I’ve been pretty cynical about Sarkozy. My perception of him was that he was second only to Berlusconi in foolish self-centred frippery (although possibly not as dangerous). He was elected on a right wing platform and since has been dubbed the “hyper-president” for his whirlwind style and the “bling bling” president, for his wearing of ostentatious finery,
But this article caught my attention. France wants to add “happiness” as an indicator to calculate its GDP and Sarkozy wants to push this idea at the next G20 meeting in Pittsburgh. Other new indicators would include access to healthcare, well-being and leisure time.
French President Nicolas Sarkozy is asking world leaders to join a “revolution” in the measurement of economic progress by dropping their obsession with gross domestic product to account for other factors, saying that – “the (economic) crisis doesn’t only make us free to imagine other models, another future, another world. It obliges us to do so.”
Sarkozy didn’t think this up all of his own, of course. He commissioned a report, co-authored by U.S. economist Joseph Stiglitz, winner of the 2001 Nobel economics prize and a critic of free-market economists and Armatya Sen of India, who won the 1998 Nobel prize for work on developing countries, and helped create the U.N. Human Development Index. But he’s picked up the ball and run with it, even although I can hear the sniggers of the ideologues from here.
So, good old Sarkozy. He’s not so completely self-obsessed after all, although this in today’s Herald.
Wonder how you think we should measure economic progress?
There is quite lot emerging on this theme, and Sarkozy is not the first. A good book is ‘Happiness – lessons from a new science’ by Richard Layard.
We should not forget that GDP/GNP is a post WW2 construct. It exerts WAY too much influence over huge areas of policy.
Keep on trucking….
I would love if a Labour Government (or even a Labour opposition) would do the same, and consider other measures of progress. I’m glad to hear you talking about it.
As you are likely aware, Marilyn Waring has done a lot of recognised work on measures other than GDP. I’m sure she’d be delighted to talk to you and other MPs.
I remember a few years ago Michael Palin did a series called Himalaya in which he visited Bhutan. He said there they decided to measure Gross Domestic Happiness and oriented policies to improving GDH rather than GDP
Bhatan is famous for its Gross National Happiness indicators its really interesting. I think there is a space for difference progress measures. A trust called ANEW New Zealand are doing work on progress indicators that you might be interested in.
http://www.anewnz.org.nz/page.asp?id=28
The problem I have with GNP is how negative things are measured as progress like waste etc. It would be good to have more valuable growth and development.
There is so much to be said about progress indicators and its hard to put in a comment section of a blog but I would start with whats on the ANEW site and it could include happiness but I think some important first steps would be measuring the type of growth, be more honest about our growth and what kinds of growth and development we want as a country etc. I think this would help us understand how productive we really are as a country and also if we really are creating a knowledge economy.
Dr Ron Colman will be speaking on the following topic on Friday 25th September in Auckland, and Monday 28 September in Wellington.
“How can we avoid a future crisis?: How a Canadian Genuine Progress Index (GPI) warned of the current crisis and a New Zealand GPI could save us from future crises”
Auckland meeting: 6pm – 8.30pm: Human Science Building, Lecture Theatre 1, University of Auckland (on Symonds Street).
Wellington meeting: 5.30pm – 8pm: Rutherford House, Lecture Theatre 2, 23, Lambton Quay, Victorian University.
See http://www.anewnz.org.nz for details.
Interestingly, Joe Stigliz pointedly remarks elsewhere that “what we measure changes what we do”. As pointed out above, the effect of positive measurement, is as much a driver as it is a measure, in effect it is a review on its own ability to drive that particular behavioral change.
Dynamic stuff. I fear however, the New Zealand economy nor its commercial participants would accept it as a measure of performance, just as in their minds (Some, not all) productivity is achieved through elasticity in its labour force and associated costs, rather than into the less tangible but as effective process enhancement and innovation investment cycles.
Happiness to a boy racer is very different from happiness to a pensioner. How does one measure happiness? I like to drink, but know that there are some people who would love to force me into drinking two, yawn, standard drinks a day.
Goodluck to anyone who wants to make everyone happy, however it is achieved. 
“Wonder how you think we should measure economic progress?”
Not the same way Sarkozy measures height that’s for sure.
Thanks for comments everyone. Some good references which I will read with interest.
Keep the conversation going):
Seen this?
http://www.stats.govt.nz/sustainabledevelopment