![]() By looking at all of these assets that underpin national income, wealth accounting provides a means to track the sustainability of economic progress into the future. ![]() The report tracks the wealth of 146 countries between 19, by measuring the economic value of renewable natural capital (such as forests, cropland, and ocean resources), nonrenewable natural capital (such as minerals and fossil fuels), human capital (earnings over a person’s lifetime), produced capital (such as buildings and infrastructure), and net foreign assets. The Changing Wealth of Nations 2021is the latest in a series that introduces the concept of wealth as a complementary indicator to GDP. In fact, GDP growth-focused policies often maximize short-term income at the expense of future income and well-being, for example, by degrading nature for short-term profits. ![]() GDP alone is insufficient to safeguard prosperity. Just as a company measures its value by looking both at its income and balance sheet, countries must complement GDP with a look at its portfolio of assets to better understand the sustainability of national economic growth. However, GDP does not give the whole picture. As policy makers, investors, and development practitioners worldwide consider how to set development on a more green, resilient, and inclusive path going forward, Gross Domestic Product (GDP) remains one of the main tools used to assess the state of the economy. These crises are forcing a rethink of how we approach and understand development. The world is facing immense and interconnected challenges: the COVID-19 pandemic, climate change, and nature loss.
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