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New ways of measuring wealth

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By Euronews
New ways of measuring wealth

<p>In this edition of U talk our guest is answering your questions on new ways of measuring wealth.</p> <p>“Hi, I’m Gonçalo from Lisbon. This is my question: <span class="caps">GDP</span> has been used to measure the wealth of a country, but this indicator does not take into account essential factors, such as well-being or sustainable development. Aren’t there other ways of measuring development?”</p> <p>Anna Rossbach, member of the European Parliament: “For me, a society is about more than just money. I think most of the big countries nowadays realise that. That is why the European Parliament has now adopted a basic document on setting up other measurements. <span class="caps">GDP</span> was set up in the 1930s and was never meant to be a global measurement. </p> <p>“There are many countries in the world where people are living in very poor conditions, without things like electricity and clean water supplies, but if you look at the country’s <span class="caps">GDP</span>, they are not that poor. This can be because the country has a lot of gold for instance, or maybe other kinds of precious materials or resources. But the wealth does not go to the citizens. </p> <p>“I think it is extremely important to have measurements other than just seeing what comes in money-wise. We should look at the living conditions of the normal citizens. Do they have a stable life with all the basics? What can and can’t they buy with the money they have? So the idea is not to replace <span class="caps">GDP</span> but to make additions to <span class="caps">GDP</span>.”</p>