Module 9: Wellbeing policy impact assessment
The first consideration for wellbeing economy policy impact assessment, is whether the policy, programme or initiative addresses the root causes of the policy issue. Starting at this strategic level is important, because a failure to identify the root causes of an issue at the start of the policy process, will severely limit the potential for meaningful change.
Identifying root causes
Today, many policies react to or anticipate certain events or crises rather than addressing their systemic drivers [1]. While both types of policies have their roles to play, a wellbeing economy calls for a stronger focus on addressing root causes and carefully selecting a mix of policy interventions that can address both short-term pains as well as the systemic drivers that cause them.
Reactive and anticipatory policies
Reactive policies try to minimise the harm of observed events, while anticipatory policies aim to reduce the harms of predicted trends. Donella Meadows [2] [3] has called these ‘low leverage’ policies that 'tweak the existing system' by making adjustments to a system without changing its overall structure or inherent goals.
Examples of reactive or anticipatory policies are:
disaster relief funds allocated after a natural disaster
increased police presence in response to rising crime rates
boosting funding for healthcare to manage chronic diseases without addressing the determinants of ill-health
carbon capture programmes that aim to capture and store emitted CO2.
Transformative policies
Transformative policies aim to bring about systemic change. They are critical to ensure wellbeing for all within planetary boundaries. Donella Meadows [2] [3] has called these ‘high leverage policies’, as they have the potential to catalyse profound changes by dealing with the root causes of societal problems.
Examples of transformative policies are:
fossil fuel divestment and investment in renewable energy to address climate change
health promotion and universal healthcare to enhance population health
education reform initiatives that address disparities in educational outcomes
policies focused on the predistribution of wealth, income and opportunities (rather than redistributive policies such as income taxes), for example by increasing employee ownership and worker cooperatives, ensuring supply chain responsibility and fair trade.
Government initiatives
Several government initiatives have started to assess the transformative potential of policy interventions. For example:
the Systems Innovation for Net-Zero methodology by the OECD Climate Directorate combines a wellbeing lens with systems thinking tools to create systems that work for people and the planet.
in New Zealand, He Ara Waiora guides policy makers to unravel the complexity of policy issues through guiding questions that unpack the layers of cause and effect.
in Scotland, Foundation Scotland and WEAll Scotland developed the Four Corners Matrix, to assess the transformative potential of initiative proposals.
Explore each of these case studies in more detail below.
References:
[1] OECD (2022), Redesigning Ireland’s Transport for Net Zero: Towards Systems that Work for People and the Planet. Paris: OECD Publishing.
[2] Meadows, D. (2008), Thinking in Systems, Chelsea Green, https://www.chelseagreen.com/product/thinking-in-systems/
[3] Meadows, D. (1999), Leverage Points: Places to Intervene in a System, The Donella Meadows Project: Academy for Systems Change, https://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/
Image sources:
Image 1: This young koala has a mental health problem: INKCINCT cartoons, https://inkcinct.com.au