Sustainable DevelopmentSustainable Development

Santo DodaroSanto Dodaro

Econ 305Econ 305

Stfx UniversityStfx University

http://www.stfx.ca/people/x2000/x2000kvv/Sustainable%20Development.ppt

Definitions of Sustainable Definitions of Sustainable DevelopmentDevelopment

Development that allows present Needs Development that allows present Needs to be met without compromising the needs to be met without compromising the needs of future generations (balance between of future generations (balance between growth and the environment)growth and the environment) The utilization of resources in such a way The utilization of resources in such a way as to ensure that future generations are at as to ensure that future generations are at least as well off as present generationsleast as well off as present generations

Definitions of Sustainable Definitions of Sustainable Development: ContunuedDevelopment: Contunued

Development path that maximizes the net Development path that maximizes the net benefits to humanity in the long run. benefits to humanity in the long run. Predicated on the following:Predicated on the following:

– growth and development are required in order to growth and development are required in order to preserve natural resources and the environmentpreserve natural resources and the environment– growth and development taking place must be growth and development taking place must be efficientefficient– both costs and benefits must be properly priced or both costs and benefits must be properly priced or valuedvalued– Environment seen as natural capitalEnvironment seen as natural capital

Additional features of Sustainable Additional features of Sustainable DevelopmentDevelopment

Development geared towards the Development geared towards the preservation of natural resources and preservation of natural resources and the environmentthe environment Based on the notion of equity both Based on the notion of equity both within an between generationswithin an between generations

Strategic Imperatives of the Strategic Imperatives of the Brundtland CommissionBrundtland Commission

reviving growthreviving growth Changing the quality of growthChanging the quality of growth

– less material and energy intensiveless material and energy intensive– more equitable (reduce vulnerability in case if more equitable (reduce vulnerability in case if crises)crises)– geared to the promotion of social developmentgeared to the promotion of social development

Aimed at meeting basic needs (jobs, food Aimed at meeting basic needs (jobs, food energy, water, sanitation)energy, water, sanitation)

Strategic Imperatives of the Strategic Imperatives of the Brundtland Commission: ContinuedBrundtland Commission: Continued

Ensuring sustainable population Ensuring sustainable population (concentrated in smaller cities)(concentrated in smaller cities) Conserving and enhancing resource Conserving and enhancing resource basebase Reorienting technology and managing Reorienting technology and managing riskrisk Linking economic and environmental Linking economic and environmental issuesissues

Requirements for Sustainable Requirements for Sustainable DevelopmentDevelopment

Meeting basic needs – aspiration of a Meeting basic needs – aspiration of a better life within constraints of ecological better life within constraints of ecological environmentenvironment Promote growth to achievePromote growth to achieve

– basic needsbasic needs– equitable access to opportunities for all (the issue equitable access to opportunities for all (the issue of a more equitable distribution)of a more equitable distribution)

Requirements for Sustainable Requirements for Sustainable Development: ContinuedDevelopment: Continued

Preclude overexploitation of resources Preclude overexploitation of resources throughthrough

– the employment of more appropriate less the employment of more appropriate less destructive technologydestructive technology– paying attention to the level of resource utilization paying attention to the level of resource utilization (agricultural land, forests, water, energy, etc.)(agricultural land, forests, water, energy, etc.)

Preservation of diversity of Species Preservation of diversity of Species (animal and plant life) and non-renewable (animal and plant life) and non-renewable resources resources

Requirements for Sustainable Requirements for Sustainable Development: ContinuedDevelopment: Continued

Keeping in mind the interdependence Keeping in mind the interdependence that exists between alternate activities as that exists between alternate activities as well as globally, between regions, between well as globally, between regions, between nations, etc.nations, etc. Identifying and Promoting the common Identifying and Promoting the common interest or the common good interest or the common good

Causes of Environmental Causes of Environmental Degradation and Overexploitation of Degradation and Overexploitation of

