Developing non-economic indicators of human development

Description

Developing non-economic indicators of human development involves designing and implementing measures that capture aspects of well-being beyond income and economic output, such as health, education, social inclusion, and environmental quality. This strategy addresses the limitations of GDP-focused assessments by providing a more comprehensive understanding of societal progress, enabling policymakers to identify and remedy disparities, target interventions more effectively, and promote holistic development that reflects the true quality of life for all population groups.

Context

Health, individual well-being, environmental quality, personal and collective security all make contributions to welfare which are not captured by conventional economic statistics. Uneven income distribution and the value of domestic work are not accounted for. Increasing levels of income are consumed only to mitigate rising environmental and social costs, providing no net gain for welfare. Degraded "public goods", such as healthy air, water, and natural surroundings, even the richest cannot buy. These arguments have led to attempts to develop new indicator which better reflect the complexities of measuring sustainable welfare than is possible using measures of crude economic output.