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    Beyond Engineering

    [email protected]

    Sustainable Societies

    Sandra Silverman

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    ECOLOGICAL SUSTAINABILITY Rates of renewable resources should not exceed regeneration rate

    Rates of use of non-renewable resource should not exceed rate to develop

    alternatives

    Rates of pollution should not exceed assimilative capacity of the

    environment

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    a sustainable society.

    Meets the need of the present

    without compromising the ability of

    future generations

    Brundtland report

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    Poverty is the result of

    A. A countrys geographical location (a lack of natural resources or a

    hostile climate)

    B. Cultural attributes of its citizens

    C. Ignorant politicians

    D. An elite that holds the power and that impedes economic growth

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    Are you a capitalist?

    A. Yes, I am

    B. No, I am not

    C. Actually, I do not really know what that

    means

    [Default]

    [MC Any]

    [MC All]

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    CAPITALISM

    A social-economic system based on

    the private ownership of capital goods (means of production) creation of goods and services for profit capital gains accrue to private owners

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    Adam Smith

    The invisible hand

    Free markets lead to competitiveness

    and innovation

    Education and specialization

    Good products and services at good

    prices

    The persuit of self-interest leads to

    well-being for all

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    Are you a socialist?

    A. Yes, I am

    B. No, I am not

    C. Actually, I do not really know

    what that means

    [Default]

    [MC Any]

    [MC All]

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    SOCIALISM

    A social-economic system based on

    Social ownership of the means of production Returns on the means of production accrue to society at large Goods and services are produced directly for their utility (as opposed

    to being produced by profit-seeking businesses)

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    Marx

    Separating labour power from

    ownership of the means of production

    is wrong

    Capitalism leads to the exploitation of

    labour

    underpaid work is the ultimate source

    of profit

    Lower classes (proletariat) should

    rebel to take the power (from the

    bourgoisie)

    => ideal form of socialism is

    communisme

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    Where would you situate a cooperative?

    A. In a capitalist philosophy

    B. In a socialist philosophy

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    Where would you situate utilitarianism and

    egalitarianism?

    A. Utilitarianism fits with socialism, and egalitarianism fit with

    capitalism

    B. Utilitarianism fits with capitalism, and egalitarianism fit with

    socialism

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    Which of the two socio-economic models leads to

    greatest wealth?

    A. Capitalism

    B. Socialism

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    The case of Korea

    North

    Socialism (communism)

    No private ownership Centrally planned government

    No free markets

    South

    (State) capitalism

    Private ownership Steered economy

    Free markets

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    North and South Korea

    http://www.youtube.com/watch?v=KYjdUeYT49c

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    The Case of Korea

    North Socialism (communism)

    No private ownership

    Centrally planned government

    No free markets

    Dictatorship Not technological advancements Famines Poor education No freedom

    South

    (State) capitalism

    Private ownership

    Steered economy

    Free markets

    Democratic system Technological advancements High level of eduction High level of freedom

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    The winner is

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    GROSS DOMESTIC PRODUCT (GDP)

    The sum of the market value of all officially recognized final

    goods and services produced within a country in a given period

    of time.

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    GDP IN THE WORLD

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    Engines of prosperity

    Inclusive political institutions Inclusive markets

    Secured private property

    Unbiased law s and regulations

    Level playing field

    equality ofopportunity

    Provision of public services

    Education Freedom to choose your career

    Technological advancements

    => encourage economic growth

    Extractive political institutionos

    No inclusive markets

    No secure private ownership

    (corruption)

    No or little education

    No or little technological

    advancements

    Elite

    decides how to redistributeincome and wealth, in favor of

    themselves

    => impedes economic growth

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    WHY WOULD AN ELITE BLOCK ECONOMIC GROWTH?

    Why would even the worst predatory dictator not even want to

    make his country as wealthy as possible?

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    Losers of the industrial revolution

    Aristocrats

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    CREATIVE DESTRUCTION

    Economic growth

    Is transformative and destabilizing process

    Is not just a process of advancements

    Economic growth

    creates winners and losers

    Old processes are replaced by newer, better processes.

    Resources are moved from old sectors to new sectors.

