25 Jul '11, 6am

The time is ripe for green accounting | Eco-Business

The review of Singapore’s economic growth forecast made front-page news last week. Amid concerns from the Government, business leaders and citizens on what impact the European sovereign debt crisis and other risks would have on the nation’s growth, jobs and pay cheques, I found myself wondering: What does GDP really mean? Some economists may disagree with me when I say that the current definition of gross domestic product, or GDP, as we know it, is deeply flawed. But I’m not the only one who thinks so. In fact, awareness of the shortcomings of GDP as a measure of a nation’s well-being and an economy’s sustainability has grown steadily in recent years. GDP measures the value of output produced within a country in a given time period, usually a year or a quarter. The key flaw is this: Any depreciation included reflects only changes to man-made capital such as equipment, but ...

Full article: http://www.eco-business.com/opinion/the-time-is-ripe-for-...

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