immediately destroyed by high solar radiation if the ecosystem is managed in a
destructive manner (i.e., high vulnerability).
6.3 Natural Capital in the Tropics
Natural capital is made up of the resources and ecosystem services of the natural
world (Goodwin 2003), which include geology, soil, air, water, and all living things
that make human life possible. Any particular ecological system may be called
capital stock if it plays a role in some economically productive processes (Goodwin
2003).
6.3.1 What Is Natural Capital?
There are both serious risks and significant opportunities for businesses associated
with biodiversity loss and ecosystem degradation. There is also a need for businesses
to quantify and value their impacts on biodiversity and ecosystems and to manage
these risks and opportunities and enable a better future for all (Natural Capital Forum
2017). When a country exploits its mineral resources, the revenue from this is
reflected in the GDP, although there would also be a decline in the value of the
natural capital (World Bank 2019).
According to the Natural Capital Forum (2017), poorly managed natural capital
becomes not only an ecological liability but also a social and economic liability.
Working against nature by overexploiting natural capital can be catastrophic not
only in terms of biodiversity loss but also for humans, as ecosystem productivity and
resilience decline over time, and some regions become more prone to extreme events
such as floods and droughts. Ultimately, this makes it more difficult for human
communities to sustain themselves, particularly in already stressed ecosystems,
potentially leading to starvation, conflict over resource scarcity, and the displacement of populations.
According to the Synthesis Report of the World Bank (2019), natural capital
represents the largest component of wealth in countries at one point in their development, but the amount of natural capital varies between countries and over time.
Economies are largely developed around the relatively abundant forms of natural
capital (e.g., forests, minerals, and agricultural land) and the proceeds from this
capital are invested in other assets, such as produced capital, to foster development.
However, in several countries, natural capital is being depleted without any
corresponding investments in human capital (such as education or health) or produced capital (such as infrastructure), leading to an overall decrease in national
wealth and a failure to improve standards of living among the poor. The opposite is
happening, in general, in higher income countries. While the share of natural capital
as a fraction of total wealth decreases, natural capital per capita increases.
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destructive manner (i.e., high vulnerability).
6.3 Natural Capital in the Tropics
Natural capital is made up of the resources and ecosystem services of the natural
world (Goodwin 2003), which include geology, soil, air, water, and all living things
that make human life possible. Any particular ecological system may be called
capital stock if it plays a role in some economically productive processes (Goodwin
2003).
6.3.1 What Is Natural Capital?
There are both serious risks and significant opportunities for businesses associated
with biodiversity loss and ecosystem degradation. There is also a need for businesses
to quantify and value their impacts on biodiversity and ecosystems and to manage
these risks and opportunities and enable a better future for all (Natural Capital Forum
2017). When a country exploits its mineral resources, the revenue from this is
reflected in the GDP, although there would also be a decline in the value of the
natural capital (World Bank 2019).
According to the Natural Capital Forum (2017), poorly managed natural capital
becomes not only an ecological liability but also a social and economic liability.
Working against nature by overexploiting natural capital can be catastrophic not
only in terms of biodiversity loss but also for humans, as ecosystem productivity and
resilience decline over time, and some regions become more prone to extreme events
such as floods and droughts. Ultimately, this makes it more difficult for human
communities to sustain themselves, particularly in already stressed ecosystems,
potentially leading to starvation, conflict over resource scarcity, and the displacement of populations.
According to the Synthesis Report of the World Bank (2019), natural capital
represents the largest component of wealth in countries at one point in their development, but the amount of natural capital varies between countries and over time.
Economies are largely developed around the relatively abundant forms of natural
capital (e.g., forests, minerals, and agricultural land) and the proceeds from this
capital are invested in other assets, such as produced capital, to foster development.
However, in several countries, natural capital is being depleted without any
corresponding investments in human capital (such as education or health) or produced capital (such as infrastructure), leading to an overall decrease in national
wealth and a failure to improve standards of living among the poor. The opposite is
happening, in general, in higher income countries. While the share of natural capital
as a fraction of total wealth decreases, natural capital per capita increases.
218
M. Osaki et al.