| CAPITAL GOODS
IMPORTS |
| Economic |
Chapter 34 |
Driving Force |
1. Indicator
(a) Name: Capital goods imports.
(b) Brief Definition: Total value of capital goods imports.
(c) Unit of Measurement: $1 000US.
2. Placement in the Framework
(a) Agenda 21: Chapter 34: Transfer of
Environmentally Sound Technology, Cooperation and Capacity Building.
(b) Type of Indicator: Driving Force.
3. Significance (Policy Relevance)
(a) Purpose: The indicator is used to
measure the transfer of embodied technology.
(b) Relevance to Sustainable/Unsustainable
Development: A rapid growth of the indicator indicates fast growth of
capital accumulation. This is usually accompanied with high rates of
replacement of equipment or the adoption of newer technologies. On
average, newer technologies are likely to be more efficient and
environment friendly. Thus, the indicator may be used to measure the
progression of production towards more sustainable patterns. It could also
be used to assess incentives given to investment.
(c) Linkages to Other Indicators: This
indicator is linked to other economic, environmental, and institutional
measures including: investment share in Gross Domestic Product (GDP), sum
of exports and imports as a percent of GDP, intensity of material use,
amount of new or additional funding for sustainable development, share of
environmentally sound capital goods imports, annual energy consumption per
capita, emissions of greenhouse gases, generation of industrial and
municipal waste, waste recycling rate, generation of hazardous waste, and
sustainable development strategies.
(d) Targets: Not available.
(e) International Conventions and Agreements:
Not available.
4. Methodological Description and Underlying
Definitions
(a) Underlying Definitions and Concepts: The
concept involved in the definition of this indicator is available in the
standard documentation on trade statistics.
(b) Measurement Methods: The indicator can
be derived from disaggregated international trade statistic within section
7 of the Standard International Trade Classification (SITC). One usually
excludes consumer goods such as domestic appliances (SITC 7194),
television receivers (SITC 7241), radios and broadcast receivers (SITC
7250), passenger motor cars and chassis (SITC 7321 and 7326), and motor
cycles and bicycles (SITC 7329 and 7331).
(c) The Indicator in the DSR Framework:
Within the DSR Framework, this indicator is a positive Driving Force for
sustainable development.
(d) Limitations of the Indicator: The
relevance to sustainable development is somewhat tenuous. However, data
for its measurement are available.
(e) Alternative Definitions: It would be
desirable to measure the imports of specific capital goods that are
identified as environmentally sound. There are, however, serious
difficulties with the definition and, more importantly, with the
measurement of such an indicator since it is necessary first to define the
environmentally sound technologies, and second to disaggregate trade
statistics accordingly.
5. Assessment of the Availability of Data from
International and National Sources
(a) Data Needed to Compile the Indicator:
Sufficiently disaggregated trade statistics are required for this
indicator.
(b) Data Availability: Disaggregated trade
statistical series are compiled for most countries. Furthermore, if data
on a country's imports are not available, partner data can be used, that
is the exports by other countries into the country in question. Since most
capital goods originate from developed countries, exports of those
countries can be used as a surrogate without incurring a large error.
(c) Data Sources: National and international
trade statistics represent the primary sources of data. Basic trade data
is compiled by the Statistical Division, United Nations Department for
Economic and Social Information and Policy Analysis.
6. Agencies Involved in the Development of the
Indicator
The lead agency for the development of this
indicator is the United Nations Conference on Trade and Development (UNCTAD).
The contact point is the Coordinator, Sustainable Development, UNCTAD; fax
no. (41 22) 907 0047.
7. Further Information
Not available.
| FOREIGN DIRECT
INVESTMENTS |
| Economic |
Chapter 34 |
Driving Force |
1. Indicator
(a) Name: Foreign Direct Investments (FDI).
(b) Brief Definition: The value of net flows of foreign direct
investment.
(c) Unit of Measurement: $1 000US.
2. Placement in the Framework
(a) Agenda 21: Chapter 34: Transfer of
Environmentally Sound Technology, Cooperation and Capacity Building.
(b) Type of Indicator: Driving Force.
3. Significance (Policy Relevance)
(a) Purpose: The indicator is meant to
represent the technology transferred through the activities of foreign
firms in a host country.
(b) Relevance to Sustainable/Unsustainable
Development: New technologies are usually environmentally sound and
help protect the environment, are less polluting, use resources such as
energy efficiently, and recycle wastes. The transfer of these new
technologies provides opportunities for human resource development,
capacity building, and international cooperation. New and efficient
technologies are essential to increase the capabilities of countries, in
particular developing countries, to achieve sustainable development
through economic advancement, environmental protection and conservation,
and human development. This indicator also could be used to assess the
role of incentives or regulations in influencing investor behaviour
towards environmentally sound production.
