Download - 01-09-12 LECTURE NO. 03
GLOBAL ENVIRONMENTAL
ISSUES - SUSTAINABLE DEVELOPMENT
01- 09 - 2012Lecture No. 3
CONCEPT OF DEVELOPMENT
GREAT IDEAS ARE SIMPLE IDEAS!
SO IS THE CONCEPT OF DEVELOPMENT?
CONCEPT OF DEVELOPMENT “THE PROMOTION OF SOCIAL PREOGRESS & BETTER
STANDARDS OF LIVING IN LARGER FREEDOM” – AS DEFINED IN THE CONTEXT OF THE PREAMBLE TO THE CHARTER OF THE UN
DEVELOPMENT IS “IMPROVEMENT IN QUALITY OF LIFE” – CONTEMPORARY UNDERSTANDING
INGERDIENTS ECONOMIC GROWTH EQUITY SOCIAL JUSTICE
CONCEPT OF DEVELOPMENTHISTORICAL PERSPECTIVES
MODERN UNDERSTANDING OF DEVELOPMENT WAS NON EXISTANT PRIOR TO 2ND HALF OF THE 20TH CENTURY
COUNTRIES / NATIONS CONSTITUTING MODERN DEVELOPING WORLD WERE:
Ruled by imperial powers Functioned as source for raw material & cheap labor
(including slave labor) to the ruling powers
CONCEPT OF DEVELOPMENT
HISTORICAL PERSPECTIVES Within the richer countries economic growth played a key role in
attainment of progress and modernization
Little concern for issues of equity & social justice
In the aftermath of the 2nd world war perceptions and policy changed drastically
Economic and social growth became central planks of public policy and theoritical discourse
CONCEPT OF DEVELOPMENT
HISTORICAL PERSPECTIVES NEOCLASSICAL ECONOMIC THEORY GAVE WAY TO
DEVELOPMENT ECONOMICS EMPHASIS SHIFTED FROM POSITIVE TO NORMATIVE
IDEALS: Seeking what should be rather than what is Social & political issues became a concern Goals, ideals & ends, as well as economic means attained
importance
CONVENTIONAL DEVELOPMENT THOUGHT
LINEAR DEVELOPMENT MODEL PROPOSED BY W. W. ROSTOW IN 1960 THE MODEL SUGGESTS A SERIES OF DEVELOPMENT STAGES
FOR ALL THE DEVELOPING COUNTRIES
TRADITIONAL SOCIETY ECONOMIC TAKE OFF MATURITY HIGH MASS CONSUMPTION
THE MODEL POSITS THAT “LESS DEVELOPED COUNTRIES HAVE A REASONABLE HOPE TO ACHIEVE “MATURE” STATUS OF ECONOMIC DEVELOPMENT WITHOUT THE NEED FOR COMMUNIST REVOLUTION”
LINEAR DEVELOPMENT MODEL THE MODEL WAS WIDELY ACCEPTED BY DEVELOPMENT
THEORISTS PAVED THE WAY FOR ADOPTION OF AN AMBITIOUS PROGRAM
OF ECONOMIC DEVELOPMENT EMPHASISED MORE PRODUCTIVE AGRICULTURE &
INDUSTRIALIZATION INFLUENCED THE IDEOLOGY OF INSTITUTIONAL STRUCTURES
SET UP AFTER THE 2ND WORLD WAR INCLUDING: THE IMF THE WORLD BANK
CONVENTIONAL DEVELOPMENT THOUGHT
BASIC NEEDS MODEL PROPOSED BY PAUL STREESEN AND OTHERS IN 1970’S FOCUS OF THE MODEL IS ON MEETING THE BASIC NEEDS OF
THE PEOPLE INCLUDING: EDUCATION HEALTH NUTRITION SANITATION EMPLOYMENT, ETC
REFLECTED THE GROWING UNDERSTANDING THAT BENEFITS OF THE DEVELOPMENT DID NOT NECESSARILY “TRICKLE DOWN”
INSPIRED THE CREATION OF HUMAN DEVELOPMENT INDEX WHICH FOCUSES ON SOCIAL DEVELOPMENT MEASURES LIKE EDUCATION AND HEALTH IN ADDITION TO GDP
CONVENTIONAL DEVELOPMENT THOUGHT
STRUCTURAL ADJUSTMENT MODEL PROPAGATED IN 1980’S FOCUS OF THE MODEL IS ON:
Liberalization of trade Elimination of governmental deficits Dismantling of inefficient parastatal organizations Abolition of government centred development policies, unbalanced
budgets and excessive debt
CRITICS OF THE MODEL STIPULATE THAT: It is at odds with the basic needs approach Its emphasis upon market oriented reforms has led to greater
inequality and hardships for the poor
CONVENTIONAL DEVELOPMENT THOUGHT
TAKING STOCK GDP GROWTH GROWTH IN HUMAN DEVELOPMENT MEASURES INEQUITTABLE DEVELOPMENT WEAKENING SOCIAL STRUCTURES FAR FROM SATISFACTORY PHYSICAL INFRASTRUCTURE ENVIRONMENTAL DEGRADATION
CONVENTIONAL DEVELOPMENT THOUGHT
WHAT IS SUSTAINEBLE DEVELOPMENT?