ResourcesResources

AffluenceAffluence PovertyPoverty IgnoranceIgnorance Institutional failure Institutional failure

AffluenceAffluence

Pollution from production and Pollution from production and consumptionconsumption over utilization of resourcesover utilization of resources

Poverty (Linked to Survival)Poverty (Linked to Survival)

deforestation (cutting down trees and deforestation (cutting down trees and forests)forests) Soil erosion and desertificationSoil erosion and desertification

– overgrazing grasslandsovergrazing grasslands– overusing marginal landsoverusing marginal lands

Crowding into congested citiesCrowding into congested cities– poor ventilation, poor sanitation, etc.poor ventilation, poor sanitation, etc.– pollution, spread of disease, etc.pollution, spread of disease, etc.

IgnoranceIgnorance

of the ecology of tropical of the ecology of tropical forests, oceans, etc. forests, oceans, etc. of basic economic factorsof basic economic factors of the effects of human actions of the effects of human actions and human behaviourand human behaviour

Institutional Failure (Market and Institutional Failure (Market and Government)Government)

failure of economic institutions linked to failure of economic institutions linked to things such as the following: things such as the following:

– property rights (including the issue of common property rights (including the issue of common property)property)– contract systemcontract system– market structuresmarket structures

Failure of public institutionsFailure of public institutions– government departments (incentives, policy and the government departments (incentives, policy and the like)like)– state owned enterprisesstate owned enterprises

Property RightsProperty Rights

Ideal characteristics of property rightsIdeal characteristics of property rights– universality – i.e., private ownershipuniversality – i.e., private ownership– exclusivity – preventing non-owners from reaping exclusivity – preventing non-owners from reaping any benefitsany benefits– transferability – resource can be bought or soldtransferability – resource can be bought or sold– enforceability – legal system that protecting the enforceability – legal system that protecting the rights of ownershiprights of ownership

Alternative notion of Community property Alternative notion of Community property rightsrights

Market FailureMarket Failure

Case of monopoly and oligopoly Case of monopoly and oligopoly (control over the market)(control over the market) Where we are dealing with public Where we are dealing with public goods goods The presence of externalitiesThe presence of externalities Common property resourcesCommon property resources

Government Policy FailuresGovernment Policy Failures

Provision of subsidies leading to Provision of subsidies leading to deforestation, desertification, etc. e.g.,deforestation, desertification, etc. e.g.,

– logging operationslogging operations– cattle grazing, etc.cattle grazing, etc.

Subsidies that lead to pollution, over Subsidies that lead to pollution, over consumption, etc. e.g.consumption, etc. e.g.

– on energyon energy– on gasolineon gasoline– on clean water, etc.on clean water, etc.

Government Policy Failures: Government Policy Failures: ContinuedContinued

Government policies to promote Government policies to promote development development

– exploitation of resourcesexploitation of resources– industrialization, etc.industrialization, etc.

Inadequate consultation with and Inadequate consultation with and involvement of groups that are heavily involvement of groups that are heavily involved in the utilization of resources – involved in the utilization of resources – e.g., women.e.g., women.

Policy Options for LDCsPolicy Options for LDCs

Proper resource pricingProper resource pricing Community involvementCommunity involvement Clearer property rights and resource Clearer property rights and resource ownershipownership Programs to improve economic Programs to improve economic alternatives for the Pooralternatives for the Poor Raising the Economic Status of WomenRaising the Economic Status of Women Industrial emission abatement policies.Industrial emission abatement policies.

Policy Options for DCsPolicy Options for DCs

Trade policies Trade policies Debt reliefDebt relief Debt for nature swapsDebt for nature swaps Providing greater assistanceProviding greater assistance Reduction in first world emissionsReduction in first world emissions Environmentally friendly R&DEnvironmentally friendly R&D Change is the Structure of demand Change is the Structure of demand (consumption structure)(consumption structure)