1. Overview

The Wellbeing Economy is a transformative economic framework that prioritizes the holistic well-being of both people and the planet over the singular pursuit of economic growth, as traditionally measured by Gross Domestic Product (GDP) [1]. This approach represents a fundamental paradigm shift, moving away from an economic model that often externalizes social and environmental costs to one that internalizes them, ensuring that the economy serves society and the environment, not the other way around [2]. At its core, the Wellbeing Economy seeks to create a world where all individuals can live in comfort, safety, and happiness, and where the natural world is protected and restored for future generations [1].

The concept of a Wellbeing Economy has gained significant traction in recent years, as policymakers and civil society have increasingly recognized the limitations of GDP as a measure of societal progress [3]. While GDP has been a useful indicator of economic activity, it fails to capture many of the factors that are essential for a good life, such as health, education, social connections, and environmental quality [4]. The Wellbeing Economy offers a more comprehensive and people-centric approach to economic development, one that is better equipped to address the complex challenges of the 21st century, from climate change and inequality to mental health and social isolation [5].

2. Core Principles

The Wellbeing Economy is founded on a set of core principles that guide its design and implementation. These principles, as articulated by the Wellbeing Economy Alliance (WEAll), represent a fundamental departure from the traditional economic paradigm and provide a roadmap for creating a more just, sustainable, and people-centric economy [1].

Principle	Description
Pre-distribution	This principle focuses on creating an economy that is inherently fairer and more equitable from the outset, rather than relying on redistribution to correct imbalances after the fact. It involves designing economic structures and institutions that distribute power, wealth, time, and income more broadly among the population. Examples of pre-distributive policies include supporting social enterprises and worker-owned cooperatives, implementing living wages, and promoting community wealth-building initiatives [1].
Purpose	The Wellbeing Economy redefines the purpose of the economy, shifting it from the narrow goal of maximizing GDP to the broader objective of delivering human and ecological wellbeing. This requires a fundamental rethinking of our measures of success, moving beyond purely economic indicators to embrace a more holistic set of metrics that capture the social, environmental, and human dimensions of progress. It also involves developing national development plans that are explicitly oriented around the goal of enhancing wellbeing for all [1].
Prevention	This principle emphasizes the importance of proactively preventing harm to people and the planet, rather than simply reacting to problems after they arise. It involves adopting a precautionary approach to economic development, taking steps to avoid negative social and environmental consequences before they occur. Examples of preventive policies include implementing outcome-based budgeting, which allocates resources based on their expected impact on wellbeing, and promoting circular economy models that minimize waste and pollution [1].
People-Powered	The Wellbeing Economy is a democratic economy, one that is powered by the people it is meant to serve. This principle calls for greater public participation in economic decision-making, empowering citizens to have a say in the policies and priorities that shape their lives. It involves creating new mechanisms for democratic engagement, such as citizen assemblies and participatory budgeting, and ensuring that the voices of all members of society are heard and respected [1].

3. Key Practices

The transition to a Wellbeing Economy involves the adoption of a range of key practices that translate the core principles into concrete actions. These practices are being pioneered by governments, businesses, and civil society organizations around the world, demonstrating the viability and potential of this new economic model [1].

Practice	Description
Beyond GDP Indicators	A central practice of the Wellbeing Economy is the development and use of alternative indicators to measure progress. These indicators go beyond traditional economic metrics like GDP to capture a more holistic view of societal well-being, including factors such as health, education, social connections, and environmental quality. Examples include the Genuine Progress Indicator (GPI), the Human Development Index (HDI), and the Better Life Index [4].
Wellbeing Budgets	Some governments are now developing "wellbeing budgets" that allocate public funds based on their expected impact on a range of well-being outcomes. This approach marks a significant departure from traditional budgeting processes, which have often prioritized economic growth above all else. New Zealand's Wellbeing Budget, for example, uses a set of well-being indicators to guide its spending decisions [5].
Community Wealth Building	Community wealth building is a systems approach to economic development that aims to create a more inclusive and equitable economy from the ground up. It involves a range of practices, such as supporting local and employee-owned businesses, creating community land trusts, and establishing public and community banks. The goal is to keep wealth circulating within the local community, rather than being extracted by outside corporations [1].
Circular Economy	The circular economy is a model of production and consumption that aims to eliminate waste and keep resources in use for as long as possible. It involves a range of practices, such as designing products for durability and repair, promoting reuse and recycling, and developing new business models based on sharing and leasing. The circular economy is a key practice of the Wellbeing Economy, as it helps to reduce our environmental footprint and create a more sustainable economic system [1].

