Do we need just one sustainable development
indicator? Could Genuine Savings be that one?
Juan Labat
1
* and Henry Willebald
2
1
Department of Social Sciences, Universidad Carlos III de Madrid, Spain
2
Instituto de Economía, Universidad de la República, Uruguay
Submission: December 11, 2018; Published: January 18, 2019
*Corresponding author: Juan Labat, Universidad Carlos III de Madrid, Spain
Int J Environ Sci Nat Res 16(3): IJESNR.MS.ID.555938 (2019)
0078
Opinion
Volume 16 Issue 3 - January 2019
DOI: 10.19080/IJESNR.2019.16.555938
Int J Environ Sci Nat Res
Copyright © All rights are reserved by Juan Labat
Opinion
In this brief document we would like to give our point
of view about the importance to promote and consolidate
an economic indicator of sustainability and suggest Genuine
Savings, an indicator in which an increasing number of scholars
and institutions are working on. Without hiding the complexity
of sustainable development, we believe that consolidating one
indicator could help to understand the performance of societies
and align actions in order for countries to be in a sustainable path.
Moreover, Genuine Savings could help understand sustainability
in the long run and could work as an indicator of future well-being.
Sustainable development and the economics of sus-
tainable development
Sustainable development is a concept that has gained attention
in a large number of academics, governments and multilateral
organizations in the last decades. The Brundalt Report probably
popularized this term and defined it as “development that meets
the needs of the present generation without compromising the
ability of future generations to meet their own needs” [1]. The
Millennium Development Goals and the Sustainable Development
Goals are two huge initiatives promoted by the United Nations
that are focused on sustainable development and try to align
actions to achieve a number of goals in this sense. Just to have an
idea, the Sustainable Development Goals are 17 and define nearly
170 targets. The economics of sustainable development are based
around two alternative definitions [2]: i) sustainable development
is a path for an economy where utility or consumption per capita
is not declining (outcome based); ii) sustainable development is a
path for an economy where the (per capita) value of the total capital
stock is not declining (capabilities based). In this second definition,
capital stock is considered in a broad sense including produced or
man-made capital (machines and physical infrastructures), natural
capital (those assets that have been provided “free of charge” by
the natural world), human capital (which is embodied in people
themselves), and other intangible capitals (as institutional and
social capital) [3,4]. In this framework, to sustain the development
becomes a process of sustaining wealth or, in other words, the
manner in which the different modalities of assets of the economy
maintain or enhance. These capabilities approach drives one of
the great sustainability debates, characterized in terms of whether
development should be “weakly” sustainable or “strongly”
sustainable. As Atkinson [5] argue, for “weak sustainability”,
as long as the value of total asset portfolio of a society is held
constant, it matters little that its components change over time.
On the contrary, “strong sustainability” requires that our focus is
more on what is happening to the constituents and, particularly,
in natural capital.
Do we need one sustainable development indicator?
Considering the relevance of sustainable development and in
order for societies to align forces to this goal, we believe that is
relevant and necessary to agree on how to measure sustainable
development, at least from an economic point of view, and promote
an indicator which could show how societies are performing with
respect to sustainable development. Without trying to hide or
reduce the complexity which embodies sustainability and the
relation between environment (and its quality), society (and its
well-being) and economic growth, we believe that promoting one
indicator could help to reinforce the importance of this concept.
In the words of nobel laureate Joseph Stiglitz “What we measure
affects what we do. If we focus only on material wellbeing – on,
say, the production of goods, rather than on health, education,
and the environment – we become distorted in the same way that
these measures are distorted; we become more materialistic”.
As an example, although the Human Development Index (HDI)
could have some flaws [6] and we can believe that it is completely
subjective how it is constructed (why rating with one-third
dimensions so different as income, education and health?), it
has become a worldwide reference for human development
measurement and a clear sign for political action. GDP (or GDP
Keywords: Sustainability; Genuine Savings; Economic Development