What Really Counts: The Case for a Sustainable and Equitable Economy

Politicians and economists focus on "growing the economy" by measuring GDP, which counts harmful activities as gains and ignores environmental protection, voluntary community work, and other benefits. Ronald Colman's book "What Really Counts" tells the story of his two-decade journey to adopt measures that accurately assess social, economic, and environmental benefits and costs. He offers insights into how to shift policy priorities from a narrow economic-growth agenda to a future built on sustainability and equity.

Format: Paperback / softback
Length: 376 pages
Publication date: 12 April 2022
Publisher: Columbia University Press

Politicians and economists are preoccupied with the concept of "growing the economy," primarily measured by a country's gross domestic product (GDP). However, this yardstick includes harmful activities such as greenhouse gas emissions, plastic waste, and cigarette sales as gains, while ignoring environmental protection, voluntary community work, and other valuable benefits. The choice of what to measure is crucial, as it determines the policies enacted.

To shift the focus towards well-being and quality of life, we need to reevaluate our metrics and accounting systems. We need to develop meaningful indicators that capture the full range of social, economic, and environmental impacts, including factors such as happiness, social cohesion, and environmental health.

One example of a country that has taken steps towards a more comprehensive accounting system is New Zealand. In 2010, the New Zealand government introduced the Well-being Budget, which aims to measure the country's progress not only in terms of GDP but also in terms of social, environmental, and economic well-being. The budget includes indicators such as life expectancy, child poverty, carbon emissions, and social cohesion.

Similarly, Bhutan has also adopted a holistic approach to development, focusing on Gross National Happiness (GNH) rather than GDP. GNH measures the well-being of the population, taking into account factors such as cultural richness, environmental sustainability, and social equity.

The book "What Really Counts: The Promise and Challenges of Accounting for Social, Economic, and Environmental Benefits and Costs" by Ronald Colman provides a valuable insight into the challenges and opportunities of accounting for social, economic, and environmental benefits and costs. Colman recounts his experience working with three governments to adopt measures that more accurately assess true progress. He highlights the difficulty of devising meaningful metrics, the need to establish a new economic system that values sustainability and equity, and the obstacles that hinder progress.

Through his story, Colman offers valuable lessons for anyone interested in measuring what matters and how better measures can help build a better world. He emphasizes the importance of taking a holistic approach to development, considering the interdependence of social, economic, and environmental factors. He also stresses the need to involve stakeholders in the process of developing and implementing metrics, to ensure that they reflect the values and priorities of society.

In conclusion, the focus on "growing the economy" has led to a narrow understanding of progress that ignores the valuable contributions of social, environmental, and economic well-being. By reevaluating our metrics and accounting systems, we can shift the focus towards a future that values sustainability, equity, and well-being for all. The lessons offered in "What Really Counts" are essential for anyone interested in building a better world.

Weight: 576g
Dimension: 152 x 227 x 28 (mm)
ISBN-13: 9780231190992