Well-being and in Latin America & Caribbean (LAC)

Dr. Beatriz Cuartas E-mail: [email protected]

Organization of American States (OAS)

Inter-American Council for Integral Development (CIDI)

OAS, CIDI December 14, 2017 Structure  Context

 Chapter 1: LAC Growth Patterns and Well-being (objective)

 Chapter 2: Well-being Theory Definitions and Measures (Brief)

 Chapter 3: LAC Child Migration (not discussed)

 Chapter 4: LAC Well-being Measures (Objective +Subjective)

 Summary of Findings

2 Global Trends in Well-being Ranking

Note: This Figure displays the Happy Planet Index Ranking for 151 countries, and compares the OECD and LAC regions. The best a country can rank is 1, and 151 is the worst. Source: Cuartas with Happy Planet Index data

3 Global Trends in Violence Ranking

Note: This Figure shows the Ranking for 160 countries and compares the OECD and LAC regions. The best a country can rank is 1, and 160 is the worst. Source: Cuartas with Global Peace Index data

4 Ch. 1: LAC Literature

5 LAC Literature

Latin America & Caribbean Number of poor at $4 a day (PPP) (millions)

300

250

200

150 Millions of Poor 100

50

0 1981 [YR1981] 1984 [YR1984] 1987 [YR1987] 1990 [YR1990] 1993 [YR1993] 1996 [YR1996] 1999 [YR1999] 2002 [YR2002] 2005 [YR2005] 2008 [YR2008] 2010 [YR2010] Time Period (Year) Note: This Figure shows LAC’s millions of people in moderate poverty from 1981-2011. Source: Cuartas with World Bank Database, Poverty and Inequality 2015 data

6 LAC Literature

Latin America & Caribbean Poverty headcount ratio at $4 a day (PPP) (% of population) 60

50

40

30

20 Poverty Poverty Headcount Ratio (%)

10

0 1981 [YR1981] 1984 [YR1984] 1987 [YR1987] 1990 [YR1990] 1993 [YR1993] 1996 [YR1996] 1999 [YR1999] 2002 [YR2002] 2005 [YR2005] 2008 [YR2008] 2010 [YR2010] Time Period (Year) Note: This Figure shows LAC’s percentage of people in moderate poverty from 1981-2011. Source: Cuartas with World Bank Database, Poverty and Inequality 2015 data

7 LAC Literature

Latin America & Caribbean GINI index

Venezuela, RB Uruguay Peru Paraguay Honduras GINI index Ecuador

Latin American Countries American Latin Chile Brazil Bolivia Argentina 0 10 20 30 40 50 60 70 Gini Index (%) Note: This Figure displays LAC’s GINI inequality index per country for 2005. Source: Cuartas with Bank Database, Poverty and Inequality 2014 data

8 LAC Literature

Note: This Figure shows LAC’s Country poverty rates overall decline from 1999-2010. Source: World Bank Database, Poverty and Inequality 2014

9 LAC Literature

Note: This Figure displays the amount in billions of U.S. dollars flowing into LAC countries in the form of foreign direct investment and remittances for the time period of 1960-2012.Source: Cuartas + WB

10 Research Questions

• RQ1. What conceptual framework and measures inform LAC well-being policy?

11 LAC Wellbeing

 HPI’s well-being is high  Poverty and inequality reducing  Lacking infrastructure: (i.e. potable water, sewage, food, nutrition,)  Health deprivations (backlog)  Education access: is improving primary school enrollment challenges remains  Environmental foot print scores are low  Limited technology: innovative challenges  Violence and crime: high rates in the world  Lacking Transparency: Corruption is high  Lacking Security

12 Chapter 2: Financial Determinants of WB GDP$per$capita$(PPP)$

Legend worldshapehappypeacedatajoin1 GDPPPP 0.000000 - 3071.000000 3071.000001 - 9060.000000 9060.000001 - 19189.000000 19189.000001 - 30386.000000 30386.000001 - 60228.000000

Note: This world map shows the geospatial distribution analysis of secondary country data on GDP PPP for over 100 countries during the year 2013. Notice LAC

