BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

RESOURCE ACCOUNTING AND ITS IMPLICATION FOR SUSTAINABLE DEVELOPMENT: A LESSON FOR BANGLADESH

Author: A.H.M. Mustain Billah

DOI Link: https://www.doi.org/10.56888/BIISSj2000v21n1a4

ABSTRACT

The System of National Accounts (SNA) is the standard framework used for measuring macroeconomic performance, analyzing trends of economic growth, and providing the economic counterpart of social welfare. Presently the concept of capital maintenance applies only to physical capital; little account is taken of the contribution of natural resource and environment to economic activity. National income should be measured correctly to indicate sustainable income. Revenues derived from resource extraction have the potential to finance investment in other sectors of the economy. The study applied user cost method to estimate resource depletion. It suggests that the positive trend of adjusted Gross Domestic Product(AGDP is a good indicator of economic sustainability). Two alternative sustainability indicators confirm the economic sustainability of Peninsular Malaysia with respect to forest resource depletion. A similar study for natural resource accounting of Bangladesh may enable the estimation of resource depletion and the examination of their impact on sustainable economic development