Total changes 1990-2008
Inclusive Wealth Index
Gross Domestic Product
Changes over 20 Years
The negative changes in inclusive wealth in Colombia can primarily be attributed to the rapid depletion of their natural capital, which growth in produced and human capital were not able to offset. These numbers suggest that GDP growth may not be sustainable in the long run and that it may be closely linked to depletion of natural capital.
Natural capital, mostly made up of agricultural land and fossil fuels, was the largest part of Colombia’s inclusive wealth, followed by produced and human capital.
Between 1990 and 2008, Colombia experienced large declines in its mineral and oil reserves, which significantly contributed to the decline in natural capital and its low performance on the IWI. The decline in natural capital was further exacerbated by rapid population growth, which resulted in a lower rate of return of its capital asset base per person. Taking into account that population is growing faster than resources, it seems critical that Colombia carefully assess their population growth rates and reinvest in its natural capital base to increase the rate of IWI growth and move onto a sustainable track.