This paper asks the question of the connection between the GDP and well-being. Is the GDP a good measure of the quality of life in a country?
The author first defines the concept of the GDP and explains, how it is composed. He argues here that numbers are a very powerful tool when it comes to making sense of the world. However, there are also disadvantages to solely relying on the GDP to give information about the general economic situation of a country. For example, compared to its counterpart, GNI (gross national income), the GDP is only limited to the production of goods and services within its borders and does not account for revenue-generating activities abroad. However, one of the biggest limitations is that it does not measure inequality in society.
In the second part of his paper, the author focuses on the divergence between the economic wealth of a country and the wellbeing of the majority of its citizens. To further showcase this disconnect, the paper discusses the two examples of Dubai and the Philippines. One concept that is here introduced by the author is that of inclusion - a state in which the economical gains and opportunities are shared by the entire population.
Inhaltsverzeichnis (Table of Contents)
- GDP: What it is, and what is accounted under it
- Limitations of GDP
- Wellbeing and Quality of Life
- The Philippines as an example of GDP-Wellbeing disconnect
- In Summary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text examines the relationship between GDP, a widely used economic indicator, and its relevance to human well-being and quality of life. It aims to shed light on the limitations of GDP as a sole measure of societal progress and highlight the importance of considering other factors that contribute to a fulfilling life.
- The definition and calculation of GDP, including its uses and applications.
- The limitations of GDP as a measure of economic performance and well-being, such as its failure to account for informal economic activity, inequality, and environmental degradation.
- The concept of well-being and quality of life beyond GDP, encompassing factors such as education, health, social relationships, and personal fulfillment.
- The case of the Philippines as an example of the disconnect between GDP growth and the actual well-being of its population.
- The need for a more comprehensive approach to measuring societal progress that goes beyond purely economic indicators.
Zusammenfassung der Kapitel (Chapter Summaries)
- GDP: What it is, and what is accounted under it: This chapter defines GDP as the total monetary value of goods and services produced within a country's borders. It explains how GDP is calculated, its components, and its uses by businesses, governments, and investors. The chapter emphasizes the importance of GDP as a measure of economic activity and growth.
- Limitations of GDP: This chapter explores the limitations of GDP as a measure of economic performance and well-being. It highlights the inability of GDP to capture informal economic activities, inequality, environmental degradation, and other important aspects of societal progress.
- Wellbeing and Quality of Life: This chapter introduces the concept of well-being and quality of life, emphasizing that these go beyond purely economic factors. It discusses the Human Development Index (HDI) as an alternative measure that includes factors such as education and health. The chapter also acknowledges that some aspects of well-being, such as personal fulfillment and happiness, are difficult to quantify.
- The Philippines as an example of GDP-Wellbeing disconnect: This chapter uses the Philippines as a case study to illustrate the potential disconnect between high GDP growth and actual well-being. It discusses the country's economic performance, infrastructure development, and its social and environmental challenges, highlighting the need for a more inclusive and sustainable approach to economic development.
Schlüsselwörter (Keywords)
The key concepts explored in this text include: GDP, gross domestic product, well-being, quality of life, Human Development Index (HDI), inequality, informal economy, environmental degradation, inclusive growth, and the Philippines.
- Quote paper
- Anthony Betia (Author), 2023, GDP and Wellbeing. The Disconnect in the Philippines, Munich, GRIN Verlag, https://www.grin.com/document/1341994
