Introduction to Sustainable Development

I. Introduction to Sustainable Development

• Sustainable Development as an analytical and normative concept:
  • It is both a way of understanding the world and a method for solving global problems.
  • SDGs will guide the world’s economic diplomacy in the coming generation.
• Starting point: our crowded planet
  • Population: about 7.2 billion people (as discussed in the text) and rising rapidly.
  • Growth: about 75 million people per year; projection toward 8 billion in the 2020s and perhaps 9 billion by the early 2040s (SDSN 2013a).
  • Lived reality: billions seek economic improvement; stark contrasts between the poor, those just above the poverty line, and high-income communities.
• Global economy scale and integration
  • World economy now produces roughly 90\;trillion of output per year (Gross World Product, GWP).
  • Crude comparison: GWP is at least 200 times larger than in 1750, though many goods/services today did not exist 250 years ago, so the comparison is imperfect.
  • Growth and inequality: the world economy is vast and growing rapidly (roughly 3\%{-}4\% per year in scale) but highly unequal in income within and between countries.
• Dual realities of well-being and deprivation
  • Many enjoy long life expectancy and good health; at least 1 billion live in extreme poverty, lacking essentials like nutrition, health care, safe water, sanitation, and shelter.
• Environmental backdrop
  • Humanity depends on nature for food, water, materials, and safety from environmental threats, but we are degrading the Earth’s environmental services.
  • The environmental crisis is broad, affecting climate, fresh water, oceans, and habitats of other species; Earth’s key cycles (water, nitrogen, carbon) are being altered.
  • The scale of the environmental crisis is large and unprecedented in thousands of years of civilization.
• Key framing question
  • Can economic development be combined with environmental sustainability and social inclusion? Can a four-part framework (economic development, social inclusion, environmental sustainability, good governance) be achieved in practice?
• Normative vs analytical framing
  • Normative: SDGs define aspirational goals for a just, sustainable future.
  • Analytical: sustainable development as an interdisciplinary study of the interactions among the economy, society, and the environment.

II. Embracing Complexity

• Four interacting systems in sustainable development
  • Global economy
  • Social system (trust, ethics, inequality, social networks, etc.)
  • Earth's physical environment (climate, ecosystems, resources)
  • Governance (performance of governments and businesses; regulations, institutions)
• Complex systems characteristics
  • Emergent properties: the whole is more than the sum of its parts.
  • Nonlinear dynamics: small changes can cause large, cascading effects (booms and busts).
  • Examples: a single business failure can trigger a financial panic; a slight temperature rise can cascade through ecological systems.
• Implications for problem solving
  • Sustainable development requires acknowledging complexity, not boiling problems down to a single diagnosis or solution.
  • Practitioners must diagnose specific cases with sensitivity to context, much as doctors use differential diagnoses.
• Why four systems matter
  • Each system exhibits complex behavior; policy must consider interactions and feedbacks across all four domains.

III. The Role of Technological Change

• Technology as a driver of growth
  • Technological advances have been the main driver of long-term global economic growth since 1750 (steam engine, electrification, ICTs, etc.).
  • The Maglev in Shanghai (a modern transport technology) exemplifies how new tech can improve energy efficiency and reduce emissions when powered by low-carbon energy.
• Negative side effects of technology
  • The burning of coal: emblem of industrialization but a major source of CO₂ and environmental harm; represents how tech can have harmful externalities.
  • In 2010, coal burning produced roughly ¼ of global CO₂ emissions from fossil fuels, highlighting environmental trade-offs.
• Human guidance of technological progress
  • Tech development is not purely market-driven; it can be directed toward human goals via deliberate, policy-informed R&D.
  • Governments can steer technology through:
  • Public financing of R&D
  • Direct government-funded laboratories
  • Regulations and standards
  • Prizes and incentives for new inventions
  • Patent policy adjustments to encourage targeted R&D (e.g., for specific diseases)
• Toward directed technological change for sustainability
  • In the age of sustainable development, policy can guide innovations in energy, transport, construction, food production, health delivery, and education to achieve sustainability goals.

