RES, GVA, GNH and other TLAs

The Regional Economic Strategy (RES) for North East England has, unsurprisingly, a strong emphasis on economic growth.

As with any government strategy, things have to be measured, and since it is much simpler to measure what can be counted, Gross Value Added (GVA), has been selected as the main indicator of progress in the region.

Underlying this main driver of the RES is an assumption that economic growth is a good thing per se.

Yet, elsewhere in the RES Action Plan, we find a reference to One Planet Living, though very little action is proposed to achieve it.

One Planet Living is a concept for environmental sustainability, that suggests that current European rates of consumption require three planets. Our choice then is to colonise two more planets or radically reduce our consumption on this one. In the USA, five planets are required and countries like China, currently at one planet level, are driving towards unsustainability.

In this context, GVA only perpetuates the problem. We need to reduce economic activity in a managed way, if we are to play our part in ensuring a future for our children and grandchildren.

The Unique Selling Point (USP) of our region is that we are not as hooked on conspicuous consumption as our overheated compatriots in the South East. We can use our relative economic backwardness as a positive and start to develop more sustainable indicators like Social Value Added (SVA) and Environmental Value Added (EVA).

Perhaps the best three letter acronym (TLA) is Gross National Happiness (GNH), an indicator devised in Bhutan, which proposes four pillars: equitable and sustainable socio-economic development, preservation and promotion of cultural values, conservation of the natural environment and establishment of good governance. The measure has room for improvement in its translation from Bhutan to Britain.

Wellbeing studies consistently show that whilst poverty has an adverse effect on happiness, increased wealth has no impact after a certain point. Happiness or contentment are most likely to be achieved when people have the sense that they have some control over their lives - and this is much, much more than adding economic value. Working together to find ways to live sustainably and leave something for future generations has the potential to give us the best TLA of all - PoM (Peace of Mind).

steve