Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago
Trends and policy implications
Produced capital represents the value of the stock of all human-made assets used to produce goods and services in an economy. The major characteristic of produced capital is that it is used repeatedly in production systems. Produced capital is not necessarily physical in nature. It also includes intangible assets such as intellectual property.
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Despite steady growth since 1995, produced capital levels in Ethiopia, Indonesia, and Trinidad and Tobago remain low in comparison to developed countries and highly concentrated in just a few sectors.
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These countries will require additional investments in renewable energy and agriculture to achieve their climate and food security ambitions.
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Because produced capital—and wealth in general—is not regularly measured by statistical offices in these countries, policy-makers are generally blind to these challenges.
This policy brief explores trends in produced capital in Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020 as part of a larger examination of comprehensive wealth in the three countries. The measurement of produced capital stocks is well established, and statistical offices in many countries publish data on it—though not all. For this project, it was necessary to prepare estimates of the capital stocks produced for the three countries studied, as such data were not available from their national statistical offices.
After examining trends over the 25-year period, the authors share policy recommendations for leaders in each country, touching on
- low levels of produced capital
- uneven allocation of investments in produced capital
- limited evidence of renewable energy investment
- limited investment in agri-food systems and agricultural productivity
- addressing data gaps
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