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"The Herald/Age - Lateral Economics [HALE] Index of Australia’s Wellbeing" 
 
The project was directed and co-authored by Nicholas GRUEN  CEO Lateral Economics
 
 
Final Report 
December 2011 
 
Table of Contents 											PAGE
 
1	OVERVIEW 							   	                           v 
a	Correcting the G, D and P of GDP ................................................................. vi 
b	Correcting NNI for changes in the total capital stock: human and natural capital ..................vii 
c	Leisure and voluntary caring and community action .................................................viii 
d	Congestion ....................................................................................... viii 
e	The distribution of income ....................................................................... viii 
f	Non-economic aspects of wellbeing .................................................................x 
	f1	Environment ...............................................................................x 
	f2	Political capital .........................................................................xi 
	f3	Zero weighted dimensions of our index .....................................................xi 
	f4	Social capital ............................................................................xi 
g	Gross National Suffering ..........................................................................xii 
	g1	Health ....................................................................................xii 
	g2	Employment-related satisfaction ...........................................................xiii 

PART ONE: CONCEPTUAL ISSUES 							                           1 

1. Introduction and background 							                           1 

2. What is required 											   3 

3. The choices available 								           	   5 
a	‘Correcting’ GDP measures .........................................................................5 
b	Subjective wellbeing measures .....................................................................6 
c	Composite indices .................................................................................8 
d	User weighting of indices ........................................................................ 9 
e	‘Dashboard’ approaches .......................................................................... 10 

PART TWO: IMPROVING OUR MEASUREMENT OF RECURRENT ECONOMIC WELLBEING 	  				  16

4. From GDP to NNI 								   			  16 
a	Congestion .......................................................................................18 
b	Leisure, caring and the value of non-market activity ............................................ 19 

PART THREE: BROADENING OUR DEFINITION OF THE CAPITAL STOCK 			   			  20 

5. Correcting GDP for natural capital 							   		  20 
a	Depletion of natural capital .................................................................... 20 
b	Climate change ............................................................................. .....24 

6. Changes in human capital 								   		  32 
a	Formal education ...............................................................................  34 
b	Early childhood development ......................................................................37 
c	Unemployment .....................................................................................38 
d	An alternative snapshot of net changes to the natural and human capital stock ................... 40 

7. The distribution of income 								   		  43 

PART FOUR: NON-ECONOMIC ASPECTS OF WELLBEING AND GROSS NATIONAL SUFFERING 				  47 

8. Beyond capital augmented NNI 							   		  47 
a	A stock-take ...................................................................................  47 
b	Non-economic aspects of wellbeing ............................................................... 48 
c	Gross National Suffering ........................................................................ 49 

9. Non-economic environmental impacts 						 			  51 

10. Health 									  			  55 
a	Mental health ................................................................................... 55 
b	Obesity ......................................................................................... 57 

11. Employment-related life satisfaction 					  		   	  60 
a	Job satisfaction, underemployment, overwork and work/life balance ................................61 
b	Job satisfaction ................................................................................ 63 

12. Political and social capital 							 		  66 
a	Political capital ............................................................................... 66 
b	Social capital .................................................................................. 66 

PART FIVE: WEIGHTING THE INDEX AND ENGAGING THE PUBLIC 			  				  68 

13. Weighting the index 								  		  68 
a	Alternative weightings, contributions to improving the index and engaging the public ............ 69 
b	Possibilities for the Future .................................................................... 73 

14. References 									 			  74 

Glossary 										 		  81 

Appendix on method 								 			  82 

Acknowledgements 											  83 

 
Home | Index |O'view |Glossary | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | References | Appendix on Method 
	 Acknowledgements | Boxes - 10 | Figures - 11 | Tables - 18 | Disclaimer | Copyright