Why countries should put well-being ahead of economic growth

Although economic growth has long been considered a key indicator of progress, a new study by economists Francesco Sarracino and Kelsey J. O'Connor of the STATEC research centre challenges this dogma. In a paper published in Nature Human Behaviour, the authors argue: GDP growth does not make people happier in the long run. Moreover, a focus on growth can distract from the real sources of well-being.

Although economic growth is often associated with better lives, the data suggest otherwise. People, the authors say, do care deeply about purchasing power and employment, but these parameters are only partly influenced by economic growth. Money may offer hope, especially in times of instability, but comparisons with others, unequal income distribution and environmental costs erode the overall sense of satisfaction.

Comparison with others becomes a source of frustration: growth, which enriches some more than others, leads to a sense of injustice. And its "dark side" is the deterioration of the environment, a decrease in the level of trust, and an increase in alienation.

Instead, the researchers suggest shifting the focus to policies that directly improve everyday life. This 'well-being first' approach is not abstract - it is close to the people, and therefore can garner broad public support. As an example, they cite measures aimed at greening cities: such programmes have been shown not only to beautify streets, but also to reduce crime, improve mental health and strengthen social ties.

Such initiatives become a kind of catalyst for positive change: improved well-being strengthens the resilience of society, both socially and environmentally. It's a vicious circle, only this time a virtuous one.

The Organisation for Economic Co-operation and Development (OECD) recently launched the Knowledge Exchange Platform, a database of best practices in wellbeing-oriented policies. The British Ministry of Finance, for example, has already introduced guidelines for assessing the effectiveness of government programmes, taking into account the impact on the psychological well-being and quality of life of citizens.

Thus, the key to real progress is not in growth figures, but in creating an environment in which people want to live. It is this shift in priorities that can be the basis for a more sustainable, just and happy future.