Africa Takes GDP Recalculation Campaign to G20, but Scepticism Abounds

African countries plan a fresh push at international summits this year for standard measures of economic strength such as GDP to have better recognition of their vast natural assets and resources. The initiative is being driven by the African Development Bank in the hope that recalibrating GDP would automatically improve debt metrics and relieve borrowing market pressures that had triggered dozens of economic crises in recent decades. There has long been scepticism over how much hard cash precious ecosystems can generate for poorer countries. But the U.N. estimates that Africa, which makes up 20% of the world’s land surface, is home to one-quarter of all mammal species and one-fifth of bird species. It also has around one-sixth of the world’s remaining forests and those, along with mangroves, help lock away planet-damaging carbon emissions – a benefit that should be included in GDP calculations, the AfDB argues…The recalculation issue is likely to feature during South Africa’s G20 presidency this year…However, there are doubts over how much of an impact such a recalibration would have on investors and creditors given the leap still needed to monetize natural wealth via the likes of carbon credits. (Reuters)