The measurement of education, as
in the Human Development Index and the Sustainable Development Index, is based
on quantitative rather than qualitative data, and it only considers
institutional models of education, excluding informal ones, which are very
important in some cultures. Overall, the Sustainable Development Index proves
to be quite comprehensive by including the three Human Development Indicators
and two Ecological Impact Indicators (HICKEL, 2020).
The rapidity of
human-induced changes has resulted in the disappearance of entire forests, the
retreat of glaciers, the expansion of desert areas, and changes in the climate
and chemical composition of the oceans. This phase of history has been called
the Anthropocene, because humans have caused these changes that nature had
caused in the previous 4.54 billion years (BUTERA, 2021).
Figure 10 shows the
values for 165 countries in the world from 1990 to 2019. The highest values in
2019 are recorded for Costa Rica, Sri Lanka, Georgia, Armenia and Albania. This,
says Hickel, can be a good model for poorer countries, given their investment
in improving health, education and everything else needed to improve a
country's social policy. As for the rich countries, the priority is to reduce
their material and carbon footprints by implementing an ecological transition
that can no longer be postponed.
Figure 10. SDI ranking by year 2019. Source:
Sustainable Development
Index, Data base online. Access on: https://drive.google.com/file/d/1TDQObW7v5kh1070Jrvj7Ty7JDFlhLNac/preview
Subjective evaluations through global surveys
Another way to measure the well-being of a nation is to use a sample
survey that measures people's satisfaction with certain indicators. Since 2005,
Gallup has conducted a survey in 160 countries around the world to measure
well-being. The survey consists of more than 100 questions that are the same in
each country and have been repeated over the years to allow for comparisons
over time and space.
In countries with at least 80% telephone coverage, interviews are
conducted by telephone with a random selection of numbers from a national list,
while in countries with lower telephone coverage, face-to-face interviews are
conducted with randomly selected households. The interview lasts 1 hour for
face-to-face interviews and 30 minutes for telephone interviews. The sample
size is around 1,000 respondents in each country, with at least twice as many
in China and Russia.
The World Poll is conducted every 6, 12 or 24 months, depending on the
country. In addition to this poll, the World Value Survey, which has been
conducting interviews in nearly 80 countries since 1981 to help scholars and
policymakers understand issues such as economic development, democratisation,
religion, gender equality, social capital and subjective well-being, also
provides very interesting results at the global level.
The seventh global survey was completed in December 2021, involving some
129,000 interviews in 77 countries (1,000 to 3,200 interviews per country).
More than 300 indicators were analysed, based on a questionnaire that was the
same in all countries. The questionnaire covered 14 themes: Attitudes and
Stereotypes of Social Values, Social Wellbeing, Social Capital, Trust and
Organisational Belonging, Economic Values, Corruption, Migration,
Post-Materialist Index, Science and Technology, Religious Values, Security,
Ethical Values and Norms, Political Interests and Participation, Political
Culture and Regimes, and Demographics. The analysis of these surveys shows that
income is fundamental in measuring life satisfaction, i.e. the higher the per
capita income, the more satisfied people are with their lives.
By contrast, the measure of life expectancy at birth is unrepresentative
in explaining international differences in life satisfaction. A very important
variable in measuring satisfaction is the age of the respondent. All over the
world, satisfaction declines with age, but in rich countries it takes a
U-shape: that is, it declines in the early part of life and then rises again.
Moreover, the decline increases with income. In all these surveys, the
exception is Eastern European countries and Russia, which behave like
low-income countries, although they are classified as middle-income. Health
satisfaction is also directly related to income per capita: the higher
the income, the more satisfied people are.
The age variable affects health satisfaction: with increasing age,
satisfaction decreases, but again, the decrease is smaller with higher per
capita income. Age was found to be a stronger determinant of health
satisfaction than life satisfaction. The link between income and health
satisfaction is absent in some countries such as Cuba, Vietnam, Thailand and
Malaysia: where income is low but satisfaction with health and the health
system is high (DEATON, 2008). These surveys show that per capita income
and health are the two most important determinants of life satisfaction, while
life expectancy, education and social participation are perceived as secondary
factors for a happy life (DEATON, 2008).
