In 1968, Robert F. Kennedy famously remarked that GDP “measures everything, in short, except that which makes life worthwhile.” Decades later, this critique still resonates, particularly in the UK, where concerns over climate change, inequality, and economic sustainability are growing louder. Despite its limitations, GDP remains the go-to metric for measuring national progress. As the UK faces up to post-Brexit challenges and grapples with the complexities of a net-zero future, is it time to rethink UK beyond GDP as a measure of progress?
Why GDP Falls Short
Gross Domestic Product (GDP) has long been the headline indicator of economic performance, tracking the total monetary value of goods and services produced within a country. However, this single figure often masks critical issues. For example, GDP can rise due to activities like rebuilding after natural disasters or increased spending on pollution mitigation—hardly signs of true progress. It also fails to account for unpaid labour, such as caregiving, or the depletion of natural resources, which has far-reaching consequences for future generations.
In the UK, GDP growth has often been touted as evidence of success, yet public dissatisfaction persists. During the Brexit debate, a memorable exchange underscored this disconnection: when a speaker highlighted the economic risks of leaving the EU, a member of the audience retorted, “That’s your bloody GDP, not ours.” This sentiment captures a broader frustration with a metric that appears detached from the realities of ordinary life.
The Search for Alternatives
The call to move beyond GDP isn’t new. Economists like Simon Kuznets, one of GDP’s original architects, warned as early as the 1930s that it should not be used as a sole measure of economic welfare. More recently, alternative frameworks have gained traction. New Zealand’s Living Standards Framework, for instance, prioritises wellbeing and environmental sustainability, influencing how government resources are allocated. Similarly, the UK’s Measuring National Wellbeing programme has introduced indicators covering life satisfaction, mental health, and social connections.
However, these initiatives often face challenges in implementation. The simplicity of GDP—a single number easily understood and compared—makes it politically and socially resilient. By contrast, dashboards of wellbeing metrics, while more nuanced, can overwhelm decision-makers and the public alike.
UK Leadership in Natural Capital Accounting
The UK has been a pioneer in integrating environmental considerations into its economic reporting. Natural capital accounting, which tracks the value of ecosystems and resources, is gaining traction globally. This approach reflects the principles set out in the 1987 Brundtland Report, which emphasised sustainable development for present and future generations. Yet even with these advances, broader adoption of alternative metrics remains slow, hindered by a lack of consensus on what should replace GDP.
Building a Framework for the Future
For the UK to lead in redefining progress, it must address the social and political contexts that influence how metrics are used. As former Prime Minister David Cameron noted, improving quality of life—not just economic growth—should be a priority. But changing what we measure is only part of the solution; changing behaviours and policies to align with these new metrics is equally vital.
Economists like Joseph Stiglitz and Amartya Sen advocate for measures that incorporate wellbeing, equity, and environmental sustainability. These indicators, combined with innovative tools like the Genuine Progress Indicator (GPI), offer a more comprehensive picture of societal health. In practice, this means prioritising policies that address income inequality, mental health, and climate resilience—areas where the UK has both significant challenges and opportunities.
The Role of Civil Society
The transition to a “beyond GDP” framework requires collaboration across sectors. Civil society, businesses, and the media must play active roles in promoting new narratives of progress. The UN’s upcoming revisions to its System of National Accounts could be a pivotal moment, but only if the process engages a wide range of stakeholders. Public awareness and understanding will be crucial to ensuring these changes have lasting impact.
Kennedy’s critique of GDP is more relevant than ever. As the UK weighs up an uncertain future, redefining progress is not just desirable but necessary. By adopting metrics that reflect what truly matters—wellbeing, equality, and environmental stewardship—the nation can set a global example.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Paul Allin is visiting professor in statistics at Imperial College London; Diane Coyle is professor of public policy at the University of Cambridge, England; and Tim Jackson is professor of sustainable development and director of the Centre for the Understanding of Sustainable Prosperity (CUSP) at the University of Surrey, England.
For more insights into how the UK is shaping the future of progress, visit EyeOnLondon. Stay informed and join the conversation about what makes life worthwhile.
