ENB summary of the discussions highlights that GDP “fails to support decision makers with the information they need to take policies focused on long-term sustainability”.
Erin Tansey, Director, IDRC, emphasized the need to measure environmental degradation, investments in human capital and future generations, and inequality, and noted calls to complement GDP measures with inclusive wealth measures.
Livia Bizikova, IISD, introduced lessons learned from a multi-year project that sought to support Ethiopia, Trinidad and Tobago, and Indonesia to move beyond GDP.
A side event held in the margins of the sixth session of the UN Environment Assembly (UNEA-6) discussed complementary measures to gross domestic product (GDP) that seek to address GDP’s shortcomings and measure what truly matters for sustainability and prosperity. Speakers shared lessons learned from developing inclusive and comprehensive wealth measures and explored their relevance for policymaking with a focus on natural capital and its links to human and produced capitals.
The Earth Negotiations Bulletin (ENB) summary of the discussions highlights that GDP “fails to support decision makers with the information they need to take policies focused on long-term sustainability.”
Erin Tansey, Director, International Development Research Center (IDRC), emphasized the need to measure environmental degradation, investments in human capital and future generations, and inequality, and noted calls to complement GDP measures with inclusive wealth measures.
Livia Bizikova, International Institute for Sustainable Development (IISD), introduced lessons learned from a multi-year project that sought to support three countries to move beyond GDP. Through this IDRC-funded project, IISD partnered with universities in Ethiopia, Trinidad and Tobago, and Indonesia to demonstrate ways in which wealth can be measured using estimations from each country over a 20-year period.
Bizikova said inclusive wealth comprises five types of capital – produced, natural, human, financial, and social. Among the project’s findings, she highlighted that produced capital grew in all countries, especially in Indonesia. Human capital, on the rise in all three countries, was found to be the most important asset, while natural capital appeared to be in decline. Bizikova emphasized that the “research provides data to help countries begin connecting their investments across the different capitals.”
Ligia Noronha, UN Assistant Secretary-General and Head of the UN Environment Programme (UNEP) New York Office, highlighted UNEP’s work on inclusive wealth, and said the related concept of ‘Beyond GDP,’ included in the UN Secretary-General’s ‘Our Common Agenda,’ will be considered during the Summit of the Future in September.
Jacques Assahoré Konan, Minister of the Environment, Sustainable Development and Ecological Transition, Côte d’Ivoire, said development policies and strategies must include climate change considerations and environmental well-being.
During the discussion, participants highlighted, inter alia: the need to support developing countries to rethink their reliance on GDP; suggestions to develop tools for business in assessing the weight of each capital and its impact on financial assets; and the need to differentiate comprehensive wealth measures according to gender and regionality.
IISD and IDRC convened the event in Nairobi, Kenya, on 26 February 2024. [ENB Coverage of Beyond GDP Through Inclusive Wealth: Tackling the Planetary Crisis Better]