What's happened
UN Secretary General António Guterres urges a global shift beyond GDP to address environmental and social crises. He highlights the need for new measures of progress that prioritize wellbeing, sustainability, and equity, amid warnings of economic models failing to account for climate shocks and planetary boundaries.
What's behind the headline?
The push to move beyond GDP signals a fundamental shift in economic thinking. Critics argue that GDP's focus on short-term profits incentivizes environmental harm, as seen in practices like deforestation and overfishing, which paradoxically boost GDP figures. Guterres' call aligns with emerging post-growth and doughnut economics, emphasizing wellbeing and sustainability over relentless expansion. However, entrenched interests in capitalism and political resistance pose significant hurdles. The proposal to develop new metrics will likely face opposition from traditional economic sectors, but the urgency of climate crises makes this shift unavoidable. If adopted, these measures could reshape policy priorities, encouraging investments in renewable energy, social welfare, and ecological restoration, ultimately fostering a more resilient and equitable global economy.
What the papers say
The Guardian articles by Matthew Taylor and Alex Clark provide comprehensive insights into the UN's initiative and the broader debate on economic models. Taylor emphasizes the need to overhaul accounting systems to value environmental health and human wellbeing, citing the influence of Nobel laureates and economists advocating for a new dashboard of success metrics. Clark highlights the historical context of developing nations' looser climate targets and the growing support for post-growth ideas, including degrowth and doughnut economics. Both sources underscore the increasing recognition that current models are incompatible with planetary health, with critics warning that reliance on GDP perpetuates inequality and environmental degradation. The articles also note political tensions, such as the UK government's potential cuts to climate finance, which threaten to undermine global efforts and weaken international trust.
How we got here
For decades, economic growth has been measured primarily by GDP, incentivizing environmental destruction and inequality. Recent global shocks like the 2008 financial crisis and COVID-19 pandemic exposed the flaws of this approach. The UN's push for a new economic framework aims to better reflect human wellbeing and ecological sustainability, especially as climate change accelerates and planetary boundaries are breached.
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António Manuel de Oliveira Guterres GCC GCL is a Portuguese politician and diplomat who is serving as the ninth Secretary-General of the United Nations. Previously, he was the United Nations High Commissioner for Refugees between 2005 and 2015.
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The United Nations is an intergovernmental organization that aims to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonizing the actions of nations.