How to measure the good life? According to Cambridge University’s Professor of Public Policy, Diane Coyle, quantifying progress doesn’t involve traditional economic metrics. In her new book, Measure of Progress, Coyle discusses how economic metrics like GDP, designed 80 years ago, are increasingly inadequate for measuring today's complex economy. She argues we need new approaches that account for digital transformation, supply chains, and long-term sustainability. Coyle suggests developing human-centric balance sheet measures that reflect true progress beyond simple growth numbers.
Five Key Takeaways
* Economic metrics like GDP were developed 80 years ago and are increasingly outdated for measuring today's complex digital economy with global supply chains.
* We lack adequate tools to measure crucial modern economic factors such as data usage, cloud services, and cross-border supply chains.
* Economic statistics have always been political in nature, from their historical origins to present debates about what counts as progress.
* Coyle advocates for a "balance sheet" approach that considers long-term sustainability of resources rather than just short-term growth figures.
* While productivity growth has slowed for many middle-income families over the past 20 years, Coyle rejects "degrowth" approaches, arguing instead for better metrics that capture true progress in living standards.
Professor Dame Diane Coyle is the Bennett Professor of Public Policy at the University of Cambridge. Diane co-directs the Bennett Institute where she heads research under the themes of progress and productivity. Her latest book is 'Cogs and Monsters: What Economics Is, and What It Should Be’, exploring the challenges for economics particularly in the context of digital transformation. Her current research focuses on productivity and on economic measurement: what does it mean for economic policy to make the world ‘better’, and how would we know if it succeeds?Diane is also a Director of the Productivity Institute, a Fellow of the Office for National Statistics, and an expert adviser to the National Infrastructure Commission. She has served in public service roles including as Vice Chair of the BBC Trust, member of the Competition Commission, of the Migration Advisory Committee and of the Natural Capital Committee. Diane was Professor of Economics at the University of Manchester until March 2018 and was awarded a DBE for her contribution to economic policy in the 2023 King’s Birthday Honours.
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