Measuring what matters and guiding policy: An evaluation of the Genuine Progress Indicator

Abstract

This article examines the Genuine Progress Indicator (GPI), which seeks to respond to the shortcomings of GDP and the main contemporary challenges to welfare. As a monetary indicator, the GPI is uniquely suited to evaluate the impact of policy proposals and its dashboard-like features are able to track changes in contributing variables. While the GPI is currently not available for use in cross-country analyses, it will be measurable using a standard methodology once certain data issues have been resolved and a consensus is reached on GPI 2.0. Currently, the main obstacles to its widespread use are lack of political leadership and institutional support.