The Better Indicator


The world wants to know how well it’s doing: how we can instigate development, how long we can maintain the well-being we already have. While other indicators show narrow perspectives on these questions, the Inclusive Wealth Index presents the big picture.

Filling the Gaps

 

Gross Domestic Project

GDP provides a snapshot of society’s productivity right now. But GDP can’t judge whether a country’s people are merely surviving or thriving. It has no idea what’s happening to a country’s ecosystem. And it has no idea how well off a society’s children, grandchildren or great-great-great-grandchildren will be. Inclusive Wealth can.

Human Development Index

HDI gives a wider view of human well-being, but it lacks the environmental dimension. A positive HDI rating says nothing about the natural ecosystems which long-term human development depends on. Inclusive wealth fills this gap.

 

 

What Inclusive Wealth Does Best

 

Inclusive wealth knows that money is not synonymous with value

The Inclusive Wealth index is built on the understanding that goods and services are only of value because they contribute to human well-being. The index measures an asset’s wider value to society, and not the price for which it could be bought or sold.


Faucet, or reservoir? Rather than measuring flows of wealth, like the GDP, it measures the stock of wealth-inducing conditions.

Inspecting the stocks of produced capital, natural capital and human capital, it shows how much wealth a country can potentially create, not just how much is being made right now. You can’t tell how much water is available, just by measuring what’s coming out of a faucet.

The index’s transition from measuring flows to accounting stocks provides an intergenerational understanding of well-being and wealth.


Inclusive wealth shows sustainability

The Inclusive Wealth Index has the answers to today’s biggest question “But, can it be sustained?” One glance at the results suffices. If the number is positive, it’s sustainable; if it’s negative, it’s not. And the IWI doesn’t just show environmental sustainability, its reflects the longevity of peoples’ values and well-being too.


Inclusive wealth illuminates trade-offs and synergies

Because the index measures such a wide spectrum of wealth types, it provides unique insights about when one type of capital is being sacrificed to build up another (trade-offs), and how boosts in some capital types lead to simultaneous jumps in others (synergies).