Growth theory provides the intellectualunderpinning for expanded national accounting and, throughthe measure of genuine saving, an indicator of wheneconomies are on an unsustainable development path. Thistheory points in useful directions for countries concernedwith sustainable development. The genuine savings analysisraises an important set of policy questions that goes beyondthe traditional concern with the macroeconomic andmicroeconomic determinants of savings efforts. The questionsof rent capture, public investments of resource revenues,resource tenure policies, and the social costs of pollutionemissions are equally germane in determining the overalllevel of saving, although it is clear that monetary andfiscal policy remain the big levers. This analysis alsoprovides a practical way for natural resource andenvironmental issues to be discussed in the language thatministries of Finance understand. This may prove to be animportant advantage as many resource-dependent economiesstruggle to achieve their development goals.
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