Moving Beyond GDP To Achieve The SDGs
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“Global decision-making is fixed on immediate gain, ignoring the long-term consequences of decisions.” —UN Secretary-General António Guterres
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GDP might be “indispensable in short-run macroeconomic analysis and management [but] it is wholly unsuitable for…identifying sustainable development” —Sir Partha Dasgupta
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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.
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