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Wellbeing Economy

Also known as: Well-being Economy, Economy of Well-being

1. Overview

A Wellbeing Economy is a model where the economy’s primary goal is to serve the wellbeing of people and the planet, rather than focusing on perpetual economic growth as the main indicator of success. It represents a paradigm shift from the current system, which often prioritizes profit and Gross Domestic Product (GDP) at the expense of social and environmental well-being. The core problem a Wellbeing Economy seeks to solve is the inherent unsustainability and inequality of the growth-oriented economic model. This traditional model has led to significant environmental degradation, social disparities, and a disconnect between economic indicators and genuine human flourishing. By reorienting the economy around wellbeing, this approach aims to create a more just, sustainable, and prosperous society for all.

The concept of a Wellbeing Economy has evolved over several decades, with roots in various alternative economic theories and movements. The term itself gained prominence in the early 2000s, but its intellectual foundations can be traced back to earlier critiques of GDP and the development of alternative progress indicators. The establishment of the Wellbeing Economy Alliance (WEAll) in 2018 marked a significant milestone in consolidating the movement and bringing together a global network of organizations, academics, and policymakers. The origin of the Wellbeing Economy is not attributed to a single individual but rather to a collective effort of thinkers and practitioners who recognized the limitations of the prevailing economic paradigm and sought to create a more humane and sustainable alternative.

2. Core Principles

The Wellbeing Economy is built upon a set of core principles that guide its design and implementation. These principles represent a fundamental departure from the traditional economic model and provide a framework for creating a more just and sustainable world. The Wellbeing Economy Alliance (WEAll) has articulated four key principles that are central to this approach:

Purpose: The primary purpose of the economy is to promote shared wellbeing for people and the planet. This principle challenges the conventional focus on economic growth (as measured by GDP) as the ultimate goal of economic activity. Instead, it emphasizes the importance of creating an economy that is oriented around meeting human needs, enhancing quality of life, and protecting the environment. This involves a shift in our collective values and priorities, as well as a redefinition of what it means for a society to be prosperous.
Prevention: A Wellbeing Economy seeks to prevent problems from occurring in the first place, rather than simply trying to fix them after they have emerged. This proactive approach is applied to a wide range of issues, including poverty, inequality, and environmental degradation. For example, instead of relying on social safety nets to address the consequences of low wages, a Wellbeing Economy would focus on ensuring that all workers are paid a living wage. Similarly, instead of cleaning up pollution after it has been created, a Wellbeing Economy would promote circular economy models that design out waste and pollution from the start.
Pre-distribution: This principle focuses on creating a more equitable distribution of wealth, income, and power from the outset, rather than relying on redistribution through taxes and social programs. Pre-distribution aims to address the root causes of inequality by ensuring that the economy is designed to be fair and inclusive. This can be achieved through a variety of mechanisms, such as promoting worker ownership and cooperative business models, strengthening collective bargaining rights, and ensuring that everyone has access to essential public services like education and healthcare.
People-Powered: A Wellbeing Economy is one that is shaped and controlled by the people it is meant to serve. This principle emphasizes the importance of democratic participation and citizen engagement in economic decision-making. It calls for a shift away from top-down, expert-led approaches to policymaking and towards more collaborative and participatory models. This can involve a variety of practices, such as participatory budgeting, citizen assemblies, and community-led development initiatives.

3. Key Practices

The transition to a Wellbeing Economy involves the implementation of a wide range of practices that are designed to put the core principles into action. These practices are being pioneered by governments, businesses, and civil society organizations around the world. Here are some of the key practices that are central to the Wellbeing Economy model:

