SNA and beyond: Towards a broader accounting framework that links the SNA, SDGs and other global initiatives1

Hoekstra, Rutger

The System of National Accounts (SNA) has adapted, and will adapt, as economic, social and environmental conditions change. The revision process of the SNA2008, which is now underway, will take place in the context of developments such as globalization, digitalization, climate change, biodiversity loss, inequality as well as the COVID19-pandemic. The new SNA will have to make clear how the economy relates to concepts such as wellbeing, sustainability and equity and will also need to be linked to major global initiatives such as the Sustainable Development Goals (SDGs). I propose a broad accounting framework for Wellbeing, Sustainability and Equity (WiSE). This provides a wider context for the System of National Accounts (SNA) and links to the other frameworks such as the Sustainable Development Goals, and other global initiatives such as the Better Life Initiative (OECD), Changing Wealth of Nations (World Bank) and the Inclusive Wealth Index (UN). The WiSE framework is not a new system, but rather a combination of existing accounting frameworks which have been proposed in the last five decades. The paper starts off by formulating principles to guide the work on the broader framework. Subsequently, seven accounts are proposed which quantify the various dimensions of the economic, societal and environmental systems. This interdisciplinary accounting framework involves knowledge from many scientific disciplines and multiple units are used (mass, energy, people, time, money etc). The most controversial part of any discussion about the future of the SNA is the valuation of non-market phenomena such as unpaid household work/care or environmental damages. This paper argues that the discussion is too focused on methods derived from welfare economics. Rather than valuation we should be focusing on evaluation methods from many scientific disciplines which help to assess progress towards wellbeing, sustainability and equity. This interdisciplinary perspective should also guide our thinking to select key indicators to replace GDP. [ABSTRACT FROM AUTHOR] Copyright of Statistical Journal of the IAOS is the property of IOS Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)