Redefining wellbeing in todays’ world
The COVID-19 pandemic has accelerated the pursuit of wellbeing in unprecedented ways. The global health crisis highlighted the importance of physical and mental health, as well as social connection, in navigating uncertainty and adversity.
As our understanding of human needs and environmental sustainability has grown, it is becoming increasingly clear that solely relying on economic output to gauge societal progress is inadequate. The traditional KPI of Gross Domestic Product (GDP) as a measure of societal progress is greatly limited today.
This realization has been driving the development of several innovative indices that offer a more comprehensive and nuanced assessment of human well-being and sustainability.
As a result, there has been a growing emphasis on measuring and promoting wellbeing at both individual and societal levels.
In this article I’ll explore alternative measures that can provide a more comprehensive understanding of what truly contributes to a fulfilling life nowadays.
Going beyond the basics
1. Genuine Progress Indicator (GPI): Introduced in 1996, the GPI expands on GDP by incorporating environmental and social factors. It adds value for positive contributions like volunteer work and subtracts costs for negative impacts such as pollution.
2. Happy Planet Index (HPI): Developed by the New Economics Foundation, the HPI combines wellbeing, life expectancy, and ecological footprint to assess how efficiently countries convert natural resources into long and happy lives for their citizens.
3. Human Development Index (HDI): The United Nations’ HDI focuses on three key dimensions: life expectancy, education, and per capita income. This provides a broader view of human development beyond economic measures.
4. Social Progress Index (SPI): The SPI evaluates countries based on their ability to meet basic human needs, provide foundations for wellbeing, and offer opportunities for progress.
5. World Happiness Report: This annual publication by the United Nations ranks countries based on citizens’ self-reported wellbeing, considering factors such as social support and freedom to make life choices.
Measuring what matters
Another interesting and particularly innovative tool is the OECD’s Better Life Index. This incredible dynamic platform allows us to weigh the importance of various factors contributing to quality of life, including housing, income, jobs, community, education, environment, governance, health, life satisfaction, safety, and work-life balance.
The Better Life Index empowers individuals to define wellbeing according to their own values and priorities. By adjusting the importance of different factors, we can identify which countries or cities best align with our ideal living conditions. It is certainly worth exploring!
With a growing awareness of human needs and its connection to the society and the environment has deepened, it has become evident that a one-size-fits-all approach is insufficient. The development of alternative measures represents a significant step toward a more comprehensive and meaningful assessment of societal progress. However, it’s important to note that even these comprehensive indices may not capture all aspects of wellbeing that matter to all of us as individuals. Factors such as cultural richness, personal growth opportunities, or specific lifestyle preferences may not be fully represented in standardized measures.
As we continue to explore and refine wellbeing measurement, it is essential to develop tools that can capture the complexity and the evolution of human well-being.
