Report - UNDP Russia

Table 8.4Breakdown of the Adjusted Net Savings IndexNational accountingaggregatesAmount (in % of GNP)Countrieswith high RussiaincomeGross saving (% of GNI) 19.9 30.7Consumption of fixed capital(% of GNI)Education expenditure(% of GNI)13.0 7.04.7 3.5Energy depletion (% of GNI) 1.5 37.5Mineral depletion (% of GNI) 0.2 1.9Net forest depletion(% of GNI)0.0 0CO 2 damage (% of GNI) 0.3 1.4Particular emission damage(% of GNI)Adjusted net savings(% of GNI)0.3 0.39.3 -13.8Source: World Development Indicators 2008. World Bank, WashingtonDC, 2008Table 8.5Adjusted Net Savings Indexes in specific countriesCountryAdjusted netsavingsCountryAdjusted netsavingsJapan 15.8 EU 12.0Germany 12.1 Russia - 13.8France 11.4CzechRepublic14.7Great Britain 6.9 Poland 7.8Canada 5.4 Ukraine 4.1USA 4.1 China 36.1Norway 9.2 India 20.6Source: World Development Indicators 2008. World Bank, WashingtonDC, 2008capital by raising educational levelsaccumulates savings and ensures sustainabledevelopment.The Adjusted Net Savings Index takesparticular account of the energy factor byadjusting the traditional gross savings index toreflect depletion of energy resources (Table 8.4),and by applying indicators of CO 2 and particularemissions to record impact of the energyindustry on human health and environmentalpollution.The main merit of the Adjusted NetSavings Index is that it offers a single method ofcalculation for the whole world and for specificcountries, using official national statistics,updated annually and published in ‘WorldDevelopment Indicators’ (the main statisticaldigest of the World Bank) or in other World Bankstatistical materials. This Index is already used byseveral countries as an official macroeconomicindicator.Calculations published by the World Bankand based on adjusted net savings (genuinesavings) for all the countries show a dramaticdifference between traditional economicindicators and those adjusted for environmentalfactors. In Russia economic growth (in thetraditional understanding) has beenaccompanied by depletion of natural capital andenvironmental degradation, and adjustment toreflect these factors turns the traditionaleconomic indicators negative. Russia’s Index ofAdjusted Net Savings has been negative in recentyears, despite growth of GDP. It is important totake this fact into account during the crisis and inthe search for ways of overcoming it. Forexample, 2006 was a highly successful year forthe Russian economy judged in traditionaleconomic terms: GDP growth amounted to 7.4%.But the Adjusted Net Savings Index was negative(-13.8%), mainly due to depletion of naturalresources (Table 8.4)Comparison of adjusted net savings inRussia and some other countries of the world isalso telling. The Index level in developedcountries is 9.3% (Table 8.4). Adjusted net savingsfor various countries (developed, developing andwith transition economies) are presented in Table8.5, and are positive in all cases except for Russia.Negative value of adjusted net savings in Russiacannot be explained only by dramatic depletionof natural capital (primarily energy resources),since international experience shows thatcountries with large and depleting natural capitalcan compensate the depletion by increase ofsavings, education spending, etc. Norway,150 National Human Development Report in the Russian Federation 2009