Lessons from the Pandemic for G7 Leaders: Higher Levels of Societal Well-Being Make Countries More Resilient
BCG’s Sustainable Economic Development Assessment Highlights How Well-Being Enables Countries to Better Absorb the Impact of the Pandemic
BOSTON—Countries with high Sustainable Economic Development Assessment (SEDA) scores—indicating higher levels of societal well-being—are more resilient and suffered less of an impact in the first year of the pandemic, according to research by Boston Consulting Group (BCG). The finding is based on analysis of data from BCG’s latest SEDA index and the corresponding article, “Economic Resilience Is Built on Societal Well-Being,” being released today. The analysis offers insights and strategies for global leaders gathering for the G7 Summit.
The SEDA analysis finds that countries with improved ability to convert wealth into wellbeing saw a smaller drop in their 2020 real GDP growth rate. Countries with high SEDA scores were also better able to limit the growth in unemployment during this time.
“BCG has been a strong advocate of the need for countries to focus policies and development strategies on improving well-being,” said Vincent Chin, global leader of BCG’s Public Sector practice and coauthor of the article. “COVID-19 has brought in a new dimension—an opportunity to observe how such efforts make countries more resilient in a crisis.”
Accelerating Well-Being and Recovery
The article also highlights three dimensions that could have a multiplier effect in increasing well-being and should be prioritized by governments.
- Taking steps to slow climate change
- Investing in digitization
- Strengthening social protection systems to ensure sustainable and equitable growth
“As countries continue fighting the pandemic, they need to think long term and make investments today that will lead to faster and more sustainable progress during the coming recovery,” said Christian Schwaerzler, BCG’s global topic lead for Economic Development and coauthor. “We need to move beyond seeing resilience as simply a defensive strategy. Resilient countries are not only better placed to withstand shocks like the recent pandemic, but we see strong evidence that their economic rebound is quicker. The pandemic has also reinforced the need for governments to look beyond income growth and GDP and focus on the broader goal of overall well-being.”
A copy of the article can be downloaded here.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.
About SEDA
SEDA is a fact-based analysis that assesses well-being based on ten dimensions, including health, education, and infrastructure. SEDA scores 141 countries on a relative basis in terms of their current well-being and the change in their well-being over time. It also measures how effectively countries are able to convert the wealth they have into well-being, regardless of their income level.
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.