M2.2 Non-Monetary Measures of Development and Measuring the SDGs.pdf

Semi/Non- Monetary Measures of Development Outline LESSENING SATISFACTION OF RESOURCE USE SATISFACTORY MEASURING THE SDGS VULNERABILITY TO BASIC NEEDS SUSTAINABILITY QUALITY OF LIFE SHOCKS  For everyone: probability of falling into...

Semi/Non- Monetary Measures of Development Outline LESSENING SATISFACTION OF RESOURCE USE SATISFACTORY MEASURING THE SDGS VULNERABILITY TO BASIC NEEDS SUSTAINABILITY QUALITY OF LIFE SHOCKS  For everyone: probability of falling into poverty as a consequence of exposure to shocks May increase poverty incidence Especially for the poor: Probability that future outcomes are lower than current outcomes because of shocks Vulnerability May increase depth of poverty Lower future income than current income Decline in food consumptions compared to current  The poor are often more risk averse A decline in income or food consumption to the poor has higher impact than the same happening to the non-poor Sources of risk: Natural disasters Risks Health shocks Social disasters Economic shocks Political shocks Environmental shocks  Covariate risks – affecting many people Idiosyncratic risks – affects individuals or particular households Risk of irreversibility – shocks that could lead to: Chronic poverty – long-term Risks poverty Persistent or situational poverty – insistent movement from poor to non-poor; poverty caused by sudden or temporary shocks  Risk reduction (Prevention) – reducing the probability and severity of shocks Pursuing education, vaccination, investing in irrigation, climate-adaptive plant varieties Risk management (Mitigation) – reducing the impact of shocks Self – choosing low risk activities, savings, income diversification Lessening Mutual – investing in relationships and social capital Vulnerability Formal – crop insurance, fire insurance, life insurance Risk coping – relieving the impact of experiencing shocks Borrowing, selling assets, migration, child labor, consumption or expenditure postponement Lessening Vulnerability  Commodities or services over which a person can exercise ownership or command Necessary aspects of life for human development Basic Needs or Broad agreement on basic needs Entitlements (health, education, nutrition, housing, sanitation Multi-dimensional Public goods  Health – life expectancy, infant mortality, maternal mortality, access to and quality of health services Education – enrollment rates, Dimensions of Basic dropout rate, repetition, literacy Needs rate, availability of and distance to schools, class size Nutrition – malnutrition and hunger, height-for-age (stunting), weight-for-height (wasting)  Z-scores for child health, Global Burden of Disease, malnutrition (calorie intake) Indicators of Human Development Index Basic Needs (HDI) An index measuring national socioeconomic development, based on combining measures of education, health, and PPP- GNIPPc Multidimensional Poverty Index (MPI)  Is it available? Is it accessible? Is it secure? Is it acceptable? Assessing Basic Is it of quality? Needs  What is ‘sustainability’?  The concern with intergenerational equity: that the wellbeing of future generations should not be inferior to that of the current generation as a consequence Sustainability of the current generation’s behavior toward the use of natural resources and the environment  Climate change and carbon emissions Transmission of the stocks of assets across generations (natural, physical, human, Aspects of social) sustainability Accumulation of public debt  Thinking about the future For how many generations? The future cannot bid during the present Social scope For whose wellbeing? Challenges of Household, clan, city, sustainability region/province, nation, humanity A need for the participation of the most industrialized (polluting) countries  To capture other important aspects of development Two main schools of thought: Quality of Life indicators of William Easterly Freedom and Capabilities by Amartya Sen Quality of Life  Describes 81 QoL indicators Includes three important categories for higher QoL: Individual rights and democracy Freedom from expropriation, government not breaking contracts, bureaucratic quality, rule of law, freedom from corruption, civil liberties, human-rights rating, percentage of children working, political rights, and independence of politics from the military Political stability and peace Frequency of cabinet changes, deaths from political violence, strikes, assassinations, coups, revolutions, riots, deaths from war, racial tensions, and separatist movements Absence of “bads” Fraud, terrorism, robberies, rapes, drug crimes, various dimensions of William Easterly environmental pollution, and suicides  Development is a process of expanding freedom Capabilities: choices a person makes among “functionings” that they can achieve, and the freedom to exercise such choices Functionings: what people can be or do Capabilities is the freedom of opportunities Amartya Sen  Freedom from early death (premature mortality) Freedom from morbidity Freedom from hunger and malnourishment Freedom to engage in productive activity Freedom from fear Freedom from ignorance and illiteracy Freedom to participate in the social and Sen’s Central political life of the community Freedom to feel loved Human Capabilities SDGs and Measuring Development Measuring the SDGs Goals → Targets → Indicators Each goal has targets Each target has indicators How many targets do the SDGs have in total? 169 How many indicators do the SDGs have in total? 231 unique indicators 248 listed as total → 13 are repeated by two or three targets Measuring the SDGs The 248 are used by reporting countries as a minimum OECD countries have more indicators Data availability Data maturity Data validity Index Scoring 0 to 100 can be interpreted as a percentage Each indicator is scored based on the indicators Each target is scored based on aggregated indicators Five Criteria in Selecting Indicators Relevance and applicability to a broad range of country contexts Statistical adequacy: represent valid and reliable measures Timeliness: current and published on a timely schedule Coverage: Available for at least 80 percent of UN member states with a population over one million Distance to targets must be measurable to define optimal performance and opportunities Challenges to Measuring the SDGs Indicators can still be vague Indicators update themselves Some targets still don’t have completely agreed upon indicators Data availability is uneven across the world Index rankings and score must not be compared with previous results outright New reports have portions that recalculate rankings and scores based on updated measures Creating the Indexes and Scoring Establish performance thresholds and censor extreme values from the distribution of each indicator Rescale the data to ensure comparability across indicators Normalization Aggregate the indicators within and across SDGs Establishing Thresholds Setting upper bounds (i.e., best performance) Use absolute quantitative thresholds (zero poverty; universal basic education) Apply ‘Leave No One Behind’ principle for those that do not have upper bounds – universal access or zero deprivation/inequality Science-based targets when existing Average of top five performers Lower bounds set at 2.5th percentile of the distribution Using the Dashboard Traffic light reading Overall rating checks two worst performing variables of a goal of a given country Two worst performing need to be red to be considered red Two worst performing need to be green to be considered green International Spillover Index Tracks the impacts of a given country’s actions on others Environmental and social impacts embodied into trade Economy and finance UN-based multilateralism, peace and security