What is Sustainable Development

Sustainable Development is development that meets the needs of the present without compromising the ability of future generation to meet their own needs. Sustainable Development has continued to evolve as that of protecting the world’s resources while it’s true goal is to control the world’s resources. So environmentally sustainable economic growth refers to economic development that meets the needs of all without leaving future generation with fewer natural resources than those we enjoy today.

The term Sustainable Development first came to prominence in the world conservation strategy in 1980. It achieved a new status with the publication of two significant reports by Brutland on North and South in 1985.Our Common Future and has gained even greater attention since the United Nation Conference on Environment and Development (UNCED) held in Rio de Janerio in June 1992. “Sustainable Development means that meets the needs of the present without compromising the ability of future generation to meet their own needs”. The aim of sustainable development is to balance our economic, environmental and social needs allowing prosperity for now and future generation. Sustainable development consists of a long-term, integrated approach to developing and achieving a healthy community by jointly addressing economics, environmental and social issues, whilst avoiding the over consumption of key natural resources.

What is the economic perspective on sustainable development?

 The economic perspective on sustainable development focuses on balancing economic growth with environmental preservation and social equity. 

From an economic standpoint, sustainable development is about ensuring that the growth and development of the economy does not compromise the ability of future generations to meet their own needs. This involves a careful balancing act between economic growth, environmental preservation, and social equity. Economists argue that these three pillars of sustainable development are interdependent and mutually reinforcing, and that the long-term health of the economy depends on maintaining this balance. 

Economic growth is a key component of sustainable development. It is necessary for improving living standards, reducing poverty, and providing the resources needed for environmental protection. However, unchecked economic growth can lead to environmental degradation and social inequality. Therefore, economists advocate for 'green growth' or 'sustainable growth', which involves decoupling economic growth from environmental degradation and promoting technologies and practices that are environmentally friendly. 

Environmental preservation is another important aspect of sustainable development from an economic perspective. Economists recognise that the environment provides essential resources and services that underpin the economy, such as clean air and water, fertile soil, and a stable climate. Therefore, they argue that protecting the environment is not just a moral obligation, but also an economic necessity. This involves implementing policies and practices that reduce pollution, conserve natural resources, and promote biodiversity. 

Social equity is the third pillar of sustainable development. Economists argue that economic growth should be inclusive and benefit all members of society. This involves addressing income inequality, promoting social inclusion, and ensuring access to basic services such as education and healthcare. Economists also recognise that social equity is necessary for maintaining social stability, which is a prerequisite for economic growth. 

For sustainable development to be achieved, policies in these three areas need to work together and support each other. For example, research shows that improving social wellbeing can help eliminate resource scarcity and meet everyone's economic needs. However, as people become wealthier, they may consume more products and services that have a negative environmental impact. 

In conclusion, the economic perspective on sustainable development is about finding a balance between economic growth, environmental preservation, and social equity. It recognises that these three pillars are interdependent and mutually reinforcing, and that the long-term health of the economy depends on maintaining this balance.

Economy and Coronavirus

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COVID – 19 has not only affected the asset prices and stock market but real lives and day to day activity. Stock markets have crashed earlier too but this time the situation is very different as there is no manipulation or speculations but a global pandemic.

We can be in a position of recession in coming years. There is no production of goods, there is a forced stop for all production activity, not only within the country but supply of goods from outside the country too.

Everything is so interdependent in the economy. Like if a restaurant is ordered to shut down there will be no demand of green grocer items, unutilized manpower. The owner has to pay their fixed expenses (rent, power, salary etc) but no income in the hands of green grocer and manforce.There is no revenue but expenditure.

A consumer now is spending on essential commodities and there will be a huge fall in the demand of non-essential commodities in the market(affecting its production and revenue generation to economy).

Due to this drop of demand and supply in the economy there is less movement of money in the economy. This lack of economic activity and thereby less money in the economy is going to hit everyone.This story plays across the sectors, across the economy and across the world.The coming days are crucial in terms of dealing with this pandemic and its economic impact.

Both the Monetary and Fiscal policy support will be required to face the tough situation.

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Coronavirus – At a glance

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The World Health Organization (WHO) has declared the new corona virus outbreak which originated in Wuhan (China) as a global pandemic. This virus has spread in almost 210 counties of the world wide. The worst affected countries are China, Italy, USA, Spain and many more in the list.

