How do you know how you are doing? If you are a country, you look at your GDP* or Gross
Domestic Product. This number sums the output of goods and services produced by labor and
property within a country's borders. The easiest way to do this is to sum up expenditures,
or the amount of money that is spent by individuals (C), businesses (I), government (G) and
the net gain on exports (exports - imports or X-M).
GDP is widely used mainly because it is relatively easy to calculate. In 1970 our GDP was
around $ 3.7 trillion (in 2003 $). Since then it has tripled so that today it is around
$11.3 trillion. Taking population growth into account, it means that each of us is spending
about twice as we did in 1970. So, if the amount of money we spend is all it takes to
measure how we are doing, we are twice as well off as we were in 1970.
But even Simon Kuznets, who came up with the idea of a GNP in the 1930's, warned against
using it and similar measures (like GDP) to estimate a country's welfare. For example,
pollution costs us $54.9 billion in health care for lead poisoning, asthma, cancer and
developmental disabilities in infants and children. This adds about 0.4% to our GDP, but
most of us would probably be reluctant to count the expenditures due to kids getting cancer
and developmental disabilities from pollution as an increase in our nation's welfare.
To address this and other problems with GDP, some alternative measures of welfare have been
proposed. The World Bank is developing criteria for measuring a country's natural, human and
produced capital as an assessment of its wealth. Using this approach, produced capital -
buildings, roads, and other property - only accounts for 16% of global wealth. Natural
capital accounts for 20% and human capital makes up the remainder. Along with the measure of
wealth, the World Bank is working on a way to evaluate savings, or the extent to which a
country adds not just to its produced capital (which shows up in the GDP), but also to its
natural and human capital by preserving or restoring ecosystems and by providing education
(which may or may not show up in the GDP). The U.S. and other developed countries have a
savings rate of 13% of Gross National Income, behind the East Asian Pacific countries, but
ahead of South Asia and Latin America. Africa and the Middle East actually have negative
savings rates, which bodes ill for their future.
The Genuine Progress Indicator or GPI, proposed by the public policy group Redefining
Progress, takes into account the quality of expenditures and the distribution of wealth. In
other words, it doesn't add expenditures associated with crime, pollution abatement, or
automobile accidents, it accounts for the loss of natural areas, and it incorporates a
measure of how wealth is distributed. With those criteria, instead of a GDP of $11.3
trillion, we have a GPI of $4.3 trillion. In effect, the $180 increase in per capita income
since 2000 shown by GDP becomes a $212 decrease, due mainly to degradation of natural
resources and the increase in federal debt.
The United Nations created a Human Development Index (HDI) that uses GDP and other economic
measures, but it also evaluates health and literacy. In 1999, the U.S. came in 6th with a
score of .934 after Norway, Australia, Canada, Sweden and Belgium. Sierra Leone, with a
score of 0.258, came in last.
The Index of Sustainable Economic Welfare (ISEW) incorporates set asides to compensate future
generations for loss of nonrenewable energy resources and pollution, deductions for income
inequality, and it excludes "defensive"expenditures and expenses for national advertising -
which is seen as only persuading people to switch or to buy stuff they don't need. On the
plus side it adds in unpaid household production. Using the ISEW, increases in our national
welfare pretty much leveled off in the 1970's.
None of the indices that attempt to account for environmental and human welfare is as easy to
calculate as GDP. But just because something is easy to measure doesn't mean it is the right
measure. The next time the government reports on our GDP, keep in mind the things it is
missing.
*The Bureau of Economic Analysis switched from GNP to GDP in 1991 because most or all
other countries calculate their economic well being using GDP. GDP counts everything within
borders regardless of who owns it. GNP counts everything done by citizens of a country
regardless of where it is done. For industrialized countries, the difference between the two
measures is about 0.05%. For developing countries, however, switching to GDP can mask the
impact of the transfer of natural resources to industrialized countries.
GNP - http://en.wikipedia.org/wiki/Gross_National_Product
BioRegional Quiz: Spring is a great time to listen for birdsongs. What time of day
are birds most musical?
