The United Nations Secretary-General named Kaushik Basu, a leading economist and professor at Cornell University, as the co-chair of an independent High-Level Expert Group. The group will propose global strategies for evaluating economic progress through frameworks that either supplement or move beyond the traditional Gross Domestic Product (GDP).
While GDP has long served as the benchmark for national success, it is now widely seen as a narrow indicator that fails to capture the complexity of sustainable development. It doesn’t account for key factors such as climate change, social disparity, and the overall well-being of populations.
Reflecting on the change, Basu noted that since its inception by Simon Kuznets in 1934, GDP has been the primary driver of global economic rivalry. However, he pointed out that in today’s turbulent world—marked by surging inequality and environmental crises—it’s time to reconsider whether GDP should remain the dominant measure of economic performance. He welcomed the UN’s move to reassess this metric and expressed enthusiasm about contributing to the initiative.
With a rich background in international economics, Basu earlier served as the Chief Economic Adviser to the Indian Government from 2009 to 2012, before taking on the role of Chief Economist at the World Bank between 2012 and 2016. His latest books include Reason to Be Happy and Policymaker’s Journal, which reflect his interest in logical reasoning and policy-making.
The 14-member panel will design a framework identifying multiple dimensions of progress. Their goal is to develop a set of indicators that are universally relevant yet adaptable to individual countries. These indicators will help build a dashboard that equips governments with more comprehensive tools to measure growth and development.
The UN Secretary-General emphasized that future policies must prioritize both human welfare and environmental health. He noted that shifting the focus away from GDP could transform global policymaking and guide it toward more inclusive and lasting prosperity.
Basu will co-chair the panel with Nora Lustig from Tulane University. They will be supported by a technical team made up of experts from DESA, UNCTAD, UNDP, and the Executive Office of the Secretary-General.
