Economic development has traditionally been assessed through conventional indicators such as Gross Domestic Product (GDP). Although these metrics capture aggregate national output, they frequently fail to account for the lived realities and well-being of individuals. In 2025, numerous economies are contending with pronounced inflationary pressures that expose the limitations of models centered narrowly on growth. Inflation across several countries is projected to rise substantially, driven by escalating food prices, increasing labor costs, and expanding social contributions. While these trends are linked to broader structural transformations within the global economy, their immediate consequences fall disproportionately on households, deepening the cost-of-living crisis and undermining social stability.
Such dynamics compel us to reconsider the very meaning of progress. If rising output is accompanied by widening inequality, financial precarity, and declining well-being, can this genuinely be regarded as development? The paradigm of the “economics of happiness” offers a compelling alternative. Rather than privileging material expansion alone, it foregrounds values such as social cohesion, psychological health, equity, and overall quality of life. From this perspective, societies are encouraged to ask not simply how much they produce, but how well their populations are able to live.
In today’s complex and uncertain world, happiness cannot be reduced to mere consumerism or material accumulation. It is contingent upon secure livelihoods, resilient communities, equitableaccess to education and healthcare, and the assurance of human dignity. By embedding such human-centered measures in governance and policy, states can move beyond GDP-oriented models toward a framework of sustainable well-being. In an era marked by inflationary pressures and social stress, the most accurate measure of progress may lie in the ability to cultivate societies in which individuals can thrive, rather than merely consume.
At the Summer Peace University 2025, these questions will be examined during the dedicated week on The Economics of Happiness. By reconceptualizing prosperity in terms of human fulfillment and collective resilience, the program seeks to inspire a vision of the future in which well-being, rather than simple growth, constitutes the foundation of development.