Measuring Sustainability and Welfare at the regional level in Sweden : A Genuine Progress Index (GPI) for Östergötland

Abstract: In order to address sustainable policies, communities need indicators that can tell them something about the larger social and ecological system, and the relationships between the two. This study attempts to apply an existing indicator of welfare and sustainability, the Genuine Progress Index (GPI), to the regional level in Sweden. The county of Östergötland is used as a case study and the thesis is written in collaboration with Regionförbundet Östsam. The aim of the study is to develop an application of GPI methodology to circumstances of data availability at the regional Swedish level. Developed methodology used to calculate a GPI of Östergötland in 2000-2006. GPI results are put in a context of the Regional Development Program of Östergötland in order to address policy implications regarding the very meaning of growth, development, welfare and sustainability. The results indicate that GPI has increased during the time period. However, a comparison with the Gross Regional Product (GRP) shows that GRP has increased faster than GPI. It is concluded that this could be a possible trend of decreased economic efficiency, where more economic output is not sustainable in the sense that an equivalent amount of welfare is not produced. This effect is mainly an effect of increasing income inequality. It is also suggested that the Regional Development Program should distinguish growth and development as different concepts. In doing so, more sustainable policies can be adopted in the future.