Symptoms ranged from people with mild symptoms to people being severely ill and dying. It include fever, cough, shortness of breath i.e. flu like symptoms.

The incubation period of COVID-19 is between 1 and 14 days. In some patients particularly elders and other with some chronic health conditions, symptoms can develop into pneumonia, chest pain and shortness of breath which leads to respiratory or multi organ failure.

If we study the mortality rate about 2% reported cases the virus is fatal in which ratio of older people are more and relatively less cases are seen in children.

COVID – 19 spread from person to person in close proximity. Droplets of bodily fluids like saliva or mucus from an infected person are dispersed in the air or on surfaces while coughing or sneezing. And if other people come in direct contact or touch the infected surface and then their face, the virus gets transmitted to that person too.

So important precautions includes :

1. Wash your hands frequently with soap and water or using alcohol based hand rub as it kills the virus that may be on our hands.

2. Most and very important maintain Social distance, maintain at least 1metre distance between yourself and anyone who is coughing or sneezing.

3. Avoid touching eyes, nose, mouth, as virus can enter your body and make you sick.

4. Practice respiratory hygiene, this means covering your mouth and nose with your bent elbow or tissue paper when you cough or sneeze and then dispose the used tissue immediately.

5. If you have fever, cough and difficulty in breathing seek medical advice; do not take any medicine on your own.

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Globalization – As a boon

Many thinkers believe that globalization is a threat as it reduces the role of the state in many countries. Some counter argue that it is an opportunity as it opens up markets to compete in and capture.

Let’s see what good globalization has done for us :

Creating employment opportunities : As globalization has brought every country to a competitive world, so it has led to the generation of numerous employment opportunities. Many companies are moving towards developing countries for labour force. Also as migration of people is now easier it has also created lots of jobs opportunities for those countries who has labour force shortages (generally developed countries). Also if a country is experiencing high unemployment there are increased opportunities to look for work elsewhere. This too reduces geographical inequality.However, this issue (brain drain) is also quite controversial.

Spread of Education : The most important benefit is the spread of education. There are so many educational institution around the world, one can move out from his country to another country for more better opportunities, integrating with different cultures, meeting and learning from various people through medium of education.

Better quality product at cheaper price : due to increase in international trade, intense competition in the market is seen. Lots of products with plenty of option, having different price range to choose for consumers. To stand out in competition, product quality has been enhanced so as to retain the consumers, low or poor quality products adversely affect consumers satisfaction.

Since there are lot of choices available for consumers, the producer can sustain only when the product is competitively priced. Anytime consumer can switch to another product. Therefore, affordable pricing has benefited the consumer in great way.

Increased Capital Flow : Globalization has successfully attracted a lot of firms investing in the developing countries by setting up industrial unit outside their home country leading to huge Foreign Direct Investment (FDI), which helps in promoting economic growth in the host country. Also due to electronic transfer, transferring money through banks is just the  click of a button, making work really comfortable for investors.

Improved Infrastructure : This is only due to globalization that many infrastructure facilities relating to transportation is so easy. Connectivity to any part of the world is no more a problem, with various mode of transportation available one can easily deliver the products to customers located to any part of the world. Also circulation of information is no longer a difficult task, it just requires few seconds, due to advancement in communication technology. The internet service has significantly affected the global economy, providing directing access to information and products.

Economic Growth : As due to wide growth of market, we see an increase in demand for various products. As per the demand, producers are venturing into the markets that are on high demand, leading to rise in GDP of the country thereby economic growth. If we see the statistics the GDP of the developing countries has increased twice as much as before.

International Trade : The horizon of international trade has widened, it is not just sale and purchase of commodities. With the process of outsourcing international trade has broadened his horizon. Know the focus can be made on a particular segment of business and certain services can be outsourced. Also flexible EXIM (Export Import Policy) policies, with minimal restriction is proving beneficial to businesses.

Specialized production : Production now days is increasingly specialized. Globalization enables goods to be produced in different parts of the world. For say, my phone whose body was manufactured in Taiwan, assembled in China, its software developed in the USA and sold to me by a retail store in India. This greater specialization enables lower average costs and lower prices for consumers.