{"id":8244,"date":"2024-11-22T14:16:35","date_gmt":"2024-11-22T13:16:35","guid":{"rendered":"https:\/\/kekbolygoalapitvany.hu\/?p=8244"},"modified":"2025-06-26T12:44:48","modified_gmt":"2025-06-26T10:44:48","slug":"new-methodology-to-measure-sustainability-transition-janos-ader-at-the-word-science-forum","status":"publish","type":"post","link":"https:\/\/kekbolygoalapitvany.hu\/en\/news\/new-methodology-to-measure-sustainability-transition-janos-ader-at-the-word-science-forum\/","title":{"rendered":"New Methodology to Measure Sustainability Transition \u2013 J\u00e1nos \u00c1der at the Word Science Forum"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>In 2018, two American economists were awarded the Nobel Prize in Economics.<br \/>\nOne of them \u2013 William Nordhaus \u2013 pointed out when accepting the award: If the negative externalities caused by economic activity are not taken into account (&#8220;priced at 0&#8221;), we will pay a very high price at the societal level.<br \/>\nLet me add to Nordhaus&#8217;s words: If you include the negative externalities caused by economic activity (i.e. water pollution, land degradation, biodiversity loss, deforestation, overfishing of the oceans, and unfortunately I could continue the long list.) are not included (&#8220;priced at 0&#8221;), we will pay a very high price for them at the societal level.<br \/>\nLadies and Gentlemen,<br \/>\nIn many parts of the world there is a debate on how we can use a more accurate indicator to measure development, instead of the GDP that is generally accepted today. Renowned economists, universities and research institutes from New York to Tokyo, research groups in the UN, the EU, the OECD, the World Bank, are working on a monitoring system beyond GDP.<br \/>\nThe United Nations has set the goal of developing an integrated measurement tool in this year&#8217;s Summit of the Future outcome document, and the European Union in its Strategic Foresight Report 2023.<br \/>\nWhy? Because GDP measures many important things, but not what is relevant to human life, well-being and sustainability.<\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-7287 alignleft\" src=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_wsf_beszed_04.jpg\" alt=\"\" width=\"1200\" height=\"800\" srcset=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_wsf_beszed_04.jpg 1200w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_wsf_beszed_04-300x200.jpg 300w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_wsf_beszed_04-1024x683.jpg 1024w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_wsf_beszed_04-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Ladies and Gentlemen!<br \/>\nIn 2015, the UN General Assembly adopted the 17 Sustainable Development Goals (SDGs) and 169 sub-Goals. A separate presentation could be given on how we are doing on time. According to the New York assessment in September, instead of 15 years we would need more than 60 years to achieve the targets at the current pace.<br \/>\nBut back to GDP.<br \/>\nThe UN uses 248 indicators to measure each target and sub-target separately. Over the past nearly 10 years, it has become clear that while this gives us important details, the picture does not add up.<br \/>\nIt&#8217;s like seeing only a fragment of an <a href=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2025\/06\/wsfprezkep_01.jpg\" target=\"_blank\" rel=\"noopener\">impressionist painting<\/a>.<br \/>\nIs it beautiful?<br \/>\nExpressive?<br \/>\nDo we recognize it?<br \/>\nOne needs to be a dedicated Van Gogh fan to recognize this <a href=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2025\/06\/wsfprezkep_02.jpg\" target=\"_blank\" rel=\"noopener\">painting<\/a> from the image fragments.<br \/>\nWe lack a tool, a methodology to know exactly where we stand, where we are heading and in order to make decisions that affect our lives and well-being as a whole. A methodology that can support a sustainability-integrated approach to national decision-making based on facts and data. A methodology that can incorporate national and regional specificities, that takes into account risk factors, development priorities and opportunities.<br \/>\nIn other words, it is both flexible and standardised. It is scientifically sound but also serves pragmatic decision preparation.<br \/>\nIn preparation for the World Science Forum, we have been reflecting on how we can contribute to thinking beyond GDP. Especially as we have several researchers and institutes working on this issue.<br \/>\nWe came to the conclusion that if three workshops in Hungary cannot work together, if the people working here cannot integrate their knowledge, how can we expect institutes around the world to do so?<br \/>\nWe have worked &#8211; excellent researchers have worked &#8211; for almost a year to present this proposal to you today.<br \/>\nHow is it different from the others?<br \/>\na) it uses fewer indicators (roughly 80)<br \/>\nb) it is integrated<br \/>\nc) it can be adapted to each country, taking into account its specificities.<br \/>\nWe propose a combined use of three methodologies, integrated in themselves, to interpret the sustainability pivot.