9:59:59.000,9:59:59.000
On the fourth of January, 1934,

9:59:59.000,9:59:59.000
A young man delivered a report

9:59:59.000,9:59:59.000
to the United States Congress

9:59:59.000,9:59:59.000
that 80 years on,

9:59:59.000,9:59:59.000
still shapes the lives of[br]everyone in this room today.

9:59:59.000,9:59:59.000
Still shapes the lives of[br]everyone on this planet.

9:59:59.000,9:59:59.000
That young man wasn't a politician,

9:59:59.000,9:59:59.000
he wasn't a businessman,

9:59:59.000,9:59:59.000
a civil rights activist,

9:59:59.000,9:59:59.000
or a faith leader.

9:59:59.000,9:59:59.000
He was the most unlikely of heroes,

9:59:59.000,9:59:59.000
an economist.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
His name was Simon Kuznets

9:59:59.000,9:59:59.000
and the report that he delivered was called,

9:59:59.000,9:59:59.000
"National Income, 1929-32"

9:59:59.000,9:59:59.000
Now, you might think that

9:59:59.000,9:59:59.000
this is a rather dry and dull report,

9:59:59.000,9:59:59.000
and you're absolutely right.

9:59:59.000,9:59:59.000
It's dry as a bone.

9:59:59.000,9:59:59.000
But this report is the foundation

9:59:59.000,9:59:59.000
of how, today, we judge the [br]success of countries.

9:59:59.000,9:59:59.000
What we know best as[br]Gross Domestic Product,

9:59:59.000,9:59:59.000
or GDP.

9:59:59.000,9:59:59.000
GDP has defined and shaped our lives

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

9:59:59.000,9:59:59.000
And today I want to talk about [br]

9:59:59.000,9:59:59.000
a different way to measure[br]the success of countries.

9:59:59.000,9:59:59.000
A different way to define [br]and shape our lives

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

9:59:59.000,9:59:59.000
But first, we need to understand

9:59:59.000,9:59:59.000
how GDP came to[br]dominate our lives.

9:59:59.000,9:59:59.000
Kuznet's report was delivered

9:59:59.000,9:59:59.000
at a moment of crisis.

9:59:59.000,9:59:59.000
The U.S. economy was plumetting

9:59:59.000,9:59:59.000
into the Great Depression.

9:59:59.000,9:59:59.000
and policy makers were [br]struggling to respond.

9:59:59.000,9:59:59.000
Struggling because they didn't[br]know what was going on.

9:59:59.000,9:59:59.000
They didn't have data and statistics.

9:59:59.000,9:59:59.000
So what Kuznet's report gave them

9:59:59.000,9:59:59.000
was reliable data on what [br]the U.S. economy

9:59:59.000,9:59:59.000
was producing,

9:59:59.000,9:59:59.000
updated year by year.

9:59:59.000,9:59:59.000
And armed with this information,

9:59:59.000,9:59:59.000
policy makers were, eventually,

9:59:59.000,9:59:59.000
able to find a way out [br]of the slump.

9:59:59.000,9:59:59.000
And because Kuznet's invention

9:59:59.000,9:59:59.000
was found to be so useful,

9:59:59.000,9:59:59.000
it spread around the world.

9:59:59.000,9:59:59.000
And now today, every country

9:59:59.000,9:59:59.000
produces GDP statistics.

9:59:59.000,9:59:59.000
But, in that first report,

9:59:59.000,9:59:59.000
Kuznets himself delivered a warning.

9:59:59.000,9:59:59.000
It's in the introductory chapter,

9:59:59.000,9:59:59.000
page 7 he says,

9:59:59.000,9:59:59.000
"The welfare of a nation can, therefore,

9:59:59.000,9:59:59.000
scarcely be inferred

9:59:59.000,9:59:59.000
from a measurement of [br]national income

9:59:59.000,9:59:59.000
as defined above."

9:59:59.000,9:59:59.000
It's not the greatest soundbite [br]in the world,

9:59:59.000,9:59:59.000
And it's dressed up in the [br]coursest language

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

9:59:59.000,9:59:59.000
but his message was clear,

9:59:59.000,9:59:59.000
GDP is a tool

9:59:59.000,9:59:59.000
to help us measure[br]economic performance.

9:59:59.000,9:59:59.000
It's not a measure[br]of our wellbeing.

9:59:59.000,9:59:59.000
And it shouldn't be a guide

9:59:59.000,9:59:59.000
to all decision making.

9:59:59.000,9:59:59.000
But we have ignored

9:59:59.000,9:59:59.000
Kuznet's warning.

