Total changes 1990-2008
Inclusive Wealth Index
Gross Domestic Product
Changes over 20 Years
The negative changes in IWI in Venezuela indicate an unsustainable track. In addition, Venezuela was one of the few countries that saw a decrease in produced capital in addition to a decrease in natural capital. The significant discrepancy between IWI and GDP growth indicates that GDP growth may not be sustainable. This discrepancy could be attributed to the fact that Venezuela was depleting its natural capital, specifically its oil reserves, but not increasing their produced or human capital bases fast enough to ensure positive growth in inclusive wealth. Additionally, rapid population growth further exacerbated the situation, resulting in a lower rate of return of its capital asset base per person.
Natural capital and human capital equally make up Venezuela’s inclusive wealth, followed by produced capital.
In the time period assessed, Venezuela’s natural capital stock was primarily made up of fossil fuel resources, which were being depleted rapidly. In conjunction with its high population growth rate, it seems crucial that Venezuela improve its inclusive investments in produced and human capital if it intends to move on to a more sustainable track.