French President Nicolas Sarkozy said Monday that the global slump shows gross domestic product is an obsolete way of measuring well-being, and called on countries the world over to adopt recommendations from a report he commissioned by Nobel Prize winner Joseph Stiglitz.
The Stiglitz report recommends that economic indicators should stress well-being instead of production, and for non-market activities, such as domestic and charity work, to be taken into account. Indexes should integrate complex realities, such as crime, the environment and the efficiency of the health system, as well as income inequality. The report brings examples, such as traffic jams, to show that more production doesn’t necessarily correspond with greater well-being.
“We’re living in one of those epochs where certitudes have vanished… we have to reinvent, to reconstruct everything,” Sarkozy told a press conference at Sorbonne university. “The central issue is [to pick] the way of development, the model of society, the civilization we want to live in.”
Sarkozy commissioned the report at the start of 2008 from a 22-member commission headed by Stiglitz and including Nobel Prize winner Amartya Sen, as well as the then-head statistician of the Organization of Economic Cooperation and Development, Enrico Giovannini.
In the Guardian (U.K.) on Sunday, ahead of Sarkozy’s remarks, Stiglitz explained: