Global Environmental Issues Sustainable Development: Lecture No. 3

GLOBAL
ENVIRONMENTAL
ISSUES -
SUSTAINABLE
DEVELOPMENT

01- 09 - 2012
Lecture No. 3

CONCEPT OF DEVELOPMENT

GREAT IDEAS ARE SIMPLE IDEAS!

SO IS THE 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

HISTORICAL PERSPECTIVES

MODERN UNDERSTANDING OF DEVELOPMENT WAS
NON EXISTANT PRIOR TO 2
ND
HALF OF THE 20
TH

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

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 2
nd
world war perceptions and policy
changed drastically

Economic and social growth became central planks of public
policy and theoritical discourse

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 2
ND
WORLD WAR INCLUDING:
THE IMF
THE WORLD BANK
THOUGHT

BASIC NEEDS MODEL

PROPOSED BY PAUL STREESEN AND OTHERS IN 1970S
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

THOUGHT

STRUCTURAL ADJUSTMENT MODEL

PROPAGATED IN 1980S

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

THOUGHT

TAKING STOCK

GDP GROWTH
GROWTH IN HUMAN DEVELOPMENT MEASURES
INEQUITTABLE DEVELOPMENT
WEAKENING SOCIAL STRUCTURES
FAR FROM SATISFACTORY PHYSICAL INFRASTRUCTURE
ENVIRONMENTAL DEGRADATION
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



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

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.



INTRA & INTERGENERATIONAL LEGACY

RESTRICTION OF DEVELOPMENT TO JUST WHAT IS
NECESSARY

AVOID PASSING PROBLEMS ON TO THE FUTURE

AVOID WASTAGE OF RESOURCES

ANTHROPOCENTRIC


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


ORIGIN & EVOLUTION
CRUX OF THE DEBATE: WHETHER EARTHS LIMITED
RESOUCES WOULD CONTINUE TO PROVIDE LIFE SUPPORT
FOR HUMANITIES EVER INCREASING NUMBERS?

ORIGIN: WORKS OF ENGLISH POLITICAL ECONOMIST THOMAS
MALTHUS IN THE EARLY 19
TH
CENTURY

MALTHUS WROTE AN ESSAY ON THE PRINCIPLE OF
POPULATION


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 earths life support
system has made a re-entry in international & national
development agendas.


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


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


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


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


COMPONENT PARTS
A socially sustainable system must:
Achieve distributional equity
Adequate provision of social services
Gender equity
Political accountability
Participation


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


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


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


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


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

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!


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

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 dalys principle of strong sustainability


The standard economic theory however suggest that there is no
special reason to conserve natural capital

This is known as Hartwicks 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


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

Dalys 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


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

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

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


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 1970s

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 Ricas HDI is nearly equal to that of South
Korea, despite its per capita income being barely half of Koreas

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
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
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
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

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

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



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!

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
THANK YOU
?

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