Economic |
Economic
Structure |
Economic
Performance |
1.
INDICATOR
(a)
Name:
Gross domestic product (GDP) per capita.
(b)
Brief
Definition:
Levels of GDP per capita are obtained by dividing annual or period GDP
at current market prices by population. A
variation of the indicator could be the growth of real GDP per capita which is
derived by computing the annual or period growth rate of GDP in constant basic
producers' or purchasers' prices divided by corresponding population.
(c)
Unit
of Measurement:
$US.
(d)
Placement
in the CSD Indicator Set: Economic/Economic
Structure/Economic Performance.
2.
POLICY RELEVANCE
(a)
Purpose: The indicator is a basic
economic growth indicator and measures the level and extent of total economic
output. It reflects changes in
total production of goods and services.
(b)
Relevance
to Sustainable/Unsustainable Development (theme/sub-theme):
Growth in the production of goods and services is a basic determinant
of how the economy fares. By allocating total production to each unit of population,
the extent to which the rate of individual output contributes to the
development process can be measured. It
indicates the pace of per capita income growth and also the rate that
resources are used up. As a
single composite indicator of economic growth, it is a most powerful summary
indicator of the economic state of development in its many aspects.
It does not directly measure sustainable development but it is a very
important measure for the economic and developmental aspects of sustainable
development, including people's consumption patterns and the use of renewable
resources.
(c)
International
Conventions and Agreements: None.
(d)
International
Targets/Recommended Standards:
National targets are generally oriented towards priorities,
availability of resources and, in large measure, to historical economic
performance. International
targets are most often established by financial institutions and international
organizations only for the purposes of intercountry comparison of economic
performance in determining the direction of aid distribution or resource
allocation projects. Country groupings to form economic entities, for example,
the European Union, Organization of Petroleum Exporting Countries (OPEC), also
set international targets among constituent members to serve as guidelines in
national policy priority setting. Moreover,
the United Nations uses average world per capita income as a threshold in
setting the level of relief allowance for countries with large population in
its formulation of the scale of assessments of member states.
(e)
Linkages
to Other Indicators:
As a highly aggregated composite measure, this indicator has close
links with many, more disaggregated indicators.
Examples would include population growth, net migration, other GDP
indicators, land use change, arable land per capita, and forest area.
3.
METHODOLOGICAL DESCRIPTION
(a)
Underlying
Definitions and Concepts:
GDP as described in the 1993 SNA can be defined in three ways:
Firstly, it is the sum total value- added of all production units
including all taxes and subsidies on products which are not included in the
valuation of output. It is also
equal to the sum of final uses of goods and services (except intermediate
consumption) measured in purchasers' prices, less the value of imports of
goods and services. Finally, it
can be measured as the sum of primary incomes distributed by resident producer
units.
(b)
Measurement
Methods: The current price
estimates of GDP are adjusted to GDP at constant prices with the use of price
deflators. Population estimates enable the conversion of total GDP to per
capita levels, while exchange rates and other conversion factors are used to
arrive at values based on a common unit of currency.
Real GDP is derived by extrapolating total value- added in the base
year with production indicators in physical terms or by deflating current
price values by a price deflator.
(c)
Limitations
of the Indicator: As a
necessary condition to being a key economic performance indicator of
sustainable development, one of the often‑cited limitations of GDP is
that it does not account for the social and environmental costs of production;
it therefore is not a good measure of the level of over‑all well being.
For example, GDP per capita reveals nothing concerning energy and
material interactions with the environment.
GDP is also not considered a good measure of sustainable consumption
because it does not allow for the capital used up in the production process.
(d)
Status
of Methodology: The 1993 System
of National Accounts (SNA) provides international standards for national
accounts. There may exist some
differences in national accounting and demographic reporting procedures and
practices between countries. One
other possible drawback could lie in the comparability of price information
used in deflating current price data and technical differences in the choice
of base year for the original data. Additionally,
a considered basic limitation lies in the conversion of GDP into a common
denomination as a result of current misalignments in exchange rates for some
countries vis‑a‑vis the comparator currency (US dollar)
particularly for those countries in transition whose market exchange rates
produce unrealistic levels of GDP, making any meaningful inter-country
interpretation difficult.
(e)
Alternative
Definitions/Indicators: Economic
indicators that measure the achievement of higher levels of goods and services
more efficiently are better indicators of sustainable development.
Consumption trends are better reflected by such indicators as Personal
Consumption expenditures as used in the USA.
This indicator can be derived from the SNA.
4.
ASSESSMENT OF DATA
(a)
Data
Needed to Compile the Indicator: The
conversion rates used by the UN Statistics Division (UNSD) are normally the
market or blended rates of exchange obtained from the International Monetary
Fund (IMF). In some cases, use is
made of UN operational rates that are established primarily for the settlement
of administrative transactions between host countries and the UN.
In very unique circumstances the use of purchasing power parities (PPP)
or price‑adjusted rates of exchange (PARE) is necessary.
