WHAT INCLUSIVE WEALTH DOES BEST
Inclusive wealth knows that money is not synonymous with value
The Inclusive Wealth index is built on the understanding that goods and services are only of value because they contribute to human well-being. The index measures an asset’s wider value to society, and not the price for which it could be bought or sold.
Faucet, or reservoir? Rather than measuring flows of wealth, like the GDP, it measures the stock of wealth-inducing conditions.
Inspecting the stocks of produced capital, natural capital and human capital, it shows how much wealth a country can potentially create, not just how much is being made right now. You can’t tell how much water is available, just by measuring what’s coming out of a faucet.
The index’s transition from measuring flows to accounting stocks provides an intergenerational understanding of well-being and wealth.
Inclusive wealth shows sustainability
The Inclusive Wealth Index has the answers to today’s biggest question “But, can it be sustained?” One glance at the results suffices. If the number is positive, it’s sustainable; if it’s negative, it’s not. And the IWI doesn’t just show environmental sustainability, its reflects the longevity of peoples’ values and well-being too.
Inclusive wealth illuminates trade-offs and synergies
Because the index measures such a wide spectrum of wealth types, it provides unique insights about when one type of capital is being sacrificed to build up another (trade-offs), and how boosts in some capital types lead to simultaneous jumps in others (synergies).