Thursday, 2 December 1999

From "Alternative progress indicators to Gross Domestic Product (GDP) as a means towards sustainable development"

p. 17 (Policy Department, Economic and Scientific Policy).

In fact, there is an undeniably strong correlation between GDP levels and components of basic welfare such as high literacy rates, better nutrition and health care, communications technology, life expectancy, all important factors contributing to people's welfare. However, there is also some evidence that the above mentioned positive correlation between welfare and GDP is conditional in that it does not seem to hold for all "levels" of GDP. Helliwell (2003) estimates a de-linking of GDP and (subjective) social welfare at a per capita GDP of approx. 15.000 USD.

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