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Andrew Luis

Mr. Rivas

AP English Language & Composition

May 24, 2019

Synthesis Essay: Sustainable Economics

Sustainable economy is important to maintain better quality of life and higher living

standards for everyone, providing jobs, products, services and money to fuel this path to making

the world more balanced for all citizens. The main reason why sustainable economics is

important to maintain ​rates of renewable resource harvest, pollution creation, and non-renewable

resource depletion that can be continued indefinitely​. This sustainability satisfies the needs ​of

humans but in a manner that sustains natural resources and the environment for future

generations.

As the United States and many other nations struggle to do so, it is clear that we have to

change how we live as humans. Designing for sustainability not only requires the redesign of our

habits, lifestyles, and practices, but also the way we think about design. Sustainability is a

process of coevolution and codesign that involves diverse communities in making flexible and

adaptable design decisions on local, regional, and global scales. The transition towards

sustainability is about co-creating a human civilization that flourishes within the ecological limits

of the planetary life support system. We must make our nation adapt to the support system in

order for everyone to be working on the same goal, creating a sustainable economy.
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The issue of sustainable development has been embraced by government, business and to

some extent, the public. These big organizations have a drastic effect on the world. They manage

their use of resources and materials, to satisfy the needs of people. Sustainable development both

intrigues and frightens business. It frightens business because they have to change their ways of

producing to help the economy. It is intriguing for the efficiencies and competitive advantage it

can offer, yet frightening because it requires out-of-the-box thinking and generates uncertainty

about the future, as well as the need for change.

The world is fast becoming a global village due to the increasing daily requirement of

energy by all populations across the world while the earth in its form cannot change. The need

for energy and its related services to satisfy human social and economic development, welfare

and health is increasing. Making it difficult for the world to satisfy their needs. Returning to

renewables to help mitigate climate change is an excellent approach which needs to be

sustainable in order to meet energy demand of future generations. However, the dominance of

fossil fuel-based power generation (coal. Oil, gas) and an exponential increase in population for

the past decades have led to a growing demand for energy resulting in global challenges

associated with a rapid growth in carbon dioxide emissions. Renewable energy sources hold the

key potential to displace greenhouse gas emissions from fossil fuel-based power generating and

thereby mitigating climate change.

Us, ordinary people, we affect the world, despite all the resources these bigger

corporations use, the way we use these resources and instantly throw them away has a big impact

on the world. Maintaining pollution is part of having a sustainable economy as it changes how

we live, not being able to use certain materials as it is damaging the Earth due to it being thrown
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away instead of recycled. ​The links between the economy and the environment are manifold; the

environment provides resources to the economy, and acts as a sink for emissions and waste

(“​Global Forum on Environment and Economic Growth”)​. Poor environmental quality in turn

affects economic growth and wellbeing by lowering the quantity and quality of resources or due

to health impacts.

This opens the question, how can we prevent these issues and balance our use of

available materials, including money, labor and natural resources. Governments can encourage

resource productivity, through fees for the use of resources, charges for environmental damage,

or by supporting longer product life spans such as through increased legal minimum warranty

periods. However, the first step is to identify viable opportunities and the key challenges limiting

the economic growth of a developing country. ​Effective policies and institutions, the rule of law,

and political stability enhance economic growth. Properly enforced laws, efficient government

revenue management and resource allocation, appropriate regulatory systems, and sound public

financial systems are all essentials that are needed for this growth (“Sustainable Economic

Growth Strategy”).

For a generation, governments around the world have been committed to sustainable

development as a policy goal. Despite these efforts, decades of scientific monitoring indicate that

the world is no closer to environmental sustainability and in many respects the situation is

getting worse. A significant contributing factor to this situation is policy implementation failure.

The failure to achieve the intended outcomes of environmental policies is due to economic,

political and communication factors. This is due to conflict between the objectives of

environmental policies and those focused on economic development, a lack of incentives to

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implement environmental policies, and a failure to communicate objectives to key stakeholders

are all key factors that contribute to the inability to attain environmental sustainability. “​The

problem is that economic rationality, which aims for maximum profit, may be contrary to

environmental logic and may lead to the depletion of resources. This point was made long ago by

Augustin Cournot with regard to forest management or, more recently, by Colin Clark (1973)

regarding the fisheries economy, advocating government intervention and specific management

regulations”​(Franck-Dominique Vivien). This was significant because they created a concept in

which ​a “maximum sustainable yield,” that is, the maximal consumption of resources, which can

be achieved indefinitely from the available stock of resources.