    Old skills are rendered obsolete in favor of new skills.

    challenges the power of the elitist group

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    DIFFERENT FLAVORS OF CAPITALISM

    Free-market capitalism (neo-liberalism) prices for goods and services are set freely by the forces of supply and demand

    highly-competitive markets, private ownership of all productive enterprises and services

    Very little taxes , no intervention by government policy

    Social-market economy

    Government intervention in price formation is kept to a minimum State relies on taxation and provides significant services in the area of social security, health, education and unemployment benefits

    State capitalism State ownership of the means of production within a state,

    Organization of state enterprises as commercial, profit-seeking businesses.

    Governments, whether democratic or autocratic, exercise a widespread influence

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    Which socio-economic form has seen the greatest

    increase in wealth in the past decade?

    A. Free market capitalism

    B. Social market economy

    C. State capitalism

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    WORLD WEALTH

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    THE DISAPPEARING (US) MIDDLE CLASS

    http://www.motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph

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    Trickle-UP Economies

    Joseph Stiglitz

    Nobel price

    winner in

    Economics

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    THERE IS NO SUCH THING AS A FREE

    MARKET!

    And no such thing as an invisible hand

    Economic growth on debt is not real growth

    Perfect markets, competition and information do not exist

    We need:

    Fair regulations

    Tax system (no escape routes)

    Good information (media)

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    How about (belgian) engineers?

    While wages for

    engineers are

    increasing, other wages

    are decreasing.

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    How about inequality in Belgium?

    Top 10% earns 2,25 more

    than bottom 10%

    This inequality is amongst

    the lowest in the world

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    What income inequality do you think is acceptable?

    A. Everyone should earn exactly the same (per hour), regardless of what

    your work is

    B. Twice as much

    C. Five times as much

    D. Ten times as much

    E. No limit

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    WEALTH VS WELL-BEING

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    BETTER LIFE INDEX

    op http://www.oecdbetterlifeindex.org/

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    PROSPERITY INDEX

    http://www.prosperity.com/ExploreData.aspx#

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    GDP VERSUS LIFE SATISFACTION

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    POVERTY

    Absolute poverty deprivation of basic human needs, which commonly includes food,

    water, sanitation, clothing, shelter, health care and education.

    Relative poverty

    economic inequality in the location or society in which people live

    (income equality)

    Wh h d l

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    What is the minimum day income, not to live in

    poverty?

    A. 1,25 USD

    B. 2,5 USD

    C. 5 USD

    D. 10 USD

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    GETTING BY ON $1,25 A DAY

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    Is absolute poverty increasing or decreasing?

    A. Increasing

    B. Decreasing

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    We are living through a period of rapid global poverty

    reduction. According to recent estimates, high, sustainedgrowth across most of the developing world has helped

    nearly half a billion people escape $1.25-a-day poverty

    between 2005 and 2010. Never before have so manypeople been lifted out of poverty over such a brief period.

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    Poverty rate in the world declines

    From 1970 to 2006, poverty fell by

    86% in South Asia

    73% in Latin America

    39% in the Middle East

    20% in Africa

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    Getting by on $1,25 a day

    Is reduction of poverty good for ecological

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    Is reduction of poverty good for ecologicalsustainability?

    A. A good thing

    B. A bad thing

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    POVERTY AND FERTILITY RATE

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    What is really going on?

    A. High fertility causes poverty, so we should reduce fertility

    (perhaps by means of obliged birth control, neo-malthusian)

    B. Poverty causes high fertility, so we should lift people out of

    poverty, as soon as possible

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    How about the world population?

    A. Average fertility rate is ever increasing

    B. Average fertility rate is stable

    C. Average fertility rate is ever decreasing

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    WORLD POPULATION TODAY

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    GLOBAL POPULATION GROWTH, BOX BY BOX

    http://www.ted.com/talks/hans_rosling_on_global_population_growth.html

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    Use Public Data

    www.gapminder.orgwww.google.com/publicdata/directory

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    CONCLUSION

    Socio-economic models, poverty, population growth and(ecological) sustainability are inseparable

    Inclusive political institutionsthat provide equality of opportunity Decrease poverty

    Decreased population growth

    Decreased stress on the planet

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    CHILD SURVIVAL IS THE NEW GREEN