1 Towards “Sustainable Development” of the World Hyun-Hoon Lee ( Kangwon National University,...

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Towards “Sustainable Towards “Sustainable Development” of the World Development” of the World

Hyun-Hoon Lee(Kangwon National University, Korea)

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1. Introduction What is the ultimate goal of development?

What is sustainable development?

What has been done by the international community?

What is the current status of sustainable development in the world?

What are the relations among the three pillars of sustainable development?

What has to be done for sustainable development?

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1. Introduction

As an individual, what is the ultimate goal? More money? many children? many friends? leisure? no disease?

Answer: Happiness of individual (personal well-being)

As a nation, what is the ultimate goal? Large GDP? high income per capita?

Answer: Happiness of the people (national welfare)

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1. What is happiness

Orthodox Economics

The more you consume the happier you are.

i.e., Happiness = f(the amount of consumption of goods and services).

Therefore, only economic growth (or increase in the production) can contribute to increase in happiness.

Therefore, per capita income is a good index of happiness.

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Does money make people happier?

Comparison of wealthy people with the poor.

Comparison of “Happiness Indices” for all nations in the World

Answer: No, money alone cannot make people happy.

Why: Consumption of goods and services produced by people is not the only factor. There are some other factors!!

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Professor Ruut Veenhoven, Erasmus University

Happiness is defined as ‘the overall appreciation of one’s life-as-a-whole.

i.e., overall and subjective

Therefore, it can be measured by asking people. "How satisfied or dissatisfied are you with your life as a whole these days?”

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Professor H. H. Lee

The more you consume the happier you are; The smaller your desire is the happier you are.

I.e., Happiness = f(the amount of consumption of goods and services, the size of desire, social equity, freedom)

What is consumption?

What is desire?

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1. What is happiness? - Professor H. H. Lee

Two types of consumption:

(1) Paid consumption of goods and services produced by people.

(2) Unpaid consumption of services provided freely by the environment/nature.

Therefore, if ecological footprint becomes greater than environmental carrying capacity during the course of economic growth, then unpaid consumption of environmental services can decrease and hence so can people’s happiness.

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What is desire?

Desire can increase when your neighbor 's consumption (income, and wealth) increases.

Therefore, if the income inequity increases during the course of economic growth, social welfare can decrease.

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Happiness= f(amount of paid consumption of goods and services, amount of unpaid consumption of environmental services, size of desire, equity, freedom)

Therefore, a nation's welfare can increase when the following conditions are met.

(1) Increase in paid consumption of goods and services: economic growth. – Economic Growth

(2) Increase in unpaid consumption of environmental services: Environmental Sustainability

(3) Decrease in desire – Social Equity (Increase in income equity)

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2. What is Sustainable Development?

The concept of UN’s Sustainable Development has the three components

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3. What has been done by the international community?

Stockholm Declaration of the United Nations Conference on the Human Development, June 1972

The first document in international environmental law to explicitly recognize the right to a healthy environment.

The first international declaration to explicitly recognize the harmonization of economic growth and environment.

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Brundtland Report, 1987 Also known as "Our Common Future", submitted by World Commission on

Environment and Development; WCED, which was founded in 1983

Alerted the world to the urgency of making progress toward "sustainable development”.

The report also highlighted three fundamental components to sustainable development: environmental protection, economic growth and social equity.

Following the recommendation of the report, the UN General Assembly decided to establish the United Nations Conference on Environment and Development (UNCED).

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Summit, 3-14 June 1992, Rio De Janeiro The first UNCED, also known as the Rio Summit.

An important achievement was an agreement on the Climate Change Convention which in turn led to the Kyoto Protocol.

Produced the Rio Declaration consisted 27 principles intended to guide future sustainable development around the world.

Also produced Agenda 21, which is a comprehensive blueprint of action to be taken in every area in which humans impact on the environment.

Established Commission on Sustainable Development (CSD).

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Millenium Summit, 6-8 September 2000, UN Headquarters Adopted the Millennium Development Goals (MDG).

1. Eradicate extreme poverty and hunger: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day.

2. Achieve universal primary education: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling.

3. Promote gender equality and empower women: Eliminate gender disparity in primary and secondary education preferably by 2005, and at all levels by 2015.

