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On progress and how we measure it. A second response to Angus Armour’s call for a radical rethink [1].
As Victoria enters stage-4 lockdown to contain COVID19, the cost of $2B per week is a hit to the state and national productivity. The blunt assessment: “staggering” economic downturn [2].
COVID19 amplifies the impact of so many systemic issues alive in Australia – environmental, social and economic. It invites a rethink how we measure progress.
A/Prof Philip Lawn (Flinders Uni) is internationally recognised for generating a Genuine Progress Indicator [3]. A radical rethink on GDP exists.
The problem with GDP is it “counts everything as a benefit even if it’s a cost” (5:15) e.g, the action taken to fix an environmental disaster is counted towards GDP, when it’s really a cost to society.
GPI counts economic, social and environmental benefits and costs, noting the benefits of consumption are greater for the poor than for the rich, services from unpaid household labour and from infrastructure like hospitals are positive contributors to progress.
Imagine a radical rethink on measuring progress. Could be just the sustainable development we need right now.
#ThisCentury #sustainability #systemsthinking #strategy #culture
[1] Angus Armour, Managing Director & CEO, Australian Institute of Company Directors, Radical Rethink, Company Director, July 2020
[2] Prof Simon Loertscher, University of Melbourne, Dr Ellen Muir, Stanford University https://pursuit.unimelb.edu.au/articles/the-economics-of-covid-19
[3] Genuine Progress Indicator GPI vs GDP in South Asia – Presentation by Philip Lawn - July 2018