WEBVTT

99:59:59.999 --> 99:59:59.999
Just over a mile away from here

99:59:59.999 --> 99:59:59.999
in Edinburgh's old town

99:59:59.999 --> 99:59:59.999
is Panmure House.

99:59:59.999 --> 99:59:59.999
Panmure House

99:59:59.999 --> 99:59:59.999
was the home of the world-renowned
Scottish economist Adam Smith.

99:59:59.999 --> 99:59:59.999
In his important work
"The Wealth of Nations,"

99:59:59.999 --> 99:59:59.999
Adam Smith argued,
amongst many other things,

99:59:59.999 --> 99:59:59.999
that the measurement of a country's wealth

99:59:59.999 --> 99:59:59.999
was not just its gold and silver reserves.

99:59:59.999 --> 99:59:59.999
It was the totality of the country's
production and commerce.

99:59:59.999 --> 99:59:59.999
I guess it was one of the earliest
descriptions of what we now know today

99:59:59.999 --> 99:59:59.999
as Gross Domestic Product, GDP.

99:59:59.999 --> 99:59:59.999
Now, in the years since, of course,

99:59:59.999 --> 99:59:59.999
that measurement
of production and commerce,

99:59:59.999 --> 99:59:59.999
GDP, has become ever more important,

99:59:59.999 --> 99:59:59.999
to the point that today,

99:59:59.999 --> 99:59:59.999
and I don't believe that this
is what Adam Smith would have intended,

99:59:59.999 --> 99:59:59.999
that it is often seen as
the most important measurement

99:59:59.999 --> 99:59:59.999
of a country's overall success.

99:59:59.999 --> 99:59:59.999
And my argument today

99:59:59.999 --> 99:59:59.999
is that it is time for that to change.

99:59:59.999 --> 99:59:59.999
You know, what we choose to measure
as a country matters.

99:59:59.999 --> 99:59:59.999
It really matters, because
it drives political focus,

99:59:59.999 --> 99:59:59.999
it drives at public activity,

99:59:59.999 --> 99:59:59.999
and against that context,

99:59:59.999 --> 99:59:59.999
I think the limitations of GDP
as a measurement of a country's success

99:59:59.999 --> 99:59:59.999
is all too obvious.

99:59:59.999 --> 99:59:59.999
You know, GDP measures
the output of all of our work,

99:59:59.999 --> 99:59:59.999
but it says nothing about
the nature of that work,

99:59:59.999 --> 99:59:59.999
about whether that work
is worthwhile or fulfilling.

99:59:59.999 --> 99:59:59.999
It puts a value, for example,

99:59:59.999 --> 99:59:59.999
on illegal drug consumption,

99:59:59.999 --> 99:59:59.999
but not on unpaid care.

99:59:59.999 --> 99:59:59.999
It values activity in the short term
that boosts the economy

99:59:59.999 --> 99:59:59.999
even if that activity is hugely damaging

99:59:59.999 --> 99:59:59.999
to the sustainability of our planet

99:59:59.999 --> 99:59:59.999
in the longer term.

99:59:59.999 --> 99:59:59.999
And when we reflect on the past decade
of political and economic upheaval,

99:59:59.999 --> 99:59:59.999
of growing inequalities,

99:59:59.999 --> 99:59:59.999
and when we look ahead to the challenges
of the climate emergency,

99:59:59.999 --> 99:59:59.999
increasing automation,

99:59:59.999 --> 99:59:59.999
an aging population,

99:59:59.999 --> 99:59:59.999
then I think the argument for the case
for a much broader definition

99:59:59.999 --> 99:59:59.999
of what it means to be successful
as a country, as a society,

99:59:59.999 --> 99:59:59.999
is compelling, and increasingly so.

99:59:59.999 --> 99:59:59.999
And that is why Scotland in 2018

99:59:59.999 --> 99:59:59.999
took the lead, took the initiative
in establishing a new network

99:59:59.999 --> 99:59:59.999
called the Wellbeing Economy
Governments group,

99:59:59.999 --> 99:59:59.999
bringing together as founding members

99:59:59.999 --> 99:59:59.999
the countries of Scotland, Iceland,
and New Zealand for obvious reasons.

99:59:59.999 --> 99:59:59.999
We're sometimes called the SIN countries,

99:59:59.999 --> 99:59:59.999
although our focus is very much
on the common good.