<br \/>\nIf you look, here you can see the different elements, the eighty indicators. Perhaps there will be more detailed explanations about these in other presentations later. Together, these three indicators can be used to measure the quantity and quality of factors of production and provide a realistic picture of the broader state of well-being.<br \/>\nWhat does the first one \u2013 sGDP &#8211; mean?<br \/>\nIts purpose is to make visible the social and economic costs that have hitherto been invisible in GDP, and which often have a negative sign. It shows the economic output that would be generated if the product and labour market, the financial sector, the balance of financing capacity and the conservation of ecological resources were maintained, while ensuring a fair distribution of the goods and services produced.<br \/>\nThis calculation measures the deviation of current processes from the equilibrium level and corrects the value of GDP by the deviation.<\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-7546 alignleft\" src=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy.jpg\" alt=\"\" width=\"2048\" height=\"1365\" srcset=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy.jpg 2048w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy-300x200.jpg 300w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy-1024x683.jpg 1024w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy-768x512.jpg 768w, https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2024\/11\/20241122_WSF_04_MTA_nagy-1536x1024.jpg 1536w\" sizes=\"(max-width: 2048px) 100vw, 2048px\" \/><\/p>\n<p>What does the second one, the Sustainable Performance Indicator mean?<br \/>\nThis indicator tracks the specificities of natural resource management that are not reflected in GDP measures.<br \/>\nWhat is the Wellbeing Beyond GDP Indicator?<br \/>\nIt interprets and makes comparable the sustainability turnaround in each country at the level of social well-being.<br \/>\nEach indicator provides relevant knowledge for economic and policy makers on the directions of intervention.<br \/>\nThe details will be presented by G\u00e1bor Bartus, Secretary General of the National Council for Sustainable Development. Although I have heard, he wasn\u2019t given too much time to speak, but let us hope he will be able to complement my words sufficiently.<br \/>\nThe proposed method can be used to show the extent to which GDP is produced in a sustainable or unsustainable way and provide additional information for necessary interventions, thus enabling more effective policy making. It also allows standardisation of the measurement of the sustainability turnaround while recognising differences between countries&#8217; specificities. And by comparing countries over time, it helps to build a picture that reflects the stages of development.<br \/>\nTo sum up:<br \/>\na) it provides a more complete picture<br \/>\nb) it provides a better understanding of socio-economic-environmental processes<br \/>\n(c) it facilitates decision-making and<br \/>\nd) reduces risks<\/p>\n<p>This method illustrates that it is not only economic issues that we need to talk about.<br \/>\nIt shows the so-called externalities, the negative effects of our economic activity. This method helps to remove the &#8220;blind spots&#8221; of GDP.<br \/>\nLadies and Gentlemen,<br \/>\nLast week at a water conference, I quoted Franklin Benjamin, one of the founding fathers of the US, who said in the 18th century: &#8220;When the well is dry, then we know the true value of water.&#8221;<br \/>\nContinuing Benjamin Franklin&#8217;s thought, what are these indicators suitable for?<br \/>\nThey are useful for knowing how much water is left in the well. To find out that the way we use water is causing the well to run dry. This in turn makes farming, staying in place, in short, life impossible.<br \/>\nWe have worked to give decision-makers around the world a way to prevent wells from running dry.<br \/>\nI wish you all a successful conference.<\/p>\n<p><a href=\"https:\/\/kekbolygoalapitvany.hu\/wp-content\/uploads\/2025\/02\/kutatas_fenntarthatosag_WSF202411.pdf\" target=\"_blank\" rel=\"noopener\"><em>Methodology for Integrated Measurement of Sustainability Transition<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2018, two American economists were awarded the Nobel Prize in Economics. One of them \u2013 William Nordhaus \u2013 pointed out when accepting the award: If the negative externalities caused by economic activity are not taken into account (&#8220;priced at 0&#8221;), we will pay a very high price at the societal level. Let me add&hellip;<\/p>\n","protected":false},"author":5,"featured_media":7292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-8244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-42","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Methodology to Measure Sustainability Transition \u2013 J\u00e1nos \u00c1der at the Word Science Forum - K\u00e9k Bolyg\u00f3 Alap\u00edtv\u00e1ny<\/title>\n<meta name=\"description\" content=\"In 2018, two American economists were awarded the Nobel Prize in Economics. 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