Wellbeing economies

STRATEGIC FORESIGHT FOR SUCCESSFUL NET-ZERO TRANSITIONS

Well-being economies

Improving people’s well-being becomes the driving purpose of government action POSSIBLE 2030-2050 DISRUPTION Climate change and backlash against increased societal inequalities create overwhelming public demand for policies (and collective actions) that prioritise inclusive and sustainable well-being. Coupled with new approaches to conceptualising and measuring well-being, a social and economic paradigm shift takes place. The promotion of good lives for all (diverse groups of people, the planet and future generations) becomes the core focus of governments and other actors. Different standards for what constitutes a good life proliferate at the national, community and individual level, leading to a more complex but transparent and often participatory policymaking process.

CONTEXT

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For two decades, the movement to broaden the definition of societal progress beyond macro-economic growth (“Beyond GDP”) has been gaining momentum. Contributions from the OECD, United Nations and the European Commission have been bolstered by political, academic, business and civil society action, from all over the world.

Many countries have already embraced the notion that better measures of well-being are needed, and over half of OECD countries now have a well-being framework to monitor progress or guide policy. Recent years have also seen more and more countries look beyond measurement: a range of policy innovations is increasingly being adapted to ensure that improvements to people’s lives are at the forefront of political decision-making, including through mainstreaming well-being into budgeting and policy evaluation.

The OECD Well-Being Framework

Source: OECD

This series is part of the Strategic Foresight for Successful Net-Zero Transitions toolkit which assists governments and organisations to develop forward-looking, adaptive and future-ready strategies for net-zero emission transitions.

Each part of the series showcases one “Possible Disruption” during the 2030-2050 period that could generate new opportunities or challenges for public policy. Each disruption was developed with foresight, academic and policy experts and represents a plausible extreme in a rapidly changing and uncertain future.

SIGNAL Over half of OECD countries have developed a well-being framework and/or measurement dashboard since 2000.

SIGNAL Most people in OECD countries are concerned about high and increasing inequality and the lack of equal opportunities.

SIGNAL Several OECD countries have recently introduced new government structures and roles, including Ministry-level positions, for well-being, mental health, or loneliness.

POTENTIAL IMPLICATIONS The markers for societal and individual “success” shift as well-being becomes an overarching goal.

Certain sectors, such as teaching , caregiving and environmental conservation, may see increased salaries and social status. Work-life balance may become a symbol of career success and essential for firms to attract talent. Some trade-offs in terms of personal income may become more acceptable to employees if there are sufficient gains in other areas of well-being, such as sense of purpose or positive social relationships. Businesses are incentivized to focus on their long-term social impact over short-term profit through stakeholder demand, disclosure requirements, taxation or other regulation.

The promotion of good lives and long-term sustainability is likely to require fundamental changes in how governments allocate resources and design policies. Government investment will need to shift more towards enabling people and planet to flourish from childhood to old age. This will require new analytical tools capable of evaluating policy options from a multidimensional well-being perspective as well as participatory processes that reflect citizens’ beliefs about what matters for a good life.

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Influence in the international system may shift towards places that are models for well-being promotion but are not necessarily the largest economies. Countries that develop best practices for improving citizens’ quality of life are looked to for guidance and become the preferred destination for high-skill immigrants, boosting productivity. The entry criteria for international organisations changes to include well-being performance, and international dialogues include a broader range of participants. However, well-being maximisation is still easier for wealthy populations, and debates about inequality and critiques of superficial attempts to “wellness-wash” by firms and governments also become a focal point in global discourse.

QUESTIONS FOR POLICYMAKERS

POLICY RESPONSES

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When is income not a good proxy for wellbeing?

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How can governments articulate and maintain consensus on what the desired set of well-being outcome indicators are?

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What is the appropriate role of the state in the promotion of well-being?

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What barriers currently impede the promotion of well-being and how can they be overcome?

A key example of emerging well-being policy practices is the incorporation of well-being into the (national) budget cycle. Since government budgeting is in essence about making choices and setting priorities, it can be an impactful tool to shape decision making towards contributing to people’s well-being.

New Zealand has had a well-being budget in place since 2019, Canada integrated a Quality of Life Framework into the federal budget and Italy passed a Budget Reform Law in 2016 which includes the aim for well-being indicators to contribute to economic policies.

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