Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago

The report examines produced capital—human-made assets used in production—across Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020. It finds that while produced capital has grown, levels remain low compared to developed nations and are heavily concentrated in a few sectors, such as petroleum in Trinidad and Tobago and manufacturing and real estate in Ethiopia and Indonesia. This concentration creates economic risks and hinders the transition to renewable energy and sustainable agriculture. The authors argue that the lack of regular measurement of produced capital by national statistical offices leaves policy-makers blind to these structural challenges, underscoring the need to move beyond GDP toward comprehensive wealth metrics.

• Produced capital per capita grew in all three studied countries between 1995 and 2020, though at different rates: Indonesia saw an average annual growth of 5.4%, Ethiopia 3.6%, and Trinidad and Tobago 2.5%.
• Produced capital levels in these countries are significantly lower than in developed nations; for example, the average Canadian had USD 145,000 of produced capital in 2020, compared to USD 55,000 in Trinidad and Tobago, USD 43,000 in Indonesia, and USD 3,600 in Ethiopia.
• There is a high concentration of produced capital in a few sectors, which limits economic diversification. In Trinidad and Tobago, 50% of produced capital is concentrated in petroleum production, while in Ethiopia and Indonesia, it is concentrated in manufacturing and real estate.
• Indonesia and Trinidad and Tobago show limited investment in renewable energy and remain heavily dependent on fossil fuels for electricity, with 82% of Indonesia's and nearly 100% of Trinidad and Tobago's electricity generated from fossil fuels in 2020.
• Ethiopia exhibits a misalignment between its GDP contributions and produced capital investments; while agriculture contributes over 40% of GDP, it only accounts for 8% of produced capital, whereas manufacturing accounts for 40% of produced capital but only 8% of GDP.
• National statistical offices in Ethiopia and Trinidad and Tobago do not measure produced capital stocks, and Indonesia's data only extends back to 2016, leaving policy-makers without essential data to achieve Sustainable Development Goals.

APA

Bizikova, L., Smith, R., & Zoundi, Z. (2024). Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-05/produced-capital-trends-policy-implications.pdf

Chicago

Bizikova, Livia, Robert Smith, and Zakaria Zoundi. Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-05/produced-capital-trends-policy-implications.pdf.

Wikipedia

{{cite report |last1=Bizikova |first1=Livia |last2=Smith |first2=Robert |last3=Zoundi |first3=Zakaria |title=Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago |publisher=International Institute for Sustainable Development |date=April 2024 |url=https://www.iisd.org/system/files/2024-05/produced-capital-trends-policy-implications.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bizikova2024produced, author = {Bizikova, Livia and Smith, Robert and Zoundi, Zakaria}, title = {{Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = apr, url = {https://www.iisd.org/system/files/2024-05/produced-capital-trends-policy-implications.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }