GDP as a Measure of Progress and Human Development: A Process of Conceptual Evolution

Abstract

The GDP concept has historically been used to measure human wellbeing and progress. This analytical purview is now coming into question. The GDP concept limits analysis to the economic factor and ignores the social and cultural. Analysis should focus on how well the people are doing. An avalanche of studies is now being directed toward dethroning the GDP as the sole indicator of human well-being and progress. This has been manifest in the derivation of many social indexes which indicate that while the global economy as well as the American economy are experiencing GDP growth, basic needs are not being fulfilled.

Keywords:

• economic development
• economic growth
• GDP
• human development
• human needs