Biljana Jovanović Gavrilović – University of Belgrade – Faculty of Economics, Kamenička 6, 11000 Belgrade, Serbia
Biljana Radivojević – University of Belgrade – Faculty of Economics, Kamenička 6, 11000 Belgrade, Serbia


5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, CONFERENCE PROCEEDINGS

Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;

ISBN 978-86-80194-20-2, ISSN 2683-5568, DOI:


With the adoption of the Agenda 2030, the concept of sustainable development was
formally accepted as the dominant development paradigm at the global level. Sustainability in
the context of sustainable development does not mean maintaining the status quo, but preserving
development opportunities, which is very important for future generations, as well as from the
point of view of measuring sustainable development. Among the synthetic indicators that measure
sustainable development in a comprehensive manner, special attention should be paid to
wealth of nations and adjusted net saving. Wealth is broadly defined to include produced capital,
natural capital, human capital, and net foreign assets. Human capital, according to research
by the World Bank is the most important component of wealth at the global level and for most
countries. The convergence in wealth that is observed between middle-income and high-income
countries during the period 1995-2014 is mostly due to the accumulation of human capital, which
have raised from massive investments to improve education and health outcomes. The aim of
the paper is to point out the significance of measuring sustainable development, as well as the
advantages in the use of synthetic indicators, such as wealth and related adjusted net saving.
The focus is on the role of human capital in selected synthetic indicators as the leading factor for
sustainable development in the 21st century. Measuring of changes in the volume and composition
of total and per capita wealth over 20 years in 141 countries, carried out by the World Bank,
permits us to monitor, analyze and compare the sustainability of development process worldwide.
This is also possible by using adjusted net saving, which help us understand some of the
dynamics that drive the changes in wealth. Paper also provides insight into how available wealth
and adjusted net saving data can be used to guide a policy towards sustainable development.

Key words

Sustainable development, synthetic indicators, wealth of nations, adjusted net saving, human


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