GDP NOT THE WHOLE STORY
I am constantly hearing how Thailand (and most other governments) constantly use the notion of GDP (Gross Domestic Product) as both a measurement and goal of economic strategies and plans.
This is a delusional and short-sighted way to assess economic viability because it centres only on the profit in relation to accounting. It does not consider environmental and social costs associated with the commerce and monetary values.
The GPI (Genuine Progress Indicator) is a more accurate means of evaluating economic activity because it includes the impact of everything associated with the process.
For example, Thailand will count the revenue from tourism as 20% of GDP and consider this a welcome addition to the national coffers.
On paper, this amount appears great when avoiding environmental and social impacts of this economic pursuit.
When you factor in costs like the degradation of the environment and nature, disposing of the waste generated by tourists, stress on transportation and utility systems, and displacement of local people for venues and attractions, the amount of revenue actually generated through tourism is greatly reduced. How is the tourist damage to the coastal reefs reflected in this year’s GDP figures?
Even the annual costs of flooding, which plagues this region every year, is not factored into the GDP figures or the economic plans. What about the social costs of relying on labour exploitation and slave labour?
How is this reality reflected in the idea of GDP? Currently, dams are bursting and destroying lives upcountry. Money made from the power companies selling the electricity of these projects will be counted on the books and contribute to making the GDP — but what about the costs to the flooded families and lost lives? How is this fact accounted for? Sadly, it is not.
This avoidance of responsibility is actually hurting us all, not boosting economic prosperity. It is time business leaders and political elites demonstrate integrity when evaluating how well they are shaping the economy.
Using the accounting method of GPI would go a long way to creating a sustainable future for everyone. Darius Hober