Beyond GDP: How Subjective Well-Being is Shaping Social Policies

Lena Voss in Politics & Policy August 2025 • 4 min read.

"Discover how international systems are using subjective indicators to measure well-being and drive policy changes for a happier, healthier society."

For decades, social policies primarily focused on tangible metrics such as employment rates, income levels, and access to healthcare. These indicators, while crucial, often overlooked a vital aspect of human existence: subjective well-being. Subjective well-being encompasses how people experience and evaluate their lives, including their emotional states, life satisfaction, and overall sense of purpose.

The integration of subjective well-being into policy-making marks a significant shift towards a more holistic and people-centered approach. By understanding what truly matters to individuals, governments can craft more effective and responsive policies. This article explores how international systems are now incorporating subjective indicators to evaluate well-being, influence governance, and ultimately foster a happier and healthier society.

We delve into the concept of well-being, examining its indicators and relationship with social policy decisions and governance. What insights can we gain from scientific literature and international guidelines about the multidimensional relationships between well-being and governance? Join us as we explore this evolving landscape.

Why Subjective Well-Being Matters: The Limitations of Traditional Indicators

Surreal illustration of well-being indicators shaping policy.

Traditional indicators, such as Gross Domestic Product (GDP), have long been the primary measures of a nation's progress. However, GDP primarily reflects economic activity and fails to capture the nuances of social progress and individual well-being. While economic growth is essential, it doesn't guarantee improvements in citizens' quality of life, mental health, or social connections.

Subjective well-being provides a more comprehensive view by considering factors like social support, personal freedom, and environmental quality. By integrating these indicators, policymakers gain a better understanding of the impact of their decisions on citizens' lives. Amartya Sen, in his book "Development as Freedom," argues that development should extend beyond economic factors to include improvements in individual freedoms, such as education, health, and civil rights.

Health: Good health is a cornerstone of well-being. Policies that promote access to healthcare, preventive services, and mental health support are crucial.
Relationships: Strong interpersonal relationships provide emotional support and a sense of belonging. Policies that foster community engagement and social inclusion can enhance well-being.
Material Conditions: Adequate material conditions for a safe life include access to food, housing, and other basic necessities. Policies aimed at reducing poverty and inequality are essential.
Personal Needs: The fulfillment of personal needs, such as autonomy, purpose, and self-esteem, contributes to overall well-being. Policies that support education, personal development, and creative expression can help individuals thrive.

In Portugal, where significant inequalities exist between population groups and territories, understanding and addressing subjective well-being is particularly crucial. By analyzing the relationship between people's well-being and social and territorial inequalities, policymakers can develop targeted interventions to improve the lives of all citizens.

The Path Forward: Integrating Well-Being into Policy and Governance

As interest in citizen well-being grows, it's clear that a country's political system and formal institutions significantly impact the population's overall health. A comprehensive social protection network, encompassing policies and programs designed to safeguard against social, economic, and health risks, is essential for higher levels of well-being for all citizens. By prioritizing subjective well-being, governments can foster a society where individuals thrive, contributing to a more equitable and prosperous future for all.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2401.17047,

Title: Determinants Of Well-Being

Subject: econ.gn q-fin.ec

Authors: Cristina Pereira, Hermínia Gonçalves, Teresa Sequeira

Published: 30-01-2024

Everything You Need To Know

What is subjective well-being, and how does it differ from traditional economic indicators like GDP?

Subjective well-being refers to how people experience and evaluate their lives, including their emotional states, life satisfaction, and overall sense of purpose. Unlike traditional indicators such as Gross Domestic Product (GDP), which primarily reflects economic activity, subjective well-being considers a broader range of factors. These factors include social support, personal freedom, and environmental quality. While GDP focuses on economic growth, subjective well-being offers a more comprehensive view of social progress and individual well-being, capturing elements that economic metrics often overlook, such as mental health and social connections.

Why is incorporating subjective well-being into social policies considered a significant shift, and what are the benefits?

The integration of subjective well-being into policy-making represents a move toward a more holistic and people-centered approach. Governments can craft more effective and responsive policies by understanding what truly matters to individuals. This shift allows policymakers to gain a better understanding of the impact of their decisions on citizens' lives, considering factors beyond economic indicators. The benefits include the creation of policies that foster stronger social support, enhance personal freedom, and promote environmental quality, ultimately contributing to a happier and healthier society.

How do factors such as Health, Relationships, Material Conditions, and Personal Needs contribute to overall well-being?

Health is a cornerstone of well-being, and policies that promote access to healthcare, preventive services, and mental health support are crucial. Strong interpersonal relationships provide emotional support and a sense of belonging, thus policies that foster community engagement and social inclusion can enhance well-being. Adequate material conditions for a safe life, including access to food, housing, and other basic necessities, are essential. Finally, the fulfillment of personal needs, such as autonomy, purpose, and self-esteem, contributes to overall well-being, which is supported by policies promoting education, personal development, and creative expression.

How can countries address inequalities and improve the lives of all citizens by focusing on subjective well-being, as exemplified by the case of Portugal?

In countries like Portugal, where significant inequalities exist, understanding and addressing subjective well-being is particularly crucial. By analyzing the relationship between people's well-being and social and territorial inequalities, policymakers can develop targeted interventions. This approach allows for the creation of policies that reduce disparities and improve the lives of all citizens. It involves a comprehensive understanding of how various factors, such as health, relationships, material conditions, and personal needs, affect different population groups, and then tailoring policies to address those specific challenges.

What role do a country's political system and formal institutions play in the population's overall health and well-being, and what kind of social protection is essential?

A country's political system and formal institutions significantly impact the population's overall health, emphasizing the need for a comprehensive social protection network. This network includes policies and programs designed to safeguard against social, economic, and health risks, which is essential for higher levels of well-being for all citizens. By prioritizing subjective well-being, governments can foster a society where individuals thrive. This contributes to a more equitable and prosperous future by addressing factors such as health, relationships, material conditions, and personal needs to create a supportive environment where all citizens can flourish.