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NATURAL CAPITAL

FIGURE 5.2 Not enough wealth creation from natural capital (adjusted net savings of resource-rich countries, by income group, 2000–08)

% gross national income

15 10 5 0 –5 –10

low income upper middle income

lower middle income high income: non-OECD

08 20

07 20

06 20

05 20

04 20

03 20

02 20

01 20

20

00

–15

high income: OECD

Source: World Bank 2010b. Note: Adjusted net savings (ANS) measures the change in a country’s national wealth. A positive ANS indicates that the country is adding to its wealth; a negative ANS indicates that the country is running down its capital stocks.

Congo and Ghana). But for the sector to be sustainable, there needs to be a long-term commitment by the government and strong local institutions. Artisanal and small-scale mining is often a highly destructive industry that causes significant environmental damage, including mercury pollution and extensive riverbed destruction. The struggle to obtain control of the resources in remote, largely lawless areas also creates social tensions. Although continuation of the current mode of artisanal and small-scale mining is damaging, prohibiting it would immediately throw many miners and their families into poverty. For this reason, there is a consensus that the way forward is to recognize the role of this type of mining in development and to support improved management and livelihood development through formalization of the sector, registration of both miners and traders, adoption of technological good practice, strengthened health and safety standards and their enforcement, economic diversification, and adequate protection for female and child labor. For med iu m- a nd la rge - scale m i ning projects, foundations and financial

sureties are increasingly being used to deliver sustainable benefits to communities. These two instruments help mining contribute to broader economic development while providing environmental protection (box 5.8). Sustainable management of natural capital underlies green growth in other sectors, including agriculture and manufacturing. It is also key to resilience and welfare gains. Well-managed, nonrenewable natural capital can provide both jobs and revenues for investment in human capital and infrastructure. Well-managed, renewable natural capital protects people and key infrastructure from floods and drought, provides key productive and cultural services, and is the basis for important tourism-based activities. Innovation, effi ciency gains, and enhanced human and physical capital all play roles in achieving natural capital outcomes that are consistent with green growth. In turn, as the next chapter illustrates, the infrastructure agenda and investments in physical capital can support or undermine green growth, depending on management, policy, and investment choices.

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Inclusive Green Growth  
Inclusive Green Growth  

As the global population heads toward 9 billion by 2050, decisions made today will lock countries into growth patterns that may or may not b...