Well-being in regions: Building more coherent policies for a better growth model

Transcription

1 Liv i væksten Well-being in regions: Building more coherent policies for a better growth model Joaquim Oliveira Martins Head of the OECD Regional Development Policy Division Monica Brezzi Head of the Regional Analysis and Statistical Unit, OECD

2 WELL-BEING IN REGIONS: BUILDING MORE COHERENT POLICIES FOR A BETTER GROWTH MODEL Monica Brezzi and Joaquim Oliveira Martins OECD

3 Outline 1. Growth and inequalities: managing the trade-offs 2. Integrating the economic, social and environmental dimensions: building complementarities 3. Using regional well-being metrics for a better growth model 17

4 1. Growth and inequalities: managing the trade-offs 18

5 Income inequality has increased in most OECD countries and emerging market economies Gini coefficient of disposable income (mid 90s to ) 0,7 0,65 Mid 90s Late 2000s 0,6 0,55 0,5 0,45 0,4 0,35 0,3 0,25 0,2 0,15 Source: OECD Income Distribution Database 19

6 Also with large differences within countries New Zealand Regional values of Gini coefficient of disposable income (2010) Country value regional values v v 20 United States Chile Mexico United Kingdom Spain Belgium Israel Germany France Australia Turkey Italy Austria Norway Sweden Canada Switzerland Japan Czech Republic Denmark Poland Netherlands Greece Hungary Finland Slovak Republic Slovenia Source: OECD(2014) How s life in your region? forthcoming

7 Until the crisis, U-shaped relation between GDP growth and income inequality in regions Gini coefficient on disposable income (2010) and average annual growth of GDP per capita ( ) Average annual growth rate of GDP per capita ( ) Nordic Countries Eastern Europe SVK, CZE Continental and Southern Europe CHL, USA Gini on disposable household income Source: OECD(2014) How s life in your region? forthcoming Note: dots represent OECD regions 21

8 2. Integrating the economic, social and environmental dimensions: building complementarities 22

9 Complementarities need to be constructed through appropriate design Economic Inclusive growth Green growth Social Wellbeing Environment Social-ecology 23

10 But economic, social and environmental outcomes vary largely within countries Evidence shows that life satisfaction is higher in countries with a more balanced distribution of well-being outcomes among the 3 dimensions (the estimated coefficient of dispersion across the well-being dimensions is significantly negative). Spatial concentration of advantages or disadvantages varies strongly and different sources of inequality can reinforce one another, locking households and communities into circumstances that make it particularly hard for them to improve their life DIMENSIONS CITIES RURAL AREAS Economic + - Environment - + Social public goods (health, education, etc.) Social community produced goods (trust, security, social connections)

11 Place-based policies can help transforming trade-off in complementarities Inclusive growth Active labour market policies (ALMPs) can facilitate a better match of jobs with skills, thus lowering unemployment and making a strong contribution to social equality. They are more effective when designed at the regional or local levels, since information about local conditions is crucial to success. Green growth Integrating land-use, transport and business infrastructure policies can contribute to outcomes that are greener (increasing reliance on public transport), more equitable (improving access to labour markets for disadvantaged areas) and more efficient (reducing congestion and commuting times, etc.). Social-ecology To integrate economic and social objectives, carbon taxes could be complemented with instruments that address both individuals and places. In fact, the fuel poverty indicator (% of households that spend more than 30% on energy) shows a link between individual (income) and places characteristics. 25

12 3. Using regional well-being metrics for a better growth model 26

13 How do we measure regional well-being? Place characteristics Individuals characteristics People s well being Including institutions, governance and citizenship People s well being is composed of many dimensions These dimensions have synergies and can reinforce each other 27

14 It provides a better understanding of relevance of disparities within countries Difference in life expectancy among OECD regions is of 15 years, almost the double than among countries (6 years). Within US is 7 years It can raise awareness and help target policy actions Life expectancy at birth, 2010 selected countries 28

15 It helps understanding how different dimensions interact 29

16 and what geographic scales are relevant for policy Range in Co2 emissions among metro areas, 2008 Important because the capacity of local governments to act can be very different 30

17 Measure well-being in Southern Denmark on 8 dimensions and compare it with 300 regions 31

18 OECD publication How s life in your region? Identify 11 dimensions and indicators for OECD countries OECD work on regional inequalities How s life in your region? Measuring regional and local wellbeing for policy making (FINAL REPORT SEPTEMBER 2014) Common framework to measure well being INTERACTIVE WEBSITE Internationally comparable indicators in regions and cities Guidance for policymakers and citizens to use these indicators for more effective policies to improve people s lives Seven case studies of regions using wellbeing metrics for policy making SOUTHERN DENMARK

19 Using well-being metrics in policy making 1. Wide consultation on objectives and ways to meet them 2. Citizens engagement also in monitoring progress and contributing to changes 3. Coordination across levels of government, sectors and across jurisdictions 4. Institutional changes informed also from the territory 5. Open data 33

20 What the Good life initiative of Southern Denmark can teach to other regions 1. Sound framework that blends a focus on places with a focus on people, that could be adapted to other regions in Denmark. 2. Well-being knowledge facilitated the collaboration between region and municipalities in a context of the territorial reform of Efforts to engage all relevant stakeholders and promote civic participation still under way (push on open data?) 4. Accountability and political leadership build effective mechanisms for target setting and policy monitoring 34

21 Thank you! Interactive web-tool with internationally comparable well-being indicators: (June 2014) OECD How s life in your region? (September 2014) Assessment of using wellbeing indicators for policy making in regions (Southern Denmark) 35