“WE DO NOT INHERIT THE EARTH FROM OUR PARENTS, WE BORROW IT FROM OUR CHILDREN” – KENYAN PROVERB
“THE EARTH BELONGS IN USUFRUCT TO THE LIVING” – THOMAS JEFFERSON.
USUFRUCT IN LEGAL LANGUAGE MEANS: “RIGHT TO USE SOMETHING THAT BELONGS TO ANOTHER, PROVIDED THAT THE THING ITSELF IS NOT ALTERED OR DAMAGED”
SUSTAINABLE DEVELOPMENT
CONCEPT, MEANING & SCOPE DEVELOPMENT IS “IMPROVEMENT IN QUALITY OF LIFE” IT HAS ECONOMIC & SOCIAL DIMENSIONS ECONOMIC
EXPANSION OF CONSUMPTION GNP
SOCIAL: HUMAN DEVELOPMENT ENABLING ALL HUMAN BEINGS TO: SATISFY THEIR ESSENTIAL NEEDS ACHIEVE A REASONABLE LEVEL OF COMFORT SHARE FAIRLY IN OPPRTUNITIES FOR HEALTH AND EDUACTION LIVE A MEANINGFUL LIFE
SUSTAINABLE DEVELOPMENT
CONCEPT, MEANING & SCOPE WHERE DOES “SUSTAINABLE” FIT IT?
SUSTAIN MEANS TO:
“SUPPORT”, “UPHOLD THE COURSE OF”, “KEEP INTO BEING” “TO PROVIDE WITH FOOD & DRINK”, “ THE NECESSITIES OF LIFE” “TO ENDURE WITHOUT GIVING WAY OR UNYIELDING”
IT INTRODUCES THE ELEMENT OF “TIME”
SUSTAINABLE DEVELOPMENT
SUSTAINABLE DEVELOPMENT
DEFINITION “SUSTAINABLE DEVELOPMENT IS THE
DEVELOPMENT THAT MEETS THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS” - BRUNDTLAND COMMISSION, 1987.
SUSTAINABLE DEVELOPMENT
CONCEPT, MEANING & SCOPE INTRA & INTERGENERATIONAL LEGACY
RESTRICTION OF DEVELOPMENT TO JUST WHAT IS NECESSARY
AVOID PASSING PROBLEMS ON TO THE FUTURE AVOID WASTAGE OF RESOURCES ANTHROPOCENTRIC
CONCEPT, MEANING & SCOPE The term sustainability has ideological & political content as well
as ecological & economic content.
Warns us of the dangers of shortsighted economic growth
Leads us to recognition of healthy environment & ecosystem
SUSTAINABLE DEVELOPMENT
ORIGIN & EVOLUTION CRUX OF THE DEBATE: WHETHER EARTH’S LIMITED
RESOUCES WOULD CONTINUE TO PROVIDE LIFE SUPPORT FOR HUMANITIES EVER INCREASING NUMBERS?
ORIGIN: WORKS OF ENGLISH POLITICAL ECONOMIST THOMAS MALTHUS IN THE EARLY 19TH CENTURY
MALTHUS WROTE “AN ESSAY ON THE PRINCIPLE OF POPULATION”
SUSTAINABLE DEVELOPMENT
ORIGIN & EVOLUTION According to malthus: “human populations grow in a geometric
progression while subsistence can grow only in an arithmetic progression”
Growth in human population is destined to be checked by natural resource depletion & inevitable human misery
After Malthus, the dilemma of resource depletion seemed to evade the attention of politicians, economists as well as social scientists
Only in recen decades global concern for earth’s life support system has made a re-entry in international & national development agendas.
