Look beyond the growth indicator
- Look beyond the growth indicator
Since the start of industrial age, we can see rapid advancement in technology and that is causing accelerated pace of development which is beyond Earth’s limit. Economic growth and development coming for environment and social cost which is pressing on many socio-environmental issues. Hence, we need to look in to the sustainable growth on urgent basis.
What is sustainable growth/sustainable economic growth?
The responsible growth which is able to meet the current requirement without damaging the capacity of future.
The growth without creating any economic problem for future generation.
Why it is important?
- We can’t put pressure on Earth beyond its limit. If we do so, it will give back.
- This will hit on the life of the people who didn’t agree to pay for it and who don’t even know the root cause of it.
- It creates societal imbalance.
- It will widen the gap of social class.
- Way for more disasters/externalities.
Sustainable growth and GDP
GDP is the most used and conventional measure of progress/growth. But does it cover 360-degree progress? Answer is ‘NO’ because it overlooks many vital aspects of nature and human development.
If we talk about overall progress of any economy, we need to look beyond GDP because GDP includes only total market value of all finished goods and services produced within a country’s border and some non-market productions. It does not include intermediate goods, transfer payments, used goods and non-market activities. It does not capture possible negative consequences. Hence this indicates that, growing GDP is just a reflection of short-term progress and long-term impact is overlooked.
This emphasizes on the need for an alternative which would reflect the performance and condition of economies and societies. That should be the indicator of real progress and should consider the uneven distribution of wealth.
Many countries have already started progressing towards new alternative, they started looking beyond the current indicator.
Alternative might show lesser rate of progress at the moment, but if we look at the long run, growth will be permanent in nature.
NOVEMBER 10, 2022 BY Krupa Bhatt (Author of this post)