The Third annual conference of AIIB (Asian Infrastructure Investment Bank) was recently held at Mumbai. The discussions related to pros and cons of various developmental projects, the issue of development versus displacement, need of inclusive development and sustainable development for the better future was once again in the limelight. Whatever may be the form of Government, the focus on economic growth has always remained the primary concern for every nation. The Indian economy has also focused on increasing economic growth, ensuring economic development and bringing inclusiveness and sustainability in the economic growth. The Twenty-First century has witnessed the newer approach towards economic development in view of its environmental consciousness and the emergence of concept of ‘sustainable development’. Sustainable development means development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Concept of Sustainable Development- The concept of sustainable development although looks simple and straightforward, it is a generational change in human thinking about our environment. First put forward officially by the Brundtland Commission in its report ‘Our Common Future’ in year 1987, the concept of ‘sustainable development’ has shaped the international discourse on environment significantly. Its background was the persistent and alarming deterioration in the quality of environment globally. The need for sustainable development arose from the clash between economy and environment, which involved balancing the short-term material interests with the long-term goal of environmental sustainability. The inclination towards the former at the cost of environment usually results from short-sighted political considerations and unconsciousness of the interests of future generation. In the present day world, sustainability has become an important concept in economic growth and development in the world. The Green Gross Domestic Product (Green GDP or GGDP) is an index of economic growth with the environmental consequences of that growth factored into a country’s conventional GDP. Green GDP monetizes the loss of biodiversity, and accounts for costs caused by climate change.

Green GDP- Economic growth basically refers to the real growth in Gross Domestic Product (GDP). GDP is computed as a sum of all final goods and services, produced in a financial year at market prices. It is measured by adding together a nation’s personal consumption expenditure, government spending, net exports and net capital formation. GDP calculation ignores externalities, especially the environmental externalities. The idea of Green GDP arose in the early 1990’s in response to the shortcomings of traditional GDP to account for the economic costs of natural resource depletion and pollution damages, which in turn would influence human welfare. In recent years, Green GDP accounting has become a significant basis to develop and implement the sustainable development strategies in the world. The Green GDP can be calculated by the formula:  Green GDP= Gross Domestic Product minus Natural Resources Depletion minusPollution Damage.  There are other alternatives to GDP, including Green Net National Product (Green NNP), Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and Genuine Savings (GS). These are also considered as sustainable development indicators.

China was the first country in the world which has experimented with green accounting system in their country in year 2004. China had launched the process of Green GDP computing by replacing the traditional GDP accounting system, but sooner dropped it in year 2007 owing to factoring in of environmental costs which had a significant impact on their perceived economic growth. In India too, the Ministry of Statistics and Programme Implementation had set up an expert group in year 2011 led by Partha Dasgupta to work out a framework for green national accounts in India. The Dasgupta-led expert group had submitted its report in March 2013, recommending that economic evaluation be made on the basis of a comprehensive notion of wealth, including aspects such as infrastructure and capital equipment, human capital and natural capital. At global level, on the lines of MDGs (Millenium Development Goals), 17 Sustainable Development Goals (SDGs) and 169 targets of the 2030 Agenda for Sustainable Development has already come into action in order to ensure sustainable development at global level.

Sustainable development concept involves caring for future generations. It is to be understood that resource extraction from the Earth and utilisation of natural resources can’t be totally stopped, but with moderate and judicious use it can be made sustainable. A balance needs to be achieved between the short-term and long-term interests and the importance of conservation and concern for nature needs to be emphasised. The blackmailing and irresponsible behaviour from Trump administration related to back out from Paris climate conference reflects short-sightedness and hypocrisy about environmental commitments from the economic superpower like USA. It is to be remembered that we have not received the Earth from the ancestors to exploit it the way we want, rather, we are only the ephemeral guardians of this treasure-trove, whose future guardians are waiting. And, it would be wrong on our part to cheat them by finishing the treasure in the trove, leaving only the guardianship to them.

(The author of this article ,Lt Col (Dr) Satish Dhage, is an ex Army officer and has been qualified for IPS (Indian Police Services) through IPS LCE 2012. Presently, he is Director, MGM Institute of Competitive Exams Aurangabad. For any queries or feedback, he can be contacted on email id : drsatishdhage@gmail.com)