Econmic Growth And Sustainable Development Flashcards
Economic Growth
Economic Growth is when the amount of goods and services produced in the economy increases from one year to the next
Positive effects of Economic Growth on Society
Employment
Improved Standard of Living
Increase Government Revenue
Decreased Government Expenditure
Improved Infrastructure
Employment
a greater demand for goods and services will lead to increased employment
Improved Standard of Living
People will have more money to spend
Increase Government Revenue
This is due to increased employment meaning more Income Tax collected
Decreased Government Expenditure
this is due to increased employment meaning less people needing social welfare
Improved Infrastructure
countries with high economic growth spend more money improving telecommunications, transport.
Negative effects of Economic Growth on Society
Inequalities
Inflation
Increased Life Span
Inequalities
even with economic growth, many of the gains from growth may be only for a few people and vulnerable people stay vulnerable
Inflation
Increased demand for goods and services can cause inflation (rise in prices)
Increased Life Span
An increase in standard of living leads to longer life expectancy. The ageing population means more spending on healthcare
Positive effects of Economic Growth on Environment
Investment in Environmentally Friendly Technologies
Time & Funding
Investment in Environmentally Friendly Technologies
if companies are making more money they may choose to invest in environmentally friendly business practices to be more attractive to consumers e.g. low carbon
Time & Funding
when economies are doing well governments have time and funding to address environmental concerns e.g. climate change
Negative effects of Economic Growth on Environment
Non Renewable Resources
Traffic Congestion
Increased waste
Destruction of nature:
Non Renewable Resources
Increased demand for goods (import/export) requires planes and ships that burn fossil fuels. These are in limited supply.
Traffic Congestion
the increase in demand for goods requires delivery which causes traffic congestion and pollution e.g. carbon emissions.
Increased waste:
increase consumption of goods and services results in more waste which will require landfill.
Destruction of nature
Greenspace and natural habitats are eroded from the building of new factories
Sustainable Development
Sustainable Development means meeting the needs of the present without compromising the needs of future generations.
How can business support sustainable economic growth
Use sustainable raw materials (i.e. good working conditions for employees and minimal impact to environment)
Replant raw materials e.g. trees
Recycle waste products
Increase the use of environmentally friendly products
Decrease pollution
Use renewable energies e.g. solar and wind
Use recyclable packaging for consumers
Minimize transport by locating close to consumers/materials
Corporate Social Responsibility Policy
this sets out how the organisation will act to benefit society and the environment.
Benefits of Corporate Social Responsibility
Improved Business Reputation in the eyes of consumers
Increased Sales from consumers who are environmentally conscious
Recruitment: Top quality staff with like minded aims will want to work there
Role of Government in reducing Negative impact of businesses on society
Introduce Laws
Refuse Planning permission
Plastic Bag Levy
Introduce Laws:
Safety, Health and Welfare at Work Act ensure that workers are protected against unsafe practices
Refuse Planning permission:
the government will refuse planning permission if a business wish to build a factory that would harm the environment or health of local people.
Plastic Bag Levy
introduce a charge to discourage the use of products that damage the environment e.g. 2002 plastic bag levy. (usage dropped from 328 bags pp to 21 bags pp)
Government agencies that protect environment
Environmental Protection Agency - enforces environmental law for businesses to adhere to
Sustainable Energy Authority of Ireland (SEAI) - promote sustainable energy by developing renewable resources e.g. solar and wind
