Beyond GDP: Measuring the Value of Wellbeing

The Gross Domestic Product (GDP) is a widely used indicator for measuring per capita income growth, but it throws little light on social and environmental progress. To internalise diverse factors affecting wellbeing, a more comprehensive index is required. Moreover, to overcome challenges like economic crises, conflicts, pandemics, and disasters, the world needs transformative policies with common societal goals. To measure the progress of such policies, an appropriate set of domains and dimensions is required. Several initiatives have been taken in the recent past to develop indices complementary to GDP. The Sustainable Development Goal (SDG) Target 17.19 commits to developing a measure of progress based on sustainable development that complements GDP. The UN Secretary General’s ‘Our Common Agenda’ also advocates for it. In light of the above, this Policy Brief recommends the development of a standardised wellbeing framework including sustainability and complementing GDP, as well as enhancing the capacity of national statistical systems.