The World Bank also uses a special exchange rate where the official
exchange rate produces distortion in the dollar levels of GDP.
(b)
National
and International Data Availability and Sources:
The indicator has no
serious limitations in terms of data availability.
The principal data elements for a majority of countries are mostly and
regularly available from national and international sources on a historical
basis. Internationally accepted
conceptual guidelines, are also available to assist with the compilation of
the indicator. Annual GDP data in
current and constant prices are generally reported by national statistical
offices or central banks in the United Nations (UN) National Accounts
questionnaire and supplemented by estimates prepared by the UN as well as
other international organizations such as the World Bank and the IMF. The Organisation for Economic Co-operation and Development
(OECD) compiles quarterly GDP estimates for its Members.
Population data are mainly obtained either through censuses or surveys.
These are supplemented by growth estimates prepared by the UN
Population Division.
(c)
Data
References: Comprehensive
national accounts statistics are published by the UN in the series National
Accounts Statistics: Main Aggregates and Detailed Tables.
A historical series of GDP is available from the national accounts
database of the UN Statistics Division. Population
data and projections are available in the World Population Prospects published
by the Population Division of the UN Department of Economic and Social
Affairs. Exchange rates are published by the IMF in International Financial Statistics.
5.
AGENCIES INVOLVED IN THE
DEVELOPMENT OF THE INDICATOR
(a)
Lead
Agency: The
lead agency is the United Nations Department of Economic and Social Affairs (DESA).
The contact point is the Director, Statistics Division, DESA; fax no.
(1 212) 963 9851.
(b)
Other
Contributing Organizations: None.
6.
REFERENCES
(a)
Readings:
The 1993 SNA provides international standards on national accounts and
is the product of collaborative efforts between EUROSTAT, IMF, OECD, UN and
the World Bank.
(b) Internet site: United Nations Statistics Division: http://www.un.org/Depts/unsd
INVESTMENT
SHARE IN GROSS DOMESTIC PRODUCT |
||
Economic |
Economic
Structure |
Economic
Performance |
1.
INDICATOR
(a)
Name:
Investment Share in Gross Domestic Product (GDP).
(b)
Brief
Definition: This indicator measures the share of investment in
relation to total production. It
is obtained by dividing gross production capital formation by gross domestic
product, both at purchasers' prices.
(c)
Unit of Measurement:
%.
(d)
Placement in
the CSD Indicator Set: Economic/Economic Structure/Economic Performance.
2.
POLICY RELEVANCE
(a)
Purpose: The rate of investment measures the stimulus to economic
development, reflecting the infusion of requisite capital to finance the
development process.
(b)
Relevance to
Sustainable/Unsustainable Development (theme/sub-theme): This indicator
deals with the processes and patterns of economic activities.
It is an important element of the sustainable development process in
developing countries, aimed at increasing their partnership in the global
economy. It reflects an important
financial component aimed at accelerating the pace of development.
(c)
International Conventions and
Agreements: None.
(d)
International
Targets/Recommended Standards: None.
National targets for investment share to GDP are usually included in
government policy as a basis for budget funding programmes and for
priority-setting exercises.
(e)
Linkages to
Other Indicators: This
indicator is closely linked with other measures of economic development, in
particular GDP per capita and share of manufacturing in GDP.
3.
METHODOLOGICAL DESCRIPTION
(a)
Underlying
Definitions and Concepts: Gross
capital formation (gross investment) is defined in the System of National
Accounts (SNA) as the total value of gross fixed capital formation plus
changes in inventories and acquisitions less disposal of valuables.
Fixed capital formation is the total value of a producer's acquisitions
of fixed assets, less disposal, together with certain additions to the value
of non-produced assets. Gross
capital formation includes outlays on additions of new durable goods to stocks
of fixed asset by industries, producers of government services, the private
sector, non-profit services, and households, but excludes outlays of
government services on durable goods for military use.
It is further classified into new and existing tangible (dwellings,
buildings and structures, machineries and equipment, etc.) and intangible
(mineral exploration, computer software, entertainment, artistic and literary
originals, etc.) assets.
(b)
Measurement
Methods: Gross capital
formation at purchasers’ prices (see under 3(a)) divided by gross domestic
product at purchasers’ prices.
(c)
Limitations
of the Indicator: Investments
in SNA terms, as in this indicator, constitute only investments on produced
assets. Any expenditure on
non-produced assets, for example, land or payments for education and health
that enhance the quality of human capital are not included.
(d)
Status of the Methodology:
The concepts of gross capital formation and GDP are standardized in the
SNA and, therefore, comparable between countries.
(e)
Alternative
Definitions/Indicators: An
alternative indicator would be one which would identify selected investment
expenditures by sector, such as environmental protection, health and
education, housing, nutrition, etc., that are individually considered relevant
to sustainable development. A
second alternative would report the indicator using gross fixed capital
formation.
4.
DATA ASSESSMENT
(a)
Data Needed
to Compile the Indicator:
(i)
gross capital formation at purchasers’ prices;
(ii)
gross domestic product at purchasers’ prices.