99:59:59.999 --> 99:59:59.999
And the purpose of this group
is to challenge that focus

99:59:59.999 --> 99:59:59.999
on the narrow measurement of GDP,

99:59:59.999 --> 99:59:59.999
to say that, yes, economic growth matters.

99:59:59.999 --> 99:59:59.999
It is important.

99:59:59.999 --> 99:59:59.999
But it is not all that is important.

99:59:59.999 --> 99:59:59.999
And growth in GDP should not be pursued

99:59:59.999 --> 99:59:59.999
at any or all cost.

99:59:59.999 --> 99:59:59.999
In fact, the argument of that group

99:59:59.999 --> 99:59:59.999
is that the goal, the objective
of economic policy

99:59:59.999 --> 99:59:59.999
should be collective wellbeing:

99:59:59.999 --> 99:59:59.999
how happy and healthy a population is,

99:59:59.999 --> 99:59:59.999
not just how wealthy a population is.

99:59:59.999 --> 99:59:59.999
And I will touch on the policy
implications of that in a moment,

99:59:59.999 --> 99:59:59.999
but I think particularly
in the world we live in today

99:59:59.999 --> 99:59:59.999
it has a deeper resonance.

99:59:59.999 --> 99:59:59.999
You know, when we focus on wellbeing,

99:59:59.999 --> 99:59:59.999
we start a conversation

99:59:59.999 --> 99:59:59.999
that provokes profound
and fundamental questions.

99:59:59.999 --> 99:59:59.999
What really matters to us in our lives?

99:59:59.999 --> 99:59:59.999
What do we value in
the communities we live in?

99:59:59.999 --> 99:59:59.999
What kind of country,
what kind of society,

99:59:59.999 --> 99:59:59.999
do we really want to be?

99:59:59.999 --> 99:59:59.999
And when we engage people
in those questions,

99:59:59.999 --> 99:59:59.999
in finding the answers to those questions,

99:59:59.999 --> 99:59:59.999
then I believe that we have
a much better chance

99:59:59.999 --> 99:59:59.999
of addressing the alienation
and disaffection from politics

99:59:59.999 --> 99:59:59.999
that is so prevalent in so many countries

99:59:59.999 --> 99:59:59.999
across the developed world today.

99:59:59.999 --> 99:59:59.999
In policy terms, this journey
for Scotland started back in 2007

99:59:59.999 --> 99:59:59.999
when we published what we call
our National Performance Framework,

99:59:59.999 --> 99:59:59.999
looking at the range of indicators
that we measure ourselves against.

99:59:59.999 --> 99:59:59.999
And those indicators are as varied
as income inequality,

99:59:59.999 --> 99:59:59.999
the happiness of children,
access to green spaces,

99:59:59.999 --> 99:59:59.999
access to housing.

99:59:59.999 --> 99:59:59.999
None of these are captured
in GDP statistics,

99:59:59.999 --> 99:59:59.999
but they are all fundamental
to a healthy and a happy society.

99:59:59.999 --> 99:59:59.999
(Applause)

99:59:59.999 --> 99:59:59.999
And that broader approach is at the heart
of our economic strategy,

99:59:59.999 --> 99:59:59.999
where we give equal importance
to tackling inequality

99:59:59.999 --> 99:59:59.999
as we do to economic competitiveness.

99:59:59.999 --> 99:59:59.999
It drives our commitment to fair work,
making sure that work is fulfilling

99:59:59.999 --> 99:59:59.999
and well-paid.

99:59:59.999 --> 99:59:59.999
It's behind our decision to establish
a just transition commission

99:59:59.999 --> 99:59:59.999
to guide our path
to a carbon zero economy.

99:59:59.999 --> 99:59:59.999
We know from economic
transformations of the past

99:59:59.999 --> 99:59:59.999
that if we're not careful,
there are more losers than winners.

99:59:59.999 --> 99:59:59.999
And as we face up to the challenges
of climate change and automation,

99:59:59.999 --> 99:59:59.999
we must not make those mistakes again.

99:59:59.999 --> 99:59:59.999
The work we're doing here in Scotland
is, I think, significant,

99:59:59.999 --> 99:59:59.999
but we have much, much to learn
from other countries.

99:59:59.999 --> 99:59:59.999
I mentioned a moment ago
our partners at nations

99:59:59.999 --> 99:59:59.999
in the wellbeing network,

99:59:59.999 --> 99:59:59.999
Iceland and New Zealand.