IV. Sustainable Development as a Normative Approach

• SD as a holistic, normative framework
  • It emphasizes an integrated view of economic prosperity, social inclusion, and environmental sustainability.
• The four core objectives of a good society
  • Economic prosperity
  • Social inclusion and cohesion
  • Environmental sustainability
  • Good governance by governments and major social actors (including businesses)
• Challenges to achieving SD in practice
  • Corruption, war, and weak provision of public services can undermine progress.
• The central question
  • How can knowledge about the economy, society, environment, and governance be applied to yield prosperous, inclusive, sustainable, and well-governed societies and achieve the SDGs?

V. A Brief History of the Concept

• Early sustainability concept in ecosystems
  • The idea of sustainable yield in fisheries (maximum sustainable yield) to maintain stable populations.
• 1972: Stockholm Conference and Limits to Growth
  • Global attention on sustainability amid economic growth; Limits to Growth warned of overshoot and collapse under unchecked growth.
• 1980: World Conservation Strategy introduced the phrase sustainable development
  • Recognized resource limits and carrying capacity; emphasized needs of future generations.
• 1987: Brundtland Commission definition
  • Sustainable Development is development that meets present needs without compromising the ability of future generations to meet their own needs. (Brundtland 1987, 41)
• 1992: Rio Earth Summit and the three-pillar framing
  • Intergenerational justice and sustainability integrated into policy discussions.
• 2002: World Summit on Sustainable Development (WSSD)
  • Plan of Implementation stressed integration of economic development, social development, and environmental protection as interdependent pillars.
• The 20th anniversary of the Rio Summit and The Future We Want (Rio+20, 2012)
  • Reaffirmed the three dimensions and highlighted sustained, inclusive, and equitable growth; reduced inequalities; promoted integrated natural resource management; ecosystem restoration and resilience.
  • The SDGs were announced as part of The Future We Want, emphasizing action-oriented, concise, globally applicable, and universally relevant goals driven by governments with stakeholder involvement.
• The SDGs as the current guiding framework
  • The SDGs operationalize the three-part framework in a modern, action-oriented global agenda.

VI. SDGs, Governance, and the Three-Dimensional Framework

• Three dimensions, with governance as a fourth pillar
  • Economic development
  • Social development (inclusion, cohesion)
  • Environmental protection
  • Good governance (rule of law, accountability, transparency, stakeholder engagement)
• The role of multinational corporations and other actors
  • Corporations can be powerful actors for development or agents of corruption; governance must address corporate behavior and accountability.
• The normative vision for sustainable development
  • Promote sustained, inclusive, and equitable economic growth; reduce inequalities; foster social development; promote sustainable management of natural resources and ecosystems.

VII. An Introduction to Economic Growth

• Measuring the size of the economy
  • Economists use GDP to summarize a country’s overall economic development.
  • GDP measures the market value of total production within a country over a period (usually a year).
  • GDP per capita = GDP / population; a proxy for average living standards, though imperfect.
• Distinctions in measurement
  • GDP vs. GNP: GDP counts production within a country’s borders; GNP counts income earned by residents, regardless of location.
  • In the example: if the government owns two-thirds of oil and foreign companies own one-third, GDP would count all oil produced within the country, but GNP would count only the income associated with ownership by residents.
• Market prices and price level considerations
  • GDP is measured at market prices and aggregated in a common currency (e.g., USD) for cross-country comparisons using exchange rates.
  • To compare real levels of output across countries, we adjust with international prices via PPP (purchasing power parity).
  • GDP at PPP uses a common set of international prices to reflect real purchasing power across countries.
• Market vs. non-market activity
  • GDP covers goods/services transacted in the market; home production (e.g., unpaid child care) is not counted unless there is a market transaction (e.g., paid day care).
• The limits of GDP as a welfare measure
  • GDP does not account for environmental damages, pollution, or conflict; thus GDP per capita is only a rough indicator of wellbeing.

VIII. Measuring Growth: GDP, PPP, and Real Growth

• Real vs. nominal growth
  • GDP at current prices vs. GDP at constant prices; real growth uses constant prices to control for price changes.
  • For cross-country comparisons, economists use GDP at constant international prices or PPP-adjusted prices.
• GDP at PPP and constant prices
  • PPP-adjusted measures ensure that $1 of GDP has equal purchasing power across countries.
  • Real growth is often discussed in terms of GDP per capita at constant prices, providing a clearer view of changes in living standards.
• Practical implications
  • When interpreting growth, focus on GDP per capita growth rather than total GDP growth to gauge improvements in average living standards.
• The rule of 70 (growth and doubling time)
  • A handy rule of thumb for growth: doubling time ≈ 70 / g, where g is the annual growth rate (in percent).
  • Example: at g = 2% per year, doubling time = 70 / 2 = 35 years; at g = 4%, doubling time = 17.5 years.

