To build a better world, stop chasing economic growth

The year 2024 must be a turning point for shifting policies away from gross domestic product and towards sustainable well-being. Here’s why and how.

Protesters in New York City in September joined thousands of others around the world in urging governments to act on climate change. Credit: Eduardo Munoz/Reuters

The past year has given many of us reason to pause. We are losing in a race to prevent planetary tipping points — the climate is changing faster than expected, and humanity has already breached six of the nine sustainable planetary boundaries (for biodiversity loss; climate, freshwater and land-system change; biogeochemical flows; and novel entities)¹. Summer Antarctic sea ice shrank to its lowest recorded extent in 2023 (see go.nature.com/4f86req), a year that is on track to be the warmest on record (see go.nature.com/4f9ykdj).

People around the world recognize that life is not getting any better. As wars rage, runaway inequality and political polarization are eroding societies’ sense of cohesion. Eight individuals owned more than the poorest 50% of the world’s population, according to an Oxfam report in 2017². Levels of anxiety, depression and burnout are rocketing. Full-time employees are unable to pay rent and must turn to extra part-time work to make ends meet, while employers cut staff and increase workloads.

Crises are now normal in this global economic system that depletes natural and social capital, energy and time in the name of economic growth at all costs.

But, looking to 2024, I’m hopeful that the world can turn in a better direction. For example, a meeting I attended in May on sustainable prosperity particularly buoyed my spirits — and, in my view, signalled a tipping point in thinking and governance. The Beyond Growth conference at the European Parliament attracted more than 2,500 participants in person, as well as 2,000 online. It was sponsored by the European Commission and the Club of Rome (a non-profit organization fostering research and action around pressing global issues).

In a stirring opening address, Ursula von der Leyen, president of the European Commission, said that governments must stop misusing growth of gross domestic product (GDP) as their goal and instead move swiftly and urgently to sustainable well-being within planetary boundaries. She got a standing ovation. Agata Meysner, the young leader of Generation Climate Europe, a coalition of climate and environmental networks across the bloc, concluded the event with a call to join the “movement of movements” to create a new economy based on sustainable prosperity, justice and sufficiency. Everyone rose to their feet.

And an increasing number of organizations and movements dedicated to overcoming our addiction to GDP growth are working together to do just that, including through networks such the Wellbeing Economy Alliance (which also supported the conference). The pursuit of GDP growth at all costs is an outdated paradigm that claims that all people want is more income and consumption with no limits. It assumes that the market economy can grow forever, that massive inequality is justified to provide incentives to promote growth, and that efforts to address climate and other environmental and social problems must not interfere with growth. It supposes that growth is the solution to all ills. It isn’t.

As the European conference emphasized, GDP was never designed to measure societal well-being — only market production and consumption. GDP says nothing about the distribution of income, unpaid work or damages to natural or social capital. The misuse of GDP as a policy goal is driving societies towards an unsustainable future that benefits an increasingly small proportion of the population while impoverishing the vast majority².

Researchers must help to provide alternatives. Here’s how.

Design better measures of societal well-being

Hundreds of indicators of societal well-being are already in use, including by the United Nations, the World Bank, the Organisation for Economic Co-operation and Development (OECD), non-governmental organizations, countries and academics. Examples include the Genuine Progress Indicator; the OECD Better Life Index; and annual surveys of life satisfaction³. To become a societal goal used by all, and to displace GDP, the world must settle on a new indicator. Broad consensus is needed on what should be included.

For example, it is not just income that matters, but also the ways in which it is distributed. The costs of environmental and social degradation must be included, as should contributors to well-being that are unconnected to income — such as our relationships and communities, good governance, the ability to participate in decision-making and ecosystem services provided by the natural environment. Several research initiatives are beginning to address these issues (including one I am involved with, called MERGE, which is funded by the European Union).

Model the complex dynamics of the economic system

Interactions between social, economic and natural elements of societal well-being must be better modelled and future projections developed to assess their sustainability. National examples include the EUROGREEN model, which has been applied to France, and the LowGrow model of the Canadian ecological economy.

The Earth4All model of the Club of Rome takes a global perspective. It explores two scenarios towards 2050. The first — known as business as usual, or too little too late — looks at what will happen if the world continues current trends of increasing inequality, climate disruption and decreasing well-being, even as GDP continues to rise. By contrast, the second scenario, called giant leap, shows how investing in five areas — renewable energy, regenerative food, reducing inequality, eliminating poverty and enabling empowerment — could ensure sustainable, prosperous and equitable well-being for humans and the rest of nature.

For example, rather than rewarding the fossil-fuel sector with enormous subsidies to maintain economic growth at the expense of climate and social disruption, new policies would focus on moving away from fossil fuels. At the same time, policies to achieve the other four turnaround areas would be implemented to enable sustainable well-being, regardless of the effects on GDP.

Develop policies to support sustainable well-being

The EU and the Wellbeing Economy Governments (WEGo) group that includes Scotland, New Zealand, Wales, Finland, Canada and Iceland have begun to implement measures of sustainable well-being and policies to achieve them. Researchers need to analyse these plans and offer lessons to help other nations adopt them. What are these policies? There are many versions, but an open letter I signed in May — together with more than 400 leading economists, scientists, policymakers and activists — provides starting points in four areas. These are biocapacity (protecting the planet), fairness (a more equal society), well-being for all (basic services and rights) and active democracy (see ‘Beyond growth policies’ and go.nature.com/47z3v6s).