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 />
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