“National wealth” refers to the total value of wealth possessed by the citizens of a nation at a specific point in time. It is the total value of wealth and goods generated by all economic activity in a given nation.
The National Wealth is a useful framework through which to measure the progress of an economy and corresponding economic resources. It has a major effect on a nation’s capacity to generate income.
Components and factors contributing to national wealth
The wealth of a country can be estimated as the sum of three major components:
- Natural capital. It is calculated as the sum of the stock value of the renewable and non – renewable resources (pasture land, agricultural land, protected areas, oil, coal, natural gas, minerals)
- Produced assets. It represents the sum of the value of a country’s stock of machinery and equipment, structures and urban land.
- Human resources. They consist of “raw labor,” determined mainly by the number of people in a country’s labor force; human capital and an important element known as social capital.
NEF, “National Accounts of Well-being: bringing real wealth onto the balance sheet“. Using the latest findings from the field of well-being research, it demonstrates how the case for national well-being measures is closely linked to the history of economic national accounting.
World Bank, “Estimating National Wealth: Methodology and Results“, (1998), Environmental Economics Series No.57
World Bank, “Expanding the Measure of Wealth. Indicators of Environmentally Sustainable Development” (1997), Environmentally Sustainable Development Studies and Monographs No. 17
Page edited by —Vanessac 16:15, 6 May 2009 (UTC)