(b)
National and
International Data Availability and Sources:
Data is of reasonable quality and commonly available from national
sources on a historical basis. Data
on gross capital formation and GDP
are generally reported by national statistical offices or central banks to the
UN National Accounts questionnaire. These
are supplemented by estimates prepared by the United Nations Statistical
Division (UNSD) as well as other international
organizations, such as the World Bank and the International Monetary Fund (IMF).
(c)
Data
References: National accounts statistics are published in the series
National Accounts Statistics: Main Aggregates and Detailed Tables.
5.
AGENCIES INVOLVED IN THE DEVELOPMENT OF THE INDICATOR
(a)
Lead Agency: The lead agency
is the United Nations Department of Economics and Social Affairs (DESA).
The contact point in terms of SNA references as well as data
compilation on an international level is the Director, Statistics Division,
DESA; fax no. (1 212) 963 9851.
(b)
Other
Contributing Organizations: None.
6. REFERENCES
(a)
Readings:
Further details on the conceptual definition of GDP are contained
in the System of National Accounts,
1993.
(b)
Internet
site: United Nations Statistics Division: http://www.un.org/Depts/unsd
Economic |
Economic
Structure |
Trade |
(a)
Name: Balance
of trade in goods and services.
(b)
Brief Definition: The
difference between the value of exported goods and services and the value of
imported goods and services.
(c)
Unit of Measurement:
$US.
(d)
Placement in the CSD Indicator
Set: Economic/Economic
Structure/Trade.
(a)
Purpose: The indicator shows
the relation of an economy with other economies in the world.
The components of the indicator (exports and/or imports) are reflecting
the change in economic behavior of the domestic trade enterprises, the change
in exchange rate, the effect of the change in exchange rate, and international
competitiveness. The change can
imply economic policy changes. The
components of the indicator show how an economy is participating in
international co-operation. Its
components show the openness of an economy if it is compared to the value of
GDP and can also reflect an economy’s dependence and vulnerability.
(b)
Relevance to Sustainable/Unsustainable Development
(theme/sub-theme): Trade
liberalization, in general, may have positive effects on sustainable
development. It can stimulate
economic diversification, improve the efficiency of resource allocation and
encourage the transfer of innovative technologies.
On the other hand, it can also result in increased and unsustainable
resource use when the environmental costs of production are not fully
internalized and reflected in market prices.
(c)
International Conventions and
Agreements: None.
(d)
International
Targets/Recommended Standards: None.
(e)
Linkages to Other Indicators: This
indicator is the balancing item of the External account of goods and services
in the sequence of the national accounts in the 1993 SNA.
It is a component of GDP. It is linked to other indicators of economic
structure, financial status, production and consumption patterns.
(a)
Underlying Definitions and
Concepts: The balance of trade in goods and services is defined in the
1993 SNA, and partly in the International Trade Statistics.
(b)
Measurement Methods:
Exports of goods and services are standard items in the balance of
payments and national accounts. Exports
of goods and services consist of sales, barter, or gifts or grants, of goods
and services from resident to non-residents, while imports consist of
purchases, barter, or receipts of gifts or grants, of goods and services by
resident from non-residents. Exports
and imports of goods in the SNA are recorded at border value.
Total imports and exports of goods are valued free-on-board (at the
exporter’s customs frontier). The
balance of trade in goods and services is the difference of the
above-mentioned exports and imports of goods and services.
(c)
Limitations of the Indicator:
The indicator has no serious limitations in terms of methodology
and data availability. In terms
of interpretation, as it is the balancing item of exports and imports, it does
not tell too much without looking at its components and their relation to
other indicators.
(d)
Status of Methodology:
The treatment of exports and imports of goods and services in the
1993 SNA is generally identical with that in the balance of payments accounts
as described in the Balance of Payments Manual (IMF, 1993).
(e)
Alternative
Definitions/Indicators: The
material composition (goods/services, highly manufactured products/raw
materials) of exports and imports also has direct relationship with
sustainability.
4.
ASSESSMENT OF DATA
(a)
Data Needed to Compile the
Indicator: (i) Exports of goods and services; (ii) Imports of goods and
services.
(b)
National and International Data
Availability and Sources: The principal data elements for a majority of
countries are mostly and regularly available from national and international
sources on a historical basis. Internationally
accepted guidelines, are also available to assist with the compilation of the
indicator. Annual exports and
imports of goods and services are generally reported by national statistical
offices or central banks in the United Nations (UN) questionnaires and/or
central bank/statistical agency reports/data transmissions, national
publications.
(c)
Data References:
Comprehensive national accounts statistics are published by the UN
in the series of National Accounts Statistics: Main aggregates and Detailed
Tables, and in IMF’s International Financial Statistics Yearbook.
5.
AGENCIES INVOLVED IN THE DEVELOPMENT OF THE INDICATOR
(a)
Lead Agency: The lead
agencies are the United Nations Department of Economic and Social Affairs,
Statistics Division, and the International Monetary Fund, Statistics
Department.
