Saturday’s Dominion Post included an article looking at what GDP measures and doesn’t measure. It reminded me of David Suzuki’s lovely tale that illustrates very well the need for a better measure of progress than the GDP.
“Mary and Bob live on the family farm in a small community. Bob’s parents live with them and help to care for the children. Mary home schools the children and the family lives frugally – sharing farm machinery, labour and farm produce with their neighbours. Mary volunteers her time with the community centre and hospital while Bob is a scout leader and coaches his son’s hockey team. Bob & Mary are classed as unproductive members of society because they contribute little to the GDP.
Bob & Mary’s son is hurt in a car accident. His need for an ambulance, intensive-care unit, hospital personnel and medicine all contribute to a rise in the GDP. The son dies. Bob & Mary must pay for the funeral home, flowers, and gravediggers. It is good for the economy – the GDP goes up.
The tragedy puts a strain on the marriage. Bob places his parents in a home. The GDP grows. Bob moves to the city, rents an apartment, buys a car, gets a job. The GDP increases. Mary stays on the farm, takes out a mortgage, puts the children in day care, hires a farm hand and takes a job in the grocery store. She is also helping to build the GDP. Bob & Mary have become contributing, productive members in a society that measures progress in terms of the economy.” p. 87 Earth Time, D. Suzuki, 1998.
One alternative measure is the GPI – the Genuine Progress Indicator developed by the organisation, Redefining Progress. The Auckland regional council is presently working to develop a regional GPI and presented a 38 page report in July 2009 if you are interested in reading it http://www.arc.govt.nz/albany/fms/main/Documents/Auckland/Population%20and%20stats/GPI%20summary%20report.pdf