It could be argued that we are misusing the term “Capital” within Natural and Social Capital.
GDP and Wealth are complementary indicators that provide a fuller picture of economic well-being. A country’s comprehensive wealth includes all produced capital such as factories and roads; natural capital like forests and water; human capital, which leads to earnings; and net foreign assets. Only by having a clear understanding of our world’s wealth—including all forms of capital—can we plan for a more sustainable future. The World Bank is working with countries to go beyond GDP and build a more accurate picture of their wealth.
GDP is a bad gauge of material well-being, time for a fresh approach that accounts for parks and intangible capital, as well as the depletion of capital and damage to the environment.