(b)
Other contributing
organizations: OECD
Statistical Directorate, World Bank
6.
REFERENCES
(a)
Readings:
1993 System of National Accounts; Balance of Payments Manual, 1993 IMF;
World Development Indicators 2000, CD Rom of the World Bank.
(b)
Internet sites:
United
Nations Statistics Division: http://www.un.org/Depts/unsd
World Bank: http://www.worldbank.org
Economic |
Economic
Structure |
Financial
Status |
1.
Indicator
(a) Name:
Debt to Gross National Product Ratio (GNP).
(b) Brief
Definition: The ratio of
total external debt to gross national product.
(c) Unit
of Measurement: %.
(d) Placement
in the CSD Indicator Set: Economic/Economic
Structure/Financial Status.
2.
Policy Relevance
(a) Purpose:
Debt/GNP is a measure of the degree of indebtedness, and the indicator
helps to assess the external debt situation (and debt carrying capacity) of a
country.
(b) Relevance
to Sustainable/Unsustainable Development (theme/sub-theme):
The ratio measures the outstanding obligations in relation to the
broadest measure of the income-generating power of an economy.
The higher the ratio, the greater is the output that has to be forgone
from sustainable development to service the debt.
A debt overhang exists when the debt stock exceeds that which could
reasonably be serviced by the debtor country in the medium or long-term.
There are no simple rules on what constitutes a reasonable burden,
however, and it will vary from country to country.
(c) International
Conventions and Agreements: None.
(d) International
Targets/Recommended Standards: None.
(e) Linkages
to Other Indicators: This
indicator, as a measure of unsustainability, is closely linked to other
financial and international cooperation indicators.
It also has general bearing on several of the social and environmental
indicators that show progress towards sustainable development.
3.
Methodological Description
(a) Underlying Definitions and Concepts: Total external debt stock is defined as the sum of long-term external debt, the use of International Monetary Fund (IMF) credit, and short-term external debt. Long-term external debt is defined as debt that has an original or extended maturity of more than one year, that is owed to non-residents, and repayable in foreign currency, goods, or services. Long-term debt has three components:
i)
Public
debt, which is an external obligation of a public debtor, including
the national government, a political subdivision (or an agency of either), and
autonomous public bodies;
ii)
Publicly
guaranteed debt, which is an external obligation of a private debtor
that is guaranteed for repayment by a public entity; and
iii)
Private non-guaranteed debt,
which is an external obligation of a private debtor that is not guaranteed for
repayment by a public entity.
Use of International Monetary
Fund (IMF) credit denotes repurchase obligations to the IMF with respect to
all uses of IMF resources, excluding those resulting from drawings in the
reserve tranche. Use of IMF
credits comprises purchases under the credit tranches, including enlarged
access resources and all special facilities (the buffer stock, compensatory
financing, extended fund, and oil facilities), trust fund loans, and
operations under the Stand-by Arrangement, Extended Stand-by Arrangement, the
Poverty Reduction and Growth Facility (formerly known as the Enhanced
Structural Adjustment Facility).
Short-term external debt is
defined as debt that has an original maturity of one year or less.
No distinction is made between public and private non-guaranteed
short-term debt. The
Global Development Finance includes interest in arrears (defined as
interest payment due but not paid) on long-term debt, on a cumulative basis,
under short-term debt.
(b) Measurement
Methods: Total external debt
is measured by the sum of long-term external debt, the use of IMF credit and
short-term external debt. For definition of these terms see 3(a) above.
Gross national product
(GNP) is the sum of value added by all resident producers plus any taxes (less
subsidies) not included in the valuation of output, plus net receipts of
primary income (compensation of employees and property income) from abroad.
(c) Limitations
of the Indicator: No one
indicator can provide an exhaustive analysis of the debt situation of a
country. While this indicator is
a measure of the extent of the debt overhang of a country, it needs to be
interpreted carefully. The
nominal stock of outstanding debt fails to take into account the differing
concessional terms of the external debt.
This can give misleading indications regarding the future
debt-servicing burden.
(d) Status
of Methodology: Not
Available.
(e) Alternative
Definitions/Indicators: One
measure that takes into account both the profile of debt servicing payments
and the concessional aspect of the debt is the present value of external debt.
When the debt stock of a country is mostly on non-concessional terms
then the difference between the present and nominal value are small.
Another reason why this ratio can be problematic is because of erratic
changes arising from real exchange rate movements.
4.
Assessment OF DATA
(a) Data
Needed to Compile the Indicator: Data
required includes the sum of total external debt stock
to include long-term external debt, the use of International Monetary
Fund (IMF) credit and short-term external debt. In addition, gross national
product data (GNP) is needed.
(b) National
and International Data Availability and Sources: The principal sources of the information for the long-term
external debt indicator are reports from member countries to the World Bank
through the Debtor Reporting System (DRS).
These countries have received either IBRD loans or IDA credits.
