Genuine Progress Indicator

What is happening in our region?

Over the period from 1990 to 2006, the Auckland region GPI grew from $28 billion to $47 billion, an annual average rate of 3.1 per cent. This can be compared to the region's GDP which grew at an annual average rate of 2.5 per cent. Over the same period, the national GPI rose from $93 billion in 1990 to $131 billion in 2006, an annual average rate of 2.2 per cent, while national GDP grew at an annual average rate of 3.1 per cent.

In 1990 the Auckland region GPI amounted to 75.8 per cent of Auckland region GDP, while in 2006 it amounted to 83.0 per cent. When the Auckland region GPI is expressed in per capita terms the results are relatively static over the study period - rising only 12.7 per cent (or an annual average growth rate of 0.8 per cent). By comparison, the national GPI per capita increased by 15.4 per cent or an annual average of 0.9 per cent.

The level of socio-economic benefits that are accounted for in the GPI climbed by $23,489 million, or a rise of 70.4 per cent. The socio-economic costs and the environment costs also increased, by $5,057 million (139.4 per cent) and $338 million (27.1 per cent) respectively - a total of $5,395 million for the two cost components. Overall, the net increase in the Auckland region GPI for the study period is estimated to be $18,094 million.

Summary GPI and GDP annual average percentage growth, 1990-2006

Why is this indicator important?

The development of a regional GPI is part of an evolution in New Zealand's collective thinking and understanding of the dependencies and relationships between economic activity and the broader human and natural environment. The GPI is a measure of economic progress that attempts to take into account social and environmental costs and benefits.

What this indicator is about

The Genuine Progress Indicator (GPI) is a measure of economic progress. The difference between GDP and GPI is that GPI also takes into account social and environmental costs as well as the benefits of growth.

GDP simply measures the market value of all final goods and services made within the borders of a nation in a year. For example it will note an oil spill as a benefit because work is created a result of the clean up. In the GPI the environmental and societal costs of an oil spill are subtracted from the economic benefits.

Why do we monitor?

The concept of GPI has been around for some time now both internationally and in New Zealand, and it emerged in response to perceived shortcomings of the Gross Domestic Product (GDP) as a measure of societal and environmental wellbeing.

Where and how we collect this data?

Data source
Market Economics, New Zealand Centre of Ecological Economics (NZCEE)

Monitoring history
1990-2006

Limitations of the data

This study represents a unique first step in creating a GPI for the Auckland region.

It is one of the first fully evaluated GPIs to be developed within the New Zealand context.

Moreover, it is among only a few sub-national GPIs to be developed globally. It builds on past efforts aimed at improving measurement of national well-being or genuine progress.

There are a number of outstanding theoretical, methodological and empirical issues with the Auckland region GPI which are beyond the scope of the current study, but which future work may address.

When will this indicator be updated?

This indicator, covering 16 years (1990 to 2006), was first published in July 2009. No date has been set for its update.

More information

For a comprehensive discussion of technical guidelines and methodology, see Mc Donald, G., Forgie, V., Zhang, J., Andrew, R. and Smith, N. (2009) A Genuine Progress Indicator for the Auckland region - Valuation Methodoly. Prepared by the New Zealand Centre for Ecological Economics and Market Economics fot the Auckland Council. Auckland Council. Technical Report 2009/101.

Useful links

A Genuine Progress Indicator for the Auckland region: Summary Report, July 2009

A Genuine Progress Indicator for the Auckland Region: Valuation Methodology (technical report)

Quality control procedures

While care has been used in processing, analysing and extracting information, Auckland Council gives no warranty that the information supplied is free from error. Auckland Council shall not be liable for any loss suffered through the use, directly or indirectly, of any information, product or service.