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Ethiopia and Sustainability: a Comprehensive Wealth Accounting Perspective

Abstract: 

Sustainable development requires a non-declining per capita wealth base over time. This paper provides estimates of per capita comprehensive wealth growth rates, the trend of the ratio of comprehensive investment to real GDP, and the gap between gross and comprehensive investment ratios for the Ethiopian economy for the period 1990-2008. The average per capita comprehensive wealth-growth rate with and without human capital investment considered was 0.55% and -1%, respectively, However, both growth rates are lower than the 2.2% baseline scenario (the conventional per capita real GDP) growth rate. In addition to this, the gap between the gross investment ratio (GIR) and comprehensive investment ratio under Scenario 2 (CIR2) remains intact between 1990 and 2008. The results imply that the economy has met the requirements of sustainable development but at margin. Therefore, environmental, demographic, and economic policies should be integrated further for better economic growth that leads to sustained improvement in human welfare over time

Corporate Author: 
Demirew Getachew; Getenet Alemu; Worku Gebeyehu (Editors) and Ethiopian Economic Association
Publisher: 
Ethiopian Economic Association
ISBN/ISSN: 
978-99944-54-31-10
Primary Descriptors: 

 Inter-temporal Welfare, Comprehensive Investment

Secondary Descriptor: 

Harrod-Domar growth model

Geographic Descriptors: 
Ethiopia
Broad Subject heading: 
Sustainable Development
Call Number: 
330.963 PRO 2013
Serial Key Title: 
Proceeding of the Tenth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Publication date: 
2013-08-05 00:00:00
Conference Place: 
EEA Multi-Purpose Building Conference Hall, Addis Ababa
Place of publication: 
Addis Ababa
Type of material: 
Book
Current frequency: 
Annually
Conference date: 
July 19 - 21, 2012