Beyond Gross Domestic Product (GDP): A Review of Alternative Indicators of Sustainable Development

Abstract

This article critically examines the limitations of GDP-centered economic models and their implications for social inequality, climate change vulnerability, and biodiversity loss. Drawing on evidence from Oxfam, the Commission on the Measurement of Economic Performance and Social Progress led by Joseph Stiglitz, Carnegie UK, and other credible empirical sources, it analyzes the consequences of relying on GDP as the primary measure of development. The analysis demonstrates that GDP fails to capture key dimensions of human well-being, social equity, and environmental sustainability, resulting in an incomplete assessment of societal progress. The article argues for a transition toward a multidimensional development framework that integrates the interconnected pillars of people, planet, peace, prosperity, and partnership. It identifies key policy priorities for moving beyond GDP and adopting more comprehensive indicators of progress. The paper concludes that achieving sustainable development requires a paradigm shift from GDP-based evaluation to holistic measures that better reflect the economic, social, and environmental complexities of contemporary societies.