Stock of Capital and Sustainable Development in Egypt: Does it Matter?

Abstract

The current study aims to suggest a mechanism for achieving economic sustainability in Egypt while also considering the environmental consequences. Egypt is an Arab and Islamic country. The study’s goal is to revise the traditional system of national accounts, which measures a country’s economic performance and identifies all economic changes without accounting for environmental and social costs; as a result, the study introduces a national income account adjustment that assesses the depreciation values of depleted resources on the one hand, and the monetary values of environmental retreat on the other. The study employed descriptive and analytical approaches to evaluate both modern ideas of sustainable development and the Egyptian sustainable development plan. The study indicates that data on natural resources must be acquired in an effective and timely manner to execute the proposed strategy. Finally, the study concludes that adjusting national income accounts and calculating sustainable income on a global scale, particularly for developing countries, will have a significant impact on achieving the Sustainable Development Goals, and that it may lead to a review of national comparison criteria based on sustainable income rather than current income.