Sarwono calls for new ways of measuring GDP
Sarwono calls for new ways of measuring GDP
JAKARTA (JP): State Minister of Environment Sarwono
Kusumaatmadja called on economists yesterday to come up with new
ways of measuring the national income, taking into account both
natural resource depletion and environmental degradation.
Sarwono said the widely used gross domestic product (GDP) as
an economic indicator fails to incorporate these two factors,
both of which he said are crucial for sustainable development.
"The coverage of the sustainable development process should
consider the decrease of natural resources and the environment's
degradation," he said in his speech at a seminar yesterday.
A new method which can relate national income calculations to
the decrease of natural resources and environmental degradation
should be found, he said.
By doing this the country could identify the condition and the
potency of its natural resources and introduce economic policies
that support sustainable development, he said.
Also present at the seminar, titled Integrated Environmental
and Economic Accounting, was head of Central Bureau of Statistics
Sugito. And among the speakers at yesterday's seminar, which will
conclude on Thursday, were the World Bank's representative
Michael Ward and the United Nations Statistical Division's
representative Peter Bartelmus.
Surna T. Djajadiningrat, Sarwono's third assistant for
coordination, said there is now a growing public recognition of
the negative impact of economic development on natural resources
and the environment.
Although more and more people have come to appreciate the
costs exacted on natural resources, economic development policies
have continued to neglect them, he said.
Many natural disasters had their origins in the neglect of the
environmental ecological balance, he said. As an example Surna
cited the arbitrary logging of forests which causes land erosion.
Surna said these are costs that have to be borne by the
country, and these costs are growing all the time.
"But the expenses spent in preventing environmental
degradation and in restoring its condition are not included in
calculating the national income," he said.
He admitted that some countries would object to the inclusion
of environmental factors in the GDP calculations because it would
mean accepting lower national income figures.
In his presentation however, Sugito cautioned participants not
to rush in search of new ways to calculate the national income.
"We are still in the process of finding the best system to
include environment factors in measuring the national income,"
Sugito said.
Currently, the State Minister of Environment's office and the
Central Bureau of Statistics are drafting natural resources
accountancy guidelines. Among commodities which have already been
covered are tropical forest products, oil, gas and coal. (31)