True Economic Measures Factor In Natural Resources

True Economic Measures Factor In Natural Resources

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Traditional measures showing strong economic growth in Brazil and India over nearly two decades fail to take account of the depletion of their natural resources, scientists and economists at the “Planet Under Pressure” conference in London said.

Scientists and environment groups have been pressuring governments to include the value of their countries’ natural resources – and use or loss of them – into future measurements of economic activity, rather than relying solely on the gross domestic product calculation. Between 1990 and 2008, the wealth of Brazil and India measured by GDP rose 34 percent and 120 percent respectively, but this measurement is flawed, economists said, arguing that natural capital, or the sum of a country’s assets ranging from forests to fossil fuels and minerals, declined 46 percent in Brazil and 31 percent in India.

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