Measuring Inclusive Growth
Creating a more sustainable world requires us to redefine “growth” in a way that encompasses a wide range of economic, social, and environmental factors, not just income. This attests to the importance of “natural capital accounting,” which assesses the value of natural resources in development planning and national accounts.
WASHINGTON, DC – When the Millennium Development Goals (MDG) deadline expires next year, the world will be able to point to several important achievements since their launch in 2000. Extreme poverty has been halved during this period; an estimated 100 million slum-dwellers have gained access to safe drinking water, and millions to health care; and large numbers of girls are now receiving an education. But considerable unfinished business and significant performance discrepancies remain.
The post-2015 development agenda will continue where the MDGs left off, while adding further objectives relating to inclusion, sustainability, jobs, growth, and governance. The success of the coming Sustainable Development Goals (SDGs) will depend on how new programs are developed, implemented, and measured.
Strong economic growth enables people to improve their lives and creates space for new ideas to thrive. But such growth is often accompanied by environmental degradation, which diminishes human health and quality of life, threatens water supplies, and compromises ecosystems, impeding growth for future generations. Moreover, short-term growth that erodes natural capital is vulnerable to boom-and-bust cycles, and can cause people who live close to the poverty line to fall far below it.
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