This paper discusses and analyzes the relations between globalization, livings standard, quality of life and international competitiveness. Special focus is on the Baltic countries. Furthermore, the question is asked, whether there are obstacles to high growth in the future for Estonia, Latvia and Lithuania.

The paper deals with the problem of how to define and measure welfare, which can be seen either as a part of social policy or as a state of mind. Central to the discussion is the question, whether GDP can be used as a measure of welfare. Descriptive methods are used, besides of statistical estimations. A sample of authors which discuss the relation between GDP and welfare are presented.