13 Chapter 2: GINI Income Inequality GINI-inequality no labels

Legend worldshapehappypeacedatajoin1 giniindex 0.000000 27.928333 - 36.196667 36.420000 - 43.833333 44.230000 - 52.288571 52.846667 - 65.270000

Note: This world map shows the geospatial distribution GINI secondary country data on Well-being for over 100 countries during the year 2013. GINI coefficients range from zero (closest to perfect redistribution) to sixty-five (closest to imperfect distribution.) Notice LAC 14 Measurement Literature

15 LAC Measurement Literature

 Gross National Alkire (2008, 2013) &MDPI: Colombia, El Salvador, Brazil, , Barbados, Bolivia, , Ecuador, Guatemala, Guyana, Haiti, Honduras, , Mexico, Nicaragua, Peru, Suriname, Trinidad and Tobago + other countries in the world…  9 dimension WB, Health, education, living, culture, time, vitality, etc.

16 Measurement Literature

 New Foundation (2012). For other models and measures (see proposal.)

Happy Planet Index ≈ Experienced well-being ×

17 Research Questions

• RQ3. How do well-being rankings and other country performance measures correlate with each other?

18 Chapter 4- Statistics + DATA Compared populations: LAC + World N=134

Data Sources: • Dependent Variables: The Happy Planet Index ranking.

• Independent Variables: Focus on how national security (–GPI-), governmental accountability (–CPI- rankings), and infrastructure (World Bank Development indicators –WDI- GPD Per Capita) issues affect (Gilpin 1993) HDI

• Spearman, and Pearson rank order correlations: the continuous sets of ranks are increasing (+1) or decreasing (-1) on a one-to-one relation of each other.

19 Recall Chapter 2: HPI’s Well-being Na onal Happiness Rank

Legend worldshapehappypeacedatajoin1 HPIrank 0.000000 - 18.000000 18.000001 - 51.000000 51.000001 - 83.000000 83.000001 - 113.000000 113.000001 - 143.000000

Note: This world map shows the geospatial distribution analysis of HPI secondary country data on Well- being for over 100 countries during the year 2013.

20 Corruption

Legend worldshapehappypeacedatajoin1 cpirank 0.000000 - 16.000000 16.000001 - 47.000000 47.000001 - 85.000000 85.000001 - 126.000000 126.000001 - 178.000000

21 Insecurity

22

Empirical Model 1 Results

23 Empirical Model 1 Results

24 Empirical Model 2

 The variables:

 GDP per capita PPP

 CPI

 GPI

 Life expectancy

 HDI

25 Empirical Model 2 Results Table 4.8 2011 World Quality of Life Pearson Correlations

Pearson Correlations LifeSat0-10 LifeExpY GDPPPP HDI GPIRank Cpirank LifeSat0-10 1 .838** .696** .837** -.238** -.586** LifeExpY .838** 1 .657** .925** -.321** -.602** GDPPPP .696** .657** 1 .775** -.461** -.747** HDI .837** .925** .775** 1 -.340** -.657** GPI rank -.238** -.321** -.461** -.340** 1 .463** CPI rank -.586** -.602** -.747** -.657** .463** 1 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2- tailed). N=134

26 Empirical Model 2 Results

27 Empirical Results

 Not all hold for the LAC region and the world

 Insecurity & corruption are + associated the (they go up hand in had for the world (r= +.463) and Latin America (r= +.629), (two- tailed, p <.01, ceteris paribus)

 Negatively associated with all other variables

28 Empirical Results

• Life satisfaction world (-.586, not significant for LAC), • Life expectancy world (-.602) LAC (-.520), • GDP world (-.747) LAC (-.526), • HDI world (-.657) at the (two tailed, p <.01, ceteris paribus)

• Life satisfaction world (-.238, not significant for LAC), • Life expectancy world (-.321) LAC (-.524), and GDP world (- .461) LAC (.-446), HDI world (-.340) at the (two tailed, p <.01, ceteris paribus)

29 Ecuador Qualitative Analysis

 Laws, Legislation, budgetary allocations

 Constitution article II

 Wellbeing Plan

 Regional Life satisfaction has no effect insecurity and corruption and vice-versa.

 Ministry of Well-being (discontinued)

 Children’s books

 INCE + App : Measurement

30 For Further research

31 TECH Measure for LAC WB

32 Thank You!