The initiative aligns with the longstanding belief of UN Secretary-General António Guterres that “moving beyond GDP is essential for creating an economic system that values human well-being – both now and in the future – for everyone.”
Although GDP has become the standard measure of economic development, it was never meant to encompass the overall progress and well-being of a nation.
Furthermore, it does not account for the value of human, social, and natural capital, as explained by Özge Aydogan, Director of UN Geneva’s Beyond Lab. The Beyond Lab is dedicated to promoting social innovation and sustainability.
“GDP is a poor measure of these factors,” Ms. Aydogan stated. “Therefore, the ‘Beyond GDP’ movement aims to explore ways of transitioning from an extractive economy – which we currently have – to an economy that creates capital not just for the benefit of a few, but for the well-being of people and the planet.”
In order to incorporate untapped human capital, natural resources, and well-being into a country’s wealth calculation, the Beyond Lab has been collaborating with government officials, researchers, and sustainability thought leaders.
However, policymakers have yet to determine what a post-GDP economy would look like, or the best path to get there.
According to Ms. Aydogan, the ideal scenario for 2050 would be a regenerative economy – one that does not solely rely on extracting resources for profit, but instead generates wealth through untapped virtual assets.
Practically, this means factoring in other wealth-creating assets, such as a country’s natural resources.
“For example, replenishing nature,” she elaborated. Additionally, she clarified that alternative metrics would not necessarily replace GDP, but rather complement it.
Alternative economic measures have existed for some time. In 1972, King Jigme Singye Wangchuck of Bhutan introduced the Gross National Happiness index, which takes into account sustainable development, environmental conservation, preservation and promotion of culture, and good governance.
The Human Development Index is another alternative measure that considers life expectancy, standard of living, and education when evaluating a nation’s overall development and well-being.
Nathalie Bernasconi of the International Institute for Sustainable Development (IISD) argues that there is increasing evidence that the GDP model is inadequate, and that change-makers must find ways to translate this evidence into national policies.
She also believes that incentives should be created for governments to move away from the outdated, GDP-focused paradigm that was created in the 1930s by economist Simon Kuznets to address the Great Depression.
“GDP alone cannot guide us towards a sustainable future,” said Ms. Bernasconi, who serves as Vice-President of Global Strategies and Managing Director for Europe at IISD.
GDP is not a reliable indicator of sustainability and can even increase after costly disasters, such as oil spills, due to the intensive clean-up efforts. This was evident in the BP Deepwater Horizon oil disaster in 2010 and the Exxon Valdez spill in Alaska in 1989, which initially boosted GDP but caused long-term harm to the ecosystem and local communities that was not captured by the indicator.
As Bingying Lou of the Beyond Lab notes, “Why do we value dead things? Why do we value a dead tree more than a living tree that provides us with oxygen?”
Ambassador Matthew Wilson of the Permanent Mission of Barbados to the UN in Geneva supports the call to rethink GDP and “recommit to multilateralism” in order to find solutions for heavily indebted countries that are hindered by traditional financial models created after World War II.
“Recent events have shown that just when you think you’ve moved beyond something, or someone, pulls you right back in,” he stated. He also emphasized the importance of being proactive in addressing issues such as debt and development assistance.
Whether politicians will be willing to shift their focus away from GDP growth and adopt alternative measures remains to be seen, according to Ms. Aydogan.
“We have been taught to view the economy in a certain way,” she said. “However, the fact that we are reaching planetary boundaries shows us that the current status quo is no longer sustainable.”
To further this discussion, policymakers will convene at the International Conference on Financing for Development in Seville, Spain from June 30 to July 3, 2025, and at the World Social Summit in Doha, Qatar in November 2025.