Gross Domestic Product (GDP) is one of the most commonly used indicators in global politics to assess economic performance. It measures the total value of goods and services produced within a country over a given period. While GDP is useful for tracking economic activity, IB Global Politics emphasises that GDP is an imperfect measure of development because it fails to capture many aspects of human well-being, justice, and sustainability.
One major limitation of GDP is that it measures economic output, not quality of life. A country may have a high GDP while large sections of its population experience poor health, low education levels, or inadequate living conditions. GDP does not show whether people can access basic services or enjoy a decent standard of living. This makes it insufficient for evaluating development as experienced by individuals.
GDP also ignores inequality. It calculates total economic output but does not show how wealth is distributed. Economic growth may benefit a small elite while the majority see little improvement. From a global politics perspective, this is a serious flaw because development is closely linked to fairness and inclusion. A rising GDP can coexist with deep social injustice.
Another weakness is that GDP fails to account for non-market activities. Unpaid work such as caregiving, household labour, and volunteer activity contributes significantly to social well-being but is excluded from GDP calculations. This omission undervalues contributions that are essential for human development and disproportionately affects how women’s labour is recognised.
GDP also overlooks environmental sustainability. Economic growth that relies on resource depletion or environmental damage increases GDP in the short term but may undermine long-term development. Pollution, deforestation, and climate harm are not subtracted from GDP figures. As a result, GDP can rise even as future well-being declines.
Additionally, GDP does not reflect political and social conditions. It says nothing about political freedom, human rights, security, or legitimacy. A country can grow economically while restricting civil liberties or engaging in repression. IB Global Politics requires students to recognise that development is inseparable from governance and justice.
Finally, GDP can be misleading in global comparisons. Differences in cost of living, population size, and informal economies mean GDP figures do not always reflect real living standards. This limits its usefulness as a comparative development indicator.
For IB Global Politics students, GDP should be understood as a narrow economic tool, not a comprehensive measure of development. High-level answers explain why GDP is limited and evaluate the need for broader indicators that better reflect human well-being, equality, and sustainability.
Frequently Asked Questions (FAQ)
What does GDP measure?
GDP measures the total value of goods and services produced in an economy. It shows economic activity, not well-being. IB students should clearly distinguish GDP from development.
Why is GDP not a good measure of development?
GDP ignores inequality, quality of life, and sustainability. It does not show how people actually live. This makes it an incomplete development indicator.
Can GDP increase while development declines?
Yes, GDP can rise while inequality grows or environmental damage worsens. Development may decline in human terms. This contradiction is central to IB analysis.
Why is GDP still used in global politics?
GDP is easy to measure and compare. It provides useful economic data. However, it should be used alongside other indicators. IB answers should reflect this balance.
How should this topic be answered in exams?
Students should explain what GDP measures and evaluate its limitations. Comparing GDP with broader indicators strengthens answers. Linking GDP to justice and sustainability improves marks.
