Gross Domestic Product (GDP) per capita may not be the most suitable measurement of Jamaica’s growth, as indicated by a discussion paper published by the Jamaica Economy Panel (JEP) on Friday.
The paper, titled ‘Beyond GDP per capita for Jamaica’s Sustainable Development’, utilises the findings of a survey conducted between March 10 and March 23, examining the possibility of adopting measures other than GDP to gauge the country’s level of development.
According to UWI Senior Lecturer in the Department of Economics, Dr Nadine McCloud, concerns exist regarding the effectiveness of GDP per capita in measuring development progress, especially concerning sustainable development.
“There is broad consensus that using GDP per capita as a metric for economic performance and development is tantamount to viewing a country and its citizens through a narrow and severely biased lens fraught with many ills,” said Dr McCloud.
Overall, the JEP panellists agreed that advancements in wealth accounting tools provided a deeper comprehension of both the quantity and quality of growth and development.
Senior Economist in the United Nations Resident Coordinators Office, Dr Stuart Davies, highlighted how new measuring tools can assist decision-makers and practitioners in better understanding the interlinkages and trade-offs between national assets, and reflect these in their policies to achieve sustainable development more effectively.
“Recent advances in wealth accounting, which go beyond GDP, can enable a better understanding of not only the quantity but also the quality of growth and development,” said Dr Davies.
“For small island developing countries, like Jamaica, these new wealth accounting tools enable more nuanced approaches to development that enhance not just future prosperity but also resilience in all its forms,” he added.
However, the panel noted that introducing a new development measurement tool for Jamaica comes with its own share of challenges.
The JEP panel emphasised several hurdles, including inadequate data on non-economic aspects and challenges in quantifying intangible assets.
Additionally, they cited potential resistance from entrenched institutions and policymakers accustomed to GDP-focused methods, along with limited awareness among policymakers regarding the limitations of GDP and the advantages of alternative measures.
“Moving beyond GDP will require committed collective efforts among various partners and stakeholders to research, design, finance and educate on new measurement tools in the years to come,” said United Nations Resident Coordinator, Dennis Zulu.
“The United Nations is committed to working with the government to implement more nuanced development measurement tools like Beyond-GDP for a more adequate measure of Jamaica’s sustainable development progress as well as for more effective development planning,” he added.
JEP is part of a partnership between the United Nations Resident Coordinator’s Office and the Department of Economics at the University of the West Indies.
The panel brings together economic, public-sector experts, and development practitioners to address monthly socio-economic questions. Oki