Job of the Month: Public Lands Advocate -- Center for Biological Diversity;
Tucson, AR. Responsibilities: Advocate will monitor proposed projects on public lands
in Arizona and New Mexico (timber, oil, etc); prepare comments under the National
Environmental Policy Act and file administrative appeals of proposed projects which will
threaten biological diversity of public lands; ensure federal agency compliance with
environmental laws; develop and implement alternatives to destructive public lands projects;
work with staff to develop reports, fact sheets and various other media. Status:
Full-time position. Qualifications: Recent law school graduates are preferred, but
applicants with other backgrounds will be considered if applicant can demonstrate aptitude in
environmental law; must be able to understand technical scientific issues; have excellent
communication, writing and analytical skills. Salary: Compensation commensurate with
experience and a non-profit pay scale; excellent benefits. Application Procedure:
Send resume, cover letter and writing sample via email to: Peter Galvin:
pgalvin@biologicaldiversity.org or Todd Schulke: tschulke@biologicaldiversity.org
Special Events/Classes/Programs/Talks
MU Environmental Seminars
MU Organization Meetings and Contact Information
Organization Meetings and Contact Information
Answer to BioRegional Quiz: Many birds sing most exuberantly at daybreak. Right
before dusk is also a good time to listen for birdsong. During the day they are usually
hunting for food, staying out of the sun and guarding territory.
Feedback - Got an opinion? If we have space, we will consider publishing it. Submit
it by email (envstudy@missouri. edu), snail mail (Environmental Studies, 211 Lowry , MU,
Columbia MO 65211), or call Jan Weaver to talk about it (882-7116). MU Environmental Network
News is published by MU's Environmental Studies Initiative. All opinions expressed are the
responsibility of the editor. Any part of this newsletter may be copied for distribution but
please give us credit.
How are we doing? GDP, GPI, HDI and ISEW
by Jan Weaver
World Bank -
http://lnweb18.worldbank.org/ESSD/envext.nsf/44ByDocName/EnvironmentalEconomicsandIndicators
Genuine Progress Indicator - http://www.rprogress.org/media/releases/040311_gpi.html
Human Development Index - http://www.undp.org/hdr2001/indicator/index.html
ISEW - http://www.oecd.org/dataoecd/54/33/2682198.pdf
INTRODUCTION TO BIRDING: Saturday, April 10; meet at the Rockbridge Park Office at 9am; Join
Columbia Audubon and Friends of Rock Bridge MSP to discover birding.
NATIVE WILDFLOWER PLANTING: Saturday April 10 at 9am (rain date is April 17); Wild Ones will
be planting a large plot of native wildflowers at the corner of Stadium and Monk Dr. (near
the Hearnes Center); for more info call Lesa Beamer at 882-6072
CLEAN-UP COLUMBIA: Saturday April 10--Register by April 2; this is a citywide volunteer
effort to pick up litter around Columbia; the city will provide gloves, bags and safety
vests; for more information and registration call 874-7499 or visit
http://www.gocolumbiamo.com/Volunteer/Opportunities/clean-up_columbia.html
BASIC BICYCLE REPAIR WORKSHOP: Sunday April 25 from 7pm to 9pm; learn basic bicycle repair
skills; the workshop will take place in Peace Park; for more information call Peace Works at
875-0539
EARTH DAY FESTIVAL: Sunday April 25 from noon to 7pm (Rain date is Sunday May 2) in Peace
