The shortfalls of GDP that were already apparent before the crisis but made starker during it have led to a panoply of new initiatives to find metrics that can measure wellbeing rather than just economic growth. But while GDP has stood accused of overlooking the environment and human well-being, it has one advantage which policymakers and analysts appreciate: the methods are objective and clear. Whether measuring output or expenditure in an economy, GDP produces a single number that is easy to adjust and compare.
A major step forward towards putting the measurement of well-being at the heart of policymaking was taken at the OECD’s World Forum on Measuring Well-Being for Policymaking and Development, a four-day international conference held in New Delhi in October.
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