4. Application Context

The Wellbeing Economy framework is not a one-size-fits-all solution, but rather a flexible and adaptable approach that can be applied in a variety of contexts. Its principles and practices are being implemented at different scales, from the national and regional levels to the local and organizational levels. The specific application of the Wellbeing Economy will vary depending on the unique social, economic, and environmental conditions of a given place.

At the national level, governments are beginning to embrace the Wellbeing Economy as a new guiding framework for their policymaking. Countries like New Zealand, Scotland, Iceland, Wales, and Finland have formed the Wellbeing Economy Governments (WEGo) partnership, a collaboration of governments that are committed to sharing best practices and advancing the Wellbeing Economy agenda [5]. These governments are developing new tools and institutions to embed well-being into their decision-making processes, such as wellbeing frameworks, wellbeing budgets, and new forms of citizen engagement.

At the regional and local levels, cities and municipalities are also taking the lead in building Wellbeing Economies from the ground up. They are implementing a range of innovative policies and programs, such as community wealth building initiatives, urban farming projects, and new models of social housing. These local initiatives are often more agile and responsive to the needs of their communities, and they can serve as important laboratories for testing and refining the practices of the Wellbeing Economy.

Within the private sector, businesses are also beginning to recognize the importance of well-being and are adopting new business models that are aligned with the principles of the Wellbeing Economy. This includes a growing number of social enterprises, B Corps, and cooperatives that are committed to creating social and environmental value, in addition to financial returns. These businesses are demonstrating that it is possible to be both profitable and purposeful, and they are helping to create a more sustainable and equitable economy.

5. Implementation

Implementing a Wellbeing Economy requires a concerted and coordinated effort from all sectors of society, including government, business, civil society, and academia. It is a long-term process of transformation that involves a range of strategies and actions.

One of the first steps in implementing a Wellbeing Economy is to develop a shared vision and a set of common goals. This involves engaging a wide range of stakeholders in a dialogue about what a successful society would look like, and what are the most important outcomes to prioritize. This process can help to build a broad-based consensus around the need for a new economic model and can provide a clear direction for policy and action.

Another key element of implementation is the development of new metrics and indicators to measure progress. As noted earlier, the Wellbeing Economy requires a shift away from a narrow focus on GDP to a more holistic set of measures that capture the social, environmental, and human dimensions of well-being. These new indicators can help to make the goals of the Wellbeing Economy more tangible and can provide a basis for holding policymakers accountable.

Policy and institutional reform are also essential for implementing a Wellbeing Economy. This involves a wide range of changes, from reforming tax systems and financial regulations to creating new institutions to support social and environmental goals. It also requires a more integrated and joined-up approach to policymaking, with greater collaboration across different government departments and levels of government.

Finally, building a movement for change is crucial for the successful implementation of a Wellbeing Economy. This involves raising public awareness, mobilizing civil society, and building alliances across different sectors. It also requires a commitment to experimentation and learning, as we continue to explore and refine the practices of this new economic model.

6. Evidence & Impact

While the Wellbeing Economy is still an emerging field, there is a growing body of evidence to suggest that it can have a positive impact on a wide range of social, environmental, and economic outcomes. This evidence comes from a variety of sources, including academic research, government reports, and case studies of innovative practices from around the world.

Research has shown that countries with higher levels of well-being tend to have stronger social cohesion, lower levels of crime, and better health outcomes. For example, a study by the OECD found that countries with higher levels of social trust and civic engagement tend to have higher levels of subjective well-being [4]. Another study found that countries with more equal distributions of income tend to have lower rates of a wide range of social problems, including mental illness, obesity, and infant mortality.

In addition to the social benefits, there is also evidence to suggest that the Wellbeing Economy can have positive economic impacts. For example, businesses that prioritize the well-being of their employees tend to have higher levels of productivity and profitability. A study by the University of Oxford’s Saïd Business School found that happy workers are 13% more productive [6]. Similarly, investments in renewable energy and energy efficiency can create new jobs and stimulate economic growth, while also reducing our environmental footprint.

The Wellbeing Economy Governments (WEGo) partnership provides a real-world laboratory for studying the impact of the Wellbeing Economy in practice. The member governments of WEGo are all committed to putting well-being at the center of their policymaking, and they are tracking a range of indicators to measure their progress. While it is still early days, the initial results from these countries are promising, with many of them showing improvements in areas such as child poverty, mental health, and environmental quality [5].

