Alternative Welfare Measures

Alternative Welfare Measures -About Wealth and Progress-

Ran Shabtay

Research Line Economics of Sustainability

IAAC | MAA 2014-15

As we all know the main and common tool for ranking countries economies is the GDP (Gross Domestic Product), but in the last decade more and more alternatives indicators starts to appear. Those indicators focus on new criterions, from the understanding that money is not everything in in our life. Economic growth is not the highest desire anymore, and GDP, the economists favor desire, cannot teach us anything about the quality of life.

My work will have three main chapters, In the first chapter I’ll present the main ideas concerning other ways of measuring welfare. In the second part I’ll discuss the role of Architects in representing these new economic thinking. How we us architects can contribute to the new indicators, and create better and happier life not only rich ones. In the third part ill introduce the main critic points and suggest possible solution for the future.

1.a. GDP,HPI, GNH The NEF (New Economics Foundation) is a British organization that promotes social, economic and environmental justice. It was founded in 1986 with the aim of working for a “new model of wealth creation, based on equality, diversity and economic stability”.[1] They found the dominant western model of development as sustainable any more. And claimed that new ways needs to be found towards more sustainable and well- being life.

Most measures of national progress are actually just measures of economic activity, how much we are producing or consuming, the main indicator for that is the GDP (Gross Domestic Product). But more and more people starts to realize that the GPD provides too narrow economic prism through human progress. “We were thought to believe that if people consume more, they are necessarily

happier”. GDP indicators tend not to take sustainability into account and can’t tell the whole story of our society, economic growth is not everything, and money itself is not everything. “Financial measures alone do not tell the story of our society”.[2][3] With this understanding NEF introduced the HPI (Happy Planet Index) in 2006.

The Happy Planet Index tends to show other aspect of life “..What really mattersproducing happy lives for people now and in the future”.[4] The HPI puts current and future well-being at the heart of measurement. It frames the development of each country in the context of real environmental limits. The main motto isProgress is not just about wealth. As so, HPI measures the connection between the happiness of the people and the “happiness” of the planet.

There are three main conditions for the HPI evaluationThe subjective life satisfaction- how one feels with his/hers own life.

Life expectancy at birth- How long one lives in his/her country.

Ecological footprint per capita- How sustainable and green is the country.

The HPI measures the context to which countries deliver long, happy sustainable lives for the people the live in them. It assumes that the ultimate aim of most people is not to be rich, but to be happy and healthy. All countries have the same goal- to produce happy, wealthy lives now and in the future. The challenges of the richest countries and the poorest one are the same.

The result from the first ranking were really surprising. In 2012, 151 countries were compared, and in the first place was Costa Rica followed by Vietnam, Colombia and Brazil the lowest country was Qatar.

From the dewing we can see the in the highest place there are the Middle America countries (Green color), and the lowest are Africa’s countries and U.S.A. Another interesting example is Vietnam, which is in a very low place according to the GDP and suffers from a lot of traffics problems, fully occupied hospitals, even though its people are the most optimistic in the world[5], and apparently its people live very happily.

1.b. The Gross National Happiness (GNH) This indicator was created by the king of Bhutan, Jlgme Singye Wangchuck, after years that the country was elected as the happiest and most optimistic country in the world. This indicator assumes that the development of human’s society occurs only when economic growth goes hand in hand with spiritual growth.

Same as the HPI, measure the welfare of the citizens in the state, based on a variety of measures of happiness, as opposed to the traditional indicators that measures the National Gross. The GNH is based on nine basic elements that have similar concern for the material, spiritual and emotional needs of people: 1. Concern for physical health 2. Quality of life psychological 3. Time management, 4. healthy, 5. Vitality of community, 6. Social reaches 7., ecological conservation, 8. equal education, equal distribution of income

9. and good governance.

The GNH serves as an actual way of rolling to the king, and draw a lot of attention from other countries. In Bhutan, most of the decisions are being made with how to increase the citizens happier after viewing the indicators results.

