Increased individual wealth as indicated by GDP per capita does not consistently equate to personal happiness and well-being
In a groundbreaking report by the Joint Research Centre (JRC) of the European Commission, the focus has shifted from GDP as the primary indicator of a country's well-being. Over a decade, from 2011 to 2022, the report analysed over 150 indicators, synthesising them into a comprehensive index: the Sustainable and Inclusive Well-being (SIWB) index.
The findings of this extensive study have shed light on the factors contributing to high SIWB indexes in countries like Sweden, Finland, Denmark, Austria, and the Netherlands, compared to countries like Bulgaria and Romania, despite lower GDP per capita.
One of the key factors is strong social inclusion systems. Nordic and Western European countries, such as those mentioned above, boast robust social safety nets, equitable access to healthcare, education, and social services that support well-being across all segments of society, reducing inequalities.
Another significant contributor is environmental sustainability policies. These countries prioritise environmental protection alongside economic growth and social inclusion, promoting long-term sustainability, which is a core aspect of the SIWB frameworks. This integrated approach preserves natural capital that supports health and quality of life.
The report also highlights the importance of holistic measurement frameworks. These countries tend to implement and use comprehensive well-being frameworks that include multiple dimensions beyond GDP, such as health, education, environmental quality, social cohesion, and equity. This broader perspective captures sustainable human development better than GDP alone.
Moreover, focus on human sustainability and well-being-oriented policies is another factor that sets these countries apart. Organisations and governments in these countries adopt policies and mindsets that value flexible work, diversity, health, and overall quality of life, aligning with the principles of human sustainability.
Lastly, effective governance and implementation capacity play a crucial role in maintaining a high SIWB index despite relative economic differences. Institutional frameworks in these nations support stable and inclusive economic growth with balanced social policies and environmental considerations.
Conversely, Bulgaria and Romania, despite improvements in GDP per capita, often face challenges such as less developed social inclusion policies, weaker environmental protections, and limited implementation of multidimensional well-being approaches, resulting in lower SIWB scores. The difference underscores that GDP alone is insufficient to capture sustainable well-being, which requires integrated social, economic, and environmental policies and effective governance.
Interestingly, Italy, despite having high per-capita wealth, ranks low in inclusivity, quality of institutions, and governance among other European countries. On the other hand, Bulgaria and Romania are in the bottom 12.5% of European states in terms of GDP per capita but in the top 12.5% in quality of life. Sweden and Finland have the highest index of sustainable and inclusive well-being among European countries with high GDP per capita.
The report, titled "Measuring Sustainable and Inclusive Well-being for European Countries and the EU", was produced by the JRC of the European Commission and includes researchers from various countries, with Enrico Giovannini, scientific director of the Italian Alliance for Sustainable Development (Asvis), signing the document. This report serves as a significant step towards understanding and promoting sustainable well-being in Europe.
In the pursuit of sustainable and inclusive well-being, countries with high SIWB indexes like Sweden, Finland, Denmark, Austria, and the Netherlands focus on strong social inclusion systems, which encompass robust social safety nets, equitable access to healthcare, education, and social services. Moreover, these countries prioritize environmental sustainability policies, integrating environmental protection alongside economic growth and social inclusion to promote long-term sustainability that supports health and quality of life.
