Editing Natural Capitalism (section)

==Content==

In ''Natural Capitalism'' the authors describe the [[global economy]] as being dependent on [[natural resource]]s and [[ecosystem services]] that nature provides. Natural Capitalism is a critique of traditional "Industrial Capitalism", saying that the traditional system of capitalism "does not fully conform to its own accounting principles. It liquidates its capital and calls it income. It neglects to assign any value to the largest stocks of capital it employs – the natural resources and living systems, as well as the social and cultural systems that are the basis of human capital."

Natural capitalism recognizes the critical interdependency between the production and use of human-made capital and the maintenance and supply of natural capital.<ref name=book>Natural Capitalism: The Next Industrial Revolution, Lovins, Lovins, & Hawken, 2000</ref>  The authors argue that only through recognizing this essential relationship with the Earth's valuable resources can businesses, and the people they support, continue to exist.

Their fundamental questions concern the theoretical properties of an economy that, among other tenets, organizes around a more realistic ideation of the principles of business and industry, and envisioning a world in which this is a reality is a key concern of the argument.

The authors of ''Natural Capitalism'' claim that these choices are possible and "such an economy would offer a stunning new set of opportunities for all of society, amounting to no less than ''the next industrial revolution''."<ref name=nat>{{Cite web |url=http://www.socialfunds.com/news/print.cgi?sfArticleId=164 |title=Book Review: Natural Capitalism |access-date=2008-07-12 |archive-url=https://web.archive.org/web/20100103203021/http://socialfunds.com/news/print.cgi?sfArticleId=164 |archive-date=2010-01-03 |url-status=dead }}</ref>

According to the authors, the "next industrial revolution" depends on the espousal of four central strategies: "the conservation of resources through more effective manufacturing processes, the reuse of materials as found in natural systems, a change in values from quantity to quality, and investing in natural capital, or restoring and sustaining natural resources".<ref name=nat/>

While traditional [[industrial capitalism]] primarily recognizes the value of [[money]] and [[good (economics)|goods]] as [[Capital (economics)|capital]], ''Natural Capitalism'' extends recognition to [[natural capital]] and [[human capital]].  Problems such as [[pollution]] and [[social injustice]] may then be seen as failures to properly account for capital, rather than as inherent failures of [[capitalism]] itself.

The fundamental assumptions of ''Natural Capitalism'' are as follows:<ref name=book/>

#The limiting factor to future economic development is the availability and functionality of [[natural capital]], in particular, life-supporting services that have no substitutes and currently have no market value.
#Misconceived or badly designed business systems, population growth, and wasteful patterns of [[consumption (economics)|consumption]] are the primary causes of the loss of natural capital, and all three must be addressed to achieve a sustainable economy.
#Future economic progress can best take place in democratic, market-based systems of production and distribution in which all forms of capital are fully valued, including human, manufactured, financial, and natural capital.
#One of the keys to the most beneficial employment of people, money, and the environment is radical increases in [[resource productivity]].
#Human welfare is best served by improving the quality and flow of desired services delivered, rather than by merely increasing the total dollar flow.
#Economic and environmental [[sustainability]] depends on redressing global inequities of income and material well-being.