Group 1

Growth versus Development
Economic growth may be one aspect of economic

development but is not the same
Economic growth:
A measure of the value of output of goods and services
within a time period
Economic Development:
A measure of the welfare of humans in a society
National Income Problems
Reliability of data?
How accurate is the data that is collected?
Distribution of income?
How is the income distributed is income more evenly spread?
Quality of life?
Can changes in economic growth measure changes in the quality
of life?
Impact of exchange rate?
Difference in exchange rates can distort the comparisons need
to express in one currency, but which one and at what value?
Black/informal economy?
Some economic activity not recorded
Some economic activity is carried out illegally
Work of the non-paid may not be considered
Human Development Index (HDI)
HDI A socio-economic measure
Focus on three dimensions of human welfare:
Longevity Life expectancy
Knowledge Access to education, literacy rates
Standard of living GDP per capita: Purchasing
Power Parity (PPP)
When India may catch up or surpass
China's over-10 per cent growth rate
CHINA INDIA
LIFE EXPECTENCY AT BIRTH 73.5 64.4
INFANT MORTALITY RATE 17 PER 1000 50 PER 1000
UNDER 5 MORTALITY RATE 19 66
ADULT LITRACY RATE 94 65
MEAN YEARS OF SCHOOLING IN YEARS 7.5 4.4
LITERACY RATE FOR WOMAN 99 <80
World Development Reports of the World Bank and Human Development Reports of
the United Nations
GNP per capita is not a good predictor
of valuable features of our lives
Bangladesh India
GNP per capita (PPP) in Rs. 1550 3250
LIFE EXPECTENCY 66.9 64.4
MEAN YEARS OF SCHOOLING 4.8 4.4
THE PROPORTION OF UNDERWEIGHT CHILDREN 41.5 43.5
FERTILITY RATE 2.3 2.7
UNDER 5 MORTALITY RATE 52 66
INFANT MORTALITY RATE 41 50
female literacy rate among young Bangladeshis is actually higher than the male rate,
whereas young females still do much worse than young males in India.
China spends 1.9 % of GDP on health
care, the proportion is 1.1 % in India.
reliance of many poor people across the
country on private doctors with little training
possibility of fraud and deceit is very large
Large masses of these people who make up
this country has very little improvement

Green Economy
A green economy is:
One of several approaches, visions, models and tools available
to each country to achieve sustainable development
Moto: Sustaining and advancing economic, environmental and
social well being .
Need:
1. Current Brown economic development , the main agenda is to
just increase GDP, this comes with potential irreversible costs
2. 60 percent of the worlds ecosystem services were found to be
degraded or used unsustainably
3. Income inequality between 1990 and 2005, rose in more
than two thirds of countries.
4. New markets and industries to create long term jobs
5. Its not just the greenhouse gases but as a society we have
realised that we have reached planetary limits

Green economy (contd.)
Flaws :
Overvaluation of Services: Polluting agents and purifying agents
both contribute to GDP
Missing Markets : Does not account for the services provided by
nature
Basically, there are not sufficient mechanisms to ensure that
polluters pay the full cost of their pollution
Examples:
Korea allocates 2% of GDP to invest in the green sector
China increased its Wind Capacity by 64% in 2010
Interface Flor Ltd. uses its waste products as manufacturing
products
A green economy should:

Respect national sovereignty on natural resources
Be supported by an enabling environment and
well functioning institutions
Take into account the needs of developing
countries
Effectively avoid conditionality or constitute a
barrier to international trade
Address the concern about inequality and
promote social inclusion
Help bridge the technological gap and promote
sustainable consumption and production

Merits
Provides an opportunity to enhance
ecosystem services, and enable growth and
sustainable livelihoods for the poor
Reforms and improvements in the global
economic frameworks and structures.
Recognizing the economic and social value of
the environment besides its intrinsic
environmental worth.
Demerits
Green GDP does include uncounted losses, so it avoids
the problem of overestimating our wealth, but it fails
to account for the potentially much larger benefits of
innovation.
Green economy concept is hijacked by countries and
used to promote trade protectionist policies.
Developed countries may use this as a principle or
concept to justify unilateral trade measures against the
products of developing countries.
It may pressurize developing countries to take on one-
dimensional environmental measures rather than
sustainable development policies.

Group 1

Uploaded by

Copyright:

Available Formats

Group 1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Group 1

Uploaded by

Copyright:

Available Formats

Growth versus Development

Economic growth may be one aspect of economic

You might also like