The genuine progress indicator (GPI) is an alternative metric
system which is an addition to the national system of accounts that has
been suggested to replace, or supplement, gross domestic product (GDP) as a metric of economic growth.
The GPI is used in green economics, sustainability, ecological
economics, and more inclusive types of economics commonly known as
"welfare" economics.
GPI is an attempt to measure whether a country's growth, increased production of goods, and expanding services have actually resulted in the improvement of the welfare (or well-being) of the people in the country. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between worthwhile growth and uneconomic growth.
The GDP vs the GPI is analogous to the difference between the gross profit of a company and the net profit; the Net Profit is the Gross Profit minus the costs incurred. Accordingly, the GPI will be zero if the financial costs of crime and pollution equal the financial gains in production of goods and services, all other factors being constant.
(Wikipedia)