Adopting Alternative Progress Indicators: A fundamental practice of the Wellbeing Economy is the adoption of a broader set of indicators to measure progress beyond GDP. These indicators are designed to capture the social, environmental, and human dimensions of wellbeing that are not reflected in traditional economic measures. Examples include the Genuine Progress Indicator (GPI), the Happy Planet Index (HPI), and the OECD’s Better Life Index. These indicators provide a more holistic picture of a country’s performance and can help to guide policy decisions towards a more sustainable and equitable future.
Implementing Wellbeing Budgets: A growing number of governments are adopting wellbeing budgets, which prioritize investments in areas that are known to enhance wellbeing, such as mental health, child development, and environmental protection. New Zealand’s Wellbeing Budget, introduced in 2019, is a leading example of this approach. The budget is organized around a set of wellbeing priorities, and all spending decisions are assessed for their impact on these priorities. This approach helps to ensure that public resources are being used in a way that is aligned with the goal of promoting shared wellbeing.
Promoting Circular Economy Models: The circular economy is a key practice for creating a more sustainable and regenerative economic system. It involves designing products and systems that eliminate waste and pollution, keep materials in use for as long as possible, and regenerate natural systems. This approach is in stark contrast to the linear take-make-dispose model of the traditional economy. By embracing circular economy principles, businesses can reduce their environmental impact, create new economic opportunities, and build a more resilient and sustainable economy.
Supporting Social Enterprises and Cooperatives: Social enterprises and cooperatives are business models that are designed to create social and environmental value, in addition to financial returns. These organizations are often at the forefront of the Wellbeing Economy movement, as they are demonstrating that it is possible to do business in a way that is both profitable and purposeful. Governments can support the growth of this sector through a variety of mechanisms, such as providing access to finance, creating a supportive legal and regulatory environment, and promoting public procurement from social enterprises.
Investing in Public Services and Social Infrastructure: A Wellbeing Economy recognizes that access to high-quality public services, such as healthcare, education, and social care, is essential for human flourishing. It also emphasizes the importance of investing in social infrastructure, such as community centers, libraries, and green spaces, which can help to build social connections and a sense of community. These investments are not seen as a cost, but rather as a critical investment in the long-term wellbeing of society.

4. Application Context

Best Used For:

National and regional governments seeking to move beyond GDP as the primary measure of success and adopt a more holistic approach to policymaking.
Cities and local communities aiming to create more livable, equitable, and sustainable urban environments.
Businesses and social enterprises that want to align their operations with a broader social and environmental purpose.
Civil society organizations and community groups working to build a more just and sustainable world from the ground up.
International organizations and development agencies seeking to promote a more sustainable and equitable model of global development.

Not Suitable For:

Organizations or contexts that are solely focused on maximizing short-term financial returns without regard for social or environmental consequences.
Situations where there is a lack of political will or public support for a fundamental shift in economic priorities.
Contexts where there is a lack of data or capacity to measure and monitor wellbeing outcomes.

Scale:

The Wellbeing Economy is a multi-scale pattern that can be applied at all levels of society, from the individual to the global. It can be implemented by:

Individuals through their consumption choices and their engagement in community life.
Teams and departments within organizations that are seeking to create a more positive and supportive work environment.
Organizations that are committed to a triple bottom line of people, planet, and profit.
Multi-organization collaborations and networks that are working to create a more sustainable and equitable economy.
Ecosystems of businesses, governments, and civil society organizations that are working together to create a Wellbeing Economy at the regional, national, or global level.

Domains:

The Wellbeing Economy is a cross-cutting pattern that is relevant to all domains of society. It is particularly applicable to:

Public policy and governance: Reforming economic and social policy to prioritize wellbeing.
Business and finance: Developing new business models and investment strategies that are aligned with wellbeing goals.
Health and social care: Creating a more holistic and person-centered approach to health and wellbeing.
Education and lifelong learning: Equipping people with the skills and knowledge they need to thrive in a Wellbeing Economy.
Environmental protection and regeneration: Creating a more sustainable and regenerative relationship with the natural world.

5. Implementation

Implementing a Wellbeing Economy requires a concerted and coordinated effort from all sectors of society. It is a long-term process of transformation that involves a fundamental shift in our economic and social systems. Here are some of the key elements of implementation:

Prerequisites:

Political Will and Leadership: A successful transition to a Wellbeing Economy requires strong political will and leadership at all levels of government. This includes a commitment to moving beyond GDP as the primary measure of success, as well as a willingness to challenge vested interests and embrace new ways of thinking.
Public Awareness and Engagement: A broad-based public conversation is needed to build awareness and support for the Wellbeing Economy. This involves engaging citizens in a dialogue about their values and priorities, and empowering them to participate in the co-creation of a new economic vision.
Data and Measurement: A robust data and measurement infrastructure is needed to track progress towards a Wellbeing Economy. This includes the development of a comprehensive set of wellbeing indicators, as well as the capacity to collect, analyze, and report on this data in a timely and accessible way.