IX. The Growth of the World Economy and the Rise of Modern Growth

• Maddison’s long-run data on growth
  • The world economy started a sustained growth trajectory around 1750–1850 (the Industrial Revolution).
  • From 1820 to 2010, GWP grew from about 695\text{ billion} to 41\text{ trillion} (in 1990 international dollars per Maddison’s estimates).
  • World population grew from about 1.1 billion to about 6.9 billion in the same period.
  • GWP per capita rose from roughly 651 to 5,942 (in 1990 international dollars).
  • Average annual growth rate from 1820–2010: roughly 1.1\%; from 1970–2010: roughly 1.5\%.
• The rise of the modern era and its implications
  • GWP per person and population both rose, producing a massive expansion of total economic activity.
  • The growth path contributed to longer life expectancy, better education, and greater food security, but also amplified environmental threats.
• The relationship between output and population
  • The total world output can be expressed as ext{GWP} = ( ext{GWP per capita}) \times ( ext{world population}).

X. The Recent Growth of China

• Rapid growth since 1978 reforms
  • Deng Xiaoping’s reform era launched a trajectory of extraordinary growth, averaging about 10\% GDP growth per year.
  • Doubling time: approximately \frac{70}{10} = 7 years.
  • Over roughly 35 years, China’s GDP grew by about a factor of 2^{5} = 32.
  • Per capita growth was slightly lower, around 9\% annually, equating to roughly a 11.8x increase in GDP per person from 1978 to 2013.
• Urbanization and transformation
  • Shenzhen: from ~30,000 people in 1980 to nearly 12 million today; symbol of China’s urban and industrial transformation.
  • More than 200 million people moved from rural areas to cities in search of jobs in industry and services.
  • China became the world’s largest trading country and a global industrial hub.
• Downsides of rapid growth
  • Urban-rural disruption: mass migration strained families and social structures.
  • Inequality: rising income gaps between urban and rural residents.
  • Environmental degradation: pollution and related health impacts.
• Overall takeaway
  • China’s story illustrates that high per-capita income is achievable broadly but must be accompanied by inclusive growth and environmental sustainability to be truly sustainable.

XI. Improvements in Global Health

• Health and development are linked to income growth
  • Public health improvements accompany general economic growth: better food security, water, sanitation, and health technologies.
• Infant mortality and life expectancy trends
  • Infant mortality rate (IMR) declined drastically: around 1950–1955 IMR was about 134\text{ per }1{,}000\text{ live births}; today it is approximately 37\text{ per }1{,}000\text{ live births}.
  • Global deaths in infancy remain significant: around 5 million children under age 1 die each year; about 6 million die before age 5.
  • Life expectancy at birth rose from about 47\text{ years} (1950–1955) to roughly 71\text{ years} globally, and around 80\text{ years} in high-income countries.
• Broad health improvements as a benefit of growth
  • Enhanced health technologies (antibiotics, vaccines, diagnostics, surgical advances) and better water/sanitation contribute to longer, healthier lives.
• Structural health improvements in developing regions
  • Improvements in health outcomes are tied to economic growth and public health infrastructure (water, sanitation, housing, etc.).

XII. Continuing Poverty in the Midst of Plenty

• A world of both plenty and persistent poverty
  • Despite global wealth increases, extreme poverty persists in many regions; the challenge is to lift the remaining from subsistence to sustainable livelihoods.
• What is extreme poverty?
  • Multidimensional poverty: inability to meet basic needs for food, water, sanitation, safe energy, education, and a livelihood.
• Magnitude of extreme poverty
  • Estimates vary; more than 1 billion, and perhaps up to 2.5 billion, live in extreme poverty by some measures.
  • Often rural, but increasingly urbanizing in slums.
• Geographical patterns
  • Concentration in tropical Africa and parts of South Asia (India, Pakistan, Nepal, Bangladesh); landlocked countries (e.g., Mongolia, some in South America) face higher barriers to growth.
• Poverty mapping and indicators
  • GDP per capita maps show concentration of extreme poverty in Africa and parts of South Asia; even within countries, pockets of poverty persