Why the Continuing Emphasis on GNP?

It happened again last night. The national news reported “Canada's gross national product [GNP] grew at a 1.9 per cent annual pace in the first three months of the year, the same pace seen at the end of 2011.” So what does this tell us? Well it tells us that the total value of everything produced by enterprises in Canada grew by 1.9% annually. What it does not tell us is whether this growth was good or bad.

I find this discouraging! Discouraging because 30 years ago, in 1992, the same broadcaster, the CBC, first showed me how inadequate and potentially misleading reporting GNP is. 1992 was the year of the Earth Summit in Rio de Janeiro. If you don’t remember it, google for it. This was the first UN conference on the Environment and Development. The CBC, and other media covered it extensively. It was because of that conference and that reporting that conference, that many of us first realized the fragility of the environment we depend on, and the negative impact human activity is having on the very resources we depend on for life.

Specifically on the GNP, I came to realize that an oil spill off the coast of British Columbia does more to raise the GNP than the discovery of a new cure for cancer. We were told then, of the need for more meaningful indicators of well-being than GNP.

And much as been done to develop a new index. Best known is the Canadian Index of Wellbeing (CIW). But it is hardly well known. It is ironical that the same media that covers and applauds the existence of this index, does not use it.

I find it discouraging that the media, in spite of giving us these stories about the need and development of better indicators of national well-being, continue to use GNP in their reporting as if it is the only indicator of our nation’s economic health with any value.

No doubt the GNP is easier to measure than the CIW. I suspect it is realistic to expect a report on GNP every quarter, whereas a quarterly report on CIW is probably not possible. Nevertheless, I think it is reasonable to expect a news item on GNP to include some comment on more meaningful context. For example “GNP rose slightly this month, but we don’t expect that to have an effect on the CIW because . . .” I think our news media is guilty of biased reporting whenever it reports on GNP and doesn’t place that in the context of wellbeing.

Somewhere within us, we all know that some growth is good, and some is not good. When reporting growth, the media has a responsibility to help us discern the likely effect that growth is having on our wellbeing. Were the media to do that, we all would be more critical, in a good sort of way, of any growth occurring around us. And were we all to have that critical capacity, it would affect the policies favoured by our politicians.

 Eric Rempel