trends and future of sustainable development - TransEco

353025201510501945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010GDP GPI ISEWFigure 1.Progress of GDP, ISEW and GPI per capita in Finland in 1945-2010 (Euro, 2000 rp)Figures 2 shows that both ISEW and GPI rose steadily in the 1970s and early 1980s, but have sincethen declined and stabilised. In case of Finland the main reason for this development is the incomedistribution which apportioned the welfare derived from increased production. In the mid- 1980sincome disparities started to grow again, flows of capital (investments) abroad increased andenvironmental hazards escalated, resulting in a decline in weighted personal consumption, on which theISEW and GPI are actually based. A further illustration of the development of the values of ISEW’spositive and negative components from 1945 to 2010 is depicted in Figure 2.2502001501005001945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010Weighted priv ate consumption (+) Householdwork (+)Other serv ices (+) Long-term env ironmental hazards (-)Deteriaration of env ironmental quality (-)Figure 2.Progress of the components of Finnish ISEW (EUR billion, rp)Throughout history the basis of the Finnish ISEW has been the weighted personal consumption ofindividuals. Since then the weighted personal consumption declined but later turned upwards. The 1991level was gained again in 1998. The other major positive component of the ISEW, i.e. household work,has also grown somewhat in size over the years. The negative components of the ISEW, the so calledenvironmental deterioration and long-term environmental damage, that approximates the cumulativeenvironmental damage caused by economy, have also grown strongly. However, in 1990s the value ofenvironmental deterioration has decreased thanks to the efficient environmental protection activities.Finally, as a general observation, it can be concluded that the ISEW measure is remarkable stable309