Question 3GS3GS1
The overfocus on the GDP growth rate subsides the issues of growing inequality and environmental unsustainability. In this context, highlighting the limitations of GDP suggests alternatives to GDP as a welfare of growth rate. (Answer in 150 words) 10 marks
Introduction
GDP (Gross Domestic Product) refers to the market value of all final goods & services produced within domestic territory in a financial year
23 words
Main Body
Overfocus on GDPsubsidises issues of inequality & unsustainability. India is one of the fastest growing major economy of the world, currently the fifth largest economy with $3.5 trillion GDP (World Economic Forum). While Oxfam report reflects the dire state of growing inequality, 1-1 of richest owns 40% of India's resources. India ranks 4th in Global Climate Change Gini Index. Limitations of GDP: 1) Does not capture standard of living of the money & income inequality
2Non market production i.e production for private consumption or unpaid domestic labour is not included. 3) Negative externality - does not reflect environmental degradation & pollution & loss of health as important on health & actually. 4) Black economy - does not take into account parallel economy, black money, etc. 5) Not an indicator of political freedom, social harmony & qualitative aspects of development. Alternatives to GDP: 1) Human Development Index (HDI) of UNDP: Measure of standard of living, education & healthy life expectancy. 2) Gross Happiness National Happiness (GNH) - measure of happiness of Bhutan. 3) SDGs (Sustainable Development Goals) - measure of 17 key parameters of sustainable development. 4) Green GDP - combined economic wealth of environment. Although GDP as an international measure of growth is important, economic development strategies must not be bound by it.
216 words1 paragraphs
- Good use of current data (3.5 trillion GDP)
- Reference to Oxfam report for substantiation
- Clear identification of GDP limitations
- Structured presentation of issues
Topper
Dr. Sachin B L
2023
Subject & Paper
GS3GS1
Topic
Economic Development
GDP Limitations
Inequality and Environmental Sustainability
Writing Stats
239
Total words
1
Paragraphs
Academic and analytical
Tone