The link with life expectancy depends on the fact that rising levels of GDP per capita are associated, among other things, with better nutrition, higher hygiene conditions and more effective health systems. 38. There is one dimension in which GDP, however, does not perform well as a measure of well-being, which stems from its impact on the environment.
For example, due to improved methods of inventory management, there are less severe fluctuations in inventory  BIS Review 53/2004  1  stocks. Other examples are deregulation of financial markets, and the improved resilience and strength of the financial sector. Financial institutions are more able to diversify their risks, both internationally and among types of financial products.