The 2024 report on the “Changing Wealth of Nations” is out
In essence, the Changing Wealth of Nations (CWON) is an initiative of the World Bank, aiming at applying a methodology / framework for calculating the wealth of nations in a much more comprehensive – thus realistic – way than does the GDP.
GDP is by far coming short of properly estimating real wealth as it focuses on economy, using trade figures. Hence, a sick population will create economic growth through their spendings in medical care. This is not a proper concept of wealth.
Although not fully-comprehensive – it does not account for ecosystem services and excludes some essential resources such as water – the CRON approach offers a far-wider view of “changing wealth” defined into three types of capital:
– The produced capital,
– The human capital,
– The natural capital.
The 2024 update is out and is as usual, an eye-opener.