Reporting countries submit detailed loan-by-loan reports through the
DRS on the annual status, transactions, and terms of the long-term external
debt of public agencies, and that of private ones guaranteed by a public
agency in the debtor country. Information
on debt owed to multilateral institutions is drawn from the files of these
institutions. A total of 137
individual countries report to the World Bank’s DRS.
Data on the use of IMF credit
is obtained from the IMF’s Treasury Department.
The short-term debt data are
as reported by the debtor country or estimates derived from creditor sources.
The principal creditor sources are the semiannual series of commercial
banks’ claims on developing countries, published by the Bank for
International Settlements (BIS), and data on officially guaranteed
suppliers’ credits compiled by the Organisation for Economic Co-operation
and Development (OECD). For some
countries, estimates are prepared by pooling creditor and debtor information.
Data on non-debt creating
flows are derived from several sources. Data
on FDI come from the IMF balance of payments, supplemented by detailed data on
direct investment from source and recipient countries.
Data on portfolio equity flows are obtained from market sources and
national statistical offices or securities exchanges, and that on grants from
the OECD Development Assistance Committee.
Data on GNP are from national
statistical offices, complemented by World Bank staff estimates.
(c) Data
References: The World Bank
Global Development Finance and World Development Indicators (Annual
Publications).
5.
Agencies Involved in the
Development of the Indicator
(a) Lead
Agency: The lead agency is
the World Bank (WB). The contact
point is the World Development Indicators Team, Development Data Group, the
World Bank; fax no. (1 202) 522-1785.
(b) Other
Contributing Organizations: None.
6. References
(a) Readings:
The World Bank. Global
Development Finance. 2000.
The World Bank. 2000
World Development Indicators. 2000
(b) Internet
site: www.worldbank.org/data
TOTAL
OFFICIAL DEVELOPMENT ASSISTANCE GIVEN OR RECEIVED AS A PERCENTAGE |
||
Economic |
Economic
Structure |
Financial
Status |
1.
Indicator
(a) Name:
Total Official Development Assistance (ODA) given or received as a
percentage of Gross National Product (GNP).
(b) Brief
Definition: This indicator is
defined as the total ODA given or received as a share of GNP of the source or
recipient country, respectively. When
ODA flows by donor countries are measured, ODA comprises bilateral
disbursements of concessional funds to developing countries and multilateral
institutions. When ODA receipts
by developing countries are measured, ODA comprises disbursement of
concessional finance from both bilateral and multilateral sources.
(c) Unit
of Measurement: %.
(d) Placement
in the CSD Indicator Set: Economic/Economic
Structure/Financial Status.
2.
Policy Relevance
(a) Purpose:
The indicator is a measure of the size of flows that are both
concessional, and aimed mainly at promoting development and welfare of
developing countries. It conveys
information about the borrower’s receipt of aid from official lenders or
official lender’s concessional flows to developing countries.
(b) Relevance
to Sustainable/Unsustainable Development (theme/sub-theme):
Financial resources are obviously needed for the attainment of
sustainable development. Agenda
21 calls for the monitoring of the provision of financial resources,
particularly in developing countries, so that the international community can
take further action on the basis of accurate and reliable data.
(c) International
Conventions and Agreements: None.
(d) International
Targets/Recommended Standards: For
developed countries, the United Nations has established that ODA should
represent 0.7% of GNP.
(e) Linkages
to Other Indicators: This
indicator is particularly linked with the other financial and international
cooperation indicators.
3.
Methodological Description
(a) Underlying
Definitions and Concepts: Not
Available.
(b) Measurement
Methods: There are several
ways of measuring Official Development Assistance (ODA) flows.
The World Bank takes a developing-country/debtor perspective and the
Organization for Economic Co-operation and Development (OECD) takes a
donor/creditor-country perspective. ODA
consists of grants or loans to developing countries that are undertaken by the
official sector with the purpose of promoting economic development and
welfare. Grants are defined as disbursements, in money or in kind, for which
there is no repayment required. ODA
loans are provided at concessional financial terms, that is with a grant
element of 25 percent or more. The
degree of concessionality is determined by the terms of a loan -interest rate,
maturity, and grace period. The
OECD includes grants for technical cooperation, but the World Bank excludes
them because these grants mostly represent the provision of services rather
than a flow of funds.
Gross national product
(GNP) is the sum of value added by all resident producers plus any taxes (less
subsidies) not included in the valuation of output, plus net receipts of
primary income (compensation of employees and property income) from abroad.
(c) Limitations
of the Indicator: Not
Available.
(d)
Status of Methodology: Not
Available.
(e)
Alternative Definitions/Indicators:
Not Available.
4.
Assessment OF DATA
(a) Data
Needed to Compile the Indicator: Total Official Development Assistance (ODA)
given or received and GNP data.
(b) National
and International Data Availability and Sources:
The principal source of the information are the OECD and the World
Bank’s Debtor Reporting System. The OECD data are obtained from donor and
creditor sources through the information collected by the Development
Assistance Committee. It includes
information from the Creditor Reporting System and the joint OECD/Bank for
International Settlements (BIS) system for identifying officially guaranteed
claims of private banks on developing countries.
