GDP metric fails to capture nation’s health and values
For more than a half century, the most widely accepted measure of a country’s economic progress has been the Gross Domestic Product. If ever there was a controversial icon from the statistics world, GDP is it. It measures income, but not equality; it measures growth, but not destruction; and ignores values such as social cohesion and the environment. Yet, governments, businesses and probably most people swear by it. It is the most widely cited economic indicator. As the old quip goes, we value what we measure. The GDP does not adequately reflect the true health of a nation and needs to be replaced by more comprehensive measures. Economic growth is basically an accounting measure. It measures how much money is changing hands. The misuse of GDP as a measure of well-being necessitates an immediate campaign to change the indicators decision makers use in i evaluating progress.
NDIRANGU NGUNJIRI Nairobi