The Well-Being Index is a transformative new way to measure the development of a country, focusing on the well-being of citizens and not just economic growth.

Adapted to Japan’s culture and societal values, it’s the first well-being metric that moved from theory to practice, having been officially adopted by the Japanese government and the biggest companies in the country to inform new policies and investments towards the well-being of employees and citizens.

The Well-being Index is already impacting all aspect of Japan’s society, with the potential to improve the quality of life of every human being in the world.

Nikkei is the largest financial newspaper in the world and the creator of Tokyo’s Nikkei 225 Stock Exchange index, which measures the performance of the largest publicly owned companies in Japan. Both platforms have helped propel Japan’s economy to become the third largest in the world by GDP (Gross Domestic Product).

Unfortunately, they have also helped perpetuate the failures of the GDP, increasing the imbalance between a country’s economic growth and the well-being of employees and citizens, pushing the planet and its people to a breaking point. Particularly in Japan, where death from overwork even has its own word: Karoshi.

Recognizing their role in creating this unsustainable situation, Nikkei wanted to take the lead in building a solution that would balance economic, social and environmental concerns, improving the quality of life of every person in Japan, and the world.

The Well-Being Index is a transformative new way to measure a country’s growth, focusing on the well-being of its citizens and not just its economy.

With thousands of people from all backgrounds surveyed across all regions in Japan, the model tracks and measures a range of well-being indicators such as employment environment, wages, work-life balance, housing, health, education, and ease of raising children. The results are then aggregated into a single metric, called GDW (Gross Domestic Well-being).

Used alongside the GDP, the GDW becomes an official reference point for governments and companies to truly know how well their country is doing and inform new decisions, investments, and policies.

The Well-being Index is meant to redefine how the world measures the success of a country, in a way that's more in tune with today's society and the future of the planet.

Recognizing the alarming disconnect between Japan’s rising economy and the decreased well-being of its citizens, Nikkei wanted to bring a much-needed change in Japan.

A regular awareness campaign wouldn’t have nearly enough impact. The need called for a structural, long-term solution. One that government officials and the largest companies in Japan could engage with, adopt, and rally behind.

That solution was The Well-Being Index. A new metric that could reshape the way Japan, and the world, measures the success of a nation.

As the largest financial newspaper in the world and creator of Japan’s most influential stock exchange Index, Nikkei had the credibility, the communication platform and strong relationships with policy-makers and company leaders to ensure a successful roll-out.

Gross Domestic Well-being is not a new concept. But it’s the first time it was put into real practice.

Together with experts in Economics, Social Progress, Human Development and Public Policy from Harvard, Oxford and Tokyo University, Nikkei adapted the model to Japan’s culture and societal structure.

The model constantly surveys 4000 families across all of Japan, aggregating results into a single metric, called GDW.

The Well-being Index was introduced to policy-makers and the top companies in Japan through a series of symposiums that would explain its value and applications.

Newspaper ads and articles supported the launch, while a dedicated team lobbied the government to make it an official metric alongside the GDP.

The GDW index was then regularly published next to the GDP in the biggest financial newspaper on the planet. Together these metrics give a more comprehensive, modern-day picture of the success of a nation.

The Well-being Index was recognized by Japan’s Prime Minister as an official metric to inform new policies, followed by an ¥8 billion investment.

23 of Japan’s largest companies, like Fujitsu, Nestlé, and Deloitte, started making internal changes for employees and investors or launched public well-being initiatives, with more efforts to raise GDW following.

The Well-Being Index has started a systemic change that will take decades to play out. We’ll see a decrease in pollution, burnout and poverty, and an increase in education levels, healthcare access, and average life standard.

It’s setting Japan up to become a balanced nation that’s both more sustainable and more prosperous. Happier employees deliver better work. Healthier citizens cost the government less. And better-managed natural resources guarantee long-term stability.

It shows the world that a country’s economy and the well-being of its people can grow together, while positioning Nikkei as an economic pioneer, once again.

While the disconnect between the economic success of a country and the well-being of its citizens is a global issue, it’s particularly noticeable in Japan. While Japan is the third largest in the world by GDP, it also deals with one of the world’s highest suicide rates (17.5 suicides per 100,000 inhabitants).

There’s an imbalance between the social and working purpose of life in modern Japan. This dissatisfaction exposes the problems of overwork, wealth inequality and social fragmentation. Men are working too hard at the expense of family time. Birth rates are extremely low, and loneliness and social anxiety compound the problem for many.

While the Japanese government has launched initiatives to counter this, there’s clearly more effort needed, especially from the companies that make up the beating heart of Japan’s economy.