In 1972, the Kingdom of Bhutan, a small Himalayan state with a
population of 760,000, decided to manage the country's economy not according to
GDP growth but according to Buddhist principles, taking into
account four dimensions of well-being: good governance, sustainable
socio-economic development, preservation of cultural identity and environmental
protection. It was only in 2005 that they decided to adopt a methodology for
calculating Gross Domestic Happiness, which led to a pilot survey in 2007 and a
national survey with face-to-face interviews in 2010. A questionnaire developed
by the University of Oxford (FIORAMONTI, 2017).
Data from
the Gallup World Pool is the main basis for the World Happiness Report, which
has been analysing studies and surveys on happiness and satisfaction around the
world since 2012 (KUBISZEWSKI et al., 2013).
As shown
in Figure 11, the countries with the highest subjective ratings are mainly
northern European countries, Australia, Canada and Costa Rica. The least
satisfied countries are those in Africa and Asia.
Figure 11. World Happiness Report year 2021.
Source:
Gallup, Data Base online. Access
on: https://drive.google.com/file/d/15SDYmsrjQKFALZksM1VO_-VjYpezcWvk/preview
Subjective
measurement is a key dimension in measuring the well-being of a population,
although it is a very dynamic assessment that changes rapidly over time and
space and is influenced by variables such as age, gender, nationality,
education, culture, income, employment and marital status. This information
highlights the difficulty of finding an objective and universally accepted
measure of being. They also show how difficult it is to generalise this concept
for an entire population, but to segment the analysis by homogeneous groups
within a territory.
This
information may not provide a territorial summary measure, but rather a range
of heterogeneous situations that need to be addressed in a diversified manner.
UN goals
and the OECD's Better Life Index
In 2000, the United Nations identified eight Millennium Development Goals (MDGs)
to be achieved by 2015: eradicate extreme poverty and hunger; achieve universal
primary education; promote gender equality; reduce child and maternal
mortality; combat HIV, malaria and other diseases; ensure environmental
sustainability; and develop a global partnership for development. Forty-eight
indicators have been identified to measure progress towards these goals (CNEL,
2005).
In 2015, the United Nations
launched a global action plan for planetary development that respects people
and the environment. The 2030 Agenda was implemented, which adopted the
Sustainable Development Goals (SDGs) to replace the Millennium Development Goals,
made up of 17 goals and 169 sub-goals to be monitored by 244 indicators (FELICI
et al., 2018).
The first goal set by the United
Nations is to eradicate poverty in the world: in 2020, 9.5% of the world's
population lived in extreme poverty, i.e. on less than USD 1.9 per day. This
situation has been exacerbated over the past year by the Aids pandemic, which
has hit hard the informal economy where many of the working poor are employed.
It is estimated that 4 billion people have no social cash benefits to cover
them in times of need. The second goal is to eradicate hunger in the world by
achieving food security and improved nutrition and promoting more sustainable
agriculture.
In 2019, an estimated 690 million
people around the world will be hungry and 2 billion will be moderately to
severely food insecure. Children under the age of five are the most vulnerable,
with stunted growth. The third objective is to ensure a healthy life and
promote well-being: the arrival of the pandemic has wiped out all the positive
results achieved in the health sector. The entire network of care and
prevention has slowed down, leaving millions of people without support. The leading infectious disease in terms of mortality
is tuberculosis, followed by malaria, while 74% of the leading causes of death
are non-communicable diseases (cardiovascular, cancer, diabetes or chronic
respiratory diseases).
