unit 3 - sustainable prosperity Flashcards
What is sustainable prosperity
- for some it means practicing stewardship of the environment and resources for future generations. Their goal is to balance environmental, social and economic factors
- for others, sustainable prosperity is more closely tied to freer trade among all countries, including developing countries
How to measure prosperity?
- Gross Domestic Product: measures the total economic output in a country
- Gross Domestic Product Per Person (or, GDP per capita): measures the total economic output per person in a country
What is an issue with GDP
- averages can be deceiving, the the richest 1% hold about 38% of all privately help wealth in the US while the bottom 90% held 73.2% of all debt
Human Index development
It can be used as a measure of prosperity
- Classifies countries as developed, developing, or underdeveloped
- Measures how economic policies affect quality of life
HDI vs GDP
HDi is more complete than GDP because it measures more than one aspect of prosperity
- longevity: life expectancy at birth
- knowledge: school enrolment and literacy
- standard of living
Challenges and Opportunities associated with globalization (5)
- economic growth (production and sale of goods)
- trade liberalization
- the knowledge economy
- privatization
- foreign investment
challenge and opportunity - Economic Growth
- depends on the production and sale of goods on an ever increasing scale of volume and speed
- many economists believe that continuous economic growth will lead to prosperity
- natural resources can be limited, which effects production of goods/rate of production
challenge and opportunity - Trade liberalization
- The head of the IMF believes that sustainable trade liberalization will lead to prosperity around the globe
- trade liberalization has made many people and countries very rich but it has left even more people behind in an ever increasing income gap.
challenge and opportunity - The knowledge economy
- refers to businesses and people who use knowledge, research, education, new ideas and technology for practical purposes
- this type of economy has led to great advances
- but it leaves some countries behind because they can’t afford the high tech expertise required
challenge and opportunity - Privatization
- another feature of rapid globalization is privatization of services
- traditionally basic services were provided by the government (post offices, water, gas, electricity etc.)
- there is a push of those who agree with Hayek and Friedman that these services should not be run by the government
challenge and opportunity - Foreign investment
- globalization opens borders and countries are now open to corporations and investors that come from other places
- this may increase business and productivity but it takes money out of the host country to be spent or saved somewhere else.
What is sustainable development
development that meets the needs of the people without compromising the ability of further generations to meet their own needs
2 main factors of sustainable development
- the sustainability of the human population
2. the sustainability of the environment
Sustainability of the human population (8 goals)
- eradicate extreme poverty and hunger
- achieve universal primary education
- promote gender equality and empower women
- reduce child mortality
- improve maternal health
- combat HIV/AIDS and other diseases
- ensure environmental sustainability
- a global partnership for development
Sustainability of the Environment
Take actions against climate change
- could potentially lead to floods, storms, loss of freshwater etc.
Diet and globalization (farming impacts on the world)
- believed that we need to increase in farming in order to feed the world
- to clear land for farming ecosystems are destroyed
- some farms employ sustainable farming techniques
- leads to: loss of habitat, harmful pesticides, reduction of trees, pollution fo soil)
