Towards a marginal utility measurement of GDP

## Proposal for a Resolution on the Development of Complementary Economic Welfare Indicators

**The World Parliament,**

* **Recognizing** that Gross Domestic Product (GDP) serves as a fundamental measure of economic activity and output, providing essential data for macroeconomic analysis and policy formulation;
* **Acknowledging** the inherent limitations of GDP as a sole indicator of societal well-being, sustainable development, or the distribution of welfare gains, as it does not directly account for non-market activities, environmental degradation, income inequality, or the subjective experience of economic prosperity;
* **Considering** the growing global discourse on the need for comprehensive frameworks that complement traditional economic metrics with indicators reflecting human welfare and sustainable development;
* **Noting** the economic principle of diminishing marginal utility, which posits that the additional satisfaction or benefit derived from successive units of a good or service tends to decrease as consumption increases, suggesting that an additional unit of income or consumption may contribute less to overall well-being for those with higher existing levels of income or consumption;
* **Believing** that incorporating considerations related to the distribution and impact of economic output on individual and collective welfare, including principles of diminishing marginal utility, could enrich the understanding of economic progress and inform more equitable and sustainable policy decisions;

**Hereby resolves to:**

**Article 1. Mandate for a Working Group on Comprehensive Economic Welfare Indicators**

1. Establish a dedicated Expert Working Group (hereinafter "the Working Group") under the auspices of the World Statistical Office, tasked with developing and proposing methodologies for complementary economic welfare indicators.
2. The Working Group shall comprise economists, statisticians, social scientists, and experts in sustainable development from diverse regions and theoretical perspectives.

**Article 2. Objectives of the Working Group**

The Working Group shall have the following objectives:

1. To review existing international and national initiatives aimed at measuring well-being, sustainability, and inclusive growth beyond traditional GDP metrics.
2. To explore methodologies for integrating qualitative and quantitative dimensions of welfare into economic measurement frameworks.
3. To investigate the feasibility and utility of developing indicators that account for the distribution of income and wealth, and that reflect the principle of diminishing marginal utility of income or consumption in assessing overall societal welfare. This exploration shall include, but not be limited to:
* Developing adjusted income or consumption metrics that weight economic gains according to their likely impact on individual well-being across different income strata.
* Proposing methodologies for constructing composite welfare indices that incorporate factors such as health, education, environmental quality, and social equity alongside economic output.
* Assessing the practical challenges and statistical requirements for collecting and processing data necessary for such measurements.
4. To propose a framework for a set of standardized, internationally comparable complementary economic welfare indicators that can be adopted by Member States.

**Article 3. Reporting and Recommendations**

1. The Working Group shall submit an interim report to the World Parliament within eighteen (18) months of its establishment, detailing its findings, proposed methodologies, and preliminary recommendations.
2. A final report, including a comprehensive framework for complementary economic welfare indicators and concrete recommendations for their implementation and regular reporting by Member States, shall be submitted within three (3) years of its establishment.
3. The final report shall include a detailed analysis of the implications of incorporating utility-based considerations for policy-making, resource allocation, and international development strategies.

**Article 4. Collaboration and Consultation**

1. The Working Group shall engage in extensive consultations with academic institutions, international organizations, civil society, and statistical agencies of Member States to gather

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