9:59:59.000,9:59:59.000
We live in a world where

9:59:59.000,9:59:59.000
GDP is the benchmark of sucess

9:59:59.000,9:59:59.000
in a global economy.

9:59:59.000,9:59:59.000
Our politicians boast when[br]GDP goes up,

9:59:59.000,9:59:59.000
Markets move

9:59:59.000,9:59:59.000
and trillions of dollars in capital

9:59:59.000,9:59:59.000
move around the world

9:59:59.000,9:59:59.000
based on which countries[br]are going up,

9:59:59.000,9:59:59.000
and which countries [br]are going down.

9:59:59.000,9:59:59.000
All measured in GDP.

9:59:59.000,9:59:59.000
Our societies have become

9:59:59.000,9:59:59.000
engines to create more GDP.

9:59:59.000,9:59:59.000
But we know that GDP is flawed.

9:59:59.000,9:59:59.000
It ignores the environment.

9:59:59.000,9:59:59.000
It counts bombs and prisons and progress.

9:59:59.000,9:59:59.000
It can't count happiness

9:59:59.000,9:59:59.000
or community.

9:59:59.000,9:59:59.000
And it has nothing to say

9:59:59.000,9:59:59.000
about fairness or justice.

9:59:59.000,9:59:59.000
Is it any surprise,

9:59:59.000,9:59:59.000
that our world,

9:59:59.000,9:59:59.000
marching to the drumbeat of GDP,

9:59:59.000,9:59:59.000
is teetering on the brink

9:59:59.000,9:59:59.000
of environmental disaster

9:59:59.000,9:59:59.000
and filled with anger and conflict?

9:59:59.000,9:59:59.000
We need a better way[br]

9:59:59.000,9:59:59.000
to measure our societies.

9:59:59.000,9:59:59.000
A measure based on the real things

9:59:59.000,9:59:59.000
that matter to real people.

9:59:59.000,9:59:59.000
Do I have enough to eat?

9:59:59.000,9:59:59.000
Can I read and write?

9:59:59.000,9:59:59.000
Am I safe?

9:59:59.000,9:59:59.000
Do I have rights?

9:59:59.000,9:59:59.000
Do I live in a society where[br]I'm not discriminated against?

9:59:59.000,9:59:59.000
Is my future

9:59:59.000,9:59:59.000
and the future of my children

9:59:59.000,9:59:59.000
prevented from environmental disaster?

9:59:59.000,9:59:59.000
These are questions that GDP

9:59:59.000,9:59:59.000
does not and cannot answer.

9:59:59.000,9:59:59.000
There have, of course,

9:59:59.000,9:59:59.000
been efforts in the past

9:59:59.000,9:59:59.000
to move beyond GDP.

9:59:59.000,9:59:59.000
But I believe that we're living

9:59:59.000,9:59:59.000
in a moment when we

9:59:59.000,9:59:59.000
are ready for a measurement revolution.

9:59:59.000,9:59:59.000
We're ready because we've seen,

9:59:59.000,9:59:59.000
in the financial crisis of 2008,

9:59:59.000,9:59:59.000
how our fetish for economic growth

9:59:59.000,9:59:59.000
led us so far astray.

9:59:59.000,9:59:59.000
We've seen in the Arab Spring

9:59:59.000,9:59:59.000
how countries like Tunisia

9:59:59.000,9:59:59.000
were supposedly economic superstars

9:59:59.000,9:59:59.000
but they were societies

9:59:59.000,9:59:59.000
that were seething with discontentment.

9:59:59.000,9:59:59.000
We're ready because today

9:59:59.000,9:59:59.000
we have the technology

9:59:59.000,9:59:59.000
to gather and analyze data

9:59:59.000,9:59:59.000
in ways that would have been

9:59:59.000,9:59:59.000
unimaginable to Kuznets.

9:59:59.000,9:59:59.000
Today, I'd like to introduce you to

9:59:59.000,9:59:59.000
the Social Progress Index.

9:59:59.000,9:59:59.000
It's a measure of the wellbeing of society,

9:59:59.000,9:59:59.000
completely separate from GDP.

9:59:59.000,9:59:59.000
It's a whole new way[br][Social Progress Index]

9:59:59.000,9:59:59.000
of looking at the world.

9:59:59.000,9:59:59.000
The Social Progress Index

9:59:59.000,9:59:59.000
begins by defining what it

9:59:59.000,9:59:59.000
means to be a good society

9:59:59.000,9:59:59.000
based around three dimensions:

9:59:59.000,9:59:59.000
The first is, does everyone have[br]the basic needs for survival?

