GDP or GNP (Gross Domestic or National Product) are often used to measure the wealth and economic health of a country. Even more often, these metrics criticised for not taking into account socio-environmental considerations. For example, the environmental impacts of economic activity and how well are citizens looked after by their governments – and each other. Bhutan famously measures Gross National/Domestic happiness (which is currently increasing).
But a country can be evaluated in other terms – both in the sense of metrics and language. Patagonia founder and former billionaire, Yves Chouinard has criticised wealth rankings, while XPRIZE and Zero Gravity Corporation founder, Peter Diamandis suggests that “billionaire” should mean someone who helps a billion people.
Reusing, repurposing, repairing, upcycling and gifting pre-loved items, growing your own food, making it from cheaper ingredients, all do little for GDP figures. Yet these are some of the approaches that will transition humanity to a sustainable way of life.
So, to track progress on our planet, it seems size doesn’t matter – it’s more about the shape of your economy (and citizens, when it comes to health, but that’s another matter.)
The UN Economic Commission for Europe (UNECE) and the Organisation for Economic Co-operation and Development (OECD) offer a framework to monitor and support our move towards a circular economy, taking into account:
- material life cycle
- value chain
- interactions with the environment
- socioeconomic opportunities
- responses and actions
The publication includes the System of Environmental-Economic Accounting and various means used by countries and regions.
The framework is based on terms agreed at The Conference of European Statisticians Guidelines for Measuring Circular Economy last month. The full report is here.
You can also learn more from this International Institute for Sustainable Development article.
Sources
Bhutan Gross National Happiness index shows increase since 2015 despite pandemic, Oxford Department of International Development University of Oxford, 2023-05-24
Billionaire No More: Patagonia Founder Gives Away the Company, New York Times, 2022-09-14
UNECE, OECD issue guidelines for measuring circular economy, IISD, 2024-04-04
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