Genuine Progress Indicator (GPI)

The Genuine Progress Indicator (GPI) is an alternative measure of economic progress that takes into account environmental and social factors in addition to traditional measures of economic growth, such as gross domestic product (GDP). The GPI was developed by economist Herman Daly and theologian John Cobb in the 1980s as a way to measure the well-being of a society in a more comprehensive way than GDP.

The GPI includes a number of factors that are not included in GDP, such as the value of natural resources, the cost of pollution, and the level of social inequality. It also subtracts factors that are considered to be harmful to society, such as crime and environmental degradation.

The GPI has been criticized by some economists for being too subjective and for not being a reliable measure of economic growth. However, it has also been praised for its ability to provide a more comprehensive picture of the well-being of a society.

The GPI is still under development, but it has the potential to become a more widely used measure of economic progress. If it does, it could help to shift the focus of economic policy away from GDP growth and towards more sustainable and equitable development.

Here are some of the key differences between the GPI and GDP:

* The GPI includes a number of factors that are not included in GDP, such as the value of natural resources, the cost of pollution, and the level of social inequality.
* The GPI subtracts factors that are considered to be harmful to society, such as crime and environmental degradation.
* The GPI is a more comprehensive measure of economic progress than GDP, as it takes into account a wider range of factors that affect the well-being of a society.

The GPI is still under development, but it has the potential to become a more widely used measure of economic progress. If it does, it could help to shift the focus of economic policy away from GDP growth and towards more sustainable and equitable development.