Case Studies

Italy – Equitable, Sustainable Wellbeing Indicators

Tags: Wellbeing Policy Design

Since 2013, an annual report is produced to measure Italy’s performance on twelve Wellbeing Domains including education, work and life balance, security, health, environment, landscape and cultural heritage and economic wellbeing (e.g. disposable income inequality, absolute poverty, including between regions). These Wellbeing Domains are measured by 130 Equitable Sustainable Wellbeing Indicators.

This report is used to inform the government’s budget decisions. The 2016 Budget Reform Law now requires that ministries outline how each budget line item will impact wellbeing indicators.

The Italian government has also implemented wellbeing forecasting and scenario planning measures in annual budgeting:

A pilot to classify budget expenditures according to their impact on men, women, and on gender equality overall.
An experimental 3-year forecasting exercise to compare the impact on four wellbeing indicators (household disposable income; the inter-quintile income share; labour underutilisation; and emissions of greenhouse gases) in a scenario of no policy changes versus the predicted impact of proposed new policies.

While the techniques and data are still evolving, civil society is able to assess and debate the annual report and explore policy scenarios and their impacts on wellbeing indicators.

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