In global governance, a country’s status is intimately connected with the size of its economy. In his influential book, The Rise and Fall of the Great Powers, Yale historian Paul Kennedy concludes that economic strength is more significant than military might when it comes to determining the international pecking order. This has certainly been the case during the 20th century, when Gross Domestic Product (GDP) became the key parameter deciding which countries should lead the institutions of global governance. Definitions of “superpower,” “middle power,” or “emerging power” have all been defined by GDP. The distinction between the “developed” and the “developing” world is also a result of GDP. Powerful “clubs” like the G7/G20, the OECD, and even the BRICS (Brazil, Russia, India, China, and South Africa) are determined by actual or prospective estimates of GDP. GDP is not just an economic policy tool: It is first and foremost the leading parameter through which a nation can gain global clout and access the top echelons of global governance.
Read the full article in Foreign Policy: http://foreignpolicy.com/2015/06/02/a-post-gdp-world/