Scotland is embracing a fresh approach to its economy. In the spring, it appointed its first cabinet secretary for “wellbeing economy, fair work and energy,” tasked with developing “an economy that is fair, green and growing . . . to ensure our collective and individual wellbeing.”
Along with New Zealand, Iceland, Wales and Finland, Scotland rounds out the Wellbeing Economy Governments (WEGo) partnership of nations – all five explicitly working toward building economies “designed to serve people and the planet rather than the other way around.”
So far Canada has been sitting on the sidelines as an official observer at WEGo conferences, signalling an interest in economies focused less on profit and more on human and ecological well-being. But does Canada have what it takes to be part of this group, working toward such a grand (but essential) vision?
What is a well-being economy?
A well-being economy is an economy that delivers an equitable distribution of wealth, health and well-being while protecting the planet’s resources for future generations of all species.
It offers an alternative to our current economic system of neoliberal capitalism. Under this system, with its imperative of private profit accumulation, the benefits of economic growth accrue mostly to those who already have high levels of wealth. This leads to widening income and wealth inequality, which are toxic to societal well-being. Moreover, this system does not recognize the benefits of nature to society, which results in support (such as public subsidies) for activities that destroy our ecosystems, upon which we all depend.
Working toward a well-being economy requires a bold and coherent vision that matches the magnitude and urgency of the intersecting social, economic, political, colonial and democratic crises we face that largely stem from, and are perpetuated by, our current economic system.
What is Canada doing, and not doing, with respect to a well-being economy?
Canada’s alignment with WEGo is based on the federal government’s Quality of Life Framework, which was introduced in 2021.
The framework has several important strengths. It is explicitly based on “beyond GDP” thinking and the need to consider not only economic growth, but also how fairly resources are distributed and the negative effects – including environmental harms – of economic growth.
The framework offers a coherent vision for well-being. It includes five areas (prosperity, health, environment, society and good governance) that, after broad consultations, were deemed to be important determinants of quality of life. Those five domains are then considered through the lenses of fairness and inclusion and sustainability and resilience.
However, the framework’s contribution to the well-being of current and future generations will depend significantly on whether, and to what extent, it leads to meaningful efforts to redress inequities of power and resources, which are built into our current economic system.
Canada’s Quality of Life Framework has been applied to three federal budgets so far. But, as the Canadian Centre for Policy Alternatives pointed out in its analysis of Budget 2023, it leaves much to be desired. For example, the budget was largely silent on affordable housing, despite a clear and growing housing crisis. It continued to focus on tax-free savings mechanisms for home-buyers, with no substantive attention to addressing the needs of tenant families or the broader problem of financialization and profiteering that drives growing housing insecurity. The government’s “targeted inflation relief” in the form of a one-time grocery rebate takes a similarly shortsighted approach.
As well, while Budget 2023 included a significant amount of money for transition to a lower-carbon economy, a large proportion of those funds takes the form of corporate tax breaks to incentivize private investment in technological solutions like carbon capture and storage, which has been described as “a dangerous distraction driven by the same big polluters who created the climate emergency.” There is no framework or mechanism to ensure a public-led vision that promotes environmental justice and ensures a transition that leaves no one behind in terms of the social foundations needed to be well.
To make these kinds of changes, Canada needs a way to ensure that the framework is not limited to budget impact reports and measurement, which is the case so far.
Luckily, others are leading the way
Examples of genuine progress toward a well-being economy are available from other members of WEGo. Wales, for example, passed a Well-Being of Future Generations Act in 2015. That legislation requires public bodies to think about the long-term impacts of their decisions and to work to prevent persistent problems such as health inequalities and climate change. They do so with the guidance and support of the Future Generations Commissioner, who is independent of government. This legislation is shaping planning and policy in important ways; one example is a recent decision by the Welsh government to scrap a number of large road projects because they would have destroyed biodiversity and intact ecosystems.
This is not to say that Canada’s federal government has done nothing of value. In Budget 2021, for example (the same year the Quality of Life Framework was introduced), it introduced the Canada-wide Early Learning and Child Care system. That initiative signifies an important commitment to early child development, gender equity and a robust care economy, all of which contribute significantly to population well-being and social sustainability. But there needs to be much, much more of this kind of thinking and acting.
What next?
There is a temptation to be pragmatic and to “do what we can” with respect to moving toward a well-being economy. Indeed, WEGo concedes that the included governments are “at different stages of the journey.”
But, at a certain point, pragmatism is not innocuous if it gives the illusion that we are doing enough. Considering that our society is already “on its knees” with respect to deepening inequalities, an erosion of trust in each other and our institutions, and the no-longer-distant prospect of catastrophic climate breakdown, this is not the time for incrementalism.
Lindsay McLaren is a professor in the Department of Community Health Sciences at the University of Calgary