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS SUSTAINABLE DEVELOPMENT CAN BE BROKEN DOWN INTO:
ENVIRONMENTAL / ECOLOGICAL SUSTAINABILITY ECONOMIC SUSTAINABILITY SOCIAL / SOCIO-POLITICAL SUSTAINABILITY
EACH OF THESE THREE AREAS IS COMMONLY REFERRED TO AS A “SYSTEM”: ECONOMIC SYSTEM, ENRONMENTAL SYSTEM & SOCIAL SYSTEM
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS ECONOMIC SYSTEM: Includes production, exchange &
consumption THE SOCIAL SYSTEM : Includes biological life processes,
culture, aesthetics & morality THE ENVIRONENTAL / NATURAL SYSTEM IN WHICH BOTH
ECONOMIC & SOCIAL SYSTES ARE INCLUDED
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS AN ENVIRONMENTALLY SUSTAINABLE SYSTEM MUST:
Maintain a stable resource base Avoid over exploitation of renewable resource systems Exploit depleting non-renewable resources only to the extent
that investment is made in adequate substitutes Maintain biodiversity, atmospheric stability & other
ecosystem functions not ordinarily classified as economic resources
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS An economically sustainable system must be able to:
Produce goods & services on continuing basis Maintain manageable levels of government & external debt Avoid extreme sectoral imbalances A socially sustainable system must: Achieve distributional equity Adequate provision of social services Gender equity Political accountability Participation
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS A socially sustainable system must:
Achieve distributional equity Adequate provision of social services Gender equity Political accountability Participation
SUSTAINABLE DEVELOPMENT
COMPONENT PARTS Interplay of these three elements introduces many potential
complications to the original simple definition
Economist would tend to give greater weight to economic objectives
Ecologist to the environmental dimension
Social theorist to the social issues
SUSTAINABLE DEVELOPMENT
POPULATION, CONSUMPTION & CARRYING CAPACITY
NATURAL SYSTEMS MUST EXIST SUBJECT TO: ECOLOGICAL LIMITS & LAWS OF THERMODYNAMICS
BECAUSE ORGANISMS ARE EXUBERANTLY OVER PRODUCTIVE & LIMITS SET BY TIME, SPACE & ENERGY ARE INEVITABLY ENCOUNTERED
IN ECOLOGICAL PERSPECTIVE THEN , SUSTAINABILITY MUST INVOLVE LIMITS ON POPULATION & CONSUMPTION LEVELS
THESE LIMITS APPLY TO ALL BIOLOGICAL SYSTEMS
ECOLOGICAL PERSPECTIVE
POPULATION, CONSUMPTION & CARRYING CAPACITY
Humans may appear to evade them for a time They must ultimately accept the boundaries of a finite planet &
carrying capacity of our eco-system It is estimated that humans are now consuming / eliminating
about 40% of the basic energy supply for all terrestrial animals By 2050: the projected 33% growth in human population & 50%
growth in per capita consumption will leave little room for other species
ECOLOGICAL PERSPECTIVE
GENETIC DIVERSITY Genetic diversity is essential for ecosystem resilience
Resilience is a bounce back capacity
It enables a system to respond to disturbances or damage
For example, a forest system may recover from a pest infestation through: An increase in the population of predators An expansion of species unaffected by the pest, & Possible development of pest resistance in affected species
ECOLOGICAL PERSPECTIVE
GENETIC DIVERSITY The pattern of response may be different, but
essential integrity of the ecosystem will be preserved
The key to resistance is the existence of a wide variety of species, interacting with each other & providing a reservoir of genetic forms which provide potential to adapt to changing conditions
For the ecologist, then, sustainability must be defined in terms of the maintenance of ecosystem resilience
ECOLOGICAL PERSPECTIVE
INTERGENERATIONAL EQUITY & ECONOMIC EFFICIENCY
Sustainability is also defined as inter-genertional equity From the point of view of neoclassical economics sustainability
can be defined in terms of the maximization of human welfare over time
According to standard economic theory, efficient resource allocation should have the effect of maximizing utility from consumption
Is sustainability the same as efficient resource allocation? A concept quite well established in standard economic theory
ECONOMIC PERSPECTIVE
INTERGENERATIONAL EQUITY & ECONOMIC EFFICIENCY
In standard economic theory time discounting is used as a method of comparing economic values in different time periods
Economists tend to use the same method for intergenerational natural resource allocation
For instance At a discount rate of 10%, typically used for CBA the
value of Rs. 1m 100 yrs from now would be equivalent of Rs. 72 today
It would apparently be justifiable to impose costs of upto Rs. 1m on people in the year 2112 to enjoy Rs. 72 worth of consumption today!
