Abstract
Economic wellbeing is inadequately being measured across countries using market output (GDP) and per capita income. Economic policies are then formulated to grow GDP and total income rather than actual wellbeing. Here we assume a broad array of policies, called the Sustainable, Shared-Prosperity Policy Index (SSPI), are required to create wellbeing within and across countries. The SSPI integrates three Pillars (Sustainability, Market Structure, and Public Goods) that measure the system of national policies that represent the government functions of protecting the environment, structuring markets, and delivering public goods and services, respectively. Nations vary widely in their national policies to provide for the common good and support the well-being of people and the environment. For a specific social goal, a variety of outcome or performance indices exist to compare countries, but to our knowledge, no index exists of the national policies created to guide and support these outcomes. For example, metrics compare the economic performance of countries in terms of inequality, greenhouse gas emissions, health and longevity, education, and productivity. Therefore we created the SSPI to compare national policies and provide a road map to guide policymakers seeking to design an economic system that generates universal well-being. Overall, the Sustainability Pillar has the weakest policies and the Public Goods the strongest. We also measure the statistical relationship of the SSPI with well-known metrics of national outcomes and find that the SSPI policies track most performance metrics across countries. The SSPI provides detailed data and rankings of how countries vary in their policies in terms of where they are weak or strong, and of possible improvements in a country’s weaker policies.
