Produced Capital in Ethiopia, Indonesia, and Trinidad and Tobago

A policy brief examining produced capital trends in Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020. It finds that produced capital levels are low compared to developed nations and heavily concentrated in a few sectors (e.g., petroleum in Trinidad and Tobago, manufacturing and real estate in Ethiopia and Indonesia). The report highlights a critical lack of investment in renewable energy in Indonesia and Trinidad and Tobago, and a misalignment of agricultural investment in Ethiopia. It concludes that the absence of regular wealth measurement by national statistical offices hinders the ability of policy-makers to achieve sustainable development goals.

• Produced capital levels in Ethiopia, Indonesia, and Trinidad and Tobago have grown since 1995 but remain low compared to developed nations. In 2020, the average citizen in Ethiopia, Indonesia, and Trinidad and Tobago had access to USD 3,600, USD 43,000, and USD 55,000 of produced capital respectively, whereas the average Canadian had USD 145,000.
• Produced capital is highly concentrated in a few sectors across the three countries, limiting economic diversification. In Ethiopia and Indonesia, it is concentrated in manufacturing and real estate. In Trinidad and Tobago, petroleum production accounts for 50% of produced capital, creating risks of 'stranding' capital as the world shifts away from fossil fuels.
• Indonesia and Trinidad and Tobago show limited investment in renewable energy and remain heavily dependent on fossil fuels for electricity. In 2020, Indonesia generated 82% of its electricity from fossil fuels, while Trinidad and Tobago generated nearly 100%. In contrast, Ethiopia has made significant investments in new hydroelectricity dams.
• There is a misalignment between produced capital investment and economic contribution in Ethiopia's agricultural sector. While agriculture contributes over 40% of Ethiopia's GDP, it only receives 8% of the country's produced capital. Conversely, manufacturing receives 40% of produced capital despite contributing only about 8% of GDP.
• National statistical offices in Ethiopia and Trinidad and Tobago do not measure produced capital stocks, and Indonesia's time series only begins in 2016. This lack of regular measurement leaves policy-makers 'blind' to challenges regarding wealth and the Sustainable Development Goals.
• The study identified several data and methodological hurdles in the three countries, including gaps in available series requiring interpolation, a lack of accurate asset depreciation rates, and insufficient data on fixed capital formation by specific asset types such as transport, machinery, and equipment.

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} }