(c) Linkages to Other Indicators: This
indicator is linked to other economic, environmental, and institutional
measures, for example, import of capital goods, investment share in Gross
Domestic Product (GDP), sum of exports and imports as a percent of GDP,
intensity of material use, amount of new or additional funding for
sustainable development, annual energy consumption per capita, emissions
of greenhouse gases, generation of industrial and municipal waste, waste
recycling rate, generation of hazardous waste, and sustainable development
strategies.
(d) Targets: Not available.
(e) International Conventions and Agreements:
Not available.
4. Methodological Description and Underlying
Definitions
(a) Underlying Definitions and Concepts: The
definition for this indicator is derived from balance of payments
statistics see section 7 below). The concept supporting the indicator is
available in standard documentation on financial flows from the
International Monetary Fund (IMF) and the United Nations Conference on
Trade and Development (UNCTAD).
(b) Measurement Methods: The indicator can
be derived from balance of payment statistics.
(c) The Indicator in the DSR Framework: The
indicator is a Driving Force measure in the DSR Framework.
(d) Limitations of the Indicator: As with
capital goods imports, a more meaningful indicator could be developed if
disaggregated data existed for FDI.
(e) Alternative Definitions: The number of
technology transfer agreements in force within a country represents a
simple alternative measure for this indicator. However, comparable data
are not widely available at this time for such an indicator.
5. Assessment of the Availability of Data from
International and National Sources
(a) Data Needed to Compile the Indicator:
Only general financial flow statistics are needed to compile the
indicator.
(b) Data Availability: Despite problems of
definition, it is an indicator for which comprehensive statistical series
are available for international comparisons.
(c) Data Sources: IMF and UNCTAD are the
primary sources of data at the international level.
6. Agencies Involved in the Development of the
Indicator
The lead agency for the development of this
indicator is the United Nations Conference on Trade and Development (UNCTAD).
The contact point is the Coordinator, Sustainable Development, UNCTAD; fax
no. (41 22) 907 0047.
7. Further Information
International Monetary Fund. Balance of Payments
Handbook.
United Nations Conference on Trade and Development.
Report UNCTAD/ITP/TEC/19.
| SHARE OF
ENVIRONMENTALLY SOUND CAPITAL GOODS IMPORTS |
| Economic |
Chapter 34 |
State |
1. Indicator
(a) Name: Share of environmentally sound
capital goods imports in total capital goods imports.
(b) Brief Definition: The contribution of
environmentally sound technology in the transfer of embodied technology.
(c) Unit of Measurement: %.
2. Placement in the Framework
(a) Agenda 21: Chapter 34: Transfer of
Environmentally Sound technology, Cooperation and Capacity Building.
(b) Type of Indicator: State.
3. Significance (Policy Relevance)
(a) Purpose: The positive trend of the
indicator can be used to measure more accurately the move towards more
sustainable technology transfer.
(b) Relevance to Sustainable/Unsustainable
Development: Environmentally sound technologies help protect the
environment, are less polluting, use resources such as energy efficiently,
and recycle their wastes. The transfer of these new technologies provides
opportunities for human resource development, capacity building, and
international cooperation. New and efficient technologies are essential to
increase the capabilities of countries, in particular developing
countries, to achieve sustainable development through economic
advancement, environmental protection and conservation, and human
development. This indicator also could be used to assess the role of
incentives or regulations in influencing investor behaviour towards
environmentally sound production.
(c) Linkages to Other Indicators: This
indicator is linked to other economic, environmental, and institutional
measures, for example, investment share in Gross Domestic Product (GDP),
sum of exports and imports as a percent of GDP, intensity of material use,
amount of new or additional funding for sustainable development, annual
energy consumption per capita, emissions of greenhouse gases, generation
of industrial and municipal waste, waste recycling rate, generation of
hazardous waste, and sustainable development strategies.
(d) Targets: Not available.
(e) International Conventions and Agreements:
Not available.
4. Methodological Description and Underlying
Definitions
(a) Underlying Definitions and Concepts: The
concept involved in the definition of this indicator is available in
standard documentation on trade statistics. The definition of the
indicator includes the following elements: (i) value of total imports of
machinery and equipment; and (ii) value of imports of environmentally
sound machinery and equipment.
There are serious difficulties in the definition of
element (ii) above, because trade statistics do not make a distinction
between less and more polluting versions of a process. It is possible to
use as a proxy the imports of add-on, disposal, or clean up equipment. In
the latter case, the indicator will be biased in the sense that, it will
reflect the contribution to sustainable development of pollution control
technologies, but not that of clean technologies. Further definition of
the concept will be necessary before it becomes fully operational.
