"Beyond GDP": A study on Integrating Environmental and Social Indicators in National Economic Assessments.

In 1934, Simon Kuznets introduced the concept of gross domestic product (GDP), which has since become the cornerstone of national economic valuations. However, over the years, GDP has faced criticism for its limitations in capturing the full spectrum of a nation’s well-being, which goes beyond mere economic activity. This thesis seeks to explore how GDP can be redefined or supplemented with additional indicators that more accurately reflect the overall well-being of a nation. The study highlights the importance of well-being, not only in terms of economic wealth but as a multidimensional concept encompassing environmental sustainability, social cohesion and individual happiness. To achieve this objective, the thesis conducts an in-depth examination of alternative or complementary indicators to GDP. These indicators take into account the various dimensions of well-being, including environmental sustainability, social equity and personal satisfaction. The study is based on three case studies: Bhutan, a small Asian country known for its pioneering model of gross national happiness, Australia, a developed economy with a focus on sustainability and Italy, a nation that balances economic growth with social and environmental concerns. Through these case studies, the thesis provides a comprehensive analysis of how nations can evolve beyond GDP to adopt a more inclusive framework for measuring progress. The result suggests that by integrating environmental and social indicators, countries can gain a clearer understanding of their citizens' well-being and long-term sustainability, promoting a more balanced and resilient economy.