Park; the Columbia Earth Day Coalition, along with several organizations, will be hosting
numerous events, including: music, childrenŐs activities, environmental information and a
large Street Fair
GEOMORPHIC AND ECOLOGICAL RESPONSE TO DAM REMOVAL. Monday April 5th, 3:45, Ag Building 2-6
(refreshments at 3:30) Martin Doyle, UNC, Chapel Hill. Sponsored by F&W
MANAGING ELEPHANTS - DO WE REALLY KNOW WHAT WE ARE DOING? Annual Dunmire Lecture, Wednesday
April 14, 7 pm, 100 Stewart Hall. Rob Slotow, Amarula Elephant Research Programme, Durban
South Africa
I HAVE SEEN THE ENEMY AND HE IS AN ECONOMIST. ECONOMIC LESSONS FOR THE ECOLOGICALLY
LITERATE. Conservation Biology Seminar, Thursday April 15 at 4pm in Leferve Hall Rm. 112; Jon
Erickson, professor of Ecological Economics, University of Vermont; cosponsored by Fisheries
& Wildlife GSA; for more info: http://www.conserv.missouri.edu/seminar.html
ENVIRONMENTAL AFFAIRS COUNCIL:
http://www.missouri.edu/~jesse105/committees/pages/environmental.htm
ENVIRONMENTAL STUDIES EXEC COM: 882-7116 Friday April 9, 8 am and Friday May 7, 8 am -
208 A Tucker Hall
RECYCLING COMMITTEE: 882-3091 Thursday April 8, 9 am 185 General Services Building
STUDENT SIERRA CLUB: 882-7116 Wednesdays at 7:30 pm, meet A&S 200
ECO-LUNCH SEMINARS: Wednesdays at noon April 7, 14, 21 and 28 in Tucker Hall Rm. 8; MU
Biological Sciences Dept; these seminars focus on various ecological topics; for more info
visit:http://www.biology.missouri.edu/calendar/ecolunch.html
FORESTRY SEMINARS: Fridays at 3pm April 2, 9 (at 3:30), 19, 23, and 30 in the Anheuser-Busch
Natural Resource Bldg Rm. 123; these seminars focus on various forestry topics; for more
information visit: http://www.snr.missouri.edu/forestry/schedule.html
AUDUBON SOCIETY: 874-3904 / columbia-audubon.missouri.org Meet 3rd Wed 7:30 pm, USGS, 4200
New Haven
BOONE COUNTY SMART GROWTH COALITION: http://smartgrowth.missouri.org/, 1st Wednesdays 7:15
Boone Co Govt Ctr.
CENTER FOR SUSTAINABLE LIVING: 875-0539 or http://peaceworks.missouri.org/
CHOUTEAU GROTTO: http://chouteau.missouri.org/, Meet 1st Wed, 7 pm, Community Room of the
Boone Electric Co-op
COLUMBIA FOOD CIRCLE: 882-7463 or email hendricksonm@missouri.edu for information.
COLUMBIA PUBLIC WORKS VOL. PROGRAMS: 874-6271 or
http://www.gocolumbiamo.com/Volunteer/Opportunities/#PW
COMMUNITY STORMWATER PROJECT: 884-8333 or
http://www.gocolumbiamo.com/PublicWorks/StormWater/cswp.html
ENV EDUCATION WORKSHOPS AND CONFERENCES:
http://www.conservation.state.mo.us/teacher/workshops/
FRIENDS OF ROCK BRIDGE M. S. P.: 815-9255 or http://rockbridge.missouri.org/ Outdoors Bldg,
200 Old 63S
GREENBELT COALITION: 442-4789 or http://greenbelt.missouri.org Meet 1st Tuesdays, 7 pm,
Outdoors Bldg, 200 Old 63 S.
MISSOURI NATIVE PLANT SOCIETY: npshawth@hotmail.com 2nd Mondays in Jan, Mar, May, July, Sept,
Nov at 7:00 p.m., Unitarian Universalist Church, 2615 Shepard Blvd, Columbia, MO.
MISSOURI RIVER COMMUNITIES NETWORK: 443-0292 or http://mrcn.missouri.org/
PEDNET COALITION: email: pednet@pednet.org or http://www.pednet.org
RIVER RELIEF: http://www.riverrelief.org/
ROCK BRIDGE MEMORIAL STATE PARK: 449-7402 or http://rockbridge.missouri.org
SHOW ME CLEAN STREAMS COALITION: (573) 751-4115 ext 3169 or www.mostreamteam.org
SIERRA CLUB: 443-4401 or http://sierra.osage.missouri.org Meet 3rd Tuesdays 7:30 pm Hillel
Foundation, 1107 University Ave
WILD ONES: 499-3749 or email wildonesmo@yahoo.com, http://wildones.missouri.org Meetings 2nd
Saturdays. Call for location