A Study of GDP And other Indicators to Measure Human Welfare and To Regulate Eco-System Functioning

Abstract

The assumption that economic development is always synonymous with improved quality of life leads to the misapplication of GDP as a measure of public well-being, ignoring the reality that the economy benefits from natural, social, or human resources. Governments collaborated with scientists to create new measures that go beyond income and material riches to track progress toward sustainability and improved well-being. The Gross Domestic Product may be revised in a number of ways. This study suggested many potential indicators to modify, augment, or replace Gross Domestic Product based on a thorough literature analysis. There are two major methods that have been discovered. The first proposes greening Gross Domestic Product, socializing indices, and integrating it in a more comprehensive index by using it as a basis for building a full index. The second strategy involves attempts to re-define indicators via the use of ecologically and socially focused indicators and metrics. It was recognized that advice for the creation of governance systems intended to shift from short-term decision-making processes to those that enable multidecade planning or implementation processes is critical for guiding the transition to post-fossil-carbon societies was urgently required. This in-depth examination covers a broad variety of subjects, from GDP issues to difficulties and views on indicators. The analysis reveals that if humanity is concerned about the long-term growth of the world as a whole, progress indicators evaluated only in monetary or social terms are confined to the weak or medium sustainability model, and must be supplemented with biophysical indicator. It's past time to shift the global understanding of what progress is, shifting the conversation away from growth and toward sustainable development as well as human well-being.