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On the fourth of January, 1934,

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A young man delivered a report

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to the United States Congress

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that 80 years on,

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still shapes the lives of[br]everyone in this room today.

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Still shapes the lives of[br]everyone on this planet.

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That young man wasn't a politician,

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he wasn't a businessman,

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a civil rights activist,

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or a faith leader.

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He was the most unlikely of heroes,

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an economist.

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(Laughter)

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His name was Simon Kuznets

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and the report that he delivered was called,

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"National Income, 1929-32"

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Now, you might think that

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this is a rather dry and dull report,

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and you're absolutely right.

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It's dry as a bone.

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But this report is the foundation

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of how, today, we judge the [br]success of countries.

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What we know best as[br]Gross Domestic Product,

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or GDP.

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GDP has defined and shaped our lives

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for the last 80 years.

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And today I want to talk about [br]

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a different way to measure[br]the success of countries.

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A different way to define [br]and shape our lives

9:59:59.000,9:59:59.000
for the nest 80 years.

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But first, we need to understand

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how GDP came to[br]dominate our lives.

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Kuznet's report was delivered

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at a moment of crisis.

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The U.S. economy was plumetting

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into the Great Depression.

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and policy makers were [br]struggling to respond.

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Struggling because they didn't[br]know what was going on.

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They didn't have data and statistics.

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So what Kuznet's report gave them

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was reliable data on what [br]the U.S. economy

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was producing,

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updated year by year.

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And armed with this information,

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policy makers were, eventually,

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able to find a way out [br]of the slump.

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And because Kuznet's invention

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was found to be so useful,

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it spread around the world.

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And now today, every country

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produces GDP statistics.

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But, in that first report,

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Kuznets himself delivered a warning.

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It's in the introductory chapter,

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page 7 he says,

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"The welfare of a nation can, therefore,

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scarcely be inferred

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from a measurement of [br]national income

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as defined above."

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It's not the greatest soundbite [br]in the world,

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And it's dressed up in the [br]coursest language

9:59:59.000,9:59:59.000
of the economist,

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but his message was clear,

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GDP is a tool

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to help us measure[br]economic performance.

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It's not a measure[br]of our wellbeing.

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And it shouldn't be a guide

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to all decision making.

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But we have ignored

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Kuznet's warning.

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We live in a world where

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GDP is the benchmark of sucess

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in a global economy.

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Our politicians boast when[br]GDP goes up,

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Markets move

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and trillions of dollars in capital

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move around the world

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based on which countries[br]are going up,

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and which countries [br]are going down.

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All measured in GDP.

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Our societies have become

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engines to create more GDP.

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But we know that GDP is flawed.

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It ignores the environment.

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It counts bombs and prisons and progress.

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It can't count happiness

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or community.

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And it has nothing to say

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about fairness or justice.

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Is it any surprise,

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that our world,

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marching to the drumbeat of GDP,

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is teetering on the brink

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of environmental disaster

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and filled with anger and conflict?

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We need a better way[br]

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to measure our societies.

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A measure based on the real things

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that matter to real people.

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Do I have enough to eat?

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Can I read and write?

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Am I safe?

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Do I have rights?

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Do I live in a society where[br]I'm not discriminated against?

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Is my future

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and the future of my children

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prevented from environmental disaster?

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These are questions that GDP

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does not and cannot answer.

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There have, of course,

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been efforts in the past

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to move beyond GDP.

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But I believe that we're living

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in a moment when we

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are ready for a measurement revolution.

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We're ready because we've seen,

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in the financial crisis of 2008,

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how our fetish for economic growth

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led us so far astray.

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We've seen in the Arab Spring

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how countries like Tunisia

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were supposedly economic superstars

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but they were societies

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that were seething with discontentment.

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We're ready because today

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we have the technology

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to gather and analyze data

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in ways that would have been

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unimaginable to Kuznets.

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Today, I'd like to introduce you to

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the Social Progress Index.

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It's a measure of the wellbeing of society,

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completely separate from GDP.

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It's a whole new way[br][Social Progress Index]

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of looking at the world.

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The Social Progress Index

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begins by defining what it

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means to be a good society

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based around three dimensions:

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The first is, does everyone have[br]the basic needs for survival?

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Food, water, shelter, safety.

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Secondly, does everyone have

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access to the building blocks

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to improve their lives?

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Education, information, health[br]and sustainable environment.

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And then third,

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does every individual have access

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to the chance to pursue their goals

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and dreams and ambitions

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free from obstacles?

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Do they have rights?

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Freedom of choice?

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Freedom from discrimination

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and access to the the world's[br]most advanced knowledge?

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Together, these 12 components

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form the Social Progress framework.

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And for each of these 12 components,

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we have indicators to measure

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how these countries are performing.

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Not indicators of effort or intention,

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but real achievement.

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We don't measure how much

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a country spends on healthcare,

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we measure the length and quality

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of people's lives.

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We don't measure whether governments

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pass laws against discrimination,

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we measure whether people [br]experience discrimination.

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But, what you want to know

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is who's top, don't you?

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I knew that, I knew that, I knew that.

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Okay, I'm going to show you.

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I'm going to show you on this chart.

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So here we are,

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what I've done here is [br]put on the vertical axis

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social progress.

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Higher is better.

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And then, just for comparison,

9:59:59.000,9:59:59.000
just for fun,

9:59:59.000,9:59:59.000
on the horizontal axis,

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is GDP per capita.

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Further to the right is more.

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Okay,

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the country in the world

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with the highest social progress,

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the number one country on social progress

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is New Zealand.