A country who has created strategies to achieve this growth and has been successful from

it, is Canada.​ Mitigating the exposure of developing countries to external economic risks,

underscores the importance of open trade and free markets governed by prudent policy and

sound regulation. Avoiding the “extremes of protectionism” on the one hand and ungoverned

markets on the other. Expanding domestic, regional, and international markets, enabling

investment and sharing knowledge, increasing trade opportunities, and improving the

competitiveness of enterprises unlocks new areas for growth. A key component of an enabling

environment for economic growth that Canada has made clear is infrastructure. The availability

of reliable energy and communication technologies makes enterprises more productive and

innovative. They are to have access to markets for their goods and services. In developing

countries, the absence of such basic infrastructure is a chronic barrier that contributes to poor

economic performance.
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A foundation to economic growth is a skilled workforce. Countries that invest heavily in

human capital usually demonstrate the strongest growth. A growing youth population has

become a major economic and social challenge, increasing pressure on education and skills

training resources in many developing countries. “The lack of entrepreneurial, marketing, and

management skills needed to take advantage of growth opportunities also deters economic

strengthening,” as they lack the literacy and numeracy required for employment (“Sustainable

Economic Growth Strategy”). One of the most significant generator of employment, agriculture,

being the largest economic sector in many developing countries. Contributing to poverty

reduction and food security. Improvements in agricultural productivity and innovation can drive

economic growth. However, barriers to trade, market access, and infrastructure, insecure land

tenure, high input costs, and poor access to technology restrain the ability of developing

countries to harness the growth potential of this sector.

Ensuring that economic growth is environmentally sustainable is critical to the long-term

stability of the economy in developing countries. Growing economies must balance their needs

with responsible environmental management. This balance requires policies, legislation, and

regulations that improve natural resource management, support sustainable resource use, and

adapt to climate change realities. Over the past decade, the overall cost-effectiveness of

investments in halting pollution has been demonstrated. The escalating economic and ecological

damage costs of not investing in environmental protection and improvement have also been

repeatedly demonstrated - often in grim tolls of flood and famine. We invest in stopping these

issues for only small amounts of time, instead of trying to invest and find ways to stop issues

from occurring at all. “Given the limitations on increasing present flows of international aid,
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proposals for securing additional revenue from the use of international commons and natural

resources should now be seriously considered by governments.” Our governments need to realize

that we need to put an end to the misuse of natural resources and find ways to prevent it from

happening.

Regulation is a major way in which the government influences the U.S. market economy.

The scope of government regulations is vast and reaches all sectors of the economy and all

aspects of our daily lives. ​Government regulation of economic and social activities permeates our

lives. While regulation in many instances yields important public benefits, regulations often are

imposed on individuals and organizations with too little thought or analysis of what is gained in

comparison with the losses incurred in time, money, indecision, and productivity...Further, the

growth of government involvement in the market system sometimes constrains our ability to

achieve fundamental economic and social goals. ​There is an elegant efficiency in the market

price system, allowing resources to flow naturally to their highest-valued uses as signaled by

suppliers and demanders, but still there is a role for government where markets fail to price

goods and services to reflect social values.

A sustainable future will come into being if the biophysical and social conditions needed

to support economic activity and human flourishing are maintained from each generation to the

next. In addition, it emphasizes meeting needs rather than promoting growth or satisfying

consumer preferences as the defining characteristic of “development.” The right of the present

generation to use what it needs and all it needs of the natural resources now available equally our

obligation so to use what we need that our citizens shall not be deprived of what they need. ​“​The

consumption of material goods and services satisfies people’s preferences and contributes to
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their happiness, and higher levels of consumption should—all else equal—contribute positively

to social welfare.” ​ Everyone demands the necessities they believe that are needed in their lives,

it is important for the country to provide these needs citizens ask for.

“​Economic growth is the increase in the inflation-adjusted ​market value​ of the goods and

services produced by an ​economy​ over time”(“Economic Growth”). ​It is important to maintain

economic growth because we need all economies to use the same amount of materials and not

overuse them. ​Economic growth means a rate of growth which can be maintained without

creating other significant economic problems, especially for future generations. There is clearly a

trade-off between rapid economic growth today, and growth in the future. Rapid growth today

may exhaust resources and create environmental problems for future generations, including the

depletion of oil and fish stocks, and global warming. ​Rapid growth is having a big effect on the

world and everyone is starting to realize this, as many natural resources are starting to deplete.

