This article is published in association with United Nations.
Top finance experts are meeting at UN Geneva this week to push for a radical shake up in the way economic growth is gauged, in response to concerns that GDP measurements provide little insight about progress on key sustainability targets that are vital to our survival.
Backed by the UN trade and development agency, UNCTAD and other partners, the “Beyond GDP” initiative acknowledges a warning from Secretary-General António Guterres that global policymaking is over-reliant on Global Domestic Product data.
“ Every day, we witness the consequences of our failure to balance economic, social and environmental dimensions of development,” the Secretary-General has said. “Moving beyond GDP is fundamental to building an economic system that gives value to what counts – human wellbeing – now and in the future, and for everyone.”
His view echoes that of many senior economists, who have said frequently that GDP places too much value on activities that deplete the planet, rather than those that sustain life and contribute to people’s wellbeing.
“This tension has become increasingly salient in the context of climate change, deteriorating ecosystems and biodiversity loss, rising conflict and food insecurity, and historic inequalities,” a statement from the High-Level Expert Group notes.
Gauging wealth and wellbeing
Their discussions later this week at the Palace of Nations in Geneva will be the second in-person meeting of the expert group since it was founded in May last year, after UN Member States signed the 2024 Pact for the Future; its aims include making global governance more inclusive and effective.
“Our approach will emphasize how better well-being and its drivers – such as health, social capital and the quality of the environment – are not only good for societal welfare but also contribute in an integral way to economic prosperity,” the expert group said in an interim report published in November.
Outlining the challenge the group must address, its members warned of “an increasing gap between what politicians and citizens believe is happening, and the latter’s life experiences [which] are not matched by the story told by GDP alone”.
More than a dozen renowned economists will be contributing to this week’s discussions in the Swiss city; they include Nobel laureate Joseph Stiglitz, Indian economist Kaushik Basu and equity expert Nora Lustig.
Their tasks include developing an initial list of country-owned and universally-applicable indicators of sustainable development to form a dashboard that equips governments with the information they need to meet the 17 Sustainable Development Goals (SDGs).
The expert group will also provide guidance on how to maximize uptake of the dashboard and how to prioritize data collection in order to operationalize the dashboard and SDG indicators.
In addition to support from UNCTAD, the UN Department of Economic and Social Affairs (DESA), the UN Development Programme (UNDP) and the Executive Office of the Secretary-General will continue to partner the initiative.
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