Brussels, 26/08/2009 (Agence Europe) - Despite its shortcomings, Gross Domestic Product (GDP) remains the best known and most widely used measure of macro-economic activity. However, to give exact measurements of long-term economic and social progress, particularly the ability of a society to manage issues such as climate change, the effective use of resources and social integration, as an indicator it has to be complemented with other statistics that deal with these issues that are just as essential to people's well-being. Thus says the European Commission in a communication adopted on 20 August, proposing stepping up the work that has been carried out on this matter for a number of years. The paper, “GDP and beyond: Measuring progress in a changing world”, seeks to inform public debate offering further benchmarks measuring what really matters to people: measuring sustainable progress towards targets set in social, economic and environmental areas.
There is nothing new in this, and GDP remains the principal reference. Studies have demonstrated, however, the limits of this kind of information for citizens. GDP may rise, but does not prevent the perception that services are being cut back. Similarly, indicators based on averages or the average consumer are not, the Commission says, sufficient to satisfy people's and decision-makers' information needs. It believes that complementing GDP with additional concise metrics that reflect wider public concerns will demonstrate greater linkage between EU policy and citizens' preoccupations.
In its communication, the Commission proposes five “actions” to develop indicators that provide more and more reliable information so that policy decisions can be based on the most detailed information possible. (a) Complementing GDP with environmental and social indicators. Commission intends to develop a comprehensive environmental index and improve quality-of-life indicators. No such indicator may exist at present, but Commission services intend to present a pilot version of an index on environmental pressure in 2010. This index will reflect pollution and other damage to the environment within the EU to assess the results of environmental protection efforts. A fall in the value of the index will show that progress on environmental protection is being made. It will comprise the major strands of environmental policy (climate change and energy use; nature and biodiversity; air pollution and health impacts; water use and pollution; waste generation and use of resources). Similarly, for measuring quality of life and well-being, the Commission has launched studies on the feasibility of well-being indicators and on consumer empowerment. (b) Near real-time environmental and social information. The Commission is stepping up efforts to realise the potential represented by satellites, automatic measurement stations and the internet which makes it increasingly possible to monitor the environment in real time. Whenever possible and cost-effective, the timeliness of social data, too, will be improved, e.g. with the new European System of Social Statistical Survey Modules. (c) More accurate reporting on distribution and inequalities. Information that allows benefits to be equitably shared among countries, regions, and economic and social groups is needed, the Commission says, noting that indicators of equal access to quality housing, transport and other services and infrastructure are being developed. (d) Developing a European Sustainable Development Scoreboard. The Commission intends to present a pilot version of the SD scoreboard in 2009. The SD Scoreboard, based on the EU Sustainable Development Indicators (SDI) set, could also include other quantitative and qualitative publicly available information, for instance on business and policy measures. (e) Extending National Accounts to environmental and social issues. As methods are agreed and the data becomes available, national accounts will be complemented with integrated environmental-economic accounting that provides fully consistent data. Similarly, the existing European System of Accounts includes already indicators that highlight socially relevant issues, such as the disposable income of households and an adjusted disposable income figure, but the Commission intends to increase use of these indicators which reflect what people can consume and save better than GDP per capita.
The reflection on indicators contained in the communication may inform the definition of new strategic targets for the post-2012 Lisbon Strategy, the Commission says. It intends to report on the implementation and outcomes of the actions put forward by this Communication by 2012 at the latest. (A.B./transl.rt)