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Sustainable_Competitiveness_Index_2013

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The Sustainability of a Nation<br />

Methodology<br />

Sustainability models<br />

The three-dimensional sustainability model of<br />

reconciling the economy, the environment<br />

and the society is often used and applied in<br />

the corporate world to evaluate and<br />

manage sustainability issues and<br />

performance.<br />

However, corporations are entities that<br />

operate in very different boundaries and with<br />

different goals than states and nationeconomies.<br />

The elements of the model<br />

therefore have to be adapted to the<br />

characteristics of nations and their fundament<br />

of sustained prosperity.<br />

Sustainability model usually applied in corporate<br />

sustainability evaluation<br />

While corporate or economic entities<br />

(depending on the nature of their business)<br />

are working with natural capital, they do not<br />

depend on the location of the capital, and<br />

therefore can move any given moment to<br />

where the external conditions are most<br />

favorable, both in terms of physical location<br />

(offices/factories) and markets, as well as in<br />

terms of business fields. Transport and<br />

international trade have made countries and<br />

people less dependent on their immediate<br />

environment through international trade of<br />

resources, including water. However,<br />

countries and population cannot simply move<br />

on should fundamental resources (water,<br />

agricultural output) become scarce or the<br />

country inhabitable due to climate change.<br />

At the end of the day people rely on, and live<br />

off, the natural capital of their environment for<br />

better or worse.<br />

For the purpose of evaluating the<br />

sustainability and sustainable development<br />

level of a country (which is equal to sustained<br />

economic development), a fourth element –<br />

the natural capital – has therefore been<br />

added to the three elements of innovation<br />

competitiveness, resource efficiency and<br />

social sustainability.<br />

Sustainability model of nations: an additional element is<br />

added: natural capital as the basis for a countries ability for<br />

self-sustaining existence<br />

40<br />

The <strong>Sustainable</strong> <strong>Competitiveness</strong> <strong>Index</strong> <strong>2013</strong><br />

Table of contents<br />

17

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