Sammanfattning
Every economy is endowed with resources that can be used for consumption today or invested in productive assets for tomorrow. A large asset base is both a prerequisite for, and a consequence of, economic development, which underlines the importance of well-managed asset base in low-income countries aspiring to reach high levels of income. One can then think of the country’s asset base as a “stock” variable and the country’s GDP or GNI as the return on wealth (a “flow” variable).2 That is, the stock of wealth provides information about the long-term health of an economy; its capacity to sustain growth in income flows (taking depreciation and depletion of assets into account) and whether investments and accumulation of assets are keeping pace with population growth.
Sustainable use of natural resources and investment in renewable assets is a natural part of this equation.
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Tematik: Ekonomisk utveckling
Geografiskt område: Global
Språk: Engelska