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Material Flow Accounting, an Efficient Instrument in Analyzing The “Economy - Environment” Relationship Phd. Constantin Mîndricelu Phd. Candidate Dana Martinov Phd. Candidate Diana Enache For the present economic politics and strategies, a rational use of natural resources has become an important problem for the evolution of the actual economic and social systems under the influence of lasting development. The implications of this problem for the future of mankind were noticed beginning with early 1970’s. Then, during the Club of Rome, there was discussed the need for reconsidering some models for the development of socio-economic systems, in the sense of adapting them to a concept of lasting development. Under these circumstances, the term of ‘’ecological capital of the planet’’ imposes as a defining element in underlying projects of economic and social development. Later, the Brudtland Report (UNCED, 1987) proposes a model for analyzing the relationship among various aspects of social and economic development in relation to the natural capital. For authors like Pearce and Turner (1990), the notion of natural capital generally stands for the material support in the development of socio-economic systems. These, as well as other important contributions in identifying global environmental problems, lead to a new concept regarding the phenomenon of lasting development after 1990. In the concept of lasting development, the natural capital is recognized as an essential element in economic growth, especially through the ‘’man made capital’’ which has been long considered as the only condition, necessary and sufficient in any economic activity. Of course that the lasting development cannot be reduced only to realizing a macroeconomic balance between the social benefits of economic activities and the environmental costs implied. Actually, the environmental costs should also quantify a series of consequences, which seem to be unimportant, or which are usually ignored, and that result from the pressure on environment caused by the use of natural resources. For example, even the apparently simple extraction of mineral resources generates a pressure on environment which, in the longer or shorter term can have as a consequence a severe reduction of natural capital’s capacity of supplying. This phenomenon can be regarded from a double perspective. On the one hand, the exploitation of these natural environment’ resources obviously leads to a diminishing of planet’s reserves, both from a quantitative and qualitative point of view ( a decrease of the services which can be offered by the ecosystems). This way, the possibility of lasting economic development is seriously questioned. On the other hand, the exploitation of these natural resources in the course of industrial processes leads to the pollution and release of residues which affect the ecological balance of the planet.