4. Reduce child mortality: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate.

5. Improve maternal health: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio.

6. Combat HIV/AIDS, malaria, and other diseases: Halt by 2015 and begin to reverse the spread of HIV/AIDS.

7. Ensure environmental sustainability: Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources.

8. Develop a global partnership for development .

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Asia-Pacific Ministerial Conference on Environment and Development (MCED V) March 2005, Seoul Adopted Seoul Initiative for Green Growth as a new growth

paradigm for the members of UN ESCAP.

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World Summit on Sustainable Development (WSSD), 2-4 September 2002, Johannesburg, South Africa Also called Earth Summit 2002 and nicknamed "Rio+10".

Adopted the Johannesburg Declaration; but U.S. president George W. Bush boycotted the summit and did not attend.

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World Summit, 14–16 September 2005, U.N. headquarters A follow-up summit meeting to the United Nations' 2000 Millennium

Summit, which led to the Millennium Declaration of the Millennium Development Goals (MDGs).

The summit was billed as the "largest gathering of world leaders in history," with representatives of the 191 member states participated.

But the delegates to the UN Summit have been accused of producing a 'watered-down' outcome document which merely reiterates existing pledges.

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4. What is the current status of sustainable development?

No single index for sustainable development yet, but Happiness Index (Happiness Foundation)

Human Development Index (UNDP)

Millenium Development Goal Report

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Index for Economic Growth GDP

GDP per capita

GDP, ppp

GDP per capita, PPP

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Index for Environmental Sustainability Environmental Sustainability Index

- Produced by the Yale Center for Environmental Law and Policy at Yale University, in collaboration with the Center for International Earth Science Information Network at Columbia University.

- A composite profile of national environmental stewardship based on a compilation of 21 indicators for 146 countries.

Ecological Footprint vs Biocapicity (Global Footprint Network)

- Footprint of a country: the total area required to produce the food and fiber that it consumes, absorb the waste from its energy consumption, and provide space for its infrastructure.

Similar to environmental pressure

- Biocapacity of a country: the total usable biological production capacity in a given year of a biologically productive area of a country.

Similar to ecological carrying capacity

■ Per capita BiocapacityPer capita biocapacity (2001)

0

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■ Per capita Ecological footprintPer capita ecological footprint (2001)

0.00

1.95

3.90

5.85

7.80

Van

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este

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anka

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Fede

ratio

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glob

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ecta

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pers

on

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Asia Pacific

World

■ Per capita Ecological deficitPer capita ecological deficit (2001)

Van

uatu

Tuva

luTo

nga

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or-L

este

Solo

mon

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nds

Sing

apor

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land

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arus

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golia

New

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land

Russ

ian

Fede

ratio

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pua

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nea

Kaza

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World & Asia Pacific

■ Korea’s Biocapacity vs. Footprint

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Index for Social Equity- Equity of income distribution

Gini Index - A measure of inequality of income distribution.

- Defined as a ratio with values between 0 and 1, with lower values indicating more equal income and higher values more unequal distribution.

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Index for Social Equity - Gender Gender-related Development Index (UNDP) - One of the five indicators used by the United Nations Development Programme in its annual Human Development Report.

- Defined as a ratio with values between 0 and 1, with higher values indicating greater equality between men and women and lower values greater inequality.

- Has three dimensions: 1) long and healthy life, 2) knowledge, and 3) a standard of living.

Gender Equity Index (Social Watch) - Available from 2004 and ranges from 0 to 100, with greater values indicating greater equity and lower values greater

inequity.

- Has three dimensions: 1) economic activity, 2) empowerment and 3) education.

Gender Gap Index (World Economic Forum) - Available from 1998 and ranges from 0 and 100, with greater values indicating greater equity and lower values greater inequity. - Has four dimensions: 1) Economic participation and opportunity, 2) Educational attainment, and 3) Political empowerment and 4) Health and survival

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Index for Freedom

Freedom House Index of Freedom - Composed of political right and civil liberty.

- Defined as a ratio with values between 1 and 7, with lower values indicating more freedom and higher values less freedom.

