In 1931 Simon Smith Kuznets an American national, Economist introduced the empirical methodology
Called ” Gross Domestic Product “ The same GDP has dominated the world economy for the last 80years, it measures how much a nation produces in terms of goods and services within a country’s geographical boundaries. GDP over a period of time has stimulated many economies worldwide from worst to better and vice versa, heavily influenced the movements of markets both domestically and globally, precipitated the flow of trillions and trillions of money across the boundaries, Suitable beeline for the Govt’s of the day by citing ” GDP”, claims the credit for managing the economy well . But what does a GDP growth really means to a common man. Even the person who invented this methodology remarked that It is a tool which can scarcely measure the real progress of a nation, But govt, policy makers cautiously would like to forget this reality.
I think time has come to shift the focus on much more inclusive, meaningful index for the well-being of the society at large, there are many instances where country’s with higher GDP, real social progress heading south. Or a country with higher GDP growth doing badly in several social indicators. But today neo-liberal mindset with underlying principle capitalist economic model considers the performance of capital markets and GDP are the real measures or indicators for economic progress, Globally govt’s across the world The present govt across the GDP as measuring isn’t it got transferred to real progress which a society really looks forward to. So the time has come to design a new index called social progress index which really tracks and monitors real social progress achieved in a country and also helps to identify areas which need specific support, focus. Govt of the day also can quickly ascertain where the country stands in those parameters which touch the life of every ordinary person. Social progress Index should the most rudimentary aspects like. So GDP is becoming less and less and useful, More focus on investments in social sector spending can really infuse real growth by improving the real quality and conditions in people’s life.
Basic Human Needs:
Food, water, shelter, security
Foundations of well-being:
Access to basic knowledge
Access to information and communication
Health & wellness
Ecosystem for sustainability
Individual freedom and choice
Tolerance and inclusion
Access to advanced education .
where India stands among it peers on Social Progress index