1. The Changing Wealth of Nations Measuring Sustainable Development in the New Millennium Kirk Hamilton Development Research Group The World Bank

2. Outline The wealth of nations in 2005 What changed? 1995-2005 Saving for the future Special topics: Intangible wealth and CO 2 Policy messages

3. The Wealth of Nations in 2005

4. Where is the wealth of Ghana? Shares of total wealth, 2005 Shares of natural wealth, 2005 Total wealth / capita: $9,500

5. Where is the wealth of the UK? Shares of total wealth, 2005 Shares of natural wealth, 2005 Total wealth / capita: $663,000

6. Composition of total wealth Natural capital is most important in low income countries—more than twice as large as produced capital In middle income countries natural capital and produced capital are roughly equal Intangible wealth dominates in all countries, especially in high income countries Shares of comprehensive wealth, by income class, 2005

7. Composition of natural wealth Crop Land Pasture Land Forest and Protected Areas Subsoil Assets East Asia-Pacific 5561623 E. Europe-Central Asia 14111362 Latin America-Carib 33102730 Middle East-N. Africa 208269 South Asia 492513 Sub-Saharan Africa 35131736 Percentage shares of natural wealth, by developing region, 2005

8. What changed? 1995-2005

9. How did wealth change from 1995 to 2005? Growth in total and per capita wealth by region Globally, wealth grew 34% in total and 17% per capita

10. Development & changing composition of wealth Lower-middle income countries: shares of total wealth 1995-2005

11. Change in total wealth by type of asset $ billion, 1995-2005

12. Saving for the future

13. Extending our measures of wealth creation

14. Long-run trends in genuine saving

15. Many resource-rich countries are consuming their wealth

16. How rich would countries be in 2005 if they had invested rents from resource extraction?

17. Above 2% population growth, net saving per capita was largely negative in 2005

18. Special topics: Intangible wealth and CO 2

19. Intangible capital consists of more than human capital All countries Developing countries OECD countries Produced capital 0.3980.3200.313n/s Natural capitaln/s0.0680.072n/s Human capital index n/s Intangible capital 0.1760.1690.502 Elasticities of output with respect to production factors n/s – not statistically significant

20. Value of the net stock of historical emissions of CO 2, 2005

21. CO 2 efficiency is low in developing countries – scope for green growth? Value of net historical stock of CO 2 as %of GNI, 2005

22. “How we measure development will drive how we do development”

23. Policy implications Strengthen natural resource management Invest resource rents in other assets Lower carbon footprints – ‘green growth’ Invest in people Build institutions

24. Thank you! http://data.worldbank.org