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Measuring Progress Beyond GDP: A Theoretical Perspective

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  • V. K. Shrotryia
  • Shashank Vikram Pratap Singh

Abstract

Inclusive development policies and comprehensive strategies are extremely critical aspects of the holistic progress of a nation. The measurement of considerable progress through the indicator/indicators is equally important. What if the selected indicator(s) are inappropriate? It can mislead people and policymakers. That is exactly what is happening to gross domestic product (GDP) as an indicator for measuring the overall progress of any nation. Through this academic article, an attempt has been made to address the following questions. Why do social, environmental, and human-centric indictors reveal an altogether different position concerning the health of the economy? Are we making deliberate mistakes while considering GDP as a gospel indicator for each and everything? Does it reflect the welfare aspects of human beings? Does it accurately reflect the well-being of people? The prolonged followed GDP-driven policies are inadequate for measuring the overall progress of a nation. The progress of a nation cannot be accurately reflected through GDP as an indicator. After an extensive review, the authors found that GDP was intentionally developed for measuring only economic activities which cannot be equated with social or human well-being. The possible outcomes of GDP-driven policies have been reflected through various human, social, and environment-centric indicators, which thoughtfully provide ample grounding to authors to fulminate against the philosophical notion of GDP as a universal indicator for measuring overall national progress/human well-being. This article can add to the literature of “why happiness movement.†This article can provide sufficient theoretical grounds to move beyond GDP and look for some other holistic indicator(s).

Suggested Citation

  • V. K. Shrotryia & Shashank Vikram Pratap Singh, 2020. "Measuring Progress Beyond GDP: A Theoretical Perspective," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 143-165, November.
    • Handle: RePEc:sae:emecst:v:6:y:2020:i:2:p:143-165
    DOI: 10.1177/2394901520983784
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