Moving Beyond GDP To Achieve The SDGs
“Global decision-making is fixed on immediate gain, ignoring the long-term consequences of decisions.” —UN Secretary-General António Guterres
GDP might be “indispensable in short-run macroeconomic analysis and management [but] it is wholly unsuitable for…identifying sustainable development” —Sir Partha Dasgupta
The list of approaches that meet the requirements for moving #beyondGDP is not long. It is easy to conceive large indicator dashboards that may cover all dimensions of #wellbeing.
Among the handful of credible counterparts to GDP is inclusive wealth. Inclusive wealth measures the assets that underlie human wellbeing: natural, human, social, produced and financial capital. An increase in inclusive wealth signals an increase in wellbeing. Conversely, when inclusive wealth falls, wellbeing must fall as well. Inclusive wealth is, therefore, a powerful measure of sustainability.
Building on the recommendation of T20 Saudi Arabia, this policy brief calls for G20 countries to move beyond GDP by complementing it with inclusive wealth indicators by 2025. Doing so is key to unlocking the financing needed for the SGDs and achieving the 2030 Agenda. GDP drives decision-makers towards short-term thinking. Adding inclusive wealth to decision-makers’ toolboxes would ensure that long-term goals like the SDGs—and the funding to achieve them—are not forgotten.
You might also be interested in
Moving Beyond GDP: A Stock-Flow Approach To Measuring Wellbeing For The G20
To achieve effective climate action, the G20 countries need to move urgently beyond GDP and use a comprehensive approach to assessing national progress.
Is it just the heat, or does the concept of 'uneconomic growth' make a lot more sense now?
Something to ponder if you’re stuck in one of the many places so hot now that sitting in a darkened room is recommended, giving you more time alone with your thoughts: are we paying the price for a big mistake?
Voluntary Local Reviews of Progress on the Sustainable Development Goals
A practical guide and resource list to help Canadian communities report on local progress toward the Sustainable Development Goals.
Principles-Based Social Taxonomy for Sustainable Investing
IISD developed a social taxonomy of business activities for a client country. It is based on the specific social and economic development vision and priorities of the country and aligned with international norms and best practices.