New indicator for measuring wealth to track sustainability

According to the new edition of the World Bank's Little Green Data Book, released on World Environment Day 2014, a new indicator called change in wealth per capita for more than 200 countries is introduced. Given the analysis conducted by the World Bank Group in its annual Little Green Data Book, almost 45 percent of the 136 countries are depleting their "wealth" even though showing growth in annual income. As these countries grow, they are not compensating for depletion of natural resources with the risk that in the long term, growth will decline and the wealth will erode.

Natural capital in analysis shown in the Little Green Data Book includes minerals and energy, agricultural land, forests and protected areas. The most commonly used indicator of country economic performance, GDP, can only measure income, but unable to show the wealth or how wealth is changing. In order to help countries plan for more sustainable growth, a new indicator change in wealth per capita is currently available for over 200 countries in the World Development Indicators and Little Green Data Book. Change in wealth per capita measures whether each country is saving enough to counterbalance depreciation of manufactured capital and depletion of natural capital, but at the same time sustaining future economic growth for growing populations. If the changes in wealth per capita are negative over several years, it will imply that a country is becoming poorer by leaving behind fewer resources for the generations in the future.

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