Measuring what we do or doing what we
measure: challenges for Australia
NatStats 2010 Conference
16 September
Ken Henry
“... what we measure shapes what
we collectively strive to pursue —
and what we pursue determines
what we measure”
Report by the Commission on the
Measurement of Economic Performance and
Social Progress
China and India’s contribution to world
growth
6
Percentage points
Percentage points
6
3
3
0
0
-3
-3
1981
1983
1985
1987
1989
1991
1993
China
Chart 1
1995
India
1997
1999
Rest of World
2001
2003
2005
2007
2009
3Ps of real GDP per person
4 Percentage contribution
Percentage contribution
Population
Participation
4
Productivity
3
3
2
1.9
1.8
1.6
2
1.5
1
1
0.3
0.3
0.1
0.0
0
-0.2
0.0
0
-0.1
-0.4
-1
-1
Share of
Participation rate Unemployment Average hours
population 15+
rate
worked
Past 40 years
Chart 2
Next 40 years
Labour
productivity
Real GDP per
person
“... what we measure shapes what
we collectively strive to pursue —
and what we pursue determines
what we measure”
Report by the Commission on the
Measurement of Economic Performance and
Social Progress
Not everything that counts can
be counted and not everything
that can be counted counts
Albert Einstein
People’s knowledge of official measures of
economic performance
60
Per cent
Per cent
Per cent
60
50
50
40
40
30
30
20
20
10
10
0
0
Never heard of official Heard of but don't know Provided rate answer
rate/agency
rate
Unemp
Chart 4
CPI
GDP
Curtin 2007
Where do people get information from?
100
Per cent
Per cent
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
TV
Newspaper
Internet
First
Radio
Personal
Second
Third
Magazines
Never
Chart 5
Curtin 2007
Financial market data
400
400
350
350
US LIBOR/OIS
300
300
UK LIBOR/OIS
250
250
200
200
150
150
100
50
AUS
90-Day Bank Bill/OIS
100
50
0
0
Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08Mar-09 Jun-09 Sep-09 Dec-09Mar-10 Jun-10 Sep-10
Chart 6
Measuring what we do or doing what we
measure: challenges for Australia
NatStats 2010 Conference
16 September
Ken Henry