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GDP

GDP is Not Destiny

Roxanne Bauer's picture
In a 1968 speech, Robert Kennedy recognized gross national product “measures everything in short, except that which makes life worthwhile.”

Secretary General of the United Nations Ban Ki Moon agreeed in 2012 suggesting, “We need to move beyond gross domestic product as our main measure of progress, and fashion a sustainable development index that puts people first,” and Nobel Prize-winning economist Joseph Stiglitz said in 2008, “GDP tells you nothing about sustainability.”

Even Simon Kuznets, who first coined the term GDP acknowledged in his original report to the US Congress 1934 that, "The welfare of a nation can scarcely be inferred from a measurement of national income."

Taking up the call for a better, more wholesome way to measure progress, the Social Progress Index, offers a framework for measuring the multiple aspects of social progress based on three dimensions: basic needs for survival, foundations of wellbeing, and opportunity.  It does not measure how much money is spent on policies or services that support these dimensions, but rather the experiences of citizens.

Michael Green, CEO of the Social Progress Index, gives the following Ted Talk to explain how the index measures the welfare of societies and what its policy implications are. He reveals a dramatic reordering of nations according to social progress.
What the Social Progress Index can reveal about your country

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

 
The Challenge Of Connecting The Unconnected
TechCrunch
Every time we return to or sign up for an Internet service (e.g. Facebook, Google, Gmail, YouTube, etc.), we rely on what UX experts call a “mental model” for navigating through the choices. A mental model is essentially a person’s intuition of how something works based on past knowledge, similar experiences and common sense. So even when something is new, mental models help to make sense of it, utilizing the human brain’s ability to transcode knowledge and recognize patterns. For instance, most of our grandparents can hit the ground running with changing the channel or increasing the volume when handed the remote control for the latest television available in the market today, squarely because of a well-developed mental model for TV remote control units. But our grandparents may not have the same level of success when using Internet services, smartphones or tablets. Under-developed mental models in these domains are their primary obstacles

Beyond Magic Bullets in Governance Reform
Carnegie Endowment for International Peace
Domestic reformers and external donors have invested enormous energy and resources into improving governance in developing countries since the 1990s. Yet there is still remarkably little understanding of how governance progress actually occurs in these contexts. Reform strategies that work well in some places often prove disappointing elsewhere. A close examination of governance successes in the developing world indicates that effective advocacy must move beyond a search for single-focus “magic bullet” solutions toward an integrated approach that recognizes multiple interrelated drivers of governance change.
 

Growth Centred Approach Under PURA: The Way Forward for the World Bank India Country Partnership Strategy 2013-2017

Abhilaksh Likhi's picture

The broad objective of the World Bank’s India Country Partnership Strategy Report (CPS) for the period 2013-2017 is to support poverty reduction and shared prosperity in India. The Report states that between 2005 and 2010, India’s share of global GDP increased from 1.8 to 2.7% and 53 million people were lifted out of poverty. But it also states that with population growth, it has proved difficult to reduce the absolute number of poor at a rapid pace and 400 million Indians still live in poverty. Each of the seven low income states (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan; Uttar Pradesh)  and seven special category states (Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Uttrakhand) have poverty rates that are higher than that of the more advanced states. The low income states, where a large majority of the poorest 200 million Indians reside, are a priority for the World Bank Country Strategy funding during 2013-2017 (estimated to be $ 5 billion annually with 60 percent lending through direct financing of state projects of which half will go to low income and special category states).

India, both in the above mentioned and its advanced states (e.g. Punjab, Haryana, Kerala) is undergoing a massive rural- urban transformation- one of the largest in the 21st century. For the first time since independence, India has seen a greater absolute growth in urban population. The number of towns has increased from about 5000 in 2001 to 8,000 in 2011 and some 53 cities have a population exceeding one million. Today 30.1 percent of the population lives in urban areas and the share is expected to rise to 50% in the next 20 years (with urban India expected to generate 70% of its GDP by 2030). Though villages vastly outnumber towns in India (660,000 villages as per Census 2011), the construct of these villages is changing as the economy grows.