Ambitions Goals for a Global Framework
Quarterly Statistics reporting on more agreed indicators
wellbeing, sustainability & equity
Promoting all indexes of wellbeing and societal growth, organising ourselves to coordinate
http://metricsforthefuture.com/
GDP – Gross Domestic Product
quarterly profits
metrics, financial and others are a compass for decision making
The problem is not the dominance of economic thinking but rather the lack of a coherent counter-message.
The book therefore proposes a community-building process which is crucial to institutionalize well-being, inequality and sustainability in society. An crucial foundation for such a community is a common language which is formalized in a harmonized multidisciplinary accounting system. This new way of measuring progress and re-formulation of the Sustainable Development Goals (SDGs) will help societies move towards metrics and better policies that are focused on well-being and sustainability.
Financial metrics and economic thinking currently dominate our society. Government policy is focused on economic growth (as measured by GDP – Gross Domestic Product) while many companies are driven by quarterly profits.
Yet these financial metrics are not a good compass for decision making – we need better metrics to navigate the societal and environmental challenges that we face. MetricsFortheFuture.com was founded by Rutger Hoekstra in 2019 with a mission is to overcome society’s damaging obsession with financial metrics.
Specifically, MetricsFortheFuture.com helps in two areas:
Beyond-GDP: I help Governments and International Institutes to focus on Well-being & Sustainability rather than Economic Growth.
Beyond-Profit. I help Businesses to focus on creating Long Term Value rather than Short-Term Profit.
How we can transition to a well-being society.
20 year experience (working for/with Statistics Netherlands, OECD, WorldBank, United Nations, European Comission, ECB, KPMG and many other organisations)
book “Replacing GDP by 2030” (see endorsements and press).
TABLE OF CONTENTS
Part I. Why A New Strategy Is Needed
1. Replacing the most influential indicator
in the world
2. Why is GDP successful?
3. What does GDP measure (and what
does it not)?
4. Why is Beyond-GDP not successful?
Part II. The New Strategy: A Community
for Well-being and Sustainability
5. Outline of the strategy
6. Global environmental accounts (GENA)
7. Global societal accounts (GSA)
8. Global economic accounts (GECA)
9. Global distribution accounts (GDA)
10. Global quality accounts (GQA) and
quality indicators
11. Implementation of the strategy
https://www.researchgate.net/publication/333356163_Replacing_GDP_by_2030_Towards_a_Common_Language_for_the_Well-being_and_Sustainability_Community
Rutger Hoekstra
How did Gross Domestic Product (GDP) become the world's most influential
indicator? Why does it remain the primary measure of societal progress
despite being widely criticised for not considering well-being or
sustainability? Why have the many beyond-GDP alternatives not managed to
effectively challenge GDP's dominance?
The success of GDP and the failure of beyond-GDP lies in their underlying
communities. The macro-economic community emerged in the aftermath of
the Great Depression and WWII. This community formalised their 'language'
in the System of National Accounts (SNA) which provided the global
terminology with which to communicate. On the other hand, beyond-GDP is
a heterogeneous community which speaks in many dialects, accents and
languages. Unless this changes, the 'beyond-GDP cottage industry' will never
beat the 'GDP-multinational'.
This book proposes a new roadmap to 2030, detailing how to create a
multidisciplinary Wellbeing and Sustainability Science (WSS) with a common
language, the System of Global and National Accounts (SGNA).
'This book shows why a 'beyond-GDP world' is needed and how it can be built. A must-read contribution to the move towards a sustainable future.' Enrico Giovannini, Università degli Studi di Roma Tor Vergata and former Minister of Labour and Social Policies in the Italian government
'In crisp prose, Rutger Hoekstra conveys an important message. We won't convince policy makers to look beyond GDP simply by multiplying the production of well-being indicators. Something more is clearly needed.' Marco Mira d'Ercole, Head of Household Statistics, OECD
'This book by environmental economist Hoekstra does not only offer a good read and an excellent introduction to the big debate about GDP and beyond GDP. It also provides a clear strategy to make beyond-GDP much more effective and to learn from the success of GDP as an indicator and language.' Frits Bos, CPB Netherlands Bureau for Economics Policy Analysis and author of The National Accounts as a Tool for Analysis and Policy: in View of History, Economic Theory and Data Compilation Issues
'There are many publications criticising, for the right or for the wrong reasons, GDP and national accounts. But hardly anyone comes up with a valid way-out. Rutger Hoekstra not only puts forward a well thought-out alternative, but also provides a strategy for replacing the hegemony of GDP. Will it work?' Peter van de Ven, Head of National Accounts, Organisation for Economic Co-operation and Development
'This is a powerful and timely contribution to the debate about how to move beyond GDP - and what to use instead - in seeking to understand the economy and bring about improvements in people's lives. There is no question that the conventional economic statistics have outlived their use; they obscure rather than enlighten. The importance of this book is in its thoughtful and detailed proposals for change.' Diane Coyle, Bennett Professor of Public Policy, University of Cambridge and author of GDP: A Brief but Affectionate History
'The beyond-GDP discussion has been raging on for decades, and progress has been slow. Drawing upon years of experience as a high-level international statistician, Rutger Hoekstra offers an original and highly informed view from the trenches on the why and how. His innovative and ambitious proposal for a way out deserves to be widely read and discussed.' Marcel Timmer, Director of the Groningen Growth and Development Centre (GGDC), Rijksuniversiteit Groningen
'I therefore cannot recommend highly enough environmental economist Rutger Hoekstra's book Replacing GDP by 2030. In my view it is the most interesting and thoroughly evidence based approach to taking the debate on replacing GDP forward. It should be required reading for every economic minister and spokesperson as well as every research body in Scotland.' Roger Mullin, The National. source: https://www.cambridge.org/it/academic/subjects/economics/economic-development-and-growth/replacing-gdp-2030-towards-common-language-well-being-and-sustainability-community?format=AR retrieved 30/10/21
Studies have shown that businesses that focus on value creation, in the broad sense, do better in the long run. They make better decisions related to their customer value, impacts, opportunities and risks. However, this management style requires metrics that go beyond the financial accounts which currently dominate business reporting.
Maximization of shareholder value has been the dominant business strategy in recent decades. As a consequence, these companies are focused on short-term financial profits and loose sight of the real value which they are creating for consumers and society.
This narrow focus is changing. Many businesses are currently shifting their attention from short term profits to long term value creation. They are also looking at a broader set of stakeholders, beyond their shareholders: customers, employees, suppliers and nature.
This helps companies re-focus their goal or “purpose”. How do products and services contribute to the well-being of customers? How are companies affecting their employees, their human capital? How is the company contributing to environmental problems or social disruption? Which risks do these impacts pose in the long run? Will it affect their license to operate?
Area: Media, Education, Advocacy - Wellbeing
Approach: Holistic, Circular, Rigenerative
Governance : holocracy - Looking for 6 Guardians
Frameworks: Economy for the Common Good, B-Corp,
SDG: 3, 15, 17
Asset Lock: A.I.D.s dogs