From Fantasy to Transformation: Steps in the Policy Use of “Beyond-GDP” Indicators

Abstract

This chapter considers various steps in the use of alternatives to Gross Domestic Product (GDP) as a prosperity indicator (i.e., “beyond-GDP” measurement), ranging from the “indicators fantasy”—the idea that simply producing alternative indicators is sufficient to generate substantially different policy outcomes—to transformative change involving a shift in societal priorities beyond growth or changes to other core features of the economic and social system. In between are intermediate steps such as political use of indicators to influence policy debates, conceptual use leading to new understandings of wellbeing and prosperity, and the integration of indicators into the policy process to enable a more direct connection between indicators and policy decisions (instrumental use). Such steps have expanded the possibilities for policy reform, with promising options that include the use of new cost-benefit analysis and policy assessment tools, wellbeing budgeting, and legislating or mandating indicator use. The chapter considers further steps needed for transformative change and the possibilities of a transitional goal—downplaying the centrality of GDP and economic growth, without abandoning either—which now appears to be within reach.