By Livia Bizikova and Hajra Atiq, IISD
The recent UN Summit of the Future (SoF) stressed the need to address well-known shortcomings of gross domestic product (GDP) as an indicator of wealth by developing a framework for measuring sustainable development progress that can complement and go beyond GDP. The need for such measures is widely recognized. The UN Secretary-General has described overreliance on GDP as a “glaring blind spot in how we measure economic prosperity and progress.” The Pact for the Future – the Summit’s outcome document – specifically identifies the need “to develop recommendations for a limited number of country-owned and universally applicable indicators of sustainable development that complement and go beyond GDP,” taking into account the 2030 Agenda for Sustainable Development.
In anticipation of growing global efforts to select indicators that move beyond GDP, the SDG Knowledge Hub is providing regular updates on publications on this topic. The authors use databases of agencies and peer-reviewed literature to collect such information.
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This issue of the ‘Beyond GDP’ update series focuses on recent publications that question the relevance of GDP as a measure of progress, highlighting its limitations in addressing well-being, gender issues, unpaid work, inequality, extreme poverty, human rights, and aspects of environmental sustainability, such as ecological footprint and material flows. Some papers discussed emphasize the importance of capturing institutional capacity, quality, and governance approaches in beyond GDP efforts. They advocate for a multidimensional approach, utilizing existing and proposing new indices and dashboards. We also note a call to integrate beyond GDP approaches and new development measurements into global agreements and processes, such as the upcoming Fourth International Conference on Financing for Development (FfD4) and the 2025 session of the UN High-level Political Forum on Sustainable Development (HLPF), as well as to feature such approaches as key issues for discussion during South Africa’s Group of 20 (G20) presidency.
Feminist and human rights approaches to going beyond GDP
In a publication by Oxfam titled, ‘Beyond GDP: A Compendium of Regional Feminist Perspectives,’ feminist thinkers from Africa, the Middle East and North Africa (MENA), South Asia, and Latin America and the Caribbean (LAC), offer perspectives on why we must move beyond GDP as the primary measure of societal progress. The compendium draws on regional examples and demonstrates how policymaking-driven GDP growth promotes austerity, debt, corporate power, and exploitative labor practices, diminishing unpaid care and domestic work. The authors’ call for action outlines Indigenous and feminist alternatives to tip the balance towards economies that care for people and the planet. The context for this publication is further explained in a blog by Global Policy, which suggests that the timing of this compendium is critical as gains in gender justice have been rolling back, economic inequality is on the rise, and the climate crisis is intensifying.
During the seventh intersessional meeting on human rights and the 2030 Agenda, the UN Human Rights Council held a session exploring reforms of global economic rules to better align with human rights. Experts discussed applying a human rights lens to going beyond GDP and developing indicators to measure progress other than GDP. Human Rights Watch put forward a two-point statement during the panel reinforcing the adoption of a human rights approach to indicators that takes account of:
- Power imbalances between rights holders and duty bearers or between economically privileged and those living in poverty, for example by measuring unequal health outcomes or access to education; and
- Non-monetary conditions of well-being such as quality education, access to health care, a clean, healthy, and sustainable environment as human rights that are not adequately measured by income.
Well-being, planetary boundaries, and post-growth approach
A publication from the European Commission’s Joint Research Centre (JRC) titled, ‘Measuring Sustainable and Inclusive Wellbeing: A Multidimensional Dashboard Approach,’ recognizes the value of GDP but emphasizes the need for additional indicators to fully capture aspects such as quality of life, inclusiveness, and sustainability. Drawing from a collaborative process, it proposes a dashboard of 50 indicators (selected from 140) across six components: current well-being; social and economic resources for future well-being; resilience to societal challenges and sustainability transitions; nature and planetary boundaries; inclusiveness; and institutional capacity and quality. These indicators are estimated for the EU member States and highlight the importance of balancing economic prosperity with well-being and integrating these considerations into policymaking.