About 700,000 people committed suicide in 2019, while
both alcohol and tobacco consumption have declined over the years, leading to a
decrease in related diseases. The fourth goal of the 2030 Agenda aims to ensure
inclusive and equitable education, but here too the pandemic has caused severe
intergenerational damage, with schools closed for long periods of time,
resulting in learning delays that are difficult to recover from. Generational,
geographical and economic inequalities were more acutely felt during this phase
of the pandemic, when alternative forms of education had to be found, requiring
technology that was not always available.
Goal 5 aims to achieve gender equality and empower
women. Around the world, women continue to suffer from physical and sexual
violence, forced early marriage and increased domestic and informal work. The
pandemic has also aggravated uncomfortable situations, leaving many women more
alone and more easily subjugated by the men in their lives. Goal 6 aims to
ensure the management and sustainability of water and sanitation. Worldwide, 2
billion people live without safe drinking water and 3.6 billion live without
safe sanitation, with many health risks. Over the past 100 years, the use of
drinking water has doubled in relation to population growth, creating multiple
water stresses that, together with climate change and water pollution, make
this element increasingly precious.
Goal 7 moves on to affordable, reliable and
sustainable electricity: significant progress has been made in this area, with
90 per cent of the world's population having access to electricity, although
only 17 per cent of this is renewable. Goal 8 is to promote sustained,
inclusive and sustainable economic growth and full and productive employment
and decent work for all. The covid pandemic reduced global GDP by 5.3 per cent,
negatively impacting employment, particularly among young people and women. An
estimated 1.6 billion people working in informal jobs have been severely
affected by this economic slowdown and are at high risk of falling into
poverty. The 33 million unemployed caused by the pandemic were added to the 81
million seeking work. The sector hardest hit by the pandemic was tourism, with
the risk of 100-120 million unemployed.
Goal 9 calls for building resilient infrastructure and
promoting inclusive and sustainable industrialisation by fostering innovation.
Even this last goal was scaled back as a result of the
pandemic, which caused a 4% drop in shipping and an 8% drop in manufacturing.
Goal 10 of the UN calls for the reduction of inequalities within and between
countries. Inequalities in income, opportunity and wealth exist both within and
between countries, leading to increased migration between countries in search
of more humane situations.
Goal 11 aims to make cities and human settlements
inclusive, safe, resilient and sustainable, but indicators show that around 1
billion people live in the world's slums, mostly in Asia (596 million) and
sub-Saharan Africa (238 million). Rapid and haphazard urbanisation has put
great pressure on urban services, making it difficult to integrate newcomers
and reducing the quality of life of those already living there. Goal 12 aims to
ensure sustainable consumption and production patterns. Current consumption and
production patterns are at the root of the three global crises we are currently
experiencing: climate, biodiversity and pollution. There is a need to decouple
economic growth from human well-being by reducing resource use and
environmental impacts.
The material footprint per capita and material consumption per
capita have increased by 40% in the last 17 years. It is estimated that 16%
of food produced is lost before it is sold, and waste has increased
significantly, with only a small proportion being properly recycled. Goal 13 is
to take urgent action to combat climate change and its effects.
Climate change is one of the reasons why many of the goals set by the
United Nations are unlikely to be achieved. Under the 2015 Paris Agreement, the
196 member states of the United Nations Framework Convention on Climate Change
(UNFCCC) aim to limit global warming to 1.5°C above pre-industrial levels,
which would require the world to: reduce 2010 emissions by 45% by 2030; and
achieve net zero carbon dioxide emissions by 2050. In 2019, the reduction in
developed countries was 6.5%, while emissions in 70 developing countries
increased by 14.4%.
Goal 14 aims to conserve and sustainably use the oceans, seas and marine
resources for sustainable development. The oceans support more than 3 billion
people and carry 80% of the world's goods. They are under constant threat from
pollution, warming and acidification, which are destroying marine ecosystems.
Ocean acidification is caused by the absorption of carbon dioxide, which lowers
the pH of the water.
