MERGE: Building economic policies beyond GDP

MERGE works to align and amplify the field of beyond-GDP-economics by bringing together diverse voices across academia, civil society and policy to create breakthroughs in knowledge and policy impact. With a €17 Million budget, the involvement of over 15 institutions and a 3-year timeline, MERGE stands as one of the most substantial partnerships in the realm of beyond GDP initiatives to date.

The problem with GDP

The long standing discussions regarding GDP emphasize its limitations in accurately capturing the true essence of citizens’ quality of life and overall wellbeing. GDP measures economic progress based solely on monetary transactions and market activities. This narrow focus can neglect the valuable contributions of unpaid household work, volunteerism, and leisure time to individuals’ welfare and societal progress. Moreover, a strictly GDP-centric approach can disregard the environmental impact of economic growth, such as resource depletion and carbon emissions, undermining long-term sustainability and economic progress.

Why MERGE?

MERGE builds on the scientific work of recently launched Horizon Europe and European Research Council grants (WISE Horizons, SPES, ToBe, REAL) to create synergies between these projects and improve knowledge on indicators beyond GDP, alternative and more sustainable policy options, and scenarios for a sustainable future.

Without a unified set of indicators which are endorsed and adopted across the field of beyond-GDP statistics, these metrics cannot hope to challenge the supremacy of GDP as the sole measure of economic progress.

Achieving the United Nations 2030 Agenda and the EU’s policies on environmental and social sustainability requires a comprehensive measure of human progress that does not focus solely on GDP. Many competing indicators and frameworks have emerged, but no consensus has been reached. Without a unified set of indicators which are endorsed and adopted across the field of beyond-GDP statistics, these metrics cannot hope to challenge the supremacy of GDP as the sole measure of economic progress. Without new forms of economic measurement which can match the rigour and reliability of GDP, policymakers and advocates will struggle to make the case for prioritising sustainable and inclusive wellbeing over more traditional economic objectives. In fact, without such metrics it is hard to understand the full implications and trade-offs between policy decisions with respect to what truly matters for people and the planet.

Main objectives

MERGE aims to reach a consensus on frameworks and indicators to measure multidimensional wellbeing. The primary objective of MERGE is to propose a unified set of indicators for measuring multidimensional wellbeing. This includes summarising indicators already known to statistical institutions and identifying new relevant metrics beyond GDP to provide a more comprehensive understanding of societal progress. The project will:

– establish multi-stakeholder networks,
– promote science-policy dialogue within and between these networks, and
– develop training tools for policy implementation.

MERGE will also build a co-creation process grounded in the actors’ perspectives and needs. By combining practical understanding with cutting-edge research, the project provides a platform to develop and advance state of the art frameworks and indicators for use in the governance mechanisms and policy programmes which dictate European politics.

Without new forms of economic measurement which can match the rigour and reliability of GDP, policymakers and advocates will struggle to make the case for prioritising sustainable and inclusive wellbeing over more traditional economic objectives.

Our methodology

Demos Helsinki’s hypothesis is that through synthesising existing knowledge on indicators for sustainable and inclusive wellbeing, and building capacity for policymakers and statisticians, we can significantly improve policy outcomes for beyond GDP.

For this, we plan to mix several methodologies to work with economists, policymakers and researchers alike:

– Consolidating the state-of-the-art
– Technical network creation
– Policy network creation
– Usable and acceptable frameworks and indicators
– Technical and data deep dives
– Policy deep dives
– Technical and data guidance
– Policy guidance
– Policy toolbox and training
– Communication, dissemination, and exploitation techniques

The project will run until the end of 2026.

Partners

Demos Helsinki is proud to be collaborating with a diverse range of partners from across academia, policy, statistical offices and civil society organisations to connect innovative research with both policy and technical institutions at all levels:

– Tampere University (acting as coordinator);
– Zoe-Institute for Future-fit Economies (acting as co-coordinator);
– European Policy Centre;
– Universiteit Leiden;
– PIN Soc.Cons.A R L.;
– Universitat de Barcelona;
– Universiteit Gent;
– University College London;
– Universita Degli Studi di Ferrara IT;
– Wellbeing Economy Alliance;
– Research and Degrowth International;
– UK Office for National Statistics;
– Institut d’Estadística de Catalunya;
– Plateforme des ONG européennes du secteur social
– Joint Research Centre.

This project is part of Demos Helsinki’s long effort to explore how the economy can instigate and support societal efforts for sustainability, fairness and — why not — more joyful lives.

For more information around MERGE, or if you want to get in touch about essential interventions in the economy to ensure a fair, sustainable and joyful next era, please feel free to reach out:

Jenni Kilpi
Expert
jenni.kilpi@demoshelsinki.fi

Some useful resources on beyond GDP:

– Read this report by the European Commission: Alternative measures of progress beyond GDP
– And another report by the UN System Chief Executives Board for Coordination https://unsceb.org/topics/beyond-gdp
– Report by the Commission on the Measurement of Economic Performance and Social Progress