This paper reports an updated version of the GPI published by The Australia Institute in 1997. The paper is in two parts, the first providing the rational for the GPI and raising some methodological issues. The second part provides a comprehensive discussion of each component making up the GPI.

This discussion paper is part of the Australia Institute’s work program on measuring quality of life. The Institute has formed a collaborative partnership with Newcastle City Council to build an indicator series against which the Newcastle community’s progress towards sustainability can be measured.

This study uses a survey of 1200 Australians to investigate public perceptions of quality of life in Australia. It contradicts recent claims of a new mood of optimism in Australia and adds to the body of evidence that suggests our policy makers give too much emphasis to economic growth at all costs.

It has long been recognised that GDP growth does not correlate well with changes in social welfare, i.e. national well-being. The GPI adjusts GDP by 23 factors that reflect some of the social and environmental costs of economic growth to give a better measures of changes in national prosperity. This paper explores these issues in