The increase in the average coverage of marine protected areas from 28%
in 2000 to 44% in 2020 has been uneven across the world. The importance of
sustainable management of fish stocks is crucial to ensure a natural
rebalancing of the ecosystem. Protecting, restoring and promoting the
sustainable use of terrestrial ecosystems, sustainable forest management,
combating desertification, halting and reversing land degradation and halting
the loss of biodiversity are all part of the UN's fifteenth goal.
The world's forest cover in 2020 is 31.2%, with a net loss of almost 100
million hectares of global forest over the last 20 years. During this period,
forest cover increased in Asia, Europe and North America, but decreased
significantly in Latin America and sub-Saharan Africa. As this covid pan-demic
has shown, the threat to biodiversity poses a serious challenge to the survival
of the human species.
Considerable efforts are being made to improve sustainable forest
management, increase the coverage of green spaces, and write laws and treaties
to protect biodiversity, but much remains to be done to integrate the
protection of the planet into all national plans and policies.
In Goal 16, the UN aims to promote peaceful and inclusive societies for
sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels. In 2019, there were 79.5
million forcibly displaced people worldwide, or 1% of the world's population,
and 437,000 victims of homicide.
In 2020, there were 331 murders of human rights defenders and 62
journalists, demonstrating that voices against regimes are always silenced with
blood. The final goal identified by the UN is to strengthen the means of
implementation and reinvigorate the Global Partnership for Sustainable
Development. This goal aims to strengthen cooperation between countries and
with international organisations to implement all the other goals on the
agenda. This requires the most developed countries to help the least developed
countries to achieve shared and cooperative sustainable development.
This can be achieved through fair international trade without additional
tariffs on products and services from poorer countries. Technology and
scientific knowledge must also be shared to reduce the gap between countries.
Aid from richer countries must be increased to invest in communications
infrastructure that bridges the gap between the world's rich and poor countries
(https://sdgs.un.org/).
Since 2001, the OECD has measured the Better Life Index for the 40
countries of the Organisation for Economic Co-operation and Development. The
measurement covers 11 themes: housing, income, work, social relations,
education, environment, governance, health, personal satisfaction, security and
work-life balance. Each theme is measured by one to four indicators. The Better
Life Index is an interactive tool, available online, where anyone can assign
different weights to each of the proposed themes and find their own indicator
to compare and share with those proposed in other countries (OECD, 2013).
As can be seen in Table 3, the United States performs well in all areas
of the survey, excelling in housing and per capita income. With the
availability of 2.4 rooms per capita and the presence of toilets in
almost all dwellings, citizens on average have safe and satisfactory housing
conditions in one of the primary goods. The average per capita housing
expenditure of American households is about 19 per cent, while the average per
capita income is about $45,000 per year, much higher than the OECD average
of about $33,000. Moreover, the average wealth of each family (i.e. total
financial assets in securities and real estate) is $632,000, compared with
$408,000 for the OECD average. It is worth noting the wide disparity in income
distribution within the country.
Table
3. Situation of the 40 countries for 11 evaluation
topics in the year 2020. Source: OCDE, Data Base
online.
