Beyond GDP
Topic: National Income Accounting: GDP, GVA and Welfare · NCERT: Beyond NCERT
Meaning
Beyond GDP is a movement to report measures of well-being, sustainability and fairness alongside GDP. It exists because GDP counts output, not welfare. GDP ignores how income is shared, leaves out unpaid work, and does not subtract environmental damage. The Stiglitz-Sen-Fitoussi Commission (2009) is a key milestone. It asked countries to focus on household income and consumption, on how income is distributed, and on sustainability. The UN also has a Beyond GDP initiative under the Secretary-General.
Example
In year 1, 100 people each earn ₹10, so GDP is ₹1,000. In year 2, 90 people earn ₹9 and 10 people earn ₹20, so GDP is ₹1,010. GDP went up, but 90% of people became poorer. A Beyond GDP measure would show this loss of welfare.
Don't confuse with
- Green GDP: this is one number, GDP or NDP minus the loss of natural resources and environmental damage. Beyond GDP is a wider movement that uses many measures.
Related concepts
- GDP and welfare
- Non-monetary exchanges
- Green GDP
- System of Environmental-Economic Accounting
- Natural capital accounting
- Inclusive wealth
- Genuine Progress Indicator