Deprioritise economic growth, as measured by GDP
Deprioritise economic growth, as measured by GDP, as a means of measuring national wellbeing, and decisively shift the focus of policy and spending decisions to the pursuit of richer measures of national wellbeing, including the protection of the environment.
For too long, in Scotland and globally, measurement of a nation’s progress has been dominated by the pursuit of growth, as measured by Gross Domestic Product (GDP), irrespective of how carbon-intensive that growth is, or who benefits from it. Too often, it is seen as a goal in and of itself, rather than a means of delivering societal outcomes. It has long been and is increasingly acknowledged that GDP is a problematic and poor measurement of success, yet GDP seems, if anything, to be tightening its grip on decision making. The vested interests of leaders within governments and the private sector who have, and continue to gain, from the status quo are seemingly too powerful.
Internationally, the European Parliament held a useful ‘Beyond Growth’ conference in May 2023 but alternatives to GDP are mostly on paper only.
There is near global consensus that GDP is not fit for purpose and there now exists a plethora of alternative options developed by academics, NGOs and governments, ranging from single indicators to comprehensive Wellbeing Frameworks. Yet, so far governments around the world have failed to use these alternatives to meaningfully replace GDP in their decision making and to develop an internationally comparable standard that could rival GDP.
Scotland’s National Performance Framework (NPF) is one such example – it is a step in the right direction. But Scotland’s journey is far from complete. The NPF can and should provide us with an alternative narrative that shifts the emphasis away from GDP. By doing this, the framework has the potential to do much more to support the transition to a wellbeing economy. Critically, there should be meaningful differentiation between the core purpose of the NPF and the means of achieving it. Specifically, the current aim “to create sustainable and inclusive growth” is a means to support national wellbeing, not an end in itself, and it therefore has no place in the purpose statement. The existing focus on GDP-growth is directly driving the very policies, practices and behaviours that are pushing the world towards greater human exploitation and environmental catastrophe.
Alongside the review of the national outcomes, in his role as Deputy First Minister in 2023 John Swinney pointed towards the proposed Wellbeing and Sustainable Development Bill (see section 2.1.2) as a vehicle to strengthen the role of the NPF and to narrow the distance between the national outcomes and their implementation. This Bill was not included in the 2024-5 Programme for Government, but a Members’ Bill proposed by Sarah Boyack is due to go to parliament before the next election.
The Scottish Government should:
- more fully acknowledge the social and environmental harm of perusing policies of exponential and endless economic growth, including through improved NPF indicators
- review inconsistencies in its economic and environmental policies around growth to create an overall drive for improved wellbeing
- begin a national conversation on the potential merits of post-growth measures and how they could be acted on
Multidimensional wellbeing indicators (including reductions in environmental damage and restoring biodiversity) should be prioritised, rather than GDP growth for its own sake (or as a proxy for other goals with the assumption that GDP growth will automatically bring attainment of these goals). Ideally, this change would include developing a headline measure of progress beyond GDP growth that represents the broader concerns of human and ecological wellbeing. The proposed Wellbeing and Sustainable Development Bill may be the place to do this.
This is a critical step to achieve progress in reducing multiple inequalities.
For further information:
Radical Pathways Beyond GDP: Why and how we need to pursue feminist and decolonial alternatives urgently, Oxfam, August 2023, https://policy-practice.oxfam.org/resources/radicalpathways- beyond-gdp-621532/
Briefing on the member’s bill being developed by Sarah Boyack MSP, ahead of the Scottish Government introducing its own Wellbeing and Sustainable Development Bill, Oxfam, March 2023, https://oxfam.box.com/s/8meitezd3myofaxyzgzlgzv04f9hlsiv
An Economy for the 99%, Oxfam, 2017, https://www-cdn.oxfam.org/s3fs-public/file_attachments/ bp-economy-for-99-percent-160117-en.pdf 2021-2026
Policy Priorities for Scotland, SIDA, 2021, https://www.intdevalliance.scot/how-wehelp/ 2021-scottish-election
See also ‘An ambitious and impactful Wellbeing and Sustainable Development Act’ in the Cross-cutting policies chapter.
