INDEX
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In this report,Policy brief submitted by Shunsuke Managi, President of our companyThis presentation will provide an overview commentary of the
At T20 (Think20) 2023 India, which is positioned as the "Idea Bank" of the G20 and consists of experts and think tanks from G20 countries, a policy brief on comprehensive national wealth growth measurement using a new national wealth index, contributed by Shunsuke Managi, President and CEO of our company, was adopted.
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 that involves changes in individual and social behavior regarding sustainable consumption and production. It entails a change in individual and social behavior regarding sustainable consumption and production.
Need for sustainability assessment 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 has been problematic because it 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 can be misleading in assessing human well-being.
Therefore, in an effort to go beyond GDP in estimating national wealth, at the United Nations Conference on Green Economy held in Rio de Janeiro in June 2012,New Inclusive wealth index (IWI)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 does not arise solely from personal assets, but also from the joint use of shared assets in the community.
IW (new national wealth) is spatially distributed throughout a 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 a country's IW value; once IW is measured spatially, it is possible to compensate for the sudden loss of natural capital in one region by compensating for it in other regions.
LiFE Indicator Adoption Challenges
Significant investment of public resources to adopt the LiFE indicator as an indicator of growth and wellbeing is required to develop capacity in all aspects. However, even after the rationale for the indicators has been established, they may be difficult to measure due to 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.
Restrict access to information and data
It is difficult to obtain quantitative and reliable data on all the various social and cultural aspects of life for the measurement of the 0LiFE indicator.
● Resistance to change
0LiFE is an inclusive development movement. People's participation and willingness to embrace change is important.
Lack of coordination
z Coordination among states and 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 accepted methodology for the LiFE Index.
● G20 countries need to cooperate with each other to build capacity related to 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 the LiFE indicator, the following will be done
0 Adopt a sustainable lifestyle
0 Reduce carbon dioxide emissions
0Improved standard of living through increased productivity and income
0 Education and Knowledge Enhancement
0Strengthening collaboration among stakeholders
The G20 countries are calling for cooperation and the need for a more comprehensive assessment of sustainability by using the IWI-applied LiFE indicator to assess wealth. Please take a moment to read it.
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'.
