Living Standards Better Growth Gauge Than GDP, Davos Forum Says
- World Economic Forum finds median incomes declining widely
- ‘Insecurity’ of economies is causing voter frustration
A Swiss national flag flies above a snow covered rooftop as the spire of St. Johann church, left, stands above buildings illuminated at dusk in Davos, Switzerland, on Friday, Jan. 13, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum (WEF) in Davos from Jan. 17-20.
Photographer: Michele Limina/BloombergDeveloped and developing countries alike should emphasize living standards over absolute growth as the best measure of economic performance, according to the organizers of the annual World Economic Forum.
Per-capita median incomes declined by 2.4 percent between 2008 and 2013 across 26 advanced economies, the forum said in a report released Monday, highlighting the "insecurity and inequality accompanying technological change and globalization." Countries should gauge their economic progress based on "inclusive development" and increase spending on programs like job training to ease the burden of inequality, the report said.