Editor's note: text source D312-2.
Natural capital
Natural capital can be defined as the extension of the economic notion of capital, to goods and services related to the natural environment. Natural capital includes components, the importance of which in any given context may change over different spatial and temporal scales of observation. In cropland environments, natural capital components sustain, over time, the production of goods and services and accordingly play a critical role in shaping socio-economic development pathways through the provision of raw materials needed to sustain socioeconomic growth. Moreover, natural capital provides for various human activities, from life-support systems for human and non-human communities, to the production of goods and services.
In order to assess the role of natural capital in driving LEDD issues and in responding to LEDD in the study sites, it is important to define the main components relevant for cropland functions in environmental, economic and social terms. Availability and quality of natural capital resources, and the ecosystem services that they provide, is intrinsically linked to LEDD and responses to LEDD. The main natural capital components and characteristics relevant to cropland contexts are shown in the Table below.
| Capital conceptual definition |
Components | Characteristics (variables) |
| Natural capital is the natural environment from which emanates the goods and services that sustain life (IISD 2008). |
Climate | Climate Quality index Aridity Precipitation Temperature Slope aspect Evapotranspiration |
| Soil | Soil Quality indices Soil depth Soil type Soil texture Slope gradient Soil organic matter content |
|
| Water |
Soil water content Water balance Water quantity/quality |
|
| Vegetation | Vegetation Quality Index Land cover Vegetation cover |
Source: LEDDRA Partners 2012
Economic capital
Economic capital is the key foundation of financial and economic well-being of a society. In its broadest sense, ‘capital’ refers to stock or assets which are durable and which provide a flow of services over time. The Table below summarizes the economic capital components and their related characteristics, operational measures, assessment methods and techniques in forests and shrubland.
| Capital conceptual definition |
Components | Characteristics (variables) |
| Economic capital is durable stock or assets that provide flows of services over time. |
Produced | Quantity of production or Value of goods Value of services |
| Financial |
Subsidies Remittances Bank deposits Disposal income |
|
| Landesque | Slope stability works, soil bioengineering measures | |
| Physical | Sawmills, wood work factories, roads, railways, etc. | |
| Technology | Presence of various types of technologies by sector (transport, electricity, telecommunications, manufacturing, etc. | |
| Animal (Livestock) | Number of animals Types of animals |
|
| Plant (forest) | Forests by type (coppice, high forest etc.) and by species present (oak, chestnut, conifer etc.) |
Source: LEDDRA Partners 2012
Social capital
In order to encompass the various dimensions of social capital within the LEDDRA approach, an aggregate and a specific concept of the term are used. Social capital, as an aggregate term, is comprised of complex social processes, political arenas, institutions, regulations and cultural factors. It includes the following components: demographic (the structural demographic features of a socio-ecological system), human (the skills and knowledge available in a society), cultural (society’s historical memory and experience, the arts, ideological standpoints of a society, traditions, habits, values), social (connectedness, trust, reciprocity and exchanges) and institutional (i.e. organisational ability, institutions, trust in institutions and processes). Each of the components of social capital is shown in the Table below.
| Capital conceptual definition |
Components | Characteristics (variables) |
| Social capital is a resource to collective action that concerns the ability and willingness of community members to participate in actions directed to community objectives and to processes of engagement. | Demographic | Structural demographic characteristics of an area |
| Human | Knowledge Skills Competency Experience |
|
| Cultural | Attitudes Beliefs Spiritual aspects Traditions Values Cultural identity N.B. Variation between study sites may exist in the spatial level (regional or community) at which identity is experienced and expressed. |
|
| Social | Connectedness Networks and groups Trust Reciprocity and exchanges |
|
| Institutional | Common rules Norms Sanctions Governance |
Source: LEDDRA Partners 2012
References