9:59:59.000,9:59:59.000
Food, water, shelter, safety.

9:59:59.000,9:59:59.000
Secondly, does everyone have

9:59:59.000,9:59:59.000
access to the building blocks

9:59:59.000,9:59:59.000
to improve their lives?

9:59:59.000,9:59:59.000
Education, information, health[br]and sustainable environment.

9:59:59.000,9:59:59.000
And then third,

9:59:59.000,9:59:59.000
does every individual have access

9:59:59.000,9:59:59.000
to the chance to pursue their goals

9:59:59.000,9:59:59.000
and dreams and ambitions

9:59:59.000,9:59:59.000
free from obstacles?

9:59:59.000,9:59:59.000
Do they have rights?

9:59:59.000,9:59:59.000
Freedom of choice?

9:59:59.000,9:59:59.000
Freedom from discrimination

9:59:59.000,9:59:59.000
and access to the the world's[br]most advanced knowledge?

9:59:59.000,9:59:59.000
Together, these 12 components

9:59:59.000,9:59:59.000
form the Social Progress framework.

9:59:59.000,9:59:59.000
And for each of these 12 components,

9:59:59.000,9:59:59.000
we have indicators to measure

9:59:59.000,9:59:59.000
how these countries are performing.

9:59:59.000,9:59:59.000
Not indicators of effort or intention,

9:59:59.000,9:59:59.000
but real achievement.

9:59:59.000,9:59:59.000
We don't measure how much

9:59:59.000,9:59:59.000
a country spends on healthcare,

9:59:59.000,9:59:59.000
we measure the length and quality

9:59:59.000,9:59:59.000
of people's lives.

9:59:59.000,9:59:59.000
We don't measure whether governments

9:59:59.000,9:59:59.000
pass laws against discrimination,

9:59:59.000,9:59:59.000
we measure whether people [br]experience discrimination.

9:59:59.000,9:59:59.000
But, what you want to know

9:59:59.000,9:59:59.000
is who's top, don't you?

9:59:59.000,9:59:59.000
I knew that, I knew that, I knew that.

9:59:59.000,9:59:59.000
Okay, I'm going to show you.

9:59:59.000,9:59:59.000
I'm going to show you on this chart.

9:59:59.000,9:59:59.000
So here we are,

9:59:59.000,9:59:59.000
what I've done here is [br]put on the vertical axis

9:59:59.000,9:59:59.000
social progress.

9:59:59.000,9:59:59.000
Higher is better.

9:59:59.000,9:59:59.000
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,

9:59:59.000,9:59:59.000
is GDP per capita.

9:59:59.000,9:59:59.000
Further to the right is more.

9:59:59.000,9:59:59.000
Okay,

9:59:59.000,9:59:59.000
the country in the world

9:59:59.000,9:59:59.000
with the highest social progress,

9:59:59.000,9:59:59.000
the number one country on social progress

9:59:59.000,9:59:59.000
is New Zealand.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
The country with the least social progress,

9:59:59.000,9:59:59.000
I'm sorry to say,

9:59:59.000,9:59:59.000
is Chad.

9:59:59.000,9:59:59.000
I've never been, maybe next year.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
Or maybe the year after.

9:59:59.000,9:59:59.000
Now, I know what you're thinking.

9:59:59.000,9:59:59.000
You're thinking, "Aha!,

9:59:59.000,9:59:59.000
but New Zealand has a higher GDP

9:59:59.000,9:59:59.000
than Chad.

9:59:59.000,9:59:59.000
Good point, well made.

9:59:59.000,9:59:59.000
But let me show you

9:59:59.000,9:59:59.000
two other countries.

9:59:59.000,9:59:59.000
Here's the United States,

9:59:59.000,9:59:59.000
considerably richer than New Zealand,

9:59:59.000,9:59:59.000
but with a lower level of social progress.

9:59:59.000,9:59:59.000
And then here's Senegal,

9:59:59.000,9:59:59.000
it's got a higher level [br]of social progress

9:59:59.000,9:59:59.000
than Chad, but with

9:59:59.000,9:59:59.000
the same level of GDP.

9:59:59.000,9:59:59.000
So what's going on?

9:59:59.000,9:59:59.000
Well, look.

9:59:59.000,9:59:59.000
Let me bring in the rest of [br]the countries of the world,

9:59:59.000,9:59:59.000
the 132 we've been able to measure,

9:59:59.000,9:59:59.000
each one represented by a dot.

