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There's More To Life Than GDP (But Not Much More)
A conference at the European Parliament has been told that GDP is an insufficient measure of a nation's overall health. Measures such as how far the nation goes in combatting global warming and social division should also be taken into account, the conference heard. One centre-right Swedish MP said that these indicators could one day become as important as the measurement of GDP is today.
In a story in the EU Parliament.com, it's reported that the two-day conference "Beyond GDP" was launched by European commission president José Manuel Barroso.
"GDP is the best-recognised measure of economic performance in the world, often used as a generic indicator of progress. However, the relationship between economic growth as measured by GDP and other dimensions of societal progress is not straightforward," the conference's introduction said.
It didn't appear that anyone was ready to abolish GDP as a measure of prosperity and national well-being, but there is growing pressure from both left and right to draw attention to other factors when drawing up tables of what one delegate describes as "measures of progress, true wealth and the well-being of nations."
The site reports: "Parliament’s president, Hans-Gert Poettering, said, “Major negative effects of globalisation such as climate change pose new risks to our entire economies. That is why new indicators of wealth are needed.”"
The conference website provides a selection of potential indicators, including "Adjusted GDP", Environmental Accounting, Ecological Footprint, Quality of Life indicators, the Human Development Index and "Genuine Savings."
The conference organisers claim that measuring other indicators would "greatly contribute to better policy making, to guide regional development and help address the new challenges.