ECONOMIC PERSPECTIVE
INTERGENERATIONAL EQUITY & ECONOMIC EFFICIENCY
By this logic much of resource depletion & environmental degradation becomes acceptable & even optimal
Is the use of a discount rate justifiable in this scenario? Use of a discount rate gives undue importance to the
preferences of current users, thereby creating a “dictatorship of the present”
In issues such as soil erosion or atmospheric build up of greenhouse gases, the most damaging impacts are felt over decades / generations
The use of a discount rate creates a strong bias against sustainability
ECONOMIC PERSPECTIVE
NATURAL & MANUFACTURED CAPITAL Sustainability can also be operationalized in terms of
conservation of natural capital For renewables the rule is to limit resource consumption to
sustainable yield levels For non-renewables the rule is to reinvest proceeds from non-
renewable resource exploitation into investment in renewable natural capital
This will maintain a constant stock of natural capital given a constant level of human population
This is known as daly’s principle of strong sustainability
ECONOMIC PERSPECTIVE
NATURAL & MANUFACTURED CAPITAL The standard economic theory however suggest that there is no
special reason to conserve natural capital This is known as Hartwick’s principle of weak sustainability It posits: “consumption may remain constant or increase with
declining non-renewable resources provided that the rents from these resources are reinvested in reproducible capital”
Unlike strong sustainability principle this does not require maintenance of any particular stock of natural capital
ECONOMIC PERSPECTIVE
NATURAL & MANUFACTURED CAPITAL The special assumption involved in weak sustainability principle
is that of substitutability of natural & manufactured capital If we cut down forests & build factories we are better off provided
the economic value of the new industrial plant compares favorably with the economic value of the lost forest
Daly’s view is based on the opposite assumption Manufactured & natural capitals are not substitutes but
complements A fleet of fishing boats is of no use without a stock of fish
ECONOMIC PERSPECTIVE
PRECAUTIONARY PRINCIPLE It is suggested that some issues can be appropriately dealt with through
neoclassical market efficiency
It may be possible to compensate for some water pollution with purification system
In the case of critical natural capital, such as, essential water supplies – substitutability is zero
As life & economic system will be impossible without access to water
Such issues require application of a “safe minimum standard” approach to protect essential resources & environmental functions
ECONOMIC PERPECTIVE
PRECAUTIONARY PRINCIPLE Following a safe minimum standard, society would rule out
actions that could result in natural impacts beyond a certain threshold of costs & irreversibility
This will involve strong public decision making & the formation of societal values
Such an approach would recognize sustainability as a concept that is Independent of standard economic analysis, and
Requires an explicitly normative & socially determined process of decision making
ECONOMIC PERSPECTIVE
POVERTY & OVERCONSUMPTION From social perspective sustainability can be defined as “intra-
generational equity” “Poverty is a major cause & effect of global environmental
problems” (wced, 1987) “Those who are poor & hungry will often destroy their immediate
environment in order to survive. They will cut down forests, their livestock will overgraze the grasslands; they will overuse marginal lands & in growing nos. They will overcrowd into congested cities” (wced, 1987)
This is a generalized image of the poor as short term maximizers
SOCIAL PERSPECTIVE
POVERTY & OVERCONSUMPTION In policy circles this perspective is compatible with the argument
that economic growth & a rise in per capita incomes is the only solution to global environmental destruction
This view is criticized on following accounts: The poor often depend heavily on common property resources
They suffer the most serious consequences of pollution & environmental damage
They are in most circumstances ardent praticioners of sustainable resource use
It is important to distiguish between “merely poor” & desparately poor”
SOCIAL PERSPECTIVE
POVERTY & OVERCONSUMPTION “Overconsumption in global north is a major cause of global
environmental degradation” (Bob Sutcliffe, 1995)
Overemphasis on west like economic growth has overlooked the ways in which that growth has occurred
Instead of economic development aimed at wealth & consumption maximization, we need to invest in “human development”
SOCIAL PERSPECTIVE
HUMAN DEVELOPMENT Mehboob ul Haq & Paul Streeten promoted a “Basic Needs
Approach” in late 1970’s They argued that traditional focus on economic growth be