9:59:59.000,9:59:59.000
There are lots of dots.

9:59:59.000,9:59:59.000
Now, obviously I can't do all of them,

9:59:59.000,9:59:59.000
so a few highlights for you:

9:59:59.000,9:59:59.000
the highest ranked G7 country is Canada.

9:59:59.000,9:59:59.000
My country, the United Kingdom,

9:59:59.000,9:59:59.000
is sort of middling, sort of dull,

9:59:59.000,9:59:59.000
but who cares,

9:59:59.000,9:59:59.000
at least we beat the french.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
And then looking at the emerging economies,

9:59:59.000,9:59:59.000
top of the bricks, pleased to say,

9:59:59.000,9:59:59.000
is Brazil.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
Come on, cheer!

9:59:59.000,9:59:59.000
Go, Brazil!

9:59:59.000,9:59:59.000
Beating South Africa,

9:59:59.000,9:59:59.000
then Russia,

9:59:59.000,9:59:59.000
then China,

9:59:59.000,9:59:59.000
and then India.

9:59:59.000,9:59:59.000
Tucked away on the right-hand side,

9:59:59.000,9:59:59.000
you will see a dot of a country with

9:59:59.000,9:59:59.000
a lot of GDP but not

9:59:59.000,9:59:59.000
a huge amount of social progress,

9:59:59.000,9:59:59.000
that's Kuwait.

9:59:59.000,9:59:59.000
Just above Brazil

9:59:59.000,9:59:59.000
is a social progress superpower,

9:59:59.000,9:59:59.000
that's Costa Rica.

9:59:59.000,9:59:59.000
It's got a level of social progress

9:59:59.000,9:59:59.000
the same as some [br]Western European countries,

9:59:59.000,9:59:59.000
with a much lower GDP.

9:59:59.000,9:59:59.000
Now, my slide is getting a little cluttered

9:59:59.000,9:59:59.000
and I'd like to step back a bit.

9:59:59.000,9:59:59.000
So let me take away these countries,

9:59:59.000,9:59:59.000
and then pop in the regression line.

9:59:59.000,9:59:59.000
So this shows the average relationship

9:59:59.000,9:59:59.000
between GDP and social progress.

9:59:59.000,9:59:59.000
The first thing to notice,

9:59:59.000,9:59:59.000
is that there's lots of noise

9:59:59.000,9:59:59.000
around the trend line.

9:59:59.000,9:59:59.000
And what this shows,

9:59:59.000,9:59:59.000
what this impiracially demonstrates,

9:59:59.000,9:59:59.000
is that GDP is not destiny.

9:59:59.000,9:59:59.000
At every level of GDP per capita,

9:59:59.000,9:59:59.000
there are opportunities

9:59:59.000,9:59:59.000
for more social progress,

9:59:59.000,9:59:59.000
risks of less.

9:59:59.000,9:59:59.000
The second thing to notice

9:59:59.000,9:59:59.000
is that for poor countries,

9:59:59.000,9:59:59.000
the curve is really steep.

9:59:59.000,9:59:59.000
So what this tells us is that

9:59:59.000,9:59:59.000
if poor countries can get

9:59:59.000,9:59:59.000
a little bit of extra GDP,

9:59:59.000,9:59:59.000
and if they reinvest that in

9:59:59.000,9:59:59.000
doctors, nurses, water supplies,

9:59:59.000,9:59:59.000
sanitation, etcetera,

9:59:59.000,9:59:59.000
there's a lot of social progress bang

9:59:59.000,9:59:59.000
for your GDP buck.

9:59:59.000,9:59:59.000
And that's good news

9:59:59.000,9:59:59.000
and that's what we've seen

9:59:59.000,9:59:59.000
over the past 20, 30 years

9:59:59.000,9:59:59.000
with a lot of people lifted out of poverty

9:59:59.000,9:59:59.000
by economic growth and good policies

9:59:59.000,9:59:59.000
in poorer countries.

9:59:59.000,9:59:59.000
But go on a bit further up the curve,

9:59:59.000,9:59:59.000
and then we see it flattening out.

9:59:59.000,9:59:59.000
Each extra dollar of GDP

9:59:59.000,9:59:59.000
is buying less and less

9:59:59.000,9:59:59.000
social progress.

9:59:59.000,9:59:59.000
And with more and more

9:59:59.000,9:59:59.000
of the world's population

9:59:59.000,9:59:59.000
living on this part of the curve,

9:59:59.000,9:59:59.000
`It means GDP is becoming

9:59:59.000,9:59:59.000
less and less useful

9:59:59.000,9:59:59.000
as a guide to our development.

