Samenvatting issues in global economics 2024
,
, 1. Introduction: What is Development?
1.1 WHAT IS DEVELOPMENT?
▪ Development refers to “the ways in which economies progress through their
societies to improve well-being”
▪ How do we define well-being? How do we measure progress?
• More stuff?
• Longer lives?
• Better health?
• Smarter people?
• Greater happiness?
▪ The United Nations (UN) defines human development as the enlarging of human
capabilities and choices (cf. Amartya Sen's “capabilities approach”)
Human Development Index
▪ In a yearly publication the UN ranks nations based on the human development
index, which measures what countries achieve in terms of health (life expectancy),
knowledge (educational attainment) and standard of living (gross national income)
20th century approach: Development as economic growth
, ▪ For much of the 20th century, development was identified with economic growth
▪ Gross national product (GNP) or per capita income were seen as measures of
economic development
▪ Broadly speaking, in the second half of the 20th century two types of policies were
pursued to encourage development:
• Government approach: policies focused on creating jobs and providing social
services tomeet basic needs
• Market approach: minimizing government influences, deregulation, private
sector solutions for public services
▪ Does this kind of development work for everyone? Think of poverty,
inequality, environmental issues, …
21st century approach: Developing towards sustainability
▪ From the 1970s onwards there was increased attention for the negative effects of
economic growth on social and environmental aspects
▪ This led to the notion of sustainable development
▪ “Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to
meet their own needs.” (Brundtland Commission, Our Common Future,
1987)
Millennium and Sustainable Development Goals
▪ “Thus the normative side of sustainable development envisions four
basic objectives of a good society: economic prosperity; social inclusion and
cohesion; environmental sustainability; and good governance by major social actors,
including governments and business.” (Jeffrey Sachs, The Age of Sustainable Society,
2015, p. 4)
▪ The UN adopted the Millennium Development Goals (MDGs) (1990- 2015) and the
Sustainable Development Goals (2015-2030)
,
, 1. Introduction: What is Development?
1.1 WHAT IS DEVELOPMENT?
▪ Development refers to “the ways in which economies progress through their
societies to improve well-being”
▪ How do we define well-being? How do we measure progress?
• More stuff?
• Longer lives?
• Better health?
• Smarter people?
• Greater happiness?
▪ The United Nations (UN) defines human development as the enlarging of human
capabilities and choices (cf. Amartya Sen's “capabilities approach”)
Human Development Index
▪ In a yearly publication the UN ranks nations based on the human development
index, which measures what countries achieve in terms of health (life expectancy),
knowledge (educational attainment) and standard of living (gross national income)
20th century approach: Development as economic growth
, ▪ For much of the 20th century, development was identified with economic growth
▪ Gross national product (GNP) or per capita income were seen as measures of
economic development
▪ Broadly speaking, in the second half of the 20th century two types of policies were
pursued to encourage development:
• Government approach: policies focused on creating jobs and providing social
services tomeet basic needs
• Market approach: minimizing government influences, deregulation, private
sector solutions for public services
▪ Does this kind of development work for everyone? Think of poverty,
inequality, environmental issues, …
21st century approach: Developing towards sustainability
▪ From the 1970s onwards there was increased attention for the negative effects of
economic growth on social and environmental aspects
▪ This led to the notion of sustainable development
▪ “Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to
meet their own needs.” (Brundtland Commission, Our Common Future,
1987)
Millennium and Sustainable Development Goals
▪ “Thus the normative side of sustainable development envisions four
basic objectives of a good society: economic prosperity; social inclusion and
cohesion; environmental sustainability; and good governance by major social actors,
including governments and business.” (Jeffrey Sachs, The Age of Sustainable Society,
2015, p. 4)
▪ The UN adopted the Millennium Development Goals (MDGs) (1990- 2015) and the
Sustainable Development Goals (2015-2030)