(c) Data
References: The World Bank Global Development Finance and World
Development Indicators (Annual Publications).
5.
Agencies Involved in the
Development of the Indicator
(a) Lead
Agency: The lead agency is
the World Bank (WB). The contact
point is the World Development Indicators Team, Development Data Group, the
World Bank; fax no. (1 202) 522-1785.
(b) Other
Contributing Organizations: The
Organization for Economic Co-operation and Development (OECD) represents a
contributing agency to the development of this indicator.
6.
References
(a) Readings:
The World Bank. Global
Development Finance. 2000.
The World Bank. 2000
World Development Indicators. 2000
(b) Internet
site: www.worldbank.org/data
INTENSITY
OF MATERIAL USE |
||
Economic |
Consumption
and Production Patterns |
Material
Consumption |
1.
INDICATOR
(a) Name:
Intensity of Material Use.
(b) Brief
Definition: The quantities of
minerals and metals, including primary and secondary (recycled) materials,
consumed per unit of real Gross Domestic Product (GDP).
(c) Unit
of Measurement: kgs, tonnes
or m3 per $1,000 of GDP.
(d) Placement
in the CSD Indicators Set: Economic/Consumption
and Production Patterns/Material Consumption.
2.
POLICY RELEVANCE
(a) Purpose:
The indicator provides a basis for policies to increase the efficient
use of raw materials in order to conserve natural resources and reduce
environment degradation resulting from primary production, material
processing, manufacturing and waste disposal.
(b) Relevance
to Sustainable/Unsustainable Development (theme/sub-theme):
Primary production of raw materials, processing of the materials into
products, and ultimate disposal of the waste material has major environmental
impacts. Reducing the material intensity of production and consumption of
goods and services is essential to environmental protection and resource
conservation. Reductions in
intensity of material use can be achieved by more efficient use of natural
resources in production and consumption, by recycling used and waste material,
and by shifts in consumption patterns to less material intensive goods and
services. The indicator allows an
analysis of consumption of natural resources, as well as trends in recovery
and recycling.
The four-component structure
of the indicator (consumption of primary material, consumption of secondary
material, changes in stocks, and material embodied in imports and exports)
provides a measure of the total material consumption of the economy.
Per-capita consumption of the materials could also be determined,
facilitating the interpretation of trends in material intensity.
The indicator can also be used as a proxy for assessing trends in industrial pollution. In the United States, for example, it is estimated that material-intensive industries account for about 70% of total air and water pollution. Throughput-to-pollution ratios can be used for this calculation, although technological change would affect the results.
(c) International
Conventions and Agreements: None.
(d) International
Targets/Recommended Standards: None.
(e) Linkages
to Other Indicators: This
indicator is linked to other indicators which reflect the stage of economic
development and the structure of the economy, such as share of manufacturing
value-added in GDP and energy use per unit GDP.
3.
Methodological Description
(a) Underlying
Definitions and Concepts: Not
Applicable.
(b) Measurement Methods: Using the UNCTAD database on minerals and metals, consumption of primary and secondary materials can be estimated. These data are then adjusted for (i) changes in stocks of producers, traders and manufacturers, and (ii) the volume of material contained in imports and exports of material-intensive semi-fabricates and manufactures. The calculated volume of material consumption is then divided by real GDP in order to compute material consumption per unit of GDP. Material intensity data can be disaggregated into intensity of use of primary and secondary materials.
(c) Limitations
of the Indicator: It is
difficult to accurately estimate the consumption of secondary materials,
changes in stocks and the material contained in traded semi-fabricates and
manufactures. For manufactures,
conversion factors for material content are being compiled and updated to take
account of changing manufacturing technologies.
National and regional differences in this regard, however, are
difficult to reflect.
(d) Status
of the Methodology: There is
limited use of indicators of material intensity in some developed countries,
with varying methodologies.
(e) Alternative
Definitions/Indicators: None.
4.
ASSESSMENT OF DATA
(a) Data
Needed to Compile the Indicator: Most
of the required consumption and trade data are available in UNCTAD's database
on minerals and metals. Information on consumption of secondary materials is
incomplete but can be estimated with reasonable accuracy.
Data on changes in stocks, in particular at the level of traders and
manufacturers, are scant, although some reasonable estimates can be made.
Conversion factors for material content in semi-fabricates are being compiled
and updated in collaboration with various industry associations. Information,
however, is often incomplete, not representative, or too general.
(b) National
and International Data Availability and Sources: New estimates of national consumption of some 20 commodities
per unit of GDP are currently being prepared, updating the results of a 1991
survey. The analysis emphasizes
consumption trends of primary versus secondary materials.
(c) Data
References: Not Available.
5.
AGENCIES INVOLVED IN THE DEVELOPMENT OF THE INDICATOR
(a) Lead
Agency: The lead agency 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
Contributing Organizations: Eurostat,
World Resources Institute, and the Wuppertal Institute on Climate, Environment
and Energy have contributed to the development of this indicator.