Getting Started:

Establish a National Commission on Wellbeing: A high-level commission can be established to lead the transition to a Wellbeing Economy. This commission should be composed of representatives from government, business, civil society, and academia, and should be tasked with developing a national wellbeing framework and a roadmap for implementation.
Launch a Public Dialogue: A series of public dialogues and consultations can be organized to engage citizens in a conversation about the future of the economy. These dialogues can help to build a shared understanding of the need for change and to generate ideas for how to create a more just and sustainable economy.
Pilot Wellbeing Initiatives: A number of pilot projects can be launched to test and refine different approaches to building a Wellbeing Economy. These pilots can be focused on specific sectors, such as housing, food, or energy, or on specific geographic areas, such as a city or a region.

Common Challenges:

Resistance from Vested Interests: The transition to a Wellbeing Economy will inevitably be met with resistance from those who benefit from the current economic system. This can include powerful corporations, financial institutions, and political actors who are committed to the ideology of economic growth.
Lack of Public Understanding: The concept of a Wellbeing Economy can be complex and difficult to communicate to the general public. There is a risk that it will be dismissed as a niche or idealistic concept that is not relevant to the real world.
Short-Term Political Cycles: The long-term nature of the transition to a Wellbeing Economy can be at odds with the short-term focus of the political cycle. There is a risk that politicians will be reluctant to make the necessary investments and policy changes if they do not see an immediate political payoff.

Success Factors:

A Strong and Diverse Coalition: A broad-based coalition of support is needed to drive the transition to a Wellbeing Economy. This coalition should include representatives from all sectors of society, and should be united by a shared vision for a more just and sustainable future.
A Clear and Compelling Narrative: A clear and compelling narrative is needed to communicate the vision of a Wellbeing Economy to the general public. This narrative should be positive, aspirational, and grounded in the everyday experiences of people’s lives.
A Focus on Practical and Achievable Steps: The transition to a Wellbeing Economy should be approached as a series of practical and achievable steps, rather than as a single, monolithic project. This can help to build momentum and to demonstrate the tangible benefits of the new approach.

6. Evidence & Impact

The Wellbeing Economy is not just a theoretical concept; it is a growing movement with a growing body of evidence to support its effectiveness. Around the world, countries, cities, and organizations are experimenting with new ways of organizing their economies to prioritize wellbeing. Here is some of the evidence of the impact of this approach:

Notable Adopters:

The Wellbeing Economy Governments (WEGo) Partnership: This is a collaboration between the governments of Scotland, New Zealand, Iceland, Wales, Finland, and Canada. These countries are working together to share best practices and to advance the transition to a Wellbeing Economy.
Bhutan: The Himalayan kingdom of Bhutan has famously prioritized Gross National Happiness (GNH) over GDP since the 1970s. GNH is a holistic measure of progress that includes nine domains: psychological wellbeing, health, education, time use, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, and living standards.
Amsterdam, Netherlands: The city of Amsterdam has embraced the “doughnut” model of economics, developed by economist Kate Raworth. The doughnut model provides a framework for creating a city that is both socially just and environmentally sustainable.
Cleveland, USA: The “Cleveland Model” is a form of community wealth building that is designed to create a more inclusive and equitable local economy. The model is based on a network of worker-owned cooperatives that are anchored by local institutions, such as hospitals and universities.
The Emilia-Romagna region of Italy: This region has a long history of cooperative enterprise, and it is now a leading example of a regional economy that is based on principles of social and economic solidarity.

Documented Outcomes:

Improved Health and Wellbeing: Studies have shown that countries with a stronger focus on wellbeing tend to have better health outcomes, higher levels of life satisfaction, and lower levels of inequality.
Increased Social Cohesion: By investing in social infrastructure and promoting community engagement, the Wellbeing Economy can help to build stronger and more resilient communities.
Reduced Environmental Impact: By promoting circular economy models and investing in renewable energy, the Wellbeing Economy can help to reduce our collective environmental footprint.
A More Resilient and Stable Economy: By diversifying the economy and reducing our reliance on volatile global markets, the Wellbeing Economy can help to create a more resilient and stable economic system.

