By Livia Bizikova and Hajra Atiq, IISD

In May, the UN Secretary-General appointed a High-Level Expert Group on Beyond GDP to develop recommendations that will help countries and institutions adopt more comprehensive measures of sustainable development progress beyond traditional Gross Domestic Product (GDP) metrics. The group was created as the follow-up from the UN Summit of the Future (SoF) to address well-known shortcomings of GDP as an indicator of wealth by developing a framework for measuring sustainable development progress that can complement and go beyond GDP.

This edition of the ‘Beyond GDP’ update reflects on the Expert Group’s establishment and shares other news on global efforts to select indicators that move beyond GDP. It highlights growing support from academic research, policy analyses, and national strategies for the idea that economic growth alone is insufficient to tackle urgent sustainability and well-being challenges.

There is a growing call among experts and policymakers for development models that emphasize well-being, inclusivity, sustainability, and human connection, rather than focusing solely on short-term economic growth as measured by GDP. Referring to models such as inclusive wealth frameworks, happiness-oriented strategies, or multidimensional progress indicators, the call aims to center development around people. This is a global shift that is redefining and reorienting the future path of how societies view and define success by adjusting policies and measures to promote long-term well-being.

Policy instruments for well-being and beyond GDP

The MERGE consortium has put together an overview of potential policy instruments that promote sustainable and inclusive well-being (SIW) regardless of economic growth in a report titled, ‘Potential Policy Instruments for Sustainable and Inclusive Wellbeing.’ The report puts forward the argument that a single metric or policy can’t transform society on its own. To build a well-being economy in the long term that protects people and the planet, a coordinated system of models, metrics, and policies, backed by strong technical and governance infrastructure is required. The report uses a three-part framework that integrates technical infrastructure, governance, and policy instruments, such as universal basic income and services, wealth tax, green energy and improved efficiency, granting rights to nature, payments for ecosystem services, participatory civil dialogue, and a future generations act. The framework demonstrates how various well-being-focused policies and instruments interact with each other to support successful transitions across all dimensions of sustainability.   

Similarly, the UK’s National Statistics in its latest ‘Measuring Progress, Well-being and Beyond GDP’ bulletin focused on the quality of life and holistic progress in the UK. The UK is advancing its approach to measuring national progress by moving beyond GDP, aligning with international efforts such as the recent editions of UN’s System of National Accounts (SNA) 2025 and the Pact for the Future. While the new SNA introduces sustainability and well-being elements, it does not fully integrate beyond GDP measures. The UK is addressing this gap through its Measures of National Well-being framework, now being streamlined with quarterly updates to a core set of indicators from November 2025.

Inclusive approaches for social development

The Country Director for Population Council in Pakistan penned an article highlighting the need for social development investments to drive inclusive growth, rather than waiting for economic growth rates to rise first. The author presents the argument that inclusive growth in Pakistan requires a stronger focus on social development, especially for the poorest of the poor. While the government has prioritized inclusive growth, any gains in GDP growth alone are not enough for inclusive progress, and social development is key to ensuring that growth benefits everyone and leads to higher productivity, she argues.  

A development expert from the Kolkata Centre at the Observer Research Foundation, argues in an op-ed that India must move beyond GDP-centric growth and adopt a development model based on inclusive wealth, integrating natural, human, social, and produced capital. He criticizes the country’s current focus on infrastructure-heavy growth as it ignores environmental costs and worsens inequality, advocating for the LiFE (Lifestyle for the Environment) framework, which promotes sustainable living aligned with ecological limits. This framework allows for flexible, context-specific pathways suited to developing economies.

Happiness intersecting with economy

Various articles have connected happiness and economic growth. One such article argues that true happiness and sustainable development rely on strong human connections, trust, and emotional well-being. Drawing from global studies and the World Happiness Report, it highlights rising loneliness and its negative impact on mental and physical health. It notes that Scandinavian countries like Finland lead in happiness rankings by prioritizing social bonds, work-life balance, and inclusive policies. The article cites research showing that happiness boosts productivity, with happy workers being 13% more productive due to better cognitive function. Finland embodies this, where a low-stress lifestyle and strong work-life balance foster both innovation and high happiness levels.

A study working on the intersection of economy and happiness, titled, ‘Beyond GDP: A Triple Helix Framework for a Happiness Economy,” highlights the growing shift from using GDP as the sole measure of economic progress toward a happiness-based economy that prioritizes well-being, social connection, and sustainability. Using the Triple Helix framework (government, academia, international bodies), researchers identify 17 key variables of a happiness economy, with work-life balance, improved education, well-being, research and development, dialogue with communities, and governance as top priorities. The study employed a combination of the grey system theory and DEMATEL analysis to rank and understand causal relationships among the chosen variables. This offers a data-driven approach to a field previously dominated by conceptual work, offering policymakers actionable strategies, advocating for an economy that values human fulfillment along with financial growth.

Rethinking growth for development

Nobel Laureate Abhijit Banerjee and economist Bravious Kahyoza argue that rising GDP figures alone are not a true reflection of economic progress. Banerjee, speaking at a high-level seminar in Dhaka, Bangladesh, emphasized the importance of looking beyond aggregate GDP to focus on GDP per capita and income distribution, especially in countries like Bangladesh and India where wealth is increasingly concentrated among the elite. He noted that poverty reduction hinges on equitable income sharing and warned of deteriorating economic stability due to political and environmental risks.

Echoing similar concerns, Kahyoza pointed out that Tanzania’s impressive GDP growth has not translated into meaningful improvements for ordinary citizens, particularly in rural areas. He highlighted inflation, unemployment, and inequality as persistent issues and cautioned against rapid liberalization that disadvantages local entrepreneurs. As Tanzania charts its Vision 2050, Kahyoza calls for a shift toward people-centered development, grounded in real investment and inclusive strategies that go beyond mere economic metrics.

Recognizing unpaid care work: A milestone for Bangladesh

The Bangladeshi government announced in June that from the 2025-2026 fiscal year onward, women’s unpaid care and domestic work will formally account for the country’s GDP. This is considered a watershed moment for the country towards achieving inclusive economic growth and gender equality. The Country Director of ActionAid Bangladesh explains this historic policy shift in an article titled, ‘Counting the Invisible: Why Recognising Women’s Unpaid Work is a Game-changer for Bangladesh.’ The academic, nonprofit, and policy circles have been building toward this policy shift for several years since before the COVID-19 pandemic. The value of women’s unpaid domestic work was found to be 76.8-87.2% of Bangladesh’s GDP in fiscal year 2013-2014.

ActionAid Bangladesh has been working since 2013 relying on powerful tools such as the Time Diary, where women across Bangladesh would log their daily activities over 24 hours. The data collected were then used to start evidence-based conversations within households. In 2021, UN Women’s Women Count programme and the Bangladesh Bureau of Statistics conducted the first-ever Time-Use Survey (TUS) which collected insights into how gender roles shape the division of labor between women and men, and according to various demographic criteria beyond sex, such as geographical location, age, marital status, education, and employment. This work was pivotal in laying the foundation for formally counting unpaid care work in the economy and a big win for social and gender equality.

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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, peer-reviewed journals, and news stories. 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).