|
Housing |
Income |
Employment |
Social relations |
Education |
Environmental |
Civic engagement |
Health |
Satisfaction |
Security |
Balance |
Mean |
Median |
United States |
8.50 |
9.00 |
8.40 |
6.30 |
7.00 |
6.80 |
7.00 |
8.90 |
7.40 |
7.50 |
6.00 |
7.53 |
7.40 |
Australia |
7.90 |
5.70 |
8.00 |
8.60 |
7.40 |
9.60 |
6.40 |
8.70 |
9.90 |
10.00 |
8.50 |
8.25 |
8.50 |
Norway |
8.30 |
4.70 |
8.30 |
8.20 |
7.40 |
9.60 |
6.40 |
8.70 |
9.90 |
10.00 |
8.50 |
8.18 |
8.30 |
Canada |
7.80 |
5.40 |
8.00 |
7.60 |
7.90 |
8.30 |
6.80 |
9.60 |
9.10 |
9.10 |
7.30 |
7.90 |
7.90 |
Sweden |
6.90 |
4.60 |
8.10 |
6.70 |
7.70 |
9.10 |
6.80 |
8.50 |
8.90 |
8.50 |
8.40 |
7.65 |
8.10 |
Switzerland |
6.50 |
6.90 |
9.30 |
7.80 |
7.40 |
7.30 |
3.40 |
9.00 |
9.60 |
9.50 |
8.40 |
7.74 |
7.80 |
Denmark |
6.20 |
3.00 |
8.30 |
8.80 |
7.90 |
8.30 |
7.00 |
7.90 |
9.70 |
9.30 |
9.00 |
7.76 |
8.30 |
The Netherlands |
7.30 |
3.30 |
8.30 |
6.50 |
7.40 |
7.20 |
7.80 |
8.40 |
9.30 |
9.20 |
9.50 |
7.65 |
7.80 |
Luxembourg |
6.70 |
9.10 |
8.40 |
7.40 |
5.00 |
6.40 |
6.90 |
8.00 |
7.50 |
8.60 |
8.00 |
7.45 |
7.50 |
United Kingdom |
5.50 |
6.00 |
8.00 |
8.10 |
6.80 |
6.70 |
7.20 |
7.70 |
7.20 |
8.90 |
6.40 |
7.14 |
7.20 |
Finland |
6.20 |
3.70 |
7.50 |
8.60 |
8.90 |
8.90 |
5.20 |
7.90 |
10.00 |
9.30 |
8.00 |
7.65 |
8.00 |
New Zealand |
6.20 |
4.30 |
8.00 |
8.90 |
6.90 |
8.50 |
7.30 |
9.50 |
8.90 |
7.60 |
5.90 |
7.45 |
7.60 |
Belgium |
7.40 |
5.00 |
7.30 |
6.50 |
7.50 |
5.90 |
7.40 |
8.20 |
7.60 |
8.00 |
8.40 |
7.20 |
7.40 |
Germany |
6.80 |
4.70 |
8.20 |
6.20 |
7.60 |
7.00 |
5.30 |
7.40 |
7.80 |
8.30 |
8.40 |
7.06 |
7.40 |
Austria |
6.20 |
5.00 |
8.10 |
6.90 |
6.60 |
6.60 |
4.80 |
7.90 |
8.30 |
9.10 |
6.80 |
6.94 |
6.80 |
Ireland |
7.30 |
3.10 |
7.20 |
8.60 |
7.40 |
7.60 |
3.10 |
9.10 |
7.70 |
8.60 |
7.90 |
7.05 |
7.60 |
Iceland |
5.20 |
5.90 |
9.90 |
10.00 |
6.90 |
10.00 |
6.40 |
8.60 |
9.50 |
9.60 |
5.10 |
7.92 |
8.60 |
France |
6.60 |
4.40 |
6.80 |
6.20 |
6.10 |
5.90 |
5.80 |
7.70 |
6.10 |
8.20 |
8.70 |
6.59 |
6.20 |
Slovenia |
6.80 |
2.30 |
6.80 |
6.80 |
7.90 |
6.40 |
4.20 |
7.30 |
4.20 |
9.60 |
7.40 |
6.34 |
6.80 |
Estonia |
6.80 |
1.80 |
6.90 |
6.80 |
7.90 |
7.40 |
6.00 |
5.60 |
3.50 |
7.50 |
7.90 |
6.19 |
6.80 |
Czech Republic |
5.00 |
2.10 |
7.10 |
6.30 |
7.50 |
5.30 |
3.40 |
6.50 |
6.80 |
8.30 |
7.60 |
5.99 |
6.50 |
Spain |
6.70 |
4.00 |
4.70 |
7.70 |