Med Jones Indicators This indicator was presented in 2006. By Med Jones, the President of International Institute of Management. In this indicator people were asked to answer 7 questions about 7 different topics- economic strength, environmental strength, physical life quality, mental life quality, work stability, social quality, political stability government.

1.C. The economic Nick Marx suggest 5 ways to increase the level of happiness and welfare in our life1.

To connect- Make the Family relationships be important blocks in your life. Invest time and energy with your loved once 2. Being Active- Do exercise. Go out and walk, dance 3. Give attention- Be aware of things that are happening around you, the change of seasons, peoples etc.

4. Continue learning- Try to learn more every day. It’s proved that older people, who continue to be curious and learn, have much better health than those who close themselves. It doesn’t have to be formal studies, it’s more about the curiosity for example- playing instrument, cooking etc.

5. Giving- be generous, altruist, have compassion. We feel good if we give. It has been proved that those who give to others are happier than those who think solely about themselves.

In 2011 the General Assembly of the UN declared that “Happiness is an indicator for development” and called on its members to include in their development plans and in their public policies the “Happiness index sustainable approach”.

Moreover, in 2008 the French President, Nicolas Sarkozy, asked the renowned economist and Nobelist Joseph Stiglitz to work on finding another indicator, which can be alternative to the GDP “(…) The big question concerns whether GDP provides a good measure of living standards. In many cases, GDP statistics seem to suggest that the economy is doing far better than most citizens’ own perceptions. Moreover, the focus on GDP creates conflicts: political leaders are told to maximize it, but citizens also demand that attention be paid to enhancing security, reducing air, water, and noise pollution, and so forth – all of which might lower GDP growth.”[6]

2. Architecture and HPI The role of Architecture in that context.

Architecture can reacts and deals with every one of the five criteria Marx createdArchitecture connect people, architecture can make you being active, architecture demands you to put attention, to encourage you to learn and to give to others.

Architecture creates communities and doesn’t neccerilly have to be expensive.

City Planning has a tremendous ability to influence on our life. Green architecture is a moral obligation, not a luxury Architects and City planners decide and shape our living space, their acts affects the whole society around them. architects should be the leaders in the creation of environmentally responsible design solutions They should be the first one that concern about the natural environment and sustainability values Therefor they has a lot to do with “HPI”, the obvious things are to merge sustainability values into the design, car use, reduce the use of non-recycled resources, consider the ethical and sustainable values in the design.

As humans, our nature is to live together as a community. But the cities have become places where neighbors behave as strangers. Crime rises, drug dependence and psychiatric substitutes has become a common solution for people who cannot deal with spiritual failures, and for many people longevity is merely an extension of life without honor. That’s why architects must come with solutions and new ideas.

Most of the economic experts believe that the world economic crisis that started at 2008 symbols the end of the era of prosperity. I think we should think about how it should affects our life, do we need more ultra-expensive buildings in our cities, and do we need these luxuries projects and high budget icons? I think that we are at the begging of a new era, that must be connected to economy crisis and limited budgets, we must accept the alternative indicators and try to find the proper architecture language that creates better environments.

Parrish art museum, Herzog & deMeuron, New York (2012) This building is a very Good example for that. At the begging the building was with a budget of 80 million dollars. But after the world crisis of 2008, the budget was cut, and the building was created with 26 million. For me it’s a good proof that even with limited budget good architecture can be made. Money is not synonymous with quality. Architecture must react to what happened around it, and not acts inside a bubble.

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San Francisco, United States.

