UPSC CSE Prelims 2017
Which of the following is the most crucial inference from the above passage?
The passage highlights a significant disparity: while the world's Gross Domestic Product (GDP) increased by 50% in the last two decades, inclusive wealth, which encompasses human and natural capital, grew by only 6%. Crucially, natural capital declined by 30%, and human capital saw a modest 8% increase. This indicates that economic growth driven solely by GDP has occurred at the expense of broader wealth components, particularly natural capital, thereby undermining long-term sustainability. Therefore, the most crucial inference is that an economic model focused exclusively on GDP growth is neither desirable nor sustainable, as it depletes essential capital for future well-being.