Research Support:

The World Happiness Report: This annual report, published by the United Nations Sustainable Development Solutions Network, provides a comprehensive overview of the state of global happiness. The report consistently finds that the happiest countries in the world are not necessarily the wealthiest, but rather those that have a strong sense of community, a high level of social trust, and a healthy work-life balance.
The OECD Better Life Initiative: This initiative, launched by the Organisation for Economic Co-operation and Development (OECD), provides a wealth of data and analysis on the different dimensions of wellbeing. The initiative’s Better Life Index allows users to compare countries’ performance on a range of topics, including housing, income, jobs, community, education, environment, civic engagement, health, life satisfaction, safety, and work-life balance.
The work of the Wellbeing Economy Alliance (WEAll): WEAll is a global collaboration of organizations, academics, and policymakers who are working to build a Wellbeing Economy. The organization’s website provides a wealth of resources, including research papers, case studies, and policy toolkits.

7. Cognitive Era Considerations

The transition to a Wellbeing Economy is taking place in the context of the cognitive era, a period of rapid technological advancement characterized by the rise of artificial intelligence (AI) and automation. These technologies have the potential to both support and challenge the goals of a Wellbeing Economy. Here are some of the key considerations for navigating this new landscape:

Cognitive Augmentation Potential:

AI and automation can be powerful tools for advancing the Wellbeing Economy. For example, AI-powered data analysis can be used to gain a deeper understanding of the drivers of wellbeing and to design more effective policies and interventions. Automation can be used to free up human workers from dull, dangerous, and dirty jobs, allowing them to focus on more creative and fulfilling work. And AI-powered platforms can be used to facilitate citizen engagement and participatory decision-making.

Human-Machine Balance:

As we increasingly rely on AI and automation, it is important to ensure that we maintain a healthy balance between human and machine intelligence. While AI can be a powerful tool for augmenting human capabilities, it is not a substitute for human judgment, empathy, and creativity. A Wellbeing Economy will be one that is designed to support human flourishing, and this will require a careful and considered approach to the integration of AI and automation into our economic and social systems.

Evolution Outlook:

The cognitive era is likely to accelerate the evolution of the Wellbeing Economy. As AI and automation become more sophisticated, they will create new opportunities to create a more just, sustainable, and prosperous world. For example, AI could be used to create personalized education and healthcare systems, to optimize our use of energy and resources, and to create new forms of democratic participation. However, it is also important to be mindful of the potential risks and challenges associated with these technologies, such as job displacement, algorithmic bias, and the erosion of privacy. A successful transition to a Wellbeing Economy will require a proactive and adaptive approach to governing the development and deployment of AI and automation.

8. Commons Alignment Assessment (v2.0)

This assessment evaluates the pattern based on the Commons OS v2.0 framework, which focuses on the pattern’s ability to enable resilient collective value creation.

1. Stakeholder Architecture: The Wellbeing Economy pattern establishes a broad stakeholder architecture that explicitly includes people, the planet, and future generations, moving beyond a narrow focus on shareholders or consumers. It defines Rights and Responsibilities through its principles of “pre-distribution” and “people-powered” governance, which advocate for more equitable distribution of wealth and democratic participation in economic decision-making. This framework sets the stage for a more inclusive and accountable system.

2. Value Creation Capability: The pattern fundamentally redefines value creation, shifting the focus from pure economic output (GDP) to a multidimensional concept of wellbeing. It enables the creation of social value (equity, community vitality), ecological value (environmental protection, regeneration), and knowledge value (lifelong learning). By prioritizing wellbeing, it fosters a system where the economy serves as a tool for holistic and resilient value creation for all.

3. Resilience & Adaptability: The Wellbeing Economy pattern enhances resilience by promoting economic diversification, reducing reliance on volatile global markets, and strengthening local communities. Its proactive, prevention-oriented approach helps systems anticipate and mitigate crises rather than just reacting to them. The framework’s adaptability is evident in its application across different scales and contexts, as well as its explicit consideration of technological shifts in the cognitive era.

4. Ownership Architecture: The pattern challenges traditional ownership models by emphasizing “pre-distribution” and supporting cooperative and worker-owned enterprises. This approach redefines ownership as a set of Rights and Responsibilities for stewarding resources and sharing value equitably, rather than just a claim to monetary equity. It lays the groundwork for an ownership architecture that is more aligned with collective wellbeing.

