UN Secretary General António Guterres has warned that the global economy must undergo a radical transformation to stop rewarding pollution and waste, urging a move beyond gross domestic product (GDP) as a measure of progress. Speaking exclusively to the Guardian after hosting a meeting of leading economists, Guterres said humanity's future depends on overhauling 'existing accounting systems' that are driving the planet toward disaster.
Guterres argued that GDP fails to account for environmental destruction, noting that activities like deforestation and overfishing boost GDP while harming the planet. 'We must place true value on the environment and go beyond gross domestic product as a measure of human progress and wellbeing,' he said. 'Let us not forget that when we destroy a forest, we are creating GDP. When we overfish, we are creating GDP.'
In January, the UN convened a 'Beyond GDP' conference in Geneva, attended by Nobel laureate Joseph Stiglitz, economist Kaushik Basu, and equity expert Nora Lustig. They are part of a group tasked with devising a new dashboard of economic success measures that incorporate human wellbeing, sustainability, and equity. A report from the group argued that repeated global shocks—from the 2008 financial crisis to the Covid-19 pandemic—have been exacerbated by the 'triple planetary crisis of climate change, biodiversity loss, and pollution,' alongside rapid technological change fueling inequality.
Basu, who co-chairs the group, said nations are 'locked into the game of beating other nations in terms of the GDP metric,' leading to ignored wellbeing and sustainability. Lustig added that GDP was never designed to measure human progress, yet remains the dominant benchmark, masking poverty, exclusion, and human rights violations. The group's aim is not to replace GDP but to complement it, helping assess whether development truly improves wellbeing and safeguards sustainability.
The call comes amid growing debate over economic models compatible with equality and sustainability, from green growth to degrowth. Political economist Jason Hickel noted that a recent survey found 73% of nearly 800 climate policy researchers support post-growth positions, indicating these ideas are gaining traction.