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Country RankHappiness_

2006GDPPC_PPP_06

Biocapacity_2005

Gini_2007 GEI_2007Freedom_2006

Danmark 1 8.00 35,692 3.5 25 79 1Finland 2 7.61 33,022 12.0 27 84 1Netherlands 3 7.56 36,560 0.8 31 77 1Norway 4 7.46 50,078 6.8 26 83 1Switzerland 5 7.45 37,194 1.5 34 67 1New Zealand 6 7.44 25,517 14.9 36 78 1Australia 7 7.42 35,547 12.4 35 76 1Canada 8 7.40 36,713 14.5 33 75 1Belgium 9 7.39 33,543 1.2 33 74 1Sweden 10 7.38 34,193 9.6 25 89 1United States 11 7.26 43,968 4.7 41 74 1Ireland 12 7.24 40,268 4.8 34 69 1Venezuela 13 7.17 11,060 2.4 48 67 4Israel 14 7.16 24,097 0.4 39 73 1.5Spain 15 7.13 28,649 1.7 35 77 1Austria 16 7.12 36,049 3.4 29 72 1Saudi Arabia 17 7.06 22,296 1.0 .. 42 6.5Costa Rica 18 7.04 9,564 1.5 50 66 1France 19 7.01 31,992 3.0 33 64 1Italy 20 6.97 29,053 1.0 36 63 1United Kingdom 21 6.97 33,087 1.6 36 74 1Mexico 22 6.74 12,177 1.7 46 61 2.5Germany 23 6.58 32,322 1.7 28 80 1Singapore 24 6.56 44,708 .. 43 .. 4.5Brazil 25 6.51 8,949 9.9 57 73 2Japan 26 6.49 31,947 0.7 25 60 1.5Czech Republic 27 6.42 22,118 2.6 25 69 1Greece 28 6.35 31,382 1.4 34 67 1.5Jordan 29 6.30 4,628 0.3 39 47 4.5Argentina 30 6.27 11,985 5.9 51 70 2Chile 31 6.24 13,030 5.4 55 62 1Jamaica 32 6.21 7,567 0.5 46 61 2.5Panama 33 6.20 9,255 2.5 56 69 1.5Cyprus 34 6.19 25,882 .. .. 65 1Pakistan 35 6.12 2,361 0.3 31 42 5.5Malaysia 36 6.08 12,536 3.7 49 58 4Kuwait 37 6.03 . 0.3 .. 49 4Guatemala 38 6.01 5,175 1.3 55 50 3.5India 39 5.97 2,469 0.4 37 .. 2.5Thailand 40 5.96 7,599 1.0 42 73 5.5

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2006GDPPC_PPP

Biocapacity_2005


Colombia 41 5.95 6,378 3.6 59 75 3Lithuania 42 5.93 15,738 4.2 36 77 1Slovenia 43 5.93 24,356 2.8 28 72 1Algeria 44 5.91 6,347 0.7 35 48 5.5Poland 45 5.85 14,836 1.8 35 72 1TrinidadTobago 46 5.78 17,717 0.4 39 69 2Croatia 47 5.77 14,309 2.6 29 73 2Korea, Republic of 48 5.68 22,988 0.5 32 56 1.5HongKong 49 5.67 39,062 .. 43 70 0Belarus 50 5.66 9,732 3.2 30 66 6.5El Salvador 51 5.60 5,765 0.6 52 69 2.5Uruguay 52 5.60 10,203 8.0 45 68 1Lebanon 53 5.51 9,741 0.3 .. 48 4.5Kazakhstan 54 5.49 9,832 4.1 34 64 5.5Cuba 55 5.45 .. 0.9 .. 66 7Portugal 56 5.43 20,784 1.6 39 73 1South Africa 57 5.37 9,087 2.0 58 70 2Bolivia 58 5.36 3,937 15.0 60 68 3Estonia 59 5.36 18,969 5.7 36 74 1Honduras 60 5.34 3,543 1.8 54 61 3Vietnam 61 5.33 2,363 0.8 34 66 6Iran 62 5.29 9,906 0.8 43 54 6Romania 63 5.28 10,431 2.3 31 71 2Egypt 64 5.23 4,953 0.5 34 45 5.5Hungary 65 5.23 18,277 2.0 27 70 1Uzbekistan 66 5.22 2,192 0.8 37 .. 7Mauritania 67 5.20 1,890 5.8 39 .. 4.5Slovak Republic 68 5.16 17,730 2.8 26 70 1Dominican Republic 69 5.13 5,866 0.8 52 65 2Laos 70 5.11 1,980 1.3 35 53 6.5Ecuador 71 5.10 7,145 2.2 54 72 3Bosnia and Herzegovina72 5.06 6,488 1.7 26 .. 3Russian Federation 73 5.00 13,116 6.9 40 71 5.5Indonesia 74 4.98 3,454 1.0 34 53 2.5Moldova, Republic of 75 4.93 2,377 0.8 33 74 3.5Peru 76 4.93 7,092 3.8 52 65 2.5Zambia 77 4.92 1,259 3.4 51 58 3.5Ukraine 78 4.88 6,212 1.7 28 72 2.5Ghana 79 4.86 1,245 1.3 41 58 1.5Paraguay 80 4.86 4,034 5.6 58 61 3

