Natural capital

Definition

Natural capital refers to the world's stocks of natural assets, including geology, soil, air, water, and all living things. It is essential for sustaining life and economic activities, serving as the foundation for ecosystem services that support rural livelihoods. By understanding natural capital, we can better appreciate how ecosystems contribute to human well-being and the importance of maintaining biodiversity for a sustainable future.

5 Must Know Facts For Your Next Test

1. Natural capital is crucial for rural livelihoods as it provides resources such as clean water, fertile soil, and biodiversity that communities rely on for agriculture and fishing.
2. The degradation of natural capital can lead to a decline in ecosystem services, negatively impacting food security and economic stability for rural populations.
3. Investing in the preservation and restoration of natural capital can enhance community resilience against climate change and environmental shocks.
4. Policies promoting sustainable management of natural capital are vital in ensuring that rural communities can thrive while conserving their environments.
5. Measuring natural capital can help in assessing the true value of ecosystems, guiding decision-makers to prioritize conservation efforts effectively.

Review Questions

• How does natural capital contribute to the livelihoods of rural communities?
  • Natural capital plays a vital role in supporting the livelihoods of rural communities by providing essential resources such as clean water, fertile land for agriculture, and forests for fuel and shelter. These resources are critical for food production, income generation, and overall community well-being. When natural capital is well-managed, it can promote sustainability and resilience, enabling communities to thrive economically while maintaining their environmental health.
• Evaluate the impact of natural capital degradation on ecosystem services and rural livelihoods.
  • The degradation of natural capital significantly impacts ecosystem services by reducing the availability and quality of resources like clean water and fertile soil. This decline can lead to adverse effects on food production, increase vulnerability to environmental hazards, and exacerbate poverty in rural areas. As ecosystem services diminish, communities may face challenges in sustaining their livelihoods, which can result in economic instability and increased reliance on unsustainable practices that further harm the environment.
• Propose strategies for integrating natural capital into policies aimed at enhancing rural development.
  • To effectively integrate natural capital into policies for rural development, strategies should focus on sustainable resource management practices that prioritize conservation and restoration efforts. This could include promoting agroecological farming methods that enhance soil health and biodiversity while reducing reliance on chemical inputs. Additionally, policies could incentivize local communities to engage in ecosystem restoration projects that bolster natural capital. Collaborative efforts among government agencies, local stakeholders, and NGOs can ensure that economic development initiatives align with the conservation of natural assets, fostering long-term sustainability.

Related terms

ecosystem services: The benefits provided by ecosystems to humans, including provisioning services like food and water, regulating services like climate regulation, cultural services like recreation, and supporting services like nutrient cycling.

biodiversity: The variety of life in a particular habitat or ecosystem, which contributes to resilience and productivity within those systems.

sustainable development:

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on balancing economic growth with environmental protection.