GDP up, satisfaction down: Why we need a new way to measure progress
Even people with no grounding or interest in business news will probably have heard of GDP which is frequently cited in mass media as the indicator of progress. In simple terms, GDP is the sum of everything a country produces and sells, but economists have known for years that it is fails to paint a complete picture. For example, unpaid work such as caring for children or disabled family workers is not counted as a positive. Measures of inequality are not factored in, nor is the cost of pollution or exploitation of resources. This is problematic as it creates the wrong incentives and goal posts for policy making. By chasing GDP growth alone, policy makers might not be going after what matters most for people and planet.Counting what countsThe lack of more nuanced metrics for capturing progress has long been on the radar of the international community, and was taken up a year ago, when Secretary-General António Guterres launched his High-Level Expert Group on Beyond GDP.Following a year of consultations, the group has released its findings through a report titled, Counting what Counts, described as “a compass for people and the planet.”It offers a first global blueprint from the UN for moving beyond the limited metric of GDP and makes a compelling case for using a broader set of measures to guide policy and decision-making.