This city leads the green revolution in North America. San Francisco is the leading city in the United States of the use of solar energy. In addition, the city has strict recycling laws. Residents are committed to the separation of garbage, construction companies are required to recycle construction waste. San Francisco is also the first city in the United States prohibited the use of plastic bags

Bushwick Inlet Park, Kiss + Cathcart, Architects, Brooklyn, New York This project is the first phase of the transformation of the Greenpoint– Williamsburg waterfront from a decaying industrial strip to a multifaceted public park. The design team integrated a program of playfields, public meeting rooms, classrooms, and park maintenance facilities, into a city-block sized site. The park building becomes a green hill on the west side, making 100% of the site usable to the public, and offering views to Manhattan. Below the green roof is a complex of building systems – ground source heat pump wells, rainwater harvest and storage, and drip irrigation. A solar trellis produces half the total energy used in the building.

The Cineroleum, Assemble Studio, London 2010 Is a good example for Small and low budget projects that serves the community.

In this building the architects transformed a derelict petrol station into a “handbuilt” cinema on one of capital’s busiest roads. Aimed at raising awareness to the wider potential for reusing the 4,000 empty petrol stations across the country.Another important issue is the reuse and recycling of public spaces through architectural and artistic targeted interventions. These are low budgets projects, well designed, no bureaucracy. Architecture for the community.

3.a. Critics and Rethinking “GDP” supporters argue that despite its disadvantages, it’s still better tool than the happiness index. According to its critics “HPI” relays too much on subjective judgment. Another critic is that governments can control on their own criterions, and by that have bigger control on their surveys.

Moreover, it’s difficult to compare the quality of life in different countries, and it’s a very subjective and cultural dependence. The definition of life for a Chinese farmer is not identical to the definition of the same term for the Parisian lawyer lady.

Another critic is that the index gives too much weight to the environmental issues at the expense of longevity and happiness. For example the survey of 2009 puts Yeman with the life expectancy of 61 years, and a 5.1 reported happiness, one place over Germany which has 79 years life expanse and reported happiness of 7.2. This happened because ecological footprint in Yeman (0.9) is much smaller than in Germany (4.2).

Another critic is that the index comperes countries with different geographical characteristics, which affect dramatically the ecological footprint.

For example colder countries have greater use of energy for heating. Another critic is that the way people reports their happiness is difference between countries, and has more to do with cultural habits.

B. Suggestions for solutions In think therefore we should compe countries of the same region (Europe for example) and avoid comparing different regions. The way to test the whole planet in the same way is very problematic.

Moreover, the criterions should be more accurate and specific and not so general. I think also that to give specific numbers and grades to each country is not so accurate and useful as well As I see this weakness of the one, is the strongest of the other. The For the better and worth, The HPI is really subjective. And The GDP is very objective (for the better or worse).

C. From the architecture point of view, Sustainable architecture is reinforced in today’s architectural world that is almost bedded with the creation of buildings with the “wow”. Contemporary architects looking mainly after the expression and the impression of the building. I think we must use the unique characteristics of the environment as a generator of the design process. As I mentioned earlier, it contains an ethical dimension, as opposed to aesthetics that are based solely on forms In conclusion, Gross Domestic Product, is not a sustainable indicator. Indeed it only focuses on the economy and makes no mention of societies and environment. So we need alternatives that would take that into account. That’s how the “HPI” and other important indicators started to take an important role in different countries around the world. This is even more urgent with the current economic downturn.

In this work I tried to introduce the advantages and the disadvantages of each indicator, I think only the combination of two indicators (GDP+HPI) will show true and accurate results, as each indicator completes the other. I also showed the new role architects must have with reaction to these indicators. In addition, I showed examples form different countries, and different scale of buildings.

All the economics and architects which presented in this work wished and worked for a better and brighter future, lets hope they will succeed so we’ll all have happier and wealthier future.

[1] From the website, http://www.neweconomics.org/ [2] Daniel Kahneman , Nobel Prize winner in economics , at a press conference in 2004 [3] Richard Easterlin , an economics professor at the University of Southern California

[4] From the website, http://www.neweconomics.org/ [5] According to GAlLOP CETER survey, which measures 53 countries [6] Joseph Stiglitz, The Guardian, link from the website http://www.theguardian.com/commentisfree/2009/sep/13/economicseconomic-growth-and-recession-global-economy