Hello!
In this report,Policy brief submitted by Shunsuke Managi, Managing Director of the company.This section provides an overview commentary on the
At 2023 India of T20 (Think20), which is positioned as the 'Idea Bank' of the G20 and comprises experts and think tanks from the G20 countries, a policy brief on comprehensive national wealth growth measurement using the new national wealth index was adopted, contributed by Shunsuke Managi, President of our company.
This policy brief is positioned under Task Force 3: LiFE, Resilience, and Values for Wellbeing.
LiFE ("Lifestyle for Environment (LiFE)") is a concept introduced by Prime Minister Modi at COP26, which It entails changes in individual and social behaviour with regard to sustainable consumption and production.
Need for sustainability indicators beyond GDP.
Traditionally, GDP, which measures only the monetary value of a country's physical assets and goods and services, has been used as an indicator of development. However, GDP does not include fuel consumption and natural resource depletion for asset creation and the collateral damage caused to human health, the surrounding environment and social welfare, which could be misleading in assessing human well-being.
Therefore, in an effort to go beyond GDP in estimating national wealth, at the UN Conference on Green Economy held in Rio de Janeiro in June 2012,New national wealth index (Inclusive wealth index (IWI))) has been created.The IWI is an index based on the sum of a country's natural, human, social and physical (including manufacturing and financial) capital and is a comprehensive approach that focuses on a country's macro-level growth and development.The IWI can measure that individual wealth is not generated solely from personal assets, but also from shared assets in the community It can also measure that it arises from the joint use of
IW (new national wealth) is spatially distributed across the country according to the regional diversity of natural, human and productive capital, as well as social capital. Therefore, accurate spatial and temporal indicators are needed to estimate the IW value of a country: if IW is measured spatially, it is possible to compensate for the sudden loss of natural capital in one area in other areas.
Challenges in LiFE indicator adoption.
Significant investment of public resources and capacity building in all aspects is required to adopt the LiFE indicator as an indicator of growth and wellbeing. However, even after the rationale for the indicators has been set, they may be difficult to measure for the following reasons
● Lack of public awareness
The biggest challenge is the lack of understanding of the concept of the 0LiFE indicator and what it means.
● Restricted access to information and data
0It is difficult to obtain quantitative and reliable data on all the various social and cultural aspects of life for the measurement of LiFE indicators.
● Resistance to change.
0LiFE is an inclusive development movement. People's participation and willingness to embrace change is crucial.
● Lack of coordination
z Co-ordination between states/regions within a country and a willingness to share data in a transparent manner is essential.
Recommendations for G20 countries.
This policy brief presents the following three steps for introducing and implementing LiFE indicators across G20 countries
● G20 countries need to cooperate with each other to develop a universally acceptable methodology for the LiFE Index.
● G20 countries need to cooperate with each other to build capacity in relation to the LiFE indicators. Capacity building should cover how to read and interpret indicator values, how to improve values, and actions to be taken in the short, medium and long term.
● Along with establishing a methodology for LiFE indicators, the following should be done.
0 Adopt a sustainable lifestyle
0 Reduce carbon dioxide emissions.
0 Improved living standards through increased productivity and income
0 Education and knowledge enhancement
0 Strengthening cooperation between stakeholders
The G20 countries call for cooperation and the need for a more comprehensive assessment of sustainability by using the IWI-applied LiFE indicator to assess wealth. Please read more.
Managi, S., Bhattacharya, A. & Bhattacharya, T., Policy Briefs T20 for
The Presidency of the G20 in 2023, The G20 Insights Platform, Global
Solutions Initiative Foundation, Inclusive Wealth Index: a
Comprehensive Measure of LiFE Towards 'Net
Zero'.