Not long ago, I argued that the GDP growth rate is a hopelessly unreliable measure of economic well being. So I was pleased to hear that the UNDP is now moving beyond GDP and its own Human Development Index and laying the foundation for a new Sustainable Human Development Index.
This is the article I wrote: The problem with GDP (April 2012 – Aliran Monthly Vol 31: 3)
The UNDP is tentatively calling its new index the Sustainable Human Development Index. “Equity, dignity, happiness, sustainability – these are all fundamental to our lives but absent in the GDP,” UNDP administrator Helen Clark said. “Progress needs to be defined and measured in a way which accounts for the broader picture of human development and its context.”
Mongolian ecologist Chuluun Togtokh has come up with a prototype of what a rudimentary sustainability index might look like. He has revised the UNDP Human Development Index, which incorporates life expectancy, purchasing power and literacy, to include per-capita carbon emissions to reflect sustainability. The chart above compares the rankings under the two measures.
Whatever measure we use, it is clear that GDP is totally inadequate as it only recognises those who gobble up the earth’s resources at a voracious rate with nary a care for the needs of future generations. GPD growth rates only serve the interests of the big corporate polluters and plunderers as nations are lauded for their higher rates of extraction of natural resources (and pollution of the environment, which is not mentioned).
It is time we dump the GDP growth rate and focus on more sustainable measures.
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Not sure whether this index is a good indicator for sustainability because countries like Greece, spain & iceland which are heavily in debt are in the list.
The revised index is is not the official one prepared by UNDP but a rudimentary one prepared by a Mongolian ecologist. Wait for the UNDP to come up with its real index.
“Since the 1930s, the “call to prayer” of the druids of economics has been the incantation of GDP figures – the monetary value of all economic exchanges. GDP growth benefits from all kinds of social breakdown including war and pollution. As its originators cautioned, it does not measure vast vital areas including family care and community work. The few dissidents since then have not had much impact. Their alternative measures threaten the promotion of growth at any cost. These alternatives include Measure of Domestic Progress, Index of Sustainable Economic Welfare, Genuine Progress Indicator, Ecological Footprint and Happy Planet Index. That… Read more »
Global imperialism?
For those still in the dark under the coconut shells, read about The Bilderbergers.
It is not a fantasy cooked up entity, neither is it a conspiracy theory like UFOs.
It is a ‘club’ of the elites who wield power around the globe to their fancies. Either you hate them or love them according to your principles of civilized or uncivilized humanity.
Read on: http://www.thehiddenevil.com/bb.asp
Its always good to measure problems..BUT its long long way from measuring a problem to actually fixing it.
GDP is not only a measure – its a most useful one – far far than anything else that has and will be available. Its why its will still be THE measure for basically forseeable future.
Time to develop habit of taking public transport instead of driving own cars.
Inconvenience for a start but sooner the benefits will convince you and your children.
My comment might not be directly related but those are not Islamic countries and majority of the top 20 are atheism countries.
Sometime is wrong with the world?
Its a signal for change. But muslims need to accept it first.