Iceland’s Prime Minister Favors Well-Being Over GDP in Budget

Speaking at London’s Chatham House think tank, Jakobsdóttir called for an “alternative future based on well-being and inclusive growth,” focusing less on the production of goods and services and more on the effects of climate change, health inequality, mental health, domestic violence, and other phenomena, when crafting a budget.

Jakobsdóttir said, “It’s about how you prioritize the public budget — you can always have an emphasis on well-being.” Iceland’s more holistic view of measuring a nation’s success and prioritizing non-economic factors is backed by economist and Nobel Prize winner Joseph Stiglitz who expressed that “GDP is not a good measure of wellbeing — it’s too materialistic.”

Jakobsdóttir cited Iceland’s adoption of universal childcare and parental leave as examples of the kind of positive, well-being-focused changes she hopes to see in the future.