6.
REFERENCES
(a) Readings:
Eurostat.
Primary Material Balances.
Ndiaye, D.
Statistical Study on the
Consumption of Metals. Centre d'Economie des Ressources Naturelles, Ecole
Nationale Supérieure des Mines de Paris. Paris, 1991.
World Resources Institute.
World Resources 1994-95, part
IV, Chapter 21, 1995.
Behrensmeier, R. and
S. Bringezu. On the Methodology of Analysing Macro-economic Material Intensity. Wuppertal
Institute on Climate, Environment and Energy, Wuppertal Papers, No. 34, April
1995.
Hammond, Allen, et al. Environmental
Indicators: A Systematic Approach to Measuring and Reporting on Environmental
Policy Performance in the Context of Sustainable Development, (Chapter VI
and Appendix I). World Resources
Institute, Washington, D.C., 1995.
Hoffmann, U and D. Zivkovic. Demand
Growth for Industrial Raw Materials and its Determinants: An Analysis for the
Period 1965-1988. UNCTAD Discussion Papers, No. 50, Geneva, November 1992.
(b) Internet
site: None.
ANNUAL
ENERGY CONSUMPTION PER CAPITA |
||
Economic |
Consumption
and Production Patterns |
Energy
Use |
1.
INDICATOR
(a)
Name: Annual
energy consumption per capita.
(b)
Brief Definition:
The per capita amount of energy - liquids, solids, gases and
electricity – available in a given year in a given country or geographical
area.
(c)
Unit of Measurement:
Gigajoules.
(d) Placement in the CSD Indicator Set: Economic/Consumption and Production Patterns/ Energy Use.
2.
POLICY RELEVANCE
(a)
Purpose:
The indicator is a widely used measure of access to and use of
energy, individual and industrial energy consumption patterns and the energy
intensity of a society.
(b)
Relevance to
Sustainable/Unsustainable Development (theme/sub-theme):
Energy is a key factor in industrial development and in providing
vital services that improve the quality of life.
Traditionally energy has been regarded as the engine of economic
progress. However, its
production, use, and byproducts have resulted in major pressures on the
environment, both from a resource use and pollution point of view.
The decoupling of energy use from development represents a major
challenge of sustainable development. The
long-term aim is for development and prosperity to continue through gains in
energy efficiency rather than increased consumption and a transition towards
the environmentally friendly use of renewable resources.
On the other hand, limited access to energy is a serious constraint to
development in the developing world, where the per capita use of energy is
less than one sixth that of the industrialized world.
(c)
International Conventions and Agreements:
UNFCC and the Kyoto Protocol call for limitations on total greenhouse
gas emissions, which are dominated by COs from the combustion of
fossil fuels.
(d)
International
Targets/Recommended Standards:
The Kyoto Protocol sets targets for total greenhouse gas emissions for
Annex I (developed) countries.
(e)
Linkages to Other Indicators: The
indicator is closely linked with other indicators of the economy, with
environmental indicators such as climate change, air quality and land use,
and also with social indicators.
3.
Methodological Description
(a)
Underlying Definitions and
Concepts: Gross inland
consumption of energy is a key aggregate in the energy balances.
Consumption of energy refers to “apparent” consumption and is
derived from the formula that takes into account production, exports, imports
and stock changes. Production
refers to the first stage of production. International trade of energy
commodities is based on the “general trade” system, that is, all goods
entering and leaving the national boundary of a country are recorded as export
and imports. Bunkers refer to
fuels supplied to ships engaged in international transport, irrespective of
the carriers’ flag. In general, data on stocks refer to changes in stocks of
producers, importers and/or industrial consumers at the beginning and the end
of the year.
(b)
Measurement Methods: The
indicator is calculated as the ratio of total energy requirement and mid-year
population. Total energy requirement (gross inland consumption) is calculated
from the following formula: Primary production + Imports – Exports –
Bunkers +/- Stock changes = Total energy requirement.
(c)
Limitations of the Indicator:
Apparent consumption may in some cases represent only an indication of
the magnitude of actual gross inland availability.
The actual value of the indicator is strongly influenced by a multitude
of economic, social and geographical factors.
When using it as an indicator of sustainability the indicator has to be
interpreted in connection with other indicators of economic development and
energy use, as smaller or larger values of the indicator do not necessarily
indicate more or less sustainable development.
(d)
Status of the Methodology: The
indicator is in widespread use, but without a standardized methodology.
International recommendations are available.
(e)
Alternative
Definitions/Indicators: None.
4.
ASSESSMENT OF DATA
(a)
Data Needed to Compile the
Indicator: Energy commodity
data for production and consumption (energy balances) and mid-year population
estimates.
(b)
National and International Data
Availability and Sources: Energy
commodity data for production and consumption, and population data are
regularly available for most countries at the national level; and for some
countries, at the sub-national level. Both
types of data are compiled by and available from national statistical offices
and country publications.
5.