5.50 |
5.30 |
4.70 |
8.40 |
5.50 |
9.20 |
8.80 |
6.41 |
5.50 |
Italy |
5.10 |
3.70 |
5.20 |
6.80 |
4.80 |
3.80 |
6.60 |
8.30 |
4.40 |
7.00 |
9.40 |
5.92 |
5.20 |
Israel |
5.00 |
3.20 |
7.30 |
4.80 |
5.60 |
2.70 |
6.50 |
9.30 |
8.50 |
7.80 |
4.60 |
5.94 |
5.60 |
Japan |
6.00 |
4.40 |
8.10 |
5.70 |
7.80 |
6.50 |
1.90 |
5.30 |
4.10 |
8.60 |
4.60 |
5.73 |
5.70 |
Slovakia |
4.50 |
1.60 |
5.60 |
6.40 |
5.70 |
4.90 |
6.10 |
6.70 |
5.00 |
7.40 |
7.90 |
5.62 |
5.70 |
Poland |
4.60 |
2.20 |
6.50 |
4.00 |
7.60 |
4.20 |
4.90 |
6.20 |
4.80 |
7.80 |
6.80 |
5.42 |
4.90 |
Latvia |
3.70 |
0.70 |
6.00 |
4.00 |
7.10 |
6.30 |
4.30 |
4.50 |
4.20 |
6.60 |
6.90 |
4.94 |
4.50 |
Korea |
6.60 |
3.10 |
7.40 |
0.00 |
7.60 |
2.40 |
7.80 |
4.70 |
4.00 |
7.70 |
4.10 |
5.04 |
4.70 |
Lithuania |
5.30 |
1.80 |
6.50 |
4.80 |
7.30 |
5.80 |
3.80 |
4.20 |
4.20 |
6.30 |
8.60 |
5.33 |
5.30 |
Portugal |
6.30 |
2.60 |
5.80 |
4.90 |
4.60 |
7.20 |
2.50 |
5.80 |
2.40 |
8.30 |
7.00 |
5.22 |
5.80 |
Greece |
4.80 |
1.50 |
1.80 |
0.70 |
6.10 |
3.70 |
4.10 |
8.20 |
2.20 |
7.10 |
7.10 |
4.30 |
4.10 |
Brazil |
4.50 |
0.30 |
4.10 |
6.20 |
1.80 |
5.50 |
6.60 |
6.60 |
5.80 |
0.00 |
6.60 |
4.36 |
5.50 |
Hungary |
5.60 |
1.30 |
6.40 |
4.00 |
5.90 |
4.30 |
3.40 |
5.90 |
3.10 |
6.70 |
8.00 |
4.96 |
5.60 |
Russian Federation |
4.50 |
1.90 |
6.60 |
5.70 |
6.80 |
2.50 |
2.30 |
3.60 |
3.70 |
4.40 |
8.30 |
4.57 |
4.40 |
Mexico |
3.10 |
0.60 |
5.90 |
1.40 |
1.10 |
4.00 |
6.90 |
6.30 |
6.10 |
2.20 |
1.10 |
3.52 |
3.10 |
Türkiye |
4.70 |
1.60 |
5.00 |
3.80 |
3.00 |
2.70 |
5.90 |
7.20 |
2.60 |
7.00 |
3.10 |
4.24 |
3.80 |
Chile |
5.40 |
1.00 |
5.90 |
3.30 |
4.50 |
4.20 |
1.00 |
6.40 |
6.00 |
5.40 |
5.00 |
4.37 |
5.00 |
Colombia |
4.70 |
0.40 |
5.50 |
5.50 |
1.40 |
5.90 |
2.00 |
7.80 |
5.30 |
1.20 |
0.90 |
3.69 |
4.70 |
South Africa |
2.50 |
0.30 |
0.00 |
4.90 |
2.60 |
2.60 |
4.70 |
3.10 |
0.00 |
2.50 |
5.50 |
2.61 |
2.60 |
The comparison between the 40 countries analysed shows a very
heterogeneous situation: the number of rooms per capita ranges from 2.6
in Canada to 0.9 in the Russian Federation; in general, more than 80% of
dwellings have basic sanitary facilities, although in some countries, such as
South Africa, only 63% of dwellings have them. The ratio of housing expenditure
to income also varies widely between countries, ranging from 15% in South Korea
to 26% in New Zealand.
