Wellbeing economics 101: A transformative approach that centres people and planet

As traditional economic models deplete the environment, how can we flip the script? Warwick Smith explains wellbeing economics.

Do you know in Wales,your doctor can prescribe you a bike? It's all part of the country'sWell-being of Future Generations Act.

This act and its outcomes are wellbeing economics in action, which aims to move us towards a more holistic approach to 'progress'.

"Traditional economics tends to be extractive," says Warwick, "depleting natural ecosystems to feed the economy."

In contrast, wellbeing economics acknowledges our place within our ecosystem. "The catchphrase for wellbeing economics is an economy that works for people and planet," Warwick explains.

"In First Nations framing, there's no separation between people and Country," Warwick says.

The four P's of wellbeing economics

1. Purpose: "We need to orient the economy according to our shared human values."

2. Prevention: "Preventing problems from arising in the first place."

3. Pre-distribution: Structuring the economy so everyone has access to decent jobs and living conditions from the start.

4. People-powered: "Being people-powered is about democratising the economy."

Learning from global and local examples

New Zealand and various Nordic nations have also adopted wellbeing frameworks.

Wellbeing economics draws many parallels with doughnut economics, whichwe at Regen Melbourne have created a local version of.

The path forward

"We're advocating for a really broad national conversation," Warwick says.

"People need to feel they are not just passive participants in an inevitable system. They can have their voices heard. They can be part of driving change."

Read theCentre for Policy Development's 'The Wellbeing Economy in Brief'.