COMMENT | Today, many - though not all - governments continue to treat GDP not only as a measure of national economic activity, but also as if it were the default indicator of how well its people are faring.

However, this is a short-sighted view.

On one hand, it might be true that increased economic activity spurs creation of more jobs, providing income for people to access basic necessities such as food, clothing and housing, and, over time, opportunities to accumulate capital and so enjoy more material comforts.

However, it is also important to recognise that human welfare is not exclusively based on material well-being...