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This lecture introduces the concept of system boundaries and interrelations, emphasizing the importance of time in system analysis. It covers the shifting baseline syndrome, illustrated with examples from fisheries, and explores the significance of space and time in defining system boundaries. The lecture delves into the material flow analysis at different scales, from global to individual countries, highlighting the extraction versus consumption dynamics. It also discusses the impact of GHG emissions, air pollution, and land use on development, providing insights into country-level trends and challenges. Additionally, it touches upon accounting methods like Life Cycle Assessment and Material Flow Analysis, shedding light on the production-consumption dichotomy.