Scotland’s recent leadership election shone a spotlight on the need for a Wellbeing Economy. The Scottish Parliament recently debated the topic for the first time, and there is a new cabinet position for the Wellbeing Economy in the new Scottish Government.

But I am concerned.

There has been a lot of rhetoric, including from the new administration, about driving GDP growth without enough critical analysis of its limitations.

People in Scotland are having to choose between heating and eating as the cost-of-living crisis deepens. The Intergovernmental Panel for Climate Change tells us that we are living in a "code red’ environmental emergency. The need to reprogramme our economy so that it actually supports people and the planet is vital and urgent, because lives are at stake.

So, let us be clear about what a Wellbeing Economy really means. At WEAll Scotland, we believe that economic activity and growth are not ends in themselves but must serve the goal of delivering wellbeing. We are deeply concerned with where the current growth-chasing path has led our society.  We have seen repeatedly that the pursuit of growth, often driven by perverse incentives, inflicts brutal collateral damage on the landscape and on people. GDP’s limitations as a measure of prosperity are well-documented, so why is GDP still our economy’s end goal?

The Scottish Government’s renewed commitment to a Wellbeing Economy left us feeling hopeful. For these commitments to result in successful outcomes, there must be a more nuanced understanding of the role of GDP growth, led by Scotland’s new First Minister and the Cabinet Secretary for Wellbeing Economy, Fair Work, and Energy. The talk is welcome, but the walk is essential.

We are not the only ones demanding action. Roz Foyer, general secretary of the STUC, warned recently that the Government’s commitment to a wellbeing economy risks becoming a mere ‘catchphrase’ if we don’t see clearer, more concrete action, asking what real difference we are seeing for people on the ground.

There is no one-size-fits-all approach in transitioning to a wellbeing economy, but these “4 Ps” can help to guide it:

  • Purpose: governments, businesses, and other institutions should exist to deliver wellbeing – not simply GDP growth.
  • Prevention: policies should be directed at tackling the root causes of problems so we prevent harm from happening in the first place – rather than cleaning up the mess after the damage has been done.
  • Pre-distribution: the economy should prevent vast inequalities in wealth and income from occurring by using approaches such as Community Wealth Building and supporting business models and employment practices that generate a fairer distribution of incomes and wealth.
  • People-powered: citizens should have a meaningful role in decision-making across our governments, communities and workplaces.

The Wellbeing Economy uniquely acknowledges the intersection between the economy, just transition, the Promise, business purpose and success, and how each of these affects our lives and the environment we all share.

WEAll Scotland is ready to play our part in building a Wellbeing Economy.

We hope the Scottish Government is, too.

Jimmy Paul is Director at the Wellbeing Economy Alliance (Scotland)