The Genuine Progress Indicator as an alternative indicator of welfare

In the early 1970s, economists began to challenge the assumption that economic growth is proportionate to improvements in human welfare (Berik and Gaddis, 2011). Some suggested that emphasis should be placed on optimal scale, fair distribution, improved institutional arrangements, efficient allocation of resources, and qualitative rather than quantitative growth, in order to achieve sustainable development (Clarke and Shaw, 2008; Berik and Gaddis, 2011). The Genuine Progress Indicator is a step towards assessing the extent to which these goals have been realized.