AGENCIES INVOLVED IN THE DEVELOPMENT OF THE INDICATOR
(a)
Lead Agency: The lead
agency is the United Nations Department of Economic and Social Affairs (DESA).
The contact point is the Director, Statistics Division, DESA; fax no.
(1 212) 963 9851.
(b)
Other Contributing
Organizations: Other organizations involved in the indicator development
include the International Energy Agency of the Organisation for Economic
Co-operation and Development (OECD/IEA), and
Eurostat.
(c)
Data References:
United Nations: Energy Statistics Yearbook. United Nations: Energy Balances and
Electricity Profiles.
6.
REFERENCES
(a)
Readings:
Concepts
and Methods in Energy Statistics, with Special Reference to Energy Accounts
and Balances. United Nations, 1982.
Energy
Statistics: Definitions, Units of
Measure and Conversion Factors. United Nations, 1987.
Energy
Statistics: A Manual for
Developing Countries. United Nations, 1991.
(b)
Internet site:
United Nations Statistics Division:
http://www.un.org/Depts/unsd
SHARE
OF CONSUMPTION OF RENEWABLE ENERGY RESOURCES |
||
Economic |
Consumption
and Production Patterns |
Energy
Use |
1.
INDICATOR
(a)
Name:
Share of consumption of renewable energy resources.
(b)
Brief Definition:
The percentage of a country’s total energy consumption supplied from
renewable energy souces.
(c)
Unit
of Measurement:
%
(d)
Placement
in the CSD Indicator Set:
Economic/Consumption and Production Patterns/ Energy Use.
2.
POLICY
RELEVANCE
(a)
Purpose: This indicator measures
the proportion of energy mix between renewable and non-renewable energy
resources.
(b)
Relevance
to Sustainable/Unsustainable Development (theme/sub-theme):
Chapter 4 of Agenda 21 calls for an improvement of efficiency in the
use of energy sources and for a transition towards the environmentally
friendly use of renewable resources. Energy
is a key aspect of consumption and production.
Dependence on non-renewable resources can be regarded as unsustainable
in the long term. Renewable
resources, on the other hand, can supply energy continuously under sustainable
management practices and their use in general create less environmental
pressure. The ratio of
non-renewable to renewable energy resources represents a measure of a
country's sustainability.
(c)
International Conventions
and Agreements:
None.
(d)
International Targets/Recommended
Standards: None.
(e)
Linkages to Other Indicators:
Interpretation of this indicator is enhanced when combined with annual
energy production, annual energy consumption per capita, and lifetime of
proven energy reserves. It is
also closely linked to some of the environmental indicators such as greenhouse
gas emissions.
3.
Methodological
Description
(a)
Underlying
Definitions and Concepts: The
elements comprising this indicator are consumption of renewable resources and
total energy consumption. Renewable
energy sources refer to energy collected from current ambient energy flows or
from substances derived from them. This
definition includes energy derived from geothermal, hydro, solar, tide, wind
and wave power, and biofuels, such as fuelwood, bagasse, charcoal, animal and
vegetal wastes, and other (industrial and municipal) wastes.
Consumption refers to "apparent consumption".
(a)
Measurement Methods: This
indicator is computed by calculating the ratio of consumption of energy from
renewable resources over total energy consumption.
Apparent consumption is calculated by the following formula: Primary
production + Imports – Exports – Bunkers +/- stock changes.
Limitations
of the Indicator: Due
to the large variety of forms of renewables and their uses, data collection is
difficult. Comparability of
national data is limited due to the lack of standardized methodologies.
Alternative
Definitions/Indicators: None.
4.
ASSESSMENT OF DATA
(a)
Data Needed to Compile the Indicator: Consumption
of energy from renewable resources; total energy consumption.
(b)
National and International Data Availability and Sources:
National
data and estimates on renewable resources are available from national
statistical offices and country publications for many countries. The United Nations Statistics Division, and the International
Energy Agency of the Organisation for Economic Co-operation and Development
compile data and estimates based on information from national and
international sources.
(c)
Data References: United
Nations: Energy Statistics Yearbook and Energy Balances and Electricity
Profiles; International Energy Agency: Energy Balances of OECD Countries,
Energy Balances of Non-OECD Countries; World Energy Council: Survey of Energy
Resources.
5.
AGENCIES
INVOLVED IN THE DEVELOPMENT OF THE INDICATOR
(a)
Lead
Agency: The lead agency is the
United Nations Department of Economic and Social Affairs, Statistics Division.
(b)
Other
Contributing Organizations: The
agencies involved in the development of this indicator are the World Energy
Council (WEC), the International Energy Agency of the Organisation for
Economic Co-operation and Development (OECD/IAE), Eurostat, and the Economic
Commission for Europe.
(c)
Data References: World Energy
Council: Survey of Energy Resources. United Nations: Energy Statistics Yearbook.
6.
REFERENCES
(a)
Readings: See 5(c)
(b)
Internet site: United
Nations Statistics Division: http://www.un.org/Depts/unsd