augmented by one that emphasized meeting the basic needs of all members of the society
These include: education, health care & nutrition The other proponent of this school of thought is Amartya sen Sen argued for a shift from per capita income growth to improved
quality of life outcomes
SOCIAL PERSPECTIVE
HUMAN DEVELOPMENT The human development approach was a precursor for
establishment of undp It also inspired the creation of Human Development Index – HDI
HDI focuses on social development measures like education and health in addition to GDP
For instance: Costa Rica’s HDI is nearly equal to that of South Korea, despite its per capita income being barely half of Korea’s
This suggests that “country is more effectively translating growth into human development”
SOCIAL PERSPECTIVE
A SYNTHESIS OF PERSPECTIVES The original idea of development was based on a straight line
progression from traditional to modern mass consumption society
Within this framework a tension developed between the promotion of economic growth & the equitable provision of basic needs
Development as it has proceeded over the last half century has remained inequitable & has had grwoing environmental impacts
A concept of sustainable development must remedy social inequities & environmental damage, while maintaining a sound economic base
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES ECOLOGICAL PROTECTION: Population & total resource demand must be limited in scale, and The integrity of ecosystems & diversity of species must be maintained ECONOMIC DEVELOPMENT: The conservation of natural capital is essential for sustainable economic
production & intergenerational equity. Market mechanisms do not operate effectively to conserve natural
capital, but tend to deplete & degrade it SOCIAL EQUITY, THE FULFILLMENT OF BASIC HEALTH &
EDUCATIONAL NEEDS & PARTICIPATORY DEMOCRACY ARE CRUCIAL ELEMENTS OF DEVELOPMENT, AND ARE INTERRELATED WITH ENVIRONMENTAL SUSTAINABILITY
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES These principles suggest new guidelines for the development
process They also require modification of the original goal of economic
growth Economic growth, especially for those who lack essentials, is
needed, but must be subject to global limits Economic growth should not be the prime objective for countries
at already high levels of consumption A moderate level of consumption, together with strong social
institutions & a healthy environment, represent a better ideal than ever increasing consumption
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES It is essential to recognize the limts of the market mechanism
Markets may be excellent under some conditions to achieve economic efficiency
They are often counterproductive in terms of sustainability
S.D. Policy must be guided by the social & institutional processes as well as environmental & social goals & norms
It is also advisable to avoid two extremes
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES Mere sustainability: simply ensuring that economic production
can remain steady or increase This approach draws support from neo-classical economic
theory Gives short shrift to the social & ecological aspects of
sustainability If the only goal is to keep the production levels high, the problem
of sustainability becomes deceptively easy to solve But the proposed solutions may only create worse problems
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES Advocates of this approach tend to be oriented towards
technological fixes Nuclear power as an alternative to fossil fuels Genetic engineering to increase crop yields These all have the potential for unintended, dangerous &
irreversible consequences Unsolved problems of nuclear waste management The possibility of accidentally creating super-weeds & super-
pests through genetic transfer These should cause us to be cautious about optimistic plans for
sustainable development
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES MORE SUSTAINABILITY: ADDING TO DEFINITION OF
SUSTAINABLE DEVELOPMENT EVERY DESIRABLE GOAL IMPLIED BY A DISCUSSION OF SOCIAL & ECOLOGICAL ISSUES
WE WANT: ENVIRONMENTAL CONSERVATION, IMPROVED HEALTH & EDUCATION, GENDER EQUITY, PARTICIPATORY DEMOCRACY, PEACE & INTERNATIONAL COOPERATION
AND ALL OTHER GOOD THINGS AT THE SAME TIME!
SUSTAINABLE DEVELOPMENT
A SYNTHESIS OF PERSPECTIVES What if provision of adequate food & water supplies appears to
require changes in land use which will decrease biodiversity?
What if non-polluting energy sources are more expensive, thus increasing the burden on the poor?
We can maximise only one objective at a time!
Which goal to take precedence?
We must seek reasonable balance b/w the desired goals & the available means & resources
SUSTAINABLE DEVELOPMENT
THANK YOU
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