A NEW approach to eradicating poverty by rethinking well-being without growth is advocated by the United Nations special papporteur on extreme poverty and human rights, Olivier De Schutter. Although Sustainable Development Goals Goal 8 emphasises decent work and economic growth, seeking least developed countries to sustain at least 7% annual GDP growth, this notion attempts to frame development without considering growth as a precondition for anything else.

The United Nations Development Programme Special Report 2022 notes that hunger is on the rise, with about 2.4 billion people suffering from food insecurity. This results from cumulative socioeconomic and environmental effects generated before 2019, augmented by the pandemic. It makes sense that economic growth, offering new jobs to put food on the table while simultaneously improving the well-being of all, is what development envisages.

GDP, as the chief indicator in measuring wealth, has been cautioned by its inventor, Simon Kuznets, against assessing social progress using this metric. Notwithstanding, initial critiques of growth have explored the difficulty in reconciling infinite growth with planetary boundaries. The environmental impact of achieving growth from using the Earth’s resources and managing waste and pollution has been anticipated by researchers Daniella and Dennis Meadows in 1972, hence the climate change we are experiencing now.

Secondly, growth does not necessarily correlate with well-being beyond a certain point, as formulated in the Easterlin paradox. The theory states that life satisfaction plateaus for countries that have achieved wealth per capita of US$45,000 (RM210,000) to US$50,000 per year, and people are happier on other parameters than continuous monetary wealth increment. However, it is undeniable that the wealthiest households in a particular society are happier relative to other poorer households.

Complementing how growth provides happiness within a particular society is the critique of the social limit of growth. The value of goods that one possesses becomes less valuable if they are democratically available within the larger society. They emerge more valuable when being distinguished from others rather than the need and benefits of the good to themselves.

It is worth revisiting what growth has promised and its questionable outcomes. The intensification of labour, facilitation of trade and investment, and introduction of labour-saving technologies to increase work productivity are anticipated to contribute to GDP growth. It will come to fruition due to wage increases, public services and social protection being financed, and jobs being created. However, in reality, GDP growth has resulted in wage inequalities, loss of public revenue due to fiscal competition between states to attract investments, and jobs diminished by automation and outsourcing.

While politicians seem captivated with GDP in illustrating the government’s success in managing progress, a new indicator beyond GDP must be devised to measure progress. Most importantly, it must be efficient and constantly referred to by key stakeholders, including policymakers, politicians, media, and the general public.

In the recent report to the UN on a human rights approach to wages, De Schutter observes that one in five workers globally lives in poverty. He further argues that workers’ contribution to society should be reflected in their pay. He points out: ‘In today’s job market, looking after others and the planet doesn’t pay.’ This is exemplified, for example, by the value of volunteering in the United Kingdom in 2022, estimated at £18.7  (RM111.4) billion, and this figure is certainly hidden from GDP calculations.

Correspondingly, human rights could provide an alternative compass in pursuing the development and poverty eradication agenda. Instead of labouring every effort on increasing GDP, shifting focus towards food security, the right to housing, the right to health and sanitation, the right to education, the right to social security, and the right to decent jobs and fair wages will see the outcome of growth in a way that reflects how we invest our resources. Therefore, in moving away from the obsession towards growth as the primary metric in the development agenda, a human rights economy should be pushed to the centre stage. As Volker Turk, the UN high commissioner for human rights, said, “Human rights provide useful guardrails to ensure the prioritisation of the investments needed with a focus on those most marginalised”. – December 15, 2023.

* Muthanna Saari reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.