Redefining Prosperity: Placing Well-being at the Heart of Policy

There is growing recognition around the globe that prosperity can no longer be defined solely in terms of gross domestic product (GDP). This is further demonstrated in the priorities set by South Africa for its Presidency of the G20 in 2025, which reflect a broader global shift toward more human-centered development. In a world facing climate disruption, deepening inequality, and rapid technological change, what truly matters is whether lives are improving in meaningful, lasting, and equitable ways.

This redefinition of prosperity has been at the heart of the Organisation for Economic Co-operation and Development (OECD), for over 20 years, and more recently through the work of its Centre on Well-being, Inclusion, Sustainability, and Equal Opportunity (WISE). The OECD has been instrumental in shifting the global conversation from economic growth at all costs, to a more holistic understanding of societal progress and guiding many governments to upgrade their evaluation frameworks for inclusive and sustainable quality of life.

The OECD Well-being Framework: Measuring What Truly Matters

Central to this shift is the OECD Well-being Framework, which measures the different aspects of well-being to help monitor progress and design people-centered policies. It goes beyond income, incorporating dimensions such as health, education, environmental quality, social connections, and access to housing and work. By collecting key statistics on well-being, the OECD monitors people’s quality of life and relational well-being in the context of the digital, demographic, and green transitions, while helping countries understand whether life is getting better and whether the benefits of progress are being shared equally. For G20 countries, under South Africa’s leadership, this framework offers a concrete method for aligning economic and social goals, ensuring that growth translates into shared and lasting prosperity. These efforts could build on ongoing G7 work, as outlined below and in a 2023 OECD Report.

Well-being is a Central Pillar for Economic and Social Policymaking

In November 2024, the 7^th OECD World Forum on Well-being, organised in the context of the Italian G7 Presidency, brought together policymakers, researchers, civil society and businesses from around the world to reflect on how well-being can serve as a central pillar of economic and social policymaking. The Forum made the case for strengthening approaches for centering multidimensional well-being in policy, measurement, and societal action. With its focus on inclusion, sustainability, and structural reform, South Africa’s G20 agenda aligns closely with some of the key themes and insights that emerged from discussions at the Forum.

First, on inclusive economic growth and development, there is a growing consensus that future growth must be inclusive by design. Income, health, education, and environmental quality are deeply interconnected; neglecting any of these weakens long-term development. This reinforces South Africa’s objective of tackling inequality through structural reforms. One approach gaining traction is preventive spending and social investment—strategically channelling resources into areas like early childhood development, healthcare, and social protection to reduce long-term vulnerabilities. This shifts social spending from a perceived cost to a tool for resilience and stability, supporting a recovery that leaves no one behind. This approach was also highlighted by the recent OECD Social Policy Ministerial as a promising area of future work and a commitment for OECD countries.

Second, looking at climate action through a social lens. Climate action is increasingly being framed not just in environmental or economic terms but as an intrinsic social issue. The uneven capacity of communities to manage the effects of climate policies, particularly in developing contexts, highlights the need for a just transition. South Africa’s G20 agenda puts this issue front and center, advocating for energy transitions that are equitable, people-focused, and tailored to national contexts. What’s being emphasized in recent policy discussions is the importance of integrating social protections into climate strategies. A green transition that ignores employment, affordability, or access risks reinforcing the very inequalities it seeks to address. These insights are essential to shaping climate policies that are both effective and fair.

Third, seeking to revitalize global cooperation and governance. A renewed commitment to international collaboration is urgently needed to address shared global challenges. This call resonates with South Africa’s G20 agenda, which aims to restore trust in global institutions and reform multilateral frameworks to better reflect the priorities of the Global South. There is also increasing interest in leveraging public-private partnerships in building resilient infrastructure and securing sustainable, long-term financing for development. A call for transparent reporting on the social and inequality-related impacts of business for promoting accountability, as advocated by the Taskforce on Inequality and Social-related Financial Disclosures (TISFD), is seen as a key action for advancing international collaboration along with stronger research collaboration between government and industry to drive innovation and shape effective, evidence-based responses to major challenges. South Africa’s leadership in the G20 presents an opportunity to push this agenda forward.

Finally, in terms of health, well-being, and digital transformation, discussions around health and technology are pointing toward a broader understanding of well-being, one that considers the nexus between mental health, social connection, and environmental stressors in the digital context. There is a shift whereby health is no longer just about access to services, but is considered a condition shaped by a wide range of social determinants, which closely aligns with South Africa’s G20 focus on universal health coverage and building health systems that are responsive to long-term demographic and environmental pressures. Furthermore, coordinated action is needed for the digital transformation to harness the benefits while managing its risks, particularly by addressing inequalities in access and employment opportunities, complementing South Africa’s priority to ensure that the digital transformation is inclusive, equitable, and accessible.

Taking Action for a Resilient Future

The OECD WISE Centre’s work on well-being can offer valuable guidance for South Africa’s G20 Presidency through three main recommendations:

• First, integrating well-being approaches throughout decision-making and budgeting processes. For the G20, this means aligning financial flows and policy decisions with broader well-being goals and embedding well-being frameworks and human capital development into national and international processes.
• Second, deepening understanding of how major transitions—economic, social, and environmental—are shaping people’s lives today and in the future. This insight is particularly useful for the G20 South Africa Presidency as it navigates the complex landscape of a just energy transition and the digital transformation. Understanding how these transitions affect individuals, communities, and nations will allow the G20 to tailor its policies more effectively, ensuring that vulnerable populations are not left behind.
• Third, promoting inclusive collaboration by engaging a diverse range of stakeholders, particularly those most at risk. Building broad partnerships is essential for achieving shared goals and restoring global trust.

By advancing these priorities, South Africa can lead a G20 that places people’s lives at the center of global progress.

Special thanks to Ms. Taylor Kelly, Communications and Partnerships Coordinator, for her invaluable contributions and support in the development of this article.

Featured image credit: Photo by Brother Yoon on Unsplash