Key Numbers

Total changes 1990-2008

 

-5%

Inclusive Wealth Index

22%

Gross Domestic Product

-32%

Natural Capital

-12%

Manufactured Capital

36%

Human Capital

 

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.

Overall per-capita changes in IWI, GDP, manufactured, human, and natural capital

Overall per-capita changes in IWI, GDP, manufactured, human, and natural capital


Wealth Composition

 
Composition of Venezuela’s inclusive wealth

Composition of Venezuela’s inclusive wealth

Inclusive Wealth

Natural capital and human capital equally make up Venezuela’s inclusive wealth, followed by produced capital.

Composition of Venezuela’s natural capital

Composition of Venezuela’s natural capital

Natural 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.