When analysing per capita income and wealth, it ranges from
$45,000 in the United States to $11,000 per capita per year in South
Africa, while household wealth ranges from $769,000 in Luxembourg to $70,000 in
Latvia. Interestingly, income distribution is much more equal in Iceland, with
a value of 3.5 (1 being equal distribution) compared to 37 in South Africa.
In the United States, the very low unemployment rate of around 0.7 per
cent (the range between countries goes from 0 per cent in Korea to 16 per cent
in South Africa) and the very high secondary education rate of 91 per cent
(higher than Japan's 94 per cent, the lowest being Mexico's 37 per cent)
provide greater security in the face of the adversities of the world of work.
The subjective measure of life satisfaction for Americans is 6.9 out of 10, an
excellent rating that places them 17th out of the 40 countries surveyed, a
ranking led by Finland with 7.6 and followed by South Africa with 4.7.
The case of Italy is noteworthy, where in recent years several
indicators have been produced by major research institutes and foundations,
which in 2010 find their best synthesis in the measurement of Equitable and
Sustainable Well-being (BES).
This measurement is done by analysing 12 domains and 168 regional
indicators disaggregated by gender, age, educational level, social status and
family type. The 12 domains are: health, education, work, economic well-being,
social relations, politics and institutions, security, subjective well-being,
landscape and cultural heritage, environment, research and innovation, quality
of services (ISTAT, 2022).
Virtuous countries
From the analysis of 7 indicators
(Gallup, HPI, HDI, EPI, GDP per capita, EP and SDI) applied worldwide,
we can try to identify a group of countries that could show the way forward.
There is no such thing as a model country, as the variables that positively
affect welfare indicators often have inverse relationships. Economic growth
almost always has a negative effect on environmental variables and a positive
effect on life expectancy, health, education and services.
The model country should have a
medium to high level of wealth and a high level of environmental protection,
i.e. low emissions of pollutants into the air and water, protection of
biodiversity, renewable energy, sustainable mobility, organic agriculture, low
use of non-renewable resources.
It was decided to divide the
positions obtained for each indicator into quartiles. The first quartile is
made up of the 25 per cent of countries analysed for that indicator,
representing the best performers according to this methodology. The second
quartile is made up of the countries in the second quarter of the ranking, the
third quartile is made up of the countries in the middle to the 75th
percentile, and the last quartile is made up of the 25 per cent of countries at
the bottom of the ranking.
Figure 12 shows a group of 10
countries that rank high on the Gallup (subjective) indicators, the Happy
Planet Index, the Human Development Index, the Environmental Performance Index
and GDP per capita, but are in deficit on the Ecological Footprint and
the Sustainable Development Index. 9/10 of these countries are European: Spain,
the UK, Switzerland, France, Germany, Ireland, the Netherlands, Finland and
Norway. The only non-European country is New Zealand.
Figure
12. Using indicators to identify more virtuous countries.
Source:
Gallup, World Bank, Global Footprint Network, Yale University, UNDP,
Sustainable Development INDEX. Access on: https://drive.google.com/file/d/1by8YuAxj9aKfxMrA2wi4Kgi9Baufpjs-/preview
After these countries, there is
another group of 20 countries, 12 of which are European, plus Canada, the
United States, South Korea, Australia, Israel and the United Arab Emirates.
There is a third group, made up of Costa Rica, Mexico and Brazil, which have
excelled on the Gallup, Happy Planet and Sustainable Development Indexes, while
being in the second or third quartile on the other four indicators,
demonstrating that they are able to meet the health and education needs of
their populations, while achieving environmental sustainability and without very
high incomes.
