ADJUSTED GENUINE SAVING/WATER AND HDI -A TWO DIMENSIONAL INDICATOR FOR SUSTAINABILITY

摘要

The Brundtland Commission has introduced a critical new dimension into our conception of economic development by raising the issue of sustainability of development. To determine whether we are working in a sustainable way, we need information about the condition of the system of the earth in which we are living. The adjusted genuine saving/Water (AGSW) developed on basis of the Genuine Saving Index of the World Bank is a sustainability indicator based on the concepts of national accounts that can provide comprehensive information about the system shaping sustainable development. AGSW measures the rate of savings of an economy taking into account investment in human capital, depletion of natural capital and damage caused by CO_2 emissions. The Human Development Index (HDI) based on Sen's capabilities approach is rationalized on the grounds that human beings strive to lead long healthy lives, to have a decent standard of living, and to acquire knowledge considering the choices and capabilities of people. Combining AGSW and HDI, enables us a broader look at the issues enabling sustainable development. This new indicator tries to offer decision makers a two-dimensional indicator showing how sustainable their policy is beyond a traditional economic perspective.