Gross Domestic Well Being
Measurement defines course of actions in all aspects of human behavior be at individual level or at group/national level. The current method of measuring economic value of national economy is pushing us to self-inflected wholesale destruction. The measure, we are talking about is GDP. By definition “Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country during a specific period.” It provides an economic snapshot of a country. This measure also pushes us for compulsive drive for growth with very high associated cost which is getting conveniently ignored. Time has come to revisit this system and come up with a viable alternative.
Let’s start exploring what is wrong with current measurement system. There 5 key issues that needs to be looked in to. A. Presumption that world belongs to Humans only. In our rush to grow and prosper we are destroying entire eco system for other leaving beings. We will eventually not survive if forgot concept of co-existence. B. Resources of planet earth is not enough, if every human in world to consume same amount of energy and other products as consumed in a developed economy. We would be requiring about 7 planets to meet the raw material demand. Or other alternative is to accept inequality and do not drive growth, in such scenario GDP will not grow.
Third important point about the current system is, it does not address problem of over production. It is a known fact that supply chain network established in the last decades are good enough to make any good reach any part of the world. It is also a fact that 2/3 of agriculture produce gets wasted. Because, agriculture contributes to lot of employment, no economic can afford to pull off the plug. So, the over production continues unabated. No to forget agriculture is also the biggest reason for deforestation. D. It does not apply any value for depleting human conditions. The poster boys of economic prosperity do not depict very happy picture as far as physical and mental health of their citizens. Obesity is rampant among the younger generation and stress is taking its toll on grown-ups. Constant pressure for economic prosperity shall also be considered as one of the main contributors for suicides. For the first time in human history we are losing more people to suicides than to war and conflict.
Not being crisis friendly is the last flaw with the current measurement system. If growth and prosperity is so good and is assured path to economic nirvana, then why every institution upon which this system works, whittles down in face of small or big crisis. What good is years of economic prosperity, instead of being support to society it aggravates crisis. One must wonder, is cleaner rivers, Pure Air and non-utilization of natural resources are of no value? Why can’t economic value of these be off set against lack of enhanced economic activity.
A new system to measure our economy is required. Such system shall carry objectives of
bring down pressure of resources on planet earth, it shall create incentives for co-sharing the world with other living beings, restore environmental equilibrium, improve human living conditions more fairly and equitably and shall result in changing our conduct and approach at micro economic level i.e. @ Home, business, city, state and nation.
Gross Domestic Wellbeing shall be the new method. Gross domestic wellbeing is monetary value of sustaining quality life for all living beings, while avoiding unwanted pressure on resources of our planet. It shall be calculated by adding Value of only basic goods & services, Value of Humans living under quality environment only, Value of unhindered land left for wildlife. Edible wastage, value of Over Production including production beyond national requirement along with value of all imports shall be deducted to arrive at Gross Domestic Wellbeing. Where Basic Services includes Food, Shelter, Health, Education, Connectivity Digital & Physical, Speed of justice. Quality Environment includes pollution free air, Water, sound and uncontaminated land.
For nations to be successful under new measurement system of GDW, it would have to ensure Food, Shelter, Health, Education and Connectivity to 100% of its citizens. Focus would be shifted towards improving Quality of Environment resulting into development of technology, practices and culture that enables clean environment. Last but not the least steps to control wastage would free up land helping to reestablish equilibrium with nature.
So, to sum up, GDP as a measure outlasted its utility. It is destroying the equilibrium between Humans and nature. We require a new measure for our success, can GDW be the way forwards.