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The initiative aligns with the vision of UN Secretary-General António Guterres, who emphasizes that “moving beyond GDP is fundamental to building an economic system that gives value to what counts – human well-being – both now and for future generations, for all individuals.”
Despite being a key measure for evaluating economic growth, Gross Domestic Product (GDP) was never designed to fully capture the comprehensive welfare or progression of a nation.
According to Özge Aydogan, Director of UN Geneva’s Beyond Lab, GDP fails to account for crucial elements like human, social, and natural capital. She articulated, “GDP measures these factors very inadequately, if at all.” The growing “Beyond GDP” movement aims to transition from an extractive economy to one that significantly benefits people and the planet.
To effectively incorporate underutilized human resources, natural assets, and overall well-being into future economic assessments, the Beyond Lab is collaborating with government representatives, researchers, and sustainability experts.
Shaping Regenerative Economies
However, the exact nature of a post-GDP economy remains unclear, with a lack of consensus among policymakers on how to proceed. Ms. Aydogan envisions a regenerative economy by 2050, which would prioritize resource replenishment over mere extraction.
In this conceptual framework, nations would consider various wealth-generating assets, with a focus on conserving and replenishing natural resources. “For instance, we should be looking at how we replenish nature,” she noted, asserting that alternative metrics could complement GDP rather than replace it outright. “Ideally, we seek to enhance GDP with additional measures.”
Evaluating Happiness
Various alternative economic indicators have emerged through the years. The Gross National Happiness index was introduced in 1972 by King Jigme Singye Wangchuck of Bhutan, encompassing dimensions such as sustainable development, environmental conservation, cultural preservation, and effective governance.
Similarly, the Human Development Index serves as a recognized alternative to measure national development and well-being by factoring in life expectancy, living standards, and educational attainment.
Nathalie Bernasconi from the International Institute for Sustainable Development (IISD) emphasizes that the traditional GDP model lacks capability. She argues that it is essential for influencers to convert scientific findings into practical national policies and create incentives for a shift away from the antiquated GDP-centric framework conceived during the 1930s to address the Great Depression’s economic challenges. “GDP alone cannot guide us towards this future,” she asserts.
Issues of Sustainability
GDP is often an unreliable measure of sustainability, as evidenced by cases where it has inflated in response to environmental disasters. For instance, after the 2010 BP Deepwater Horizon oil spill, GDP rose due to extensive clean-up expenditures, which ultimately fail to reflect ecological degradation and community distress.
Similarly, in 1989, the Exxon Valdez oil spill led to increased GDP figures in the U.S. as job creation surged in response to the disaster, overshadowing the long-term ecological damage inflicted. “Why do we value dead things? Why not appreciate a living tree that offers oxygen instead?” questioned Bingying Lou from the Beyond Lab while referencing an indigenous activist’s perspective.
The Role of Multilateralism in Debt Recovery
Support has been voiced for innovating the GDP framework and reaffirming a commitment to multilateral solutions, particularly for nations grappling with debt burdens. Ambassador Matthew Wilson of the Permanent Mission of Barbados to the UN in Geneva highlighted that despite its imperfections, multilateralism is crucial in addressing these contemporary issues. “When you think you’re beyond something, it has a way of pulling you back in,” he remarked, stressing the importance of proactive efforts in tackling challenges such as debt and developmental aid.
Rethinking the Status Quo
It remains uncertain whether political leaders will move away from prioritizing GDP growth in their agendas towards adopting alternative measures. Ms. Aydogan noted, “We have been conditioned to view the economy in a certain light, but our confrontation with planetary limits indicates that the current model simply cannot continue.”
Policymakers will gather at the International Conference on Financing for Development in Seville, Spain, from June 30 to July 3, 2025, and at the World Social Summit in Doha, Qatar, in November 2025, to further explore these urgent discussions.
Source
news.un.org