True wealth

Klaxon: this week sees the publication of National Wealth: What is Missing, Why It Matters, edited by Kirk Hamilton and Cameron Hepburn. The book is a collection based on the Wealth Project, itself a follow up to work by the World Bank on measurement for sustainability. As sustainability inevitably involves thinking about the future, there is a need to measure an economy’s stocks of different kinds of capital assets rather than current income or consumption flows (which is what our GDP lens does).

I have a chapter in the book about the political economy of moving to a new framework of economic indicators from the current system of national accounts. This is a shift analogous to changing a global technical standard, in which enough key participants have to make the move to tip everyone else into following suit. I conclude, though, that for this to come about there has to be enough consensus about what new standard to move to, which is still a work in progress. There’s a proliferation of dashboards and alternative indices. We need just one framework to get the shift.

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The Wealth Project

On Monday & Tuesday I attended an absolutely terrific conference, The Wealth Project, which is about “changing how we measure economic progress,” to quote the conference strapline. The aim is to develop concepts and measures of different kinds of wealth so that policies and decisions take due account of the future potential for consumption and well-being, as well as the short term. This has been a preoccupation of mine since at least writing as well as my . The Wealth Project will produce a book around the end of 2016 or start of next year.

Meanwhile, it’s always interesting to see what books people cite at conferences. This week I noted: C.A.Bayly, ; David Hume, ; Karl Polanyi, ; Dieter Helm, . I referred back to the recent crop of GDP books and the Inspector Chen novel featuring GDP growth as villain.

[amazon_image id=”0631236163″ link=”true” target=”_blank” size=”medium” ]The Birth of the Modern World, 1780-1914: Global Connections and Comparisons (Blackwell History of the World)[/amazon_image]  [amazon_image id=”0140432442″ link=”true” target=”_blank” size=”medium” ]A Treatise of Human Nature: Being an Attempt to Introduce the Experimental Method of Reasoning into Moral Subjects (Penguin Classics)[/amazon_image]  [amazon_image id=”B017LCJ8XE” link=”true” target=”_blank” size=”medium” ]Natural Capital: Valuing the Planet by Dieter Helm (2015-05-01)[/amazon_image]

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