Wednesday, March 25, 2009

Would dethroning GDP help build public support for the changes ahead?

As the Financial Times reported recently the Kingdom of Bhutan focuses on Gross National Happiness (GNH) instead of GDP: "the theory behind GNH is simple – economic growth is not the end in itself but a means to achieve other aims, such as peace, security, greater well-being and happiness". The article goes on to describe similar initiatives that are underway across the world, from France to the USA to within the OECD.

In fact research shows that although GDP has grown in the developed world over the last few decades, well-being has stagnated. In "Happiness: Lessons from a New Science" Richard Layard (the UK government’s happiness tsar) argues that money is only one driver of well-being, the others being work, private life, community, health, freedom, and a philosophy of life. I’ve found that this list rings true for most people: there seems to be a growing recognition that "earn more, consume more" is a false god. Even climate and resource crunch sceptics are often interested in finding more effective ways to increase their families’ well-being than consuming to keep up with the Joneses.

There is growing cross party support for well-being to replace wealth as the aim of policy making in the UK, and bottom-up initiatives like Transition Towns that resonate with both the well-being and sustainability agendas are spreading rapidly. Perhaps these are the first signs that shifts in public opinion will support the action governments will need to take to simultaneously improve quality of life and maintain a viable environment for human existence.

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