Focusing on Well-Being Sets the Stage for Sustainable Economic Growth

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BOSTON, July 12, 2018 (GLOBE NEWSWIRE) -- Countries that lead in generating well-being for their citizens tended to post faster economic growth and recover more quickly from recession in the wake of the 2008 financial crisis. These were among the findings of a report released today by , .

These findings run counter to the conventional wisdom that countries must make tradeoffs between policies that support economic growth and those that elevate the well-being of citizens. The research, based on BCG’s proprietary , a comprehensive diagnostic tool that assesses the relative well-being of countries, reveals a virtuous cycle between well-being and growth in which gains in one spark progress in the other.

“BCG has been a strong advocate of the need for countries to focus policies and development strategies on improving well-being,” notes Joao Hrotko, a BCG partner and coauthor of the report. “But there remains a belief that policies aimed at improving well-being may lead to weaker GDP growth. Our analysis finds this tradeoff can be avoided. In fact, an approach that balances both well-being and growth is advisable not just under normal circumstances—it is equally important during times of crisis. In such periods, countries must resist the temptation to pursue policies that come at the expense of well-being.”

Certainly, there is no blueprint for development; each country’s circumstances require different policy responses. However, these results yield an important insight for policymakers: the dimensions that distinguish countries that performed better are areas that, if overlooked, can become bottlenecks that constrain progress.

“Well-being has generally improved around the world in the most recent ten-year period,” says Enrique Rueda-Sabater, a senior BCG advisor and coauthor of the report. “This is encouraging, particularly because this period included a major financial crisis that triggered recessions in many countries.”

In particular, there were significant gains in education, equality, and infrastructure from 2007 through 2016. Although trends were less encouraging in governance and environment, overall most countries showed improvement in a majority of SEDA’s 40 metrics.

A copy of the report can be downloaded .

To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or or Deepti Pathak at + 65 91067840 or .

The Boston Consulting Group

Tel +1 617 850 3783Fax +1 617 850

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Globe Newswire: 05:01 GMT Thursday 12th July 2018

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