In a provocative commentary just published in Nature, Robert Costanza, public policy professor at the Australian National University in Canberra and editor in chief of Solutions journal, along with colleagues from around the world, called for an end to using gross domestic product as a measure of success. While GDP is a fine measure of market activity, the authors write that it “ignores social costs, environmental impacts and income inequality” and “blinds developing countries to possibilities for more sustainable models of development.” As an example of GDP’s shortcomings, the authors describe how the Deepwater Horizon oil spill and Hurricane Sandy both contributed positively to GDP by spurring economic development through cleanup and rebuilding efforts.

Looking at alternatives, Costanza and colleagues review a range of measures of well-being including economic metrics inclusive of social and environmental impacts plus additional indicators such as “housing, life expectancy, leisure time and democratic engagement.” While none of these measures is perfect, collectively they offer the building blocks for moving beyond GDP.

Photo by Espen Faugstad (Creative Commons | Flickr)