Overusing resources has been a fear to the world. America’s first oil crisis took place in

the middle of the 18th century, when fear arose that the world would soon run out of whale oil,

the primary source of artificial light. Whale oil prices rose sharply, causing both consumers and

suppliers to search for alternatives. The crisis ended with the development of kerosene, which

was first produced from coal and later from petroleum. After people switched to petroleum, dire

predictions about petroleum oil depletion soon arose. Leading to a never ending cycle, where we

are constantly looking for an alternative to each resource, as they are all limited. ​When resources

are allocated by markets, increased scarcity leads to higher prices. Higher prices strengthen the

incentive for users to reduce their consumption, suppliers to search for ways to expand future

supply, and, both producers and users to search for substitutes. By simply adding all of these
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adjustments, it will increase future supply relative to demand and make it highly unlikely that the

resource will be actually depleted. The world's natural resources are taken for granted, and this

will surely stop this from happening and make people more aware of their actions with these

resources.

Economic value is a measure of the benefit provided by a god or service to an economic

agent. It is generally measured relative units of currency, and the interpretation is therefore “what

is the maximum amount of money a specific actor is willing and able to pay for the good or

service”(“Boundless Business”). People who are already wealthy aren’t trying to help the

economy. Therefore, not everyone attempts to try to help and better the economy. “Ethnic values

are the values that characterize the value systems of ethnic groups and whose continued support

helps to underpin notions of ethnic identity. This includes the values surrounding religious

practices, taboos, traditions and traditional knowledge”(“Ethnic Values”). “Social value is the

quantification of the relative importance that people place on the changes they experience in their

lives… we believe that social value has a huge potential to help us change the way we

understand the world around us, and make decisions about where to invest resources”(“Social

Value US"). Social value is important because people need to understand the world around us,

that we need to take care of and control our world properly.

We all have a large stake in these interconnections. Stated by the International Monetary

Fund, “What happens elsewhere in the world—be it the success of recovery in Europe or the

continued smooth functioning of supply chains in Asia—matters increasingly for the United

States. The converse is also true. What happens here matters increasingly for the global

economy”(Christine Lagarde​)​. Her remarks, which focused on the interplay between the global
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economy and the U.S. economy, also highlighted the need to find joint solutions to secure a

lasting, balanced and widely shared global recovery. She also states that global growth remains

subdued, while acknowledging that the global economic environment is changing. She

emphasized that economies are moving at different speeds and that the fruits of growth are not

evenly shared, both in the United States and other countries​. ​Not only things in our country

affects our economy, but issues in other countries affect us as well, as our country works and

helps others. ​The United States plays a unique role in the global economy. “I am thinking, for

instance, of global trade—of which the U.S. accounts for 11 percent. The U.S. also represents 20

percent of global manufacturing value-added”(Christine Lagarde). ​This quote shows that our

country is important throughout the world and its trading and manufacturing systems. Meaning

that if our country is struggling to maintain a sustainable economy, imagine how other countries

are dealing with this issue.

Through failure, attempting to achieve this sustainability, there is still major

improvement that needs to be done to have a better quality in life. Through strategy, we must

focus on key, targeted investments that directly support the sustainable economic growth of the

industrial and business sectors in the country. The outcomes of these investments should

contribute to a stable foundation on which viable businesses and industries can thrive, increasing

opportunities for employment in the formal economy for the citizens and their contributions to

the public resources available for investment in the welfare of the population. We must invest

and w​ork together as a whole to achieve our goal.​ I have created three paths which we should

take for to reach this success. These paths include; support willing governments to build the

necessary legislative and regulatory business, industrial, and financial framework upon which
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sustainable growth can take place. Enhance the financial viability, productivity, and

competitiveness of micro, small and medium-sized private sector enterprises, resulting in

increasing employment opportunities for the poor. Also, investing in people, improve the

employment potential of individuals to increase access to, and benefits from, opportunities in the

informal and formal business sectors. We will implement this strategy recognizing that our

country has its own mix of constraints, challenges, and opportunities to stimulating sustainable

economic growth. Work in this sector will require thorough knowledge of local, national, and

international economies, business development, and marketplace dynamics. Sustainable

long-term economic growth will depend on building value chain essentials within a coherent

logic model. These investments will support country or regional plans and integrate into

comprehensive economic or business sector programs supported by the local communities.