9:59:59.000,9:59:59.000
I'll show you an example of Brazil.

9:59:59.000,9:59:59.000
Here's Brazil,

9:59:59.000,9:59:59.000
social progress of about

9:59:59.000,9:59:59.000
70 out of 100.

9:59:59.000,9:59:59.000
GDP per capita about [br]14,000 dollars per year.

9:59:59.000,9:59:59.000
And look, Brazil's above the line.

9:59:59.000,9:59:59.000
Brazil is doing a reasonably good job

9:59:59.000,9:59:59.000
of turning GDP into social progress.

9:59:59.000,9:59:59.000
But where does Brazil go next?

9:59:59.000,9:59:59.000
Let's say that Brazil

9:59:59.000,9:59:59.000
adopts a bold economic plan

9:59:59.000,9:59:59.000
to double GDP in the next decade.

9:59:59.000,9:59:59.000
But that is only half a plan.

9:59:59.000,9:59:59.000
It's less than half a plan

9:59:59.000,9:59:59.000
because where does Brazil

9:59:59.000,9:59:59.000
want to go on social progress?

9:59:59.000,9:59:59.000
Brazil, it's possible

9:59:59.000,9:59:59.000
to increase your growth,

9:59:59.000,9:59:59.000
increase your GDP,

9:59:59.000,9:59:59.000
while stagnating or going backwards

9:59:59.000,9:59:59.000
on social progress.

9:59:59.000,9:59:59.000
We don't want Brazil

9:59:59.000,9:59:59.000
to become like Russia.

9:59:59.000,9:59:59.000
What you really want

9:59:59.000,9:59:59.000
is for Brazil

9:59:59.000,9:59:59.000
to get eve more efficient

9:59:59.000,9:59:59.000
at creating social progress

9:59:59.000,9:59:59.000
from its GDP

9:59:59.000,9:59:59.000
so it becomes more like New Zealand.

9:59:59.000,9:59:59.000
And what that means

9:59:59.000,9:59:59.000
is that Brazil needs

9:59:59.000,9:59:59.000
to prioritize social progress

9:59:59.000,9:59:59.000
in its development plan

9:59:59.000,9:59:59.000
and see that it's not just growth alone,

9:59:59.000,9:59:59.000
its growth with social progress.

9:59:59.000,9:59:59.000
And that's what the Social Program Index does.

9:59:59.000,9:59:59.000
It reframes the debate about development,

9:59:59.000,9:59:59.000
not just about GDP alone,

9:59:59.000,9:59:59.000
but inclusive, sustainable growth

9:59:59.000,9:59:59.000
that brings real improvements

9:59:59.000,9:59:59.000
in people's lives.

9:59:59.000,9:59:59.000
And its not just about countries.

9:59:59.000,9:59:59.000
Earlier this year,

9:59:59.000,9:59:59.000
with our friends from the Amazon non-profit

9:59:59.000,9:59:59.000
here in Brazil, launched

9:59:59.000,9:59:59.000
the first sub-national

9:59:59.000,9:59:59.000
Social Progress Index.

9:59:59.000,9:59:59.000
We did it for the Amaaon region,

9:59:59.000,9:59:59.000
it's an area the size of Europe,

9:59:59.000,9:59:59.000
24 million people,

9:59:59.000,9:59:59.000
one of the most deprived [br]parts of the country.

9:59:59.000,9:59:59.000
And here are the results:

9:59:59.000,9:59:59.000
and this is broken down

9:59:59.000,9:59:59.000
into nearly 800 municipalities.

9:59:59.000,9:59:59.000
And with this detailed information

9:59:59.000,9:59:59.000
about the real quality of life

9:59:59.000,9:59:59.000
in this part of the country,

9:59:59.000,9:59:59.000
Amazon and other partners

9:59:59.000,9:59:59.000
from government and civil society

9:59:59.000,9:59:59.000
can work together to construct

9:59:59.000,9:59:59.000
a development plan

9:59:59.000,9:59:59.000
that will help really improve[br]people's lives,

9:59:59.000,9:59:59.000
while protecting that precious, global asset

9:59:59.000,9:59:59.000
that is the Amazon rainforest.

9:59:59.000,9:59:59.000
And this is just the beginning,

9:59:59.000,9:59:59.000
You can create a Social Progress Index

9:59:59.000,9:59:59.000
for any state,

9:59:59.000,9:59:59.000
region,

9:59:59.000,9:59:59.000
city