99:59:59.999 --> 99:59:59.999
So I'm noting, and I will leave it to you
to decide whether this is relevant or not

99:59:59.999 --> 99:59:59.999
that all three of these countries
are currently led by women.

99:59:59.999 --> 99:59:59.999
(Applause)

99:59:59.999 --> 99:59:59.999
They too are doing great work,

99:59:59.999 --> 99:59:59.999
New Zealand, in 2019,

99:59:59.999 --> 99:59:59.999
publishing its first wellbeing budget

99:59:59.999 --> 99:59:59.999
with mental health at its heart;

99:59:59.999 --> 99:59:59.999
Iceland leading the way on equal pay,
child care, and paternity rights,

99:59:59.999 --> 99:59:59.999
not policies that we immediately think of

99:59:59.999 --> 99:59:59.999
when we talk about
creating a wealthy economy

99:59:59.999 --> 99:59:59.999
but policies that are fundamental
to a health economy

99:59:59.999 --> 99:59:59.999
and a happy society.

99:59:59.999 --> 99:59:59.999
I started with Adam Smith

99:59:59.999 --> 99:59:59.999
and "The Wealth of Nations."

99:59:59.999 --> 99:59:59.999
In Adam Smith's earlier work,

99:59:59.999 --> 99:59:59.999
"The Theory of Moral Sentiments,"
which I think is just as important,

99:59:59.999 --> 99:59:59.999
he made the observation
that the value of any government

99:59:59.999 --> 99:59:59.999
is judged in proportion

99:59:59.999 --> 99:59:59.999
to the extent that it makes
its people happy.

99:59:59.999 --> 99:59:59.999
I think that is a good founding principle

99:59:59.999 --> 99:59:59.999
for any group of countries

99:59:59.999 --> 99:59:59.999
focused on promoting wellbeing.

99:59:59.999 --> 99:59:59.999
None of us have all of the answers,

99:59:59.999 --> 99:59:59.999
and not even Scotland,
the birthplace of Adam Smith,

99:59:59.999 --> 99:59:59.999
but in the world we live in today,
with growing divides and inequalities,

99:59:59.999 --> 99:59:59.999
with disaffection and alienation,

99:59:59.999 --> 99:59:59.999
it is more important than ever

99:59:59.999 --> 99:59:59.999
that we ask and find the answers
to those questions

99:59:59.999 --> 99:59:59.999
and promote a vision of society

99:59:59.999 --> 99:59:59.999
that has wellbeing,

99:59:59.999 --> 99:59:59.999
not just wealth,

99:59:59.999 --> 99:59:59.999
at its very heart.

99:59:59.999 --> 99:59:59.999
(Applause)

99:59:59.999 --> 99:59:59.999
You are right now in the beautiful,
sunny capital city

99:59:59.999 --> 99:59:59.999
(Laughter)

99:59:59.999 --> 99:59:59.999
of the country that led the world
in the Enlightenment,

99:59:59.999 --> 99:59:59.999
the country that helped lead the world
into the Industrial Age,

99:59:59.999 --> 99:59:59.999
the country that right now
is helping to lead the world

99:59:59.999 --> 99:59:59.999
into the low carbon age.

99:59:59.999 --> 99:59:59.999
I want, and I'm determined,
that Scotland will also be the country

99:59:59.999 --> 99:59:59.999
that helps change the focus of countries
and governments across the world

99:59:59.999 --> 99:59:59.999
to put wellbeing at the heart
of everything that we do.

99:59:59.999 --> 99:59:59.999
I think we owe that to this generation.

99:59:59.999 --> 99:59:59.999
I certainly believe we owe that
to the next generation

99:59:59.999 --> 99:59:59.999
and all those that come after us,

99:59:59.999 --> 99:59:59.999
and if we do that right here
from the country of the Enlightenment,

99:59:59.999 --> 99:59:59.999
then I think we create
a better, healthier, fairer,

99:59:59.999 --> 99:59:59.999
and happier society here at home,

99:59:59.999 --> 99:59:59.999
and we play our part in Scotland

99:59:59.999 --> 99:59:59.999
in building a fairer,
happier world as well.

99:59:59.999 --> 99:59:59.999
Thank you very much.

99:59:59.999 --> 99:59:59.999
(Applause)