The Genuine Progress Index (also Genuine Progress Indicator – GPI) is a metric of economic growth that aims to provide a more comprehensive measure of a country’s performance. It focusses on whether a country or community’s production of goods and services has contributed to the wellbeing of its citizens and to the sustainability of the planet. It uses a broad set of economic, social and environmental indicators (see table).

Table: The Genuine Progress Index (GPI) uses 51 economic, social and environmental indicators

The GPI was developed in 1994 by Redefining Progress (a non-profit, non-partisan public policy institute) as an alternative to gross domestic product (GDP). GDP in relation to GPI is analogous to the relationship between the gross profit (GDP) and net profit (GPI) of a company. The GPI is one of the first alternatives to GDP to be vetted by the scientific community and used regularly by governmental and non-governmental organizations worldwide.

The GPI can be used to measure the wellbeing and sustainable progress of economies and regions as well as that of communities and households. It considers not only how much money is spent on the consumption of goods and services, but also the non-monetary value of production and consumption including unpaid goods and services, such as housework, parenting and eldercare, education and volunteerism. Additionally, the GPI takes into account the indirect damage and costs caused by unsustainable consumption and production, such as obesity, drug use, life expectancy and mental health. For instance, the GPI of a country would be zero if the financial costs of crime and pollution equalled the financial gains from the production of goods and services, all other factors being constant.

At least 11 countries (including Austria, England, Sweden and Germany) and numerous provinces and regions (including Wellington, Alberta and Nova Scotia) have recalculated their gross domestic product using the GPI. The data for European countries and the United States show a steady decline over the last 30 years.

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Strengths and weaknesses

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How you can take action

CSOs can use the Genuine Progress Index to measure the net product of societies and communities in regard to wellbeing and sustainability. As awareness surrounding the GPI is still limited, CSOs are encouraged to campaign for its application at the national and international level and support politicians in disseminating the idea of the GPI. CSOs can make use of opportunities to take part in further developing the GPI and network with scientific institutions and other CSOs.

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Case study: Calculating the GPI of Nova Scotia

GPIAtlantic is a non-profit research organisation that is calculating the GPI for the small Canadian province of Nova Scotia. Over the past ten years, more than 80 reports on topics related to the six main GPI categories (living standards, population health, time use, community vitality, education and environmental quality) have been produced.

The ongoing project has analysed Nova Scotians’ working hours, obesity, tobacco use, and gambling habits and provided insights into the real costs and benefits of the province’s energy consumption, transportation system, solid waste disposal and air quality. For example, volunteerism in Nova Scotia adds $1.9 billion to the provincial economy while obesity and poor nutrition costs the province $250 million annually due to health care costs and productivity losses. Findings such as these have shifted the way that thoughtful Nova Scotians view their province.

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Learn more and get inspired

GPI Atlantic: www.gpiatlantic.org

Redefining progress:
www.rprogress.org/sustainability_indicators/genuine_progress_indicator.htm

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You can download the whole paper on indicators “Measuring Performance towards Sustainable Consumption and Production – Types of Indicators and Indicator Sets” and other interesting papers of the Action Town project in the Library!

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