An Accounting System Worthy of Earth Day: Natural Capital Accounting
When presidents, prime ministers, and government ministers of more than 60 nations put their countries’ names behind natural capital accounting last year at Rio+20, something shifted. Countries wanted a better way of measuring progress that went beyond GDP and factored in nature and its services.
Clearly that was no flash in the pan. Last week, I chaired a high-level ministerial dialogue on the margins of the IMF-World Bank Spring Meetings where government ministers and senior representatives of more than 40 countries came together to compare notes on how natural capital accounting is working for them.
Country after country – represented by finance, development, or environment ministers – talked about how natural capital accounting fit their countries’ priorities and how it could be a tool to address some of their key policy challenges. With each statement from the floor, it was clear that natural capital accounting is no longer an academic concept. It is alive and well and being utilized across the world in developing, middle, and high-income countries.


Agriculture in India still remains the main source of livelihood for the majority of the rural population and more importantly the small holding farmers. With an average annual growth rate of 3.3%, the major challenges facing this sector include a shrinking land base, dwindling water resources, the adverse impact of climate change, shortage of farm labour, increasing costs and uncertainties associated with the volatility of international markets.
United Nations events, usually crowded with diplomats and technocrats, aren’t normally those which raise a lot of emotion – though there have been exceptions. I remember in particular the admonition from a delegate of Papua New Guinea to the UNFCCC COP a couple of years ago that if the United States wasn’t going to lead on tackling climate change, then it should at least get out of the way. Or last year in Doha, when the delegate from the Philippines complained that "… as we vacillate and procrastinate here, the death toll is rising" from a recent typhoon in his country.
Maria knows she is good at selecting ripe tomatoes, but she doesn’t know any women who own nurseries like the one where she works in Honduras. Susan does housekeeping for a hotel in Kenya, but there is little chance that she would ever lead a safari. Salma, at a call center in Egypt, can calm down angry customers, but she has never seen a female manager in her office.

Dr. Robert Kibugi is a Legal/Institutional Expert for Ministry of Water and Irrigation in Kenya and a lecturer at the Centre for Advanced Studies in Environmental Law and Policy (CASELAP), University of Nairobi. 