Genuine Progress Indicator

The Genuine Progress Indicator (GPI) is a “system of national accounts” (SNA) suggested as an alternative to the nearly universally used SNA, gross domestic product (GDP). SNAs [Page 274]are used to measure economic activity in a political unit such as a nation. Because GDP, the market value of all final goods and services produced in a country, is viewed as an indicator of economic health and well-being, it is closely watched by business, government, and the media. Critics of GDP argue that it is a flawed measure that undercounts or ignores certain contributors to economic well-being, and that it includes many forms of economic activity that harm societal and individual welfare. As such, these critics have attempted to promote the replacement of GDP with GPI ...