The Lancet Planetary Health article titled, ‘Post-growth: The Science of Wellbeing Within Planetary Boundaries,’ examines the potential of adopting a post-growth paradigm, which challenges the idea that increasing GDP necessarily enhances human wellbeing within planetary boundaries. It includes studies that integrate ecological considerations into macroeconomic models and explores the policy implications for welfare, resource use, and nature management without relying on growth. The paper emphasizes the importance of environmental and wellbeing indicators, such as material flows, ecological footprint, and health and life satisfaction, while also exploring policies and transition pathways towards post-growth development strategies.
An article in Worth titled, ‘Beyond GDP: A Broader Look at the Economy’s True Health,’ provides an overview of the origins of GDP, current challenges and shortcomings of GDP, and approaches to address them. The author discusses the implications of GDP’s focus on measuring income for well-being, using examples from counties such as the Netherlands, the US, and Nigeria. It lists major contributions by experts, politicians, and leaders of international agencies questioning the use of GDP as the measure of the country’s progress.
Regional and International efforts on mainstreaming measures that go beyond GDP
An Economic Commission for Latin America and the Caribbean (ECLAC) news story highlights the discussions and conclusions from an international on measuring development and its implications for international cooperation, held at ECLAC headquarters in Santiago, Chile. The seminar emphasized the need to complement GDP with a “multidimensional approach” to measuring development to better address challenges such as climate change, productive development, and inequality reduction. Participants stressed the importance of integrating this new development measurement into preparations for FfD4, scheduled from 30 June to 3 July 2025 in Seville, Spain. Moving beyond GDP could represent a paradigm shift towards a new FfD framework.
In a blog, the Director General of the UK’s Office for Statistics Regulation suggests that 2025 could be the year when “beyond GDP” becomes a reality for policymakers, the media, and citizens. While GDP is the focus of economic debates, he argues, it is an incomplete measure that doesn’t account for factors like natural resource depletion, unpaid work, and societal well-being. He outlines two ways to approach the issue:
- Enriching GDP by expanding the GDP framework to include unpaid work, natural capital, and ecosystem services, as seen in the UK’s “inclusive income” initiative, which offers a broader view of economic welfare; and
- Alternative measures that involve supplementing GDP with additional measures that focus on well-being and prosperity, such as personal well-being, children’s well-being, and broader societal well-being metrics.
Nordic Co-operation’s report on, ‘A Beyond-GDP View of Nordic Performance’ focuses on the Nordic countries of Denmark, Finland, Iceland, Norway, and Sweden, to assess their performance across 38 indicators grouped into three metrics: the Sustainable Development Index (SDI), which integrates human development with ecological impact; the Transition Performance Index (TPI), and Doughnut Economy Indicators. The findings highlight that while these countries have made significant progress in social outcomes, challenges remain in terms of ecological sustainability. The report emphasizes the need to move beyond GDP to redefine success and support development choices that are more sustainable and inclusive for the Nordic region.
Delegates at the Africa Energy Summit in Dar es Salaam, Tanzania, announced a push for GDP recalculation to better reflect their natural resources like forests and minerals. The African Development Bank (AfDB) argues that including these assets could improve debt metrics, reduce borrowing costs, and address financial crises. Despite Africa’s vast natural wealth, skepticism remains over the practical impact of this recalibration, particularly in attracting investors and lowering debt costs. The recalculation issue is likely to feature during South Africa’s G20 presidency.
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This Update is part of a series that seeks to raise awareness of efforts to advance metrics that go beyond GDP, focusing primarily on publications produced by international agencies and peer-reviewed journals. By highlighting topics of theoretical and conceptual significance, including suggestions and applications of specific indicators and indices to complement GDP, the series aims to inform and support sustainable development decision makers in their efforts to go beyond GDP. This project was made possible through financial support provided by the International Development Research Centre (IDRC).
