The National Welfare Index Methodology Results Potential Uses

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The National Welfare Index Methodology, Results, Potential Uses and Political Impacts in Germany Benjamin

The National Welfare Index Methodology, Results, Potential Uses and Political Impacts in Germany Benjamin Held, Ph. D. Institute for Interdisciplinary Research (FEST) Heidelberg, Germany Webinar “BEYOND GDP, Governance and Budgeting for Well-being” June 5 rd 2020

Overview 1. Introduction: The concept of the National Welfare Index 2. Overview of calculation

Overview 1. Introduction: The concept of the National Welfare Index 2. Overview of calculation principles and components 3. Welfare development in Germany: main results of NWI compared to GDP 4. The NWI Ireland – a feasibility study 5. Potential uses & political impact 2

1. Introduction The National Welfare Index (NWI): • an aggregate economic index • integrating

1. Introduction The National Welfare Index (NWI): • an aggregate economic index • integrating 20 environmental, social and economic components • to provide a broader picture of the wellbeing of society www. nationaler-wohlfahrtsindex. de/en First publication: Diefenbacher/Zieschank (2009), with support of German Environment Agency and Federal Ministry for the Environment, Nature Conservation and Nuclear Safety 3

1. Introduction National Welfare Index (NWI) • • • first published 2008/2009 revised NWI

1. Introduction National Welfare Index (NWI) • • • first published 2008/2009 revised NWI 2. 0 2013 yearly update since 2015 NWI 2009 2013 2015 2016 … 2020 Regional Welfare Indices (RWI) • • Schleswig-Holstein 2011 Bavaria, Thuringia, Saxonia 2013 Rhineland-Palatinate, Hamburg, Bavaria (update) 2014 North Rhine-Westphalia 2016 Rhineland-Palatinate (update) 2016 & 2017 Schleswig-Holstein 2017 (update) Thuringia (update) 2019 Hesse (project pending) 2020 2019 4

2. Overview of calculation principles and components 5

2. Overview of calculation principles and components 5

2. Overview of calculation principles and components Calculation of NWI: accounting approach with monetized

2. Overview of calculation principles and components Calculation of NWI: accounting approach with monetized components Private consumption weighted with income distribution + Welfare creating components for ex. house and family work, voluntary work Welfare reducing components for ex. costs of environmental damages or traffic accidents 6

3. Welfare development in Germany: main results of NWI compared to GDP NWI and

3. Welfare development in Germany: main results of NWI compared to GDP NWI and real GDP (Germany; 1991 -2017; normalized, 2000 = 100) Source: Held et al. 2019 7

4. The NWI Ireland – a feasibility study Source: Waidelich et al. 2017 8

4. The NWI Ireland – a feasibility study Source: Waidelich et al. 2017 8

5. Potential uses & political impact Potential uses - In what ways could the

5. Potential uses & political impact Potential uses - In what ways could the information of NWI be used to reorient society? • Indicator “debunking” GDP as an inadequate measure of welfare • Monitoring instrument: aggregate indicator addresses broader public, single components provide additional information – within the restrictions of availability of data and methodologies • Contribution to the discussion about societal progress and the goals and possibilities of transformation Supports strategies for a social and ecological transformation beyond GDP growth, but: There is no “one big solution” to all problems of societal reporting! Political impact - Has the NWI a tangible impact on politics in Germany? • To early to tell; currently mostly used for to engage discussion about alternative welfare measurement Zieschank / Rodenhäuser 5 th of November 2019 9

Many thanks for your attention! Benjamin Held, Ph. D. Institute for Interdisciplinary Research Schmeilweg

Many thanks for your attention! Benjamin Held, Ph. D. Institute for Interdisciplinary Research Schmeilweg 5 D – 69118 Heidelberg benjamin. held@fest-heidelberg. de 10