We need to build their capacity to ensure sound, transparent financial and economic

management and establish public policies that encourage private investment and reduce

corruption. This requires strong institutions, and balanced laws and fair regulations to govern the

economy. It requires government policies that open markets to trade and infrastructure

investments to deepen integration into the local, regional, and global economies. It also includes

effective regulatory regimes to oversee competition, the maintenance of standards, resource

management, and property rights. Having the protection of fair and equitable labour laws and

codes in their economic life particularly empowers the poor, including women, to engage in the

formal economy. This means ensuring the poor have access to land and resources, security of

tenure, and the capacity to use their assets productively and sustainably. Women play a “central

role as income earners, in lifting themselves, their families, and their communities out of
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poverty. Yet they face significant hurdles to full and effective participation in many economies

as employees, employers, and entrepreneurs, often due to legal, social, regulatory, and cultural

barriers”(Sustainable Economic Growth Strategy).

To further its path of building economic foundations, we will support activities that

improve legal and regulatory frameworks and systems and their implementation, all of which are

key to stable national and local economies. Supporting governments, businesses, and industries

in widening their business base and integration into regional and global markets is a necessary as

we need to help one another from critical risks. Developing our country with diverse and healthy

private sectors typically have higher levels of growth and poverty reduction. Enhancing the

productivity and competitiveness of enterprises in developing countries is a critical component of

stimulating economic growth and generating new formal employment opportunities.

We need to encourage the creation of economic opportunities that enable those living in

poverty to reach their potential, with jobs, business ownership, and investment. In order to have

growth, we need everyone to exceed and improve. We can’t grow as a country having issues

with poverty. Being a citizen from Los Ángeles, you cannot escape it, you see it everywhere.

Poverty affects the economic prosperity of a community. productivity, and increased crime in

unsafe neighborhoods – which leads to lower graduation rates and a reduced participation in the

workforce. A decrease in human capital puts a strain on government resources and causes

decreased economic output. We can’t be satisfied with what we have now, there is more to

achieve and improve. Everyone has a part in the economy, each and every person affects one

another. Having somewhat of a domino effect, a situation where someone or something is in a

situation which causes similar events after one another. This situation is one failing to improve,
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this failure brings us down and doesn’t allow us to grow. It's up to us to ensure this ethic of

sustainability, to make change and prepare ourselves for the future, as nothing lasts forever.
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Work Cited

Vivien, Franck-Dominique. “Sustainable Development: An Overview of Economic

Proposals.” ​S.A.P.I.EN.S. Surveys and Perspectives Integrating Environment and Society,​ Institut

Veolia Environnement, 27 Nov. 2008, journals.openedition.org/sapiens/227.

Global Affairs Canada. “Sustainable Economic Growth Strategy.” ​GAC​, 6 July 2018,

international.gc.ca/world-monde/issues_development-enjeux_developpement/priorities-priorites/

segs-sced.aspx?lang=eng.

“BUS101: Boundless Business: ‘What Is a Business?".” ​Saylor Academy,​ 11 Oct. 2018,

learn.saylor.org/mod/page/view.php?id=8860.

“Economic Growth.” ​Wikipedia​, Wikimedia Foundation, 18 May 2019,

en.wikipedia.org/wiki/Economic_growth.

“Ethnic Values.” ​Psychology Wiki,​ psychology.wikia.org/wiki/Ethnic_values.

“What Is Social Value?” ​Social Value US​, socialvalueus.net/what-is-social-value.

Wahl, Daniel Christian. “The Designer's Role in Facilitating Sustainable Solutions (Wahl

& Baxter, 2008).” ​Medium​, Medium, 30 Apr. 2017,

medium.com/@designforsustainability/the-designers-role-in-facilitating-sustainable-solutions-w

ahl-baxter-2008-7f120ff52f05.

EHS Today Staff | Sep 01. “What Is Your Role in Sustainable Development.” ​EHS

Today​, 13 Apr. 2012, www.ehstoday.com/standards/osha/ehs_imp_33322.

“A Review of Renewable Energy Sources, Sustainability Issues and Climate Change

Mitigation.” ​Taylor & Francis,​ www.tandfonline.com/doi/full/10.1080/23311916.2016.1167990.