7. Cognitive Era Considerations

The transition to a Wellbeing Economy is taking place in the context of the cognitive era, a new phase of human development characterized by the rise of artificial intelligence, big data, and other advanced technologies. These technologies have the potential to both support and undermine the goals of the Wellbeing Economy, and it is essential that we navigate this new landscape with care and intention.

On the one hand, cognitive technologies can be powerful tools for building a more just and sustainable economy. For example, AI can be used to analyze large datasets to identify the social and environmental drivers of well-being, and to design more effective policies and interventions. Big data can be used to create more personalized and responsive public services, and to empower citizens with the information they need to make informed decisions. The Internet of Things can be used to create more efficient and sustainable systems of production and consumption, and to monitor and protect our natural environment.

On the other hand, cognitive technologies also pose significant risks to the Wellbeing Economy. The automation of labor could lead to widespread job losses and exacerbate existing inequalities. The collection and use of personal data could erode privacy and create new forms of social control. The algorithms that power our digital world could perpetuate and amplify existing biases and discrimination. It is essential that we address these risks head-on, and that we develop new ethical and regulatory frameworks to ensure that cognitive technologies are used in a way that is aligned with the principles of the Wellbeing Economy.

Ultimately, the relationship between the cognitive era and the Wellbeing Economy will depend on the choices we make. We can choose to use these new technologies to create a more centralized and top-down economy, or we can use them to create a more decentralized and democratic one. We can choose to use them to maximize profits and efficiency, or we can use them to maximize human and ecological well-being. The choice is ours, and it is a choice that will have profound implications for the future of our society.

8. Commons Alignment Assessment

The Wellbeing Economy framework has a strong alignment with the principles of the commons, a paradigm that emphasizes the shared stewardship of resources and the importance of community and collaboration. This section assesses the alignment of the Wellbeing Economy with the seven dimensions of the commons.

Dimension	Alignment	Rationale
Shared Purpose	High	The Wellbeing Economy is explicitly oriented around the shared purpose of enhancing human and ecological well-being. This contrasts with the traditional economic model, which is often driven by the pursuit of private profit.
Collective Governance	High	The principle of a "people-powered" economy is central to the Wellbeing Economy. This emphasizes the importance of collective governance and participatory decision-making, which are core tenets of the commons.
Fair Distribution	High	The principle of "pre-distribution" is a key component of the Wellbeing Economy. This focuses on creating a more equitable distribution of wealth and power from the outset, which is highly aligned with the commons principle of fair distribution.
Sustainable Stewardship	High	The Wellbeing Economy recognizes the importance of living within planetary boundaries and of protecting and restoring our natural environment. This is fully aligned with the commons principle of sustainable stewardship.
Open and Accessible	Medium	While the Wellbeing Economy does not explicitly address the issue of open access to knowledge and information, its emphasis on collaboration and transparency is conducive to a more open and accessible society.
Community and Culture	High	The Wellbeing Economy recognizes the importance of social connections and community well-being. It seeks to create an economy that fosters a sense of belonging and shared identity, which is a key aspect of the commons.
Polycentric and Nested	Medium	The Wellbeing Economy is being implemented at multiple scales, from the national to the local level. This nested approach is consistent with the commons principle of polycentric governance, but the framework could be more explicit about how these different levels of governance should interact.

9. Resources & References

[1] Wellbeing Economy Alliance. (n.d.). What is a Wellbeing Economy? Retrieved from https://weall.org/what-is-wellbeing-economy

[2] Fioramonti, L. (2022). Wellbeing economy: An effective paradigm to mainstream sustainable development. Ecological Economics, 192, 107261.

[3] Stiglitz, J. E., Sen, A., & Fitoussi, J. P. (2009). Report by the Commission on the Measurement of Economic Performance and Social Progress. Commission on the Measurement of Economic Performance and Social Progress.

[4] OECD. (n.d.). Well-being and beyond GDP. Retrieved from https://www.oecd.org/en/topics/policy-issues/well-being-and-beyond-gdp.html

[5] Wellbeing Economy Governments. (n.d.). About Us. Retrieved from https://wego.org/

[6] Bellet, C., De Neve, J. E., & Ward, G. (2019). Does employee happiness have an impact on productivity? Saïd Business School, University of Oxford.