BCG’s Sustainable Economic Development Assessment (SEDA) is a proprietary diagnostic tool that gives countries insight into their overall social and economic conditions.
Without a doubt, there is a connection between a country’s wealth and economic growth and improvements to its overall well-being. So rather than focusing solely on GDP per capita—the most frequently used indicator of a country’s general welfare—SEDA offers an objective measure of the relative standards of well-being experienced by people in developed and developing nations around the globe.
For each country, we look at not only the current level of well-being but also its recent progress. We also compare each country with the other 148 countries in our data set. SEDA’s analysis can then be used to better inform and shape national and local strategies and priorities.
SEDA defines overall well-being by examining three fundamental elements that are made up of ten dimensions.
This element gauges how a country is performing in terms of generating balanced growth. This provides a basis for the country to invest in the other two elements. Economics are measured according to:
The following areas—major items in any government budget—encompass short- and long-term investments that help drive improvements in both economic growth and well-being over time.
Sustainability is defined broadly to encompass social inclusion and the environment. It studies:
When formulating economic development strategy, it is not enough to produce a snapshot type of analysis, even when it can be updated regularly. Instead, development must be measured across three time sequences: recent progress, current level, and long-term sustainability.
Together, these time horizons provide complementary perspectives that are more valuable than any measure taken in isolation. For example, by taking into account the current level of development and recent progress, we can analyze a country’s relative and overall performance or the potential for improvement compared with other nations.