GNDI and the Pacific

Gross National Disposable Income (GNDI) is a better measure of economic performance than either Gross National Income (GNI) or Gross Domestic Product (GDP), but it is rarely used. The Pacific is the only region where using GNDI matters, and there it matters both a lot and increasingly. The use of GNDI highlights the economic uniqueness of the PICs and reveals a world-leading Pacific growth spurt in the 2010s, driven by increases in fishing license revenue and remittance income. The use of GNDI is also critical for our economic understanding of the Pacific, as it provides a framework within which competing economic diagnoses and strategies for the region can be understood. For all these reasons, GNDI should be used routinely to headline any growth analysis of the Pacific. However, the treatment of foreign aid in the balance of payments needs to be improved in some countries, while some others need to report balance of payments data more promptly.

Read the discussion paper here:https://devpolicy.org/publications/gndi-and-the-pacific/