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2006GDPPC_PPP

Biocapacity_2005


Azerbaijan 81 4.80 6,280 1.2 37 62 5.5Nicaragua 82 4.80 2,789 3.5 43 52 3China 83 4.77 4,644 0.8 47 61 6.5Albania 84 4.74 5,886 0.9 31 57 3Latvia 85 4.73 15,350 6.6 38 76 1Nigeria 86 4.73 1,611 0.9 44 45 4Botswana 87 4.63 12,508 4.5 61 66 2Serbia 88 4.62 9,434 0.8 .. .. 2.5Mozambique 89 4.61 739 2.1 47 65 3.5Morocco 90 4.59 3,915 0.8 40 42 4.5Kyrgyzstan 91 4.58 1,813 1.4 30 57 4.5Senegal 92 4.58 1,585 0.9 41 55 2.5Tajikistan 93 4.57 1,610 0.5 33 .. 5.5Nepal 94 4.55 999 0.5 47 44 4.5Yemen 95 4.55 2,264 0.4 33 31 5Macedonia 96 4.51 7,850 0.9 39 68 3Angola 97 4.46 4,434 3.4 .. 52 1Burundi 98 4.38 333 0.6 42 63 4.5Kenya 99 4.36 1,467 0.7 43 60 3Rwanda 100 4.34 738 0.5 47 84 5.5Sri Lanka 101 4.34 3,747 0.4 40 58 4Bangladesh 102 4.31 1,155 0.3 33 52 4Armenia 103 4.21 . 0.6 34 58 4.5Malawi 104 4.13 700 0.5 39 60 3.5Tanzania 105 4.04 995 1.3 35 72 3.5Uganda 106 4.04 893 0.8 46 64 4.5Madagascar 107 4.01 878 2.9 48 62 3.5Mali 108 4.01 1,058 1.3 40 52 2.5Cameroon 109 3.92 2,089 1.3 45 47 6Sierra Leone 110 3.88 630 1.1 63 39 3.5Ethiopia 111 3.83 636 0.5 30 51 5Brunei 112 3.80 49,898 .. .. 5.5Burkina Fasso 113 3.80 1,130 1.0 40 50 4Niger 114 3.80 629 1.5 51 47 3Bulgaria 115 3.77 10,274 2.1 29 74 1.5Haiti 116 3.76 1,224 0.3 59 .. 4.5Zimbabwe 117 3.76 . 0.8 50 56Cambodia 118 3.63 1,619 0.9 42 61 5.5Georgia 119 3.62 4,010 1.2 40 65 3Benin 120 3.52 1,263 0.9 37 41 2

Chad 121 3.44 1,478 2.5 .. 41 6Togo 122 3.24 776 0.8 .. 41 5.5

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■ Happiness vs. GDP per capita, PPP

Benin

BruneiCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

NetherlandsNorwaySwitzerland

Togo

34

56

78

6 7 8 9 10 11lgdppc_ppp

Happiness_2006 Fitted values

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■ Happiness vs. Environment (Environmental Sustainability Index)

BeninCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands NorwaySwitzerland

Togo

34

56

78

30 40 50 60 70 80ESI_2005


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■ Happiness vs. Environment (Biocapacity)

BeninCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands NorwaySwitzerland

Togo

34

56

78

0 5 10 15Biocapacity


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■ Happiness vs. Social equity (Gini Index)

BeninCambodia

Cameroon

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

NetherlandsNorway Switzerland

34

56

78

20 30 40 50 60Gini_2007


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■ Happiness vs. Social equity (Gender Equity Index)

BeninCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal


Togo

34

56

78

20 40 60 80 100gei_2007


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■ Happiness vs. Freedom (Freedom House’s Freedom Index)

Benin

BruneiCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal


Togo

34

56

78

0 2 4 6 8freedom_06


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5. What are relationships among the three pillars of sustainable development

Income vs. Environmental sustainablity

Income vs. Environmental carrying capacity

Income vs. Ecological pressure

Income vs. Social equity (Income distribution)

Income vs. Social equity (Gender equality)

Income vs. Freedom

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■ Income vs Environment (ESI)

There seems a positive relation between income environmental sustainablity, but this is because the ESI has income as a component.

BeninCambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands

Norway

Switzerland

Togo

30

40

50

60

70

80

6 7 8 9 10 11lgdppc_ppp

ESI_2005 Fitted values

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■ Income vs Environment (Ecological footprint)

Positive relation between income and ecological footprint (pressure).

BeninCambodiaCameroonChad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands

Norway

Switzerland

Togo

05

10

6 7 8 9 10 11lgdppc_ppp

Eco_footprint Fitted values

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■ Income vs Social equity (Income distribution)

Positive relation between income and equality of income distribution (Inverse of Gini Index)

Benin

Cambodia

Cameroon

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands

Norway

Switzerland

20

30

40

50

60

6 7 8 9 10 11lgdppc_ppp

Gini_2007 Fitted values

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■ Income vs Social equity (Gender)

Positive relation between income and equality of gender (Gender Equality Index)

Benin

Cambodia

Cameroon

Chad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal

Netherlands

Norway

Switzerland

Togo

20

40

60

80

100

6 7 8 9 10 11lgdppc_ppp

gei_2007 Fitted values

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■ Income vs Freedom

Positive relation between income and freedom

Benin

BruneiCambodia

CameroonChad

Danmark

Ethiopia

Finland

Georgia

Korea, Republic of

Nepal


Togo

02

46

8

6 7 8 9 10 11lgdppc_ppp

freedom_06 Fitted values

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5. What are relationships among the three pillars of sustainable development?

Income vs.Environmental Sustainability As income increases, ecological footprint (pressure)

increases and hence environmental sustainability worsens.

Income vs.Social Equity As income increases, social equity in terms of income

distribution and gender equity improves.

Therefore, There should be more emphasis on environmental

sustainability of economic growth.

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Clarification of some key conceptsClarification of some key concepts

Environmental sustainability: the continuity of the ecological carrying capacity more or less infinitely into the future.

To ensure growth environmentally sustainable, environmental pressure should remain within the limit of ecological carrying capacity.

Environmental Pressure: The actual load that is imposed on the environment by people.

It changes with (1) population (2) per capita consumption (amount and pattern), and (3) the energy and resource efficiency with which goods and services are produced.

6. What has to be done for sustainable development?

46

Clarification of some key concepts (continued)Clarification of some key concepts (continued)

Environmental carrying capacity: the “maximum load" (the maximum rates of resource harvesting and waste generation) that can safely be imposed on the environment by people so that it can be sustained indefinitely.

it is largely determined by the natural resource endowment and hence tends to remain constant over time.

However, it can be increased by protecting, conserving, and restoring ecosystems and biodiversity.


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Figure. Determinants of Environmental Sustainability

Ecological CarryingCapacity

Population

Technology

Consumption

Natural Resources

EnvironmentalPressure

Eco-efficiency

Eco-efficiencyEnvironmentalSustainability


48

Figure. Flows of Production and Consumption

Wastes and Pollutants

Consumers’Utility

Inputs Output

Wastes and Pollutants

Production Consumption


49

Clarification of some key concepts (continued)Clarification of some key concepts (continued)

Eco-efficiency: is concerned with producing and consuming goods and services, while progressively reducing ecological impacts to a level at least in line with the earth’s carrying capacity. Specifically, it is concerned with two broad objectives:

Eco-efficiency in production: Creating more value added with less use of raw materials and energy and with reduced emissions of wastes and pollutants.

Eco-efficiency in consumption: Achieving high-quality lives with less consumption of goods and services and with reduced emissions of wastes and pollutants.


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Concepts of Green GrowthConcepts of Green Growth

1. Not just pollution control, but more on eco-efficiency improvement.

Conventional environment management has focused primarily on pollution control.

However, in view of the limited ecological carrying capacity of the region and the large population, improving the eco-efficiency of economic growth will be a more pressing concern in the days to come.

2. Synergy between the environment and the economy can be created.

The environment as a growth driver and employment creator, not as a burden on growth.

The environment as a business opportunity for the private sector, not as an extra cost to business.


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Systems Changes for Pursuing Green GrowthSystems Changes for Pursuing Green Growth

1. Internalization of environmental costs into pricing mechanisms

- Can be effected through green tax reform and by the removal of environmentally harmful subsidies.

2. Support for the long-term perspective: resource allocation for the environment

- The public sector needs to bridge the gap between long-term social benefit and short-term commercial benefit to promote the active participation of the private sector in environmental R&D.

3. International cooperation to support “Green Growth” in developing countries and level playing fields


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