This report, conducted by the MERGE consortium, presents a shortlist of potential policy instruments that promote sustainable and inclusive wellbeing (SIW) regardless of economic growth. It includes a short overview of each policy instrument, its goals and benefits contributing to SIW, and its usage in real-life examples. The report also briefly addresses technical infrastructure and governance elements that support these instruments.
No single metric or policy can transform society on its own. To build an economy that supports the wellbeing of all people — now and in the future — and protects the planet, we need a coordinated system of models, metrics, and policies, backed by strong technical and governance infrastructure.
The three-element framework
To shift away from the dominant focus on economic growth, we use a three-part framework that integrates:
- Technical infrastructure: The formal metrics and systems (like indicators, indices, dashboards, and standardised data models) that guide how we measure progress.
- Governance: The institutions, processes, and structures that support effective policymaking, including reporting and monitoring systems.
- Policy instruments: The specific tools and measures policymakers use to achieve social, environmental, and economic goals.
The framework highlights that successful transitions require a coordinated shift across all elements, just as wellbeing-focused policies will fall short if the guiding models still prioritise GDP and productivity. The framework also depicts how different levels interact and how each element can act as a lever for change. For example, embedding SIW metrics into governance can influence both policy and infrastructure, potentially creating a virtuous cycle that supports lasting transformation.
Potential policy instruments to achieve SIW
This report intensively focused on the policy front, with the instruments selected based on four main criteria: they promote SIW; they can be implemented by the public authorities at EU, national or regional levels; they haven’t been implemented at a larger scale; and they have been scrutinised in previous research.
The proposed policy instruments contribute to a versatile policy mix spanning five key areas:
- Access to social protection and services (3)
- Labour policies and care economy (2)
- Economic systems transformation (7)
- Climate, environment and resources (4)
- Democratic governance (2)
From basic income and wealth tax to job guarantee and granting rights to nature, each instrument is thoroughly analysed, with indications of the level of governance and implementation’s time horizon, contribution to SIW, and examples of implementation in real-life local/national/international policy settings worldwide (also public perception and design implementation where applicable).
Even though the listed policies show promise, many would benefit from further piloting and impact evaluation. We suggest an adaptive management approach for their uptake, including evaluating the impacts and possible trade-offs with state-of-the-art macroeconomic models, testing the policies, monitoring their effects against SIW metrics and adjusting them as necessary.
This report is intended to support policymakers in understanding and considering the implementation of various policy instruments for sustainable and inclusive wellbeing and serves as a building block for MERGE’s future tasks.
Read and download the report below:
