Abstract
In this chapter, the authors examine sustainable economic growth through a well-being approach, crucial for future prosperity. The authors compare economies using a well-being model against others based on income levels, analyzing eight well-being indicators based on data availability across 70 countries. By adopting robust statistical approaches like non-parametric ANOVA, Kruskal-Wallis H test, and Mann-Whitney U test, a detailed comparison was conducted. The results, supported by literature and case studies, show marked differences in happiness, political stability, and corruption perception among these groups. This study highlights the effectiveness of the well-being economy model, offering valuable insights for policymakers and scholars in sustainable development.
TopBackground
The wellbeing economy is built around human, social, economic and natural capital. Thus, the state of achieving a wellbeing economy is sometimes viewed as unmeasurable and a utopic vision. However, the progress towards a wellbeing economy is considered measurable. The focus on the commensalism between the people’s wellbeing and the planet's progress amidst economic development portrays an ideology of a wellbeing economy. According to (Bakar et al., 2015), “sustainable well-being highly depends on two essential components: people and the environment. ‘People’, in this context, could be regarded as the association of a person or a community with other human beings. Thus, the wellbeing of a person or a community should not be at the expense of others’ wellbeing”. According to (Jones, 2021), “A wellbeing Economy protects our most marginalised while also protecting the planet`s finite resources. It puts the responsibility of the decision-makers to meet the present needs”. As posited by (Costanza, de Groot, et al., 2014), achieving wellbeing is impossible unless we consider the importance of natural capital. The ideology of progress by adopting a wellbeing economy is aligned with the SDG. However, we must consider that these goals were designed as an agenda to address challenges that faced developing countries, such that; many developed nations formed bilateral and multilateral agreements to promote development among the developing countries. We cannot dispute that some developed nations also face socioeconomic and environmental challenges, but we believe the priorities are different in the polarisation and spectrum of each country’s sustainable developmental goals. By categorising each country based on its income level, we can assess the different priorities and policy requirements for low-income or less developed categorised countries to adopt a wellbeing-oriented economic paradigm.
Key Terms in this Chapter
Low-Income Countries: A low-income country is classified by the World Bank based on its gross national income (GNI) per capita. As of 2024, low-income countries are those with a GNI per capita of $1,085 or less.
Middle-Income Countries: A middle-income country is classified by the World Bank based on its gross national income (GNI) per capita, falling between the thresholds for low-income and high-income countries. Middle-income countries are further divided into: Lower-Middle-Income Countries: GNI per capita between $1,086 and $4,255. Upper-Middle-Income Countries: GNI per capita between $4,256 and $13,845.
High-Income Countries: A high-income country is classified by the World Bank based on its gross national income (GNI) per capita. As of 2024, high-income countries are those with a GNI per capita of $13,845 or more.
Wellbeing Economy: Wellbeing economies are those that prioritize the overall wellbeing and happiness of their citizens over traditional economic indicators such as GDP. These economies implement policies that focus on social, environmental, and economic sustainability, aiming to enhance life satisfaction, reduce inequality, and ensure long-term prosperity.
Developing Economy: A developed economy is characterized by a high level of industrialization, a high standard of living, and a well-established infrastructure.
Developed Economy: A developed economy is characterized by a high level of industrialization, a high standard of living, and a well-established infrastructure.