Summary – Road to the Summit Discussion Series #9 – Beyond GDP.pdf – Google Drive

Source: Summary – Road to the Summit Discussion Series #9 – Beyond GDP.pdf – Google Drive

Road to the Summit Discussion Series
Meeting 9 Summary | 14 June

Complements to GDP: What Values Guide Development?

Background and critique of GDP
● The world financial system is in crisis, partly as a result of overemphasis on material growth
at all costs, and a lack of balanced development.
● As an indicator, GDP can be considered a success, in so far as it provides reliable, uniform,
and comparable national accounts.
● GDP is a measure of income. It was never intended to measure development, though it has
been used extensively for that purpose. “We are eating soup with a fork”
● GDP has many well-noted gaps and flaws: it doesn’t measure things such as environmental
impact, crime rates, pay equality, social cohesion, inequality, or non-market services such as
care work. Its reliance on averages obscures disparities (“where is my per capita GDP?”). It is
unable to distinguish between positive and negative effects of economic activity.
● Its flaws notwithstanding, GDP has been extremely durable and popular. It is important to
consider why this is the case and to acknowledge the strengths and utility it has. It is, for
example, a very simple, clear, and intuitive measurement, which makes it a very powerful
tool of communication and comparison.
● Efforts to move beyond GDP are grounded in the 2025 System of National Accounts update,
the System of Economic and Environmental Accounting (statistical framework), the SDG
indicator framework, the Multidimensional Vulnerability Index, and Our Common Agenda.