Sustainable development
development that balances current human well-being and economic advancement with environmental preservation and resource management for the benefit of future generations- conflict between economic and environmental goals
Sustainable Development Goals
-a set of 17 goals -Developed in UN conference on sustainable development in Rio in 2012- universal goals that meet urgent environmental, political and economic challenges facing our world-intended to be met between 2015-2030- Have targets with one to three indicators which measure countries' progresseg: Goal 1 : End poverty in all formsTarget 1.1By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a dayIndicator 1.1.1Proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
Relationship between sustainability and poverty (HL only)
-Pollution of affluence causes environmental degardation- Environmental damage also occurs due to production and consumption of activities which are due to poverty- ' Pollution of poverty'- overexploitation of scarce environmental resources by poor people ( Brundlant Commission) - Eg : Cannot buy inputs to preserve soils fertility, overgrazing : make soils less productive-Eg: Have more children, need firewood ( no access to clean energy sources : clear more forests- can be interpreted negative externalities arising out of overuse of common pool resources- Fig 5.3 of Chap 5 , the MPC curve may be a farmer's private costs of farming with the difference b/w MPC and MSC curves representing overuse of forest
Economic growth vs economic development
- Economic growth refers to increase in output ( real GDP) and incomes over time# measured on a per capita basis- Economic development leads to improved standards of living for the population as a whole
Evolving meaning of economic development
- In 50s and 60s, growth and development thought the same ( Kindleberger, 1965)# growth over long periods would automatically provide economic and social benefits for entire population# ' trickle-down theory'-By late 60s and 70s, found that many developing countries not faring well# despite economic growth, no of people living in extreme poverty was increasing b/w 1950-75.- growth alone cannot guarantee development
Dimensions of economic development : Human development
- Amartya Sen: A process of expanding freedoms- freedom to satisfy hunger,...free from preventable illnesses, to receive an appropriate education, ...to enjoy legal protection,...to participate in social and political life... to live a full and productive life
Income poverty vs Human poverty
- Income poverty: when income falls below a nationally or internationally determined poverty line- Human poverty involves deprivations which stop a person from leading a long, healthy, craetive life with freedom and dignity.
GDP per person (per capita) at PPP
-indicator of the value of the output produced in the country per person
GNI per person (per capita) at PPP
- indicator of the value of the income received by the residents of the country per person- the difference between GDP and GNI is not very large when income outflows from country are matched by income inflows-Foreign remittances by workers or companies abroad- GNI better indicator of standards of living - GDP to GNI % > 100 if foreign remittances come into the country
Purchasing Power Parity
A monetary measurement of development that takes into account what money buys in different countries.- Use of PPP is required to remove price disparity- Low income countries have lower prices for goods
Life expectancy at birth
the average number of years a newborn baby could expect to live if current mortality trends were to continue for the rest of the newborn's life
Infant mortality rate
The total number of deaths in a year among infants under one year old for every 1,000 live births in a society.
Maternal Mortality Rate
annual number of deaths of women from pregnancy-related causes per 100,000 live births
Health outcomes
- Higher income countries have generally better health parameters- However, US fares badly on health parameters when compared to other high income countries- Govt outlay on public health, sanitation etc important..- countries with low GNI can still make a difference by increasing outlay.
Adult literacy rate
The percentage of people over the age of 15 who can read and write
Primary school enrolment
- percentage of school-age children who are enrolled in primary school
Lower Secondary school enrolment
- percentage of children who are enrolled in lower secondary school
Education Outcomes
-Higher income countries have generally better education parameters- But Govt outlay on public education important and has impact on primary enrolment, universal literacy
Economic inequality indicators
- Lorenz curves, Gini coefficients, poverty lines, minimum income standards, Multidimensional Poverty Index
Social inequality indicators
- Child malnutrition, Gender inequalities
Energy indicators
renewable energy consumption, access to electricity, electric power consumption
Environmental indicators
CO2 emissions per unit of GDP, emissions of other hazardous substances
Composite indicators• Human Development Index (HDI)
- Being multi-dimensional, economic development cannot be measured by single indicator-best known index- Measures three dimensions: long and healthy life, access to knowledge, decent standard of living-Life expectancy at birth, mean years and expected years of schooling, GNI per capita in PPP terms-Each dimension expressed b/w 0 to 1.-Composite index is the average of the three values-Countries ranked according to HDI- HDI issues apply to developed countries as well- Shortcomings of HDI: doesnot measure social and economic inequalities, political participation
Composite indicators: Gender Inequality Index (GII)
- Measures loss in human development due to inequalities across three dimension- Reproductive health# Maternal mortality ratio# Adolescent birth rate ( birth per 1000 women ages 15-19) - Empowerment# share of parliamentary seats held by women# proportion of women in total population with atleast some secondary education-Labour market participation# proportion of women in the labour force-Higher the GII, higher the inequality
Composite indicators: Inequality adjusted Human Development Index (IHDI)
- Measures human development on the same dimensions as HDI- But each dimension is adjusted for inequality - IHDI attempts to measure losses in HDI due to inequalities- Where there are inequalities, IHDI< HDI- IHDI is lower for all countries measured by UN- Shortcomings: Doesnot measure political participation etc
Composite indicators: Happy Planet Index
- Takes into consideration life expectancy, how people feel about their own personal wellbeing which are adjusted for inequalities and ecological footprint- = (life expectancy wellbeing inequalities )/ ecological footprint-Well-being measured by the data collected by the Gallup world poll- Inequalities are inequalities in life expectancy and well-being-Ecological footprint is the impact of each individual in a society on average.# Amount of land needed to provide for all requirements and the amount of land required to absord all their CO2 emissions- Higher ecological footprint , lower HPI- score from 0 to 100- Ecological footprint reduces the ranks of developed countries substantially- Shortcoming: measuring well-being is flawed, ecological footprint measurement is controversial
Strengths and limitations of approaches to measuringeconomic development
- Economic development is a multi-dimensional and complex process-Cannot be represented by any one measure- Single or composite indicators measure only certain aspects- sometimes present conflicting perspectives- indicators are based on statistical information# some countries have limited capacity for collection of data# Data not fully available in certain countries, recent data unavailable# International agencies come up with estimates when data is missing# Definitions of variables and methods used by statistical agencies differ; data might not be comparable
Possible relationship between economic growth and economicdevelopment
- Economic growth cannot occur without economic development-Some economic development is possible in absence of economic growth, if govt priorotoses- Refer to PPC on pg 561# Reallocate resources to merit goods from industrial goods# After sometime, possibilities exhausted# PPC has to shift : economic growth is required- Economic growth doesnot guarantee economic development
OECD Better Life Index
- Organisation of Economic cooperation an development ( OECD) - 2 groups of factors that determine well-being in the present# Quality of life which is measured across 8 indicators: health, work-life balance, education and skills, social connections, civic engagement, environmental quality, personal security, subjective well-being# Material conditions which are measures in three: Income & wealth, jobs and earnings, housing- Both qulaity of life factors and material condictions depend on 4 types of capital in the future: natural capital, human capital, economic capital, social capital.- based on these 11 indicators, the OECD publishes a ranking- Index is a work in progress: at presnt, trying to incorporate equity into it.
Happiness Index
_ begun to be compiled by the UN Sustainable Development Network in 2012- Based on # real GDP per capita# social support# healthy life expectancy# freedom to make life choices# generosity# perceptions of corruption- data collected by Gallup poll- Gives ranks from one to ten on each dimensions- country given overall rank summarising their performance- Every year, has a theme topic and its relationship to happinessEg: happiness and community- Limitations: happiness difficult to quantify, deficiencies of data used etc.