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02. október 2023 ForsætisráðuneytiðKatrín Jakobsdóttir

Ávarp Katrínar Jakobsdóttur forsætisráðherra á viðburði um velsældarhagkerfið í New York 19. september 2023

Excellencies, dear guests.

I want to thank the organizers for the opportunity to address this event on pursuing well-being, equity, and healthy societies.

Iceland, has been at the forefront of international cooperation in developing policies on well-being economies – economies that pursue human and ecological well-being instead of simply material growth. We have joined a group of smaller countries in the Well-being Economy Governments project, working toward well-being within the context of the UN 2030 Agenda.

The project entails an analysis of the shortcomings of traditional economic theory and policy, and a commitment to build an alternative future. This approach allows us to examine the quality of life above and beyond monetary measures and take advantage of scientific knowledge to follow the Agenda 2030.

We are here in New York this week to discuss the implementation of the SDG's and the urgent need for robust climate action.

At a closer look, this is instrinsically linked to the Wellbeing Economy.

The climate crisis, threatening the lives of future generations, is one of the reasons why a paradigm shift remains much needed. Ultimately it is the story of a failed economic model –  urging us to rethink our way of life, modes of consumption and production and how these threaten the future.

Building a Well-being economy is both a societal and a systemic process that takes time.

In Iceland, the Directorate of Health started measuring the population's well-being in 2007.

In 2011, well-being became a policy goal as part of a strategic vision for Iceland in 2020. I was in the steering group for that strategic vision with the current mayor of Reykjavík – but I then served as a minister for education and culture. In the same year we implemented health and well-being in the national curriculum for kindergartens, primary schools and secondary schools.

In 2019, well-being first became an active governmental policy when my government introduced around 40 indicators to track the progress of the well-being economy that were in part prepared through a population-wide survey on what people valued most in their daily lifes. Health was at the top of the list.

In 2020 my government approved six well-being policy priorities to guide the annual five-year fiscal strategy. Earlier this month, we decided to prioritize our well-being economic approach further by preparing the adaptation of a well-being budgeting method. I am looking very much forward to that work where the ministry of finance plays a very important part with the prime ministers office.

In this work, we will utilize the positive experiences from integrating gender budgeting by statute in the Budget Act in 2015.

Dear friends,

Adapting a well-being economic framework takes time but the journey allows us a broader view that reveals previously neglected issues.

For example, it has been a challenge to impact the gendered labor market. Female-dominated sectors have systematically been paid less and more women than men work part-time, reflecting women's significant share in unpaid work. Women leave the labor force earlier than men, relying on early retirement, rehabilitation, or disability benefits.

Further, these structures negatively affect women’s health, income, career development, and future pensions.

The Nordics have made major contributions to counter these structures by introducing policies on universal childcare and shared parental leave. Longitudinal Research indicate that fathers contribute more at home, have a stronger attachment to their children, and enjoy a higher quality of life. This evidence suggests that these have had normative social influence and we need to include these facts in our analysis to pursue well-being in sustainable fiscal policies.

Averting the climate crisis may come at a short-run cost. This does not need to translate into a decrease in well-being as the broader view enables us to preserve qualities of life and better uses of resources.

Going forward depends significantly on research on well-being – an exciting field that has come into its own in recent years. It has taught us about human motivation, how social comparisons shape people's preferences, and how these change along with people's circumstances assisting us to shape policy in different areas.

One such example is Professor Lord Richard Layard's suggestion that tax policies should be used to provide people with incentives to attain a healthy work-life balance — an idea we could discuss further today.

I am delighted to witness the global movement and that international agencies are increasingly promoting the well-being economy paradigm for a healthier, fairer, and more prosperous future.

Your input and expertises are critical to progressing this work.

Thank you!

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