the future of the international economy: causes for concern

Question 1

what are examples of challeneges in the 21st century?

Answer 1

Automation and Jobs
Challenging Demographic Trends
Resource Depletion
Climate Change!

Question 2

how may the automation industrial revolution be different from all previous revolutions?

Answer 2

In all previous industrial revolutions the number of jobs created in the new sectors exceeded the jobs destroyed in the old sectors. this may not occur with automation

Question 3

what are the factors that need to be considered with the automation industrial revolution?

Answer 3

– Speed of change
– Scale of change
– Where will the new jobs come?
– How equal will the distribution be?

Question 4

what are the future demographic trends ?

Answer 4

Ageing & Falling Populations
Increasing Urbanisation
Global Resource Depletion – Shifting Global Population

Question 5

what are the issues involved with an aging population?

Answer 5

• The pensions time bomb
• Healthcare implications (Covid-19)* Fiscal implications
• Labour supply implications
• Savings Implications

Question 6

what are the three main points in enviromental issues and resource depletion?

Answer 6

1. Pollution (air quality, micro-plastic particles and bottles in sea), destruction of ecosystem.
2. Non-renewable resource depletion - lack of supporting evidence e.g. Price movements
3. Climate change—global warming -the greatest of all market failures

Question 7

what is a major hurdle according to William Nordhaus when it comes to solutions to climate change?

Answer 7

free riding

Question 8

what is the double free riding problem

Answer 8

there is free riding on two accounts. the free riding on other nations and also the free riding on future generations. this results in a non cooperative free riding equillibrium.

Question 9

what is the only way we can solve global warming?

Answer 9

It is only by designing, implementing, and enforcing cooperative multinational policies that nations can ensure effective climate-change policies

Question 10

why are green house gases different from other externalities?

Answer 10

1. They have global origins and effects
2. There are huge uncertainties involved
3. Effects are potentially very large and possibly irreversible
4. Central to the policy problem are major trade-offs within and between generations, ethical issues, and problems of international collective action and co-ordination
5. The effects are very long term

Question 11

what is the overall cost of climate change from the stern report

Answer 11

Overall cost of climate change = 5% loss of GDP now and forever

Question 12

what is the potential rise in temperture due to climate change according to the stern report?

Answer 12

a possible rise of 5-6 degrees

Question 13

what are the potential negative consequences of climate changes?

Answer 13

More climate instability
Extreme weather events—heatwaves, droughts, flooding, hurricanes
Damage to biodiversity and ecosystem services
Damage to food supply and water supply
Rise in sea level – melting of ice sheets
Mass migrations of people
Increased acidity of oceans—destruction of marine life
Change in ocean circulation patterns—gulf stream diverted!
Saltwater intrusion into groundwater
Lower or negative economic growth
Violent conflict
Crossing of tipping points

Question 14

what does the vunerability to climate change depend on?

Answer 14

Exposure - uncertain due to economic, demographicand climatic factors
Sensitivity - economic structure e.g. Size ofagricultural sector
Adaptive capacity - resources