(b) Measurement Methods: The indicator is
measured by calculating environmentally sound capital goods imports as a
percentage of total capital goods imports. The total imports can be
derived from international trade statistics within section 7 of the
Standard International Trade Classification (SITC). One usually excludes
consumer goods such as domestic appliances (SITC 7194), television
receivers (SITC 7241), radio and broadcast receivers (SITC 7250),
passenger motor cars and chassis (SITC 7321 and 7326), and motor cycles
and bicycles (SITC 7329 and 7331). The difficulty with distinguishing
environmentally sound capital goods means the indicator faces serious
measurement difficulties in the immediate future (see section 4a above).
(c) The Indicator in the DSR Framework: The
indicator shows the effort being made to move towards more sustainable
production. It is, therefore, a State measure within the DSR Framework.
(d) Limitations of the Indicator: The
indicator is not fully operational at this time (see sections 4a and 4b
above).
(e) Alternative Definitions: Not available.
5. Assessment of the Availability of Data from
International and National Sources
(a) Data Needed to Compile the Indicator:
Sufficiently disaggregated trade statistics are required for this
indicator.
(b) Data Availability: Disaggregated trade
statistical series are compiled for most countries. Furthermore, if data
on a country's imports are not available, partner data can be used, that
is the exports by other countries into the country in question. Since most
capital goods originate from developed countries, exports of those
countries can be used as a surrogate without incurring a large error. As
noted in section 4 above, suitable data will probably not be available for
imports of environmentally sound capital goods.
(c) Data Sources: National and international
trade statistics represent the primary sources of data. Basic trade data
is compiled by the Statistical Division, United Nations Department for
Economic and Social Information and Policy Analysis.
6. Agencies Involved in the Development of the
Indicator
The lead agency for the development of this
indicator is the United Nations Conference on Trade and Development (UNCTAD).
The contact point is the Coordinator, Sustainable Development, UNCTAD; fax
no. (41 22) 907 0047.
7. Further Information
Not available.
| TECHNICAL
COOPERATION GRANTS |
| Economic |
Chapter 34 |
Response |
1. Indicator
(a) Name: Technical cooperation grants.
(b) Brief Definition: The value of technical cooperation grants.
(c) Unit of Measurement: $1 000US.
2. Placement in the Framework
(a) Agenda 21: Chapter 34: Transfer of
Environmentally Sound Technology, Cooperation and Capacity Building.
(b) Type of Indicator: Response.
3. Significance (Policy Relevance)
(a) Purpose: The indicator is meant to
represent the technology transferred through non-commercial sources.
(b) Relevance to Sustainable/Unsustainable
Development: For the less and least developed countries, technical
cooperation grants represent a major source of foreign technology. Such
grants contribute to augmenting the level of knowledge, skill and
technical know-how, and productive aptitudes; and increase the capacity
for more effective use of the existing endowment. They support, therefore,
the more effective implementation of sustainable development. In addition,
this measure can be used to determine the effectiveness of Official
Development Assistance (ODA).
(c) Linkages to Other Indicators: This
indicator is closely linked to other economic measures, such as investment
share in Gross Domestic Product (GDP), amount of new and additional
funding for sustainable development, and total ODA given or received as a
percentage of Gross National Product (GNP).
(d) Targets: Not available.
(e) International Conventions and Agreements:
Not available.
4. Methodological Description and Underlying
Definitions
(a) Underlying Definitions and Concepts: The
concept is defined and available in an Organisation for Economic
Co-operation and Development (OECD) document Geographical Distribution of
Financial Flows to Developing Countries (see section 7 below).
(b) Measurement Methods: The indicator can
be obtained from the OECD data series on geographical distribution of
financial flows.
(c) The Indicator in the DSR Framework: This
indicator is a Response measure related to technology transfer.
(d) Limitations of the Indicator: It is not
possible to quantify the technology content of technical cooperation
grants at the cross country level. The data available concern total grants
and therefore, it is not possible to identify specific purposes of the
technical cooperation such as training fellowships, etc. The existence of
such data, including objectives, would allow the definition of a more
precise indicator. Nevertheless, for many developing countries grant flows
are a major source of technology. It is, therefore, important to consider
this indicator as defined.
(e) Alternative Definitions: Not available.
5. Assessment of the Availability of Data from
International and National Sources
(a) Data Needed to Compile the Indicator:
Data is required on the total value of technical cooperation grants
received by a country.
(b) Data Availability: There are
comprehensive statistical series from individual donor countries and
multilateral agencies to individual developing countries.
(c) Data Sources: The primary source of data
at the international level is the OECD.
6. Agencies Involved in the Development of the
Indicator
(a) Lead Agency: The lead agency for the
development of this indicator is the United Nations Conference on Trade
and Development (UNCTAD). The contact point is the Coordinator,
Sustainable Development, UNCTAD; fax no. (41 22) 907 0047.
(b) Other Organizations: The OECD is the
other international organization key to the development of this indicator.
7. Further Information
OECD. Geographical Distribution of Financial Flows
to Developing Countries. Paris. 1988.
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