Policy failures in environment and development have been blamed on frag- mented and eclectic policies and strategies. The 1992 United Nations Con- ference on Environment and Development, the ‘Earth Summit’ in Rio de Janeiro, called therefore for an integrated approach in planning and policy making to achieve long-term sustainable growth and development. The Con- ference also recognized in its action plan, the Agenda 21, that integrated poli- cies need to be supported by integrated information, notably requiring the implementation of integrated environmental and economic accounting by its member States. During the preparations for the Rio Summit, scientists and practitioners of national accounting met in a Special Conference on Environmental Account- ing, organized by the International Association for Research in Income and Wealth (IARIW) in Baden, Austria. Their aim was to explore the need for and methodologies of adjusting national accounts for environmental reasons. National accountants had faced mounting criticism that conventional accounting neglected new scarcities in natural capital, as well as the social cost of environmental degradation. The result of their deliberations was a draft manual, later issued by the United Nations Statistics Division (UNSD) as a handbook of Integrated Environmental and Economic Accounting.
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