Genuine Progress Indicator (GPI) is a metric designed to take fuller account of the well-being of a nation, only a part of which pertains to the health of the nation’s economy, by incorporating environmental and social factors which are not measured by Gross Domestic Product (GDP). GPI has been suggested to replace, or supplement, GDP as a measure of economic growth.
We get what we measure
Traditional economic measures are only part of a complete set of wellbeing indicators. While the USA is one of the world leaders using measures like GDP, we must consider a wide range of progress indicators to create conditions where we can all thrive.
Even as GDP climbs, there are indicators that reflect a society in distress:
- About half of all Americans live in low-income situations and/or in poverty
- The US infant mortality rate places us 48th in the world (of 193 countries)
- One in eighty-eight Americans is behind bars
- Roughly seven in ten Americans take a prescription drug
- Each year, seven million people worldwide die of causes related to air pollution.
GPI Progress Highlights
- Maryland and Vermont have implemented a ‘Genuine Progress Indicator‘;
- Canada has developed the Canadian Index of Well-Being
- The new economics foundation offers the Happy Planet Index
- The Organization for Economic and Cooperation Development (OECD) has unveiled the Better Life Index.
- The United Nations in 2012 unanimously adopted a resolution making happiness central to development efforts and established March 20th as International Day of Happiness.
- Multiple states are moving towards the use of GPI, including Utah and Hawaii.