Eight years ago, Iceland, alongside New Zealand, initiated the Wellbeing Economy Governments partnership, aiming to prioritize citizen wellbeing over the singular pursuit of economic growth. The partnership, later expanded to include Wales and Finland with Canada's active participation, has focused on developing national wellbeing indicators and integrating them into governmental decision-making processes. This approach ensures that economic policy considers social and environmental outcomes in conjunction with financial metrics.
Iceland implemented 39 wellbeing indicators, developed based on public input, to guide policy decisions. Gross Domestic Product (GDP) is now viewed as one measure among many, with other indicators such as life expectancy, unmet healthcare needs, material deprivation, and work-life balance also taken into account. A key practical application of this model is observed in Iceland's parental leave policy. The nation extended parental leave to 12 months, allocating six months to each parent and making an additional six weeks transferable. This reform underscored the interconnectedness of caregiving, family life, gender equality, and the economy, while also recognizing the importance of fathers spending time with their children. The policy has since been credited with strengthening families and reshaping societal expectations around work and caregiving responsibilities.