5. Design for Autonomy: The Wellbeing Economy is highly compatible with autonomous systems, as it favors decentralized, participatory, and “people-powered” structures, which inherently lower coordination overhead. The “Cognitive Era Considerations” section directly explores the integration of AI and automation to augment human capabilities and improve wellbeing outcomes. The pattern’s principles support the design of systems where human and machine intelligence can collaborate effectively.

6. Composability & Interoperability: As a “meta-pattern,” the Wellbeing Economy is designed for high composability and interoperability. It naturally integrates with other patterns such as the Circular Economy, Renewable Energy, and various forms of social enterprise and cooperative models. This allows for the construction of larger, more complex value-creation systems tailored to specific contexts.

7. Fractal Value Creation: The pattern exhibits strong fractal properties, as its core principles of purpose, prevention, pre-distribution, and people-power can be applied at all scales—from individuals and local communities to national governments and global networks. This scalability allows the value-creation logic to be replicated and adapted, creating a coherent and resilient system across multiple levels.

Overall Score: 4 (Value Creation Enabler)

Rationale: The Wellbeing Economy pattern is a powerful enabler of collective value creation, providing a comprehensive framework and a compelling narrative for shifting from a growth-centric to a wellbeing-centric economy. It strongly aligns with all seven pillars of the Commons OS v2.0 framework. While it provides the high-level architecture, its implementation relies on composing it with other, more specific patterns, which is why it is rated as a “Value Creation Enabler” rather than a complete, self-contained “Value Creation Architecture.”

Opportunities for Improvement:

Develop more standardized and universally accepted metrics for wellbeing to make the framework more actionable and comparable across different contexts.
Strengthen the connection between the high-level principles and the concrete design of autonomous, AI-driven systems to ensure they are aligned with wellbeing goals.
Create more explicit guidance on how to navigate the political and economic challenges of transitioning from a legacy system, particularly in overcoming resistance from vested interests.

9. Resources & References

Essential Reading:

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth: This influential book introduces the concept of the “doughnut” as a framework for creating a safe and just space for humanity. It provides a powerful critique of mainstream economics and offers a compelling vision for a more sustainable and equitable future.
The Wellbeing Economy: An Effective Paradigm to Mainstream Post-Growth Policies? by Lorenzo Fioramonti et al.: This academic paper provides a comprehensive overview of the Wellbeing Economy concept, including its key features, theoretical underpinnings, and practical applications.
A Finer Future: Creating an Economy in Service to Life by L. Hunter Lovins, Stewart Wallis, Anders Wijkman, and John Fullerton: This book offers a practical guide to building a regenerative economy that is in service to life. It provides a wealth of examples and case studies of businesses and communities that are already putting the principles of a Wellbeing Economy into practice.

Organizations & Communities:

Wellbeing Economy Alliance (WEAll): The leading global collaboration of organizations, alliances, movements, and individuals working together to transform the economic system into one that delivers social justice on a healthy planet.
Wellbeing Economy Governments (WEGo): A group of national and regional governments promoting the sharing of expertise and transferable policy practice to advance their shared ambition of building wellbeing economies.
The Club of Rome: An organization of scientists, economists, business leaders, and former politicians who are dedicated to addressing the complex challenges facing humanity.

Tools & Platforms:

The OECD Better Life Index: An interactive tool that allows you to compare wellbeing across countries, based on 11 topics the OECD has identified as essential, in the areas of material living conditions and quality of life.
The Happy Planet Index: A measure of sustainable wellbeing, which ranks countries on how efficiently they are using their natural resources to create long and happy lives for their citizens.

References:

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

[2] Wikipedia. (2025, September 12). Wellbeing economy. Retrieved from https://en.wikipedia.org/wiki/Wellbeing_economy

[3] Fioramonti, L., Coscieme, L., Costanza, R., Kubiszewski, I., Trebeck, K., Wallis, S., … & De Vogli, R. (2022). Wellbeing economy: An effective paradigm to mainstream post-growth policies?. Ecological Economics, 192, 107261.

[4] Raworth, K. (2017). Doughnut economics: seven ways to think like a 21st-century economist. Chelsea Green Publishing.

[5] Lovins, L. H., Wallis, S., Wijkman, A., & Fullerton, J. (2018). A finer future: Creating an economy in service to life. New Society Publishers.