GNP: not a good measure

August 21, 1996
Issue 

The most commonly used measure for human well-being is GNP. Apart from the fact that this is distributed unequally within countries, the Human Development Report 1996 notes the following limitations to GNP as a measure, which serve to obscure a real picture of the nature of societies:

1. It registers only goods and services exchanged for money. Unpaid work and work done in the community are discounted. The 1995 report estimated that GNP excludes, on average, two thirds of womens work and a quarter of mens.

2. Socially useful work, such as child-care and care of the elderly, is given equal value to weapons manufacturing and other destructive industries.

3. Destruction and reconstruction are both counted. Addictive eating and drinking count in terms of purchase of food and alcohol, and in terms of the diet industry and rehabilitation. Wars count in terms of weapons construction, and rebuilding infrastructure and houses afterwards.

4. Environmental degradation, pollution and resource depletion are not valued or accounted for.

5. Leisure time is not valued.

6. It ignores human freedom. National income accounting puts no value on freedom, human rights or participation.

Using measurements of life expectancy, education and real income to create a human development index, the report ranks countries according to this index rather than GNP. This approach attempts to provide a better picture of human development and to expand notions of growth bey

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