GDP can't be the only indicator of development: Wahiduddin Mahmud

Not only the GDP growth rate, but also peoples' wellbeing and the existing environmental situation should be considered as the indicators of development, Professor Wahiduddin Mahmud said today.

The former professor of economics at the Dhaka University (DU) made the comment at the opening session of fourth Bangladesh Economics Summit organised by the Economics Study Center (ESC).

Professor Wahiduddin Mahmud. File photo

The public lecture was given at an online event titled "Economics Crossing Boundaries: Possibilities & Constraints."

The lecture was moderated by Atonu Rabbani, associate professor of the DU.

If entrepreneurship grows strongly then the economy may develop even if there is moral problem, disparity and corruption, Mahmud said.

"But, the main target of the development is welfare."

The citizens do not expect such a growing society where there is huge disparity, corruption, he said 

The problem is the wellbeing is not measure in the gross domestic product (GDP), the GDP requires monetary value, he said, adding economist are now trying to consider the wellbeing and environmental impact.

The market economy is not always talking about the selfish behaviour but it talks about social welfare and environment too, he said.

Once the corruption starts then it grows and after a tipping point, the situation changes and then good people fall into problem and corruption becomes easier, said Mahmud, also chairman of the Economic Research Group, Dhaka.