What we measure, why we measure it and how we measure it are the foundation stones of reasoned, defensible decision making. Sometimes (increasingly) though, the “IT” changes more quickly than we realise.
— World Economic Forum (@wef) February 10, 2018
Are we measuring things that no longer matter? Did they ever?
As the World Economic Forum points out in their latest Index of Inclusive Development:
Most citizens evaluate their respective countries’ economic progress not by published GDP growth statistics but by changes in their households’ standard of living — a multidimensional phenomenon that encompasses income, employment opportunity, economic security, and quality of life. And yet, GDP growth remains the primary focus of both policymakers and the media, and is still the standard measure of economic success.
To help narrow the gap between aspiration and action, the World Economic Forum System Initiative on Shaping the Future of Economic Progress last year introduced a new economic policy framework and performance metric in its Inclusive Growth and Development Report 2017.
The framework identifies 15 areas of structural economic policy and institutional strength that have the potential to contribute simultaneously to higher growth and wider social participation in the process and benefits of such growth.
P.s – Well done Aust!