ABSTRACT
This chapter explores the history of gross domestic product (GDP) and shows how its selective representation of economic growth has served particular interests in society, which in turn contributes to explaining its power and influence in governance. In contemporary governance, policy decisions are generally shaped by considerations of economic growth. GDP drives macro-economic governmental policies and sets priorities in the social fields. The efficiency of public revenues strategies and the feasibility of welfare policies have been routinely assessed through the lens of GDP. GDP establishes clear production and consumption boundaries, defining the conceptual (and measured) limits of what activities can be considered of economic value. The power of GDP is also a result of path dependencies, which make statistical reform so hard to achieve and very slow at best. Finally, GDP completely changed the social debate on political accountability and inequality.
