Natural capital

Among the many important capital terms that are used for determination of wealth in economic system, Natural capital is one that is used broadly for all natural assets. Hence, it is a word that will embody or collectively represent all assets that man uses while production of wealth; such as rivers, trees, oceans, land in all its forms etc. However, to define it in strictly economic terms, there are several kinds of points that should be borne in mind. Hence, Natural capital is a stock of natural ecosystems that help yield a cash-flow through production of ecosystem goods that are valuable from an economic point of view. This may be exhibited by a sustainable natural flow that may be easily observed: for instance when there is a healthy growth of trees and greenery, then it may be helpful in production of new organisms. This will again be repeated when this will act as catalyst for a fresh batch of trees and organisms, which would have fed on their remains or have been naturally designed to imbibe nutrients from their organic waste.

However, it is not just the natural cycle of production of assets that would be accounted for under Natural capital. Man has also contributed significantly toward ensuring that this cycle continues, without any impediment, so that in turn, production processes carried out by man, would not be disturbed in any way. For instance, recycling done using natural wastes, so as to either help boost natural production of more trees and animals, or prevents harm to their natural wellbeing. For instance, when recycling is done, it would help prevent exploitation of natural elements by man.

In fact, nowadays there are some business houses that are actively involved in giving back to the environment what they have taken from it: and do so by organizing umpteen drives aimed at recycling natural factors of production that they had borrowed form the environment. This is done in recognition of the fact that man cannot exist individually; and apart for the environment; that natural resources when harnessed should not be done in a way that will harm their capability of sustaining, and that will not disturb natural economic balance.

Many economies around the world still depend heavily on availing of and utilizing natural resources that are considered indispensible to their growth, socially and economically. Hence, when an organization or even an individual is utilizing natural assets available, it should always be borne in mind that it is in fact meant to exist as a comprehensive whole; and that any attempt made intentionally or otherwise to disturb natural economic balance would only come back to haunt our future generations. Some economists are of the view that world economy and all its components are a minute part of a larger entity, comprising of natural capital resources and balanced ecosystem. Irrespective of the size of a natural resource component; or the value if the part it plays in ensuring natural balance of ecosystem, care should be taken to protect and preserve them all. Hence, even a microscopic entity should also be considered as an important and indispensible factor; and that should never be taken for granted.