All these European countries are at the top of the OECD's Better Life
Index, which confirms the other indicators used. The Central American countries
are not monitored by the Better Life Index, so it was not possible to compare
them with the other indicators analysed. It is to be hoped that this OECD
indicator will be extended to other countries in the coming years, as it is
indeed a good measure of social wellbeing, including the four main dimensions
for its measurement (economic-environmental-social-subjective).
In Table 4 the indicators were
divided according to the dimensions used to classify the collective well-being
of countries. In addition, the years of measurement, the countries monitored,
and the number of indicators used have been indicated.
Table 4. Indicators for Measuring the
Well-being of a Nation.
Economic |
Environmental |
Subjective |
Economic Environmental Social |
Environmental Social Subjective |
|
GDP pre capita PPP Years 1990 - 2020 Countries 190 |
Ecological Footprint Years 1961 - 2017 Countries 188 |
World Happiness Report Years 2005 – 2021 Countries 160 |
Human Development Index Years 1990 – 2020 Countries 189 Indicators 3 |
Happy Planet Index Years 2006 - 2020 Countries 160 Indicators 3 |
|
|
Living Planet Index Years 1970 – 2017 Countries 190 |
World Value Survey Years 1981 – 2020 Countries 80 |
Sustainable Development Index Years 1990-2019 Countries 165 Indicators 6 |
|
|
|
Environmental Performance Index Years 2002-2020 Countries 180 Indicators 32 |
|
Sustainable Society Index Years 2006 -2020 Countries 190 Sustainable Society Foundation Indicators 21 |
|
|
|
|
|
Sustainable
Development Goals Years 2015 –
2020 Countries
190 Indicators
244 |
|
|
Economics - Environmental -
Social-Subjective |
|||||
Better Life Index Years 2001 - 2020 Countries 40 Indicators 24 |
Sustainable Fair Welfare Years 2010 - 2020 Countries 1 Indicators 130 |
||||
Conclusions
This paper has described some of the indicators most
commonly used by national and international bodies to measure the
well-being of a nation. One-dimensional measures (economic, environmental,
subjective) and multi-dimensional measures (economic-environmental-social,
economic-social-subjective, economic-social-environmental-subjective) have been
considered. It was found that there is a very high loss of information in the
case of one-dimensional measures and therefore the best way forward would be
the multi-dimensional measure.
Once the set of indicators that best represents the dimensions to be
measured has been identified, it is necessary to work on their international
standardisation, dictated by guidelines accepted by most countries. This
process will be achieved by allocating resources and specialised staff, as has
been done for national accounts measurements. A good starting point is the
OECD's Better Life Index, which is currently limited to measuring indicators
for 40 countries, but should be extended to all the nations of the world. The
Italian proposal (this study) for a set of indicators as a basis for the
calculation of fair and sustainable well-being seems to go in the more
plausible direction, as it combines objective indicators with subjective
measurements obtained through special questionnaires to a sample of families.
The environmental dimension, with the depletion of natural resources and
the mismanagement of natural capital, sets limits that can no longer be crossed
and that should condition the political choices of all countries on the planet.
The indicators analysed do not provide any models to follow, but the countries
that have placed social, educational and environmental protection, as well as
investment in scientific research, at the ‘heart’ of their policies are also
those that occupy the top positions in the rankings of collective well-being.
Much remains to be done to protect terrestrial and marine biodiversity (both in
terms of accuracy of measurement and actual protection), the loss of
non-renewable natural resources, and gender, income, generational and citizenship
inequalities.
Collective well-being is a measure of the civilisation of a country and
the maturity of its citizens, who improve their lives without worsening the
lives of their neighbours or those who will come after them.
CREDIT
AUTHORSHIP CONTRIBUTION STATEMENT
The author declares
that he has participated alone in all section of this manuscript, including all
the research.
DECLARATION OF INTEREST
The author discloses that they have no known competing
financial interests or personal relationships that could have appeared to
influence the study reported in this manuscript.
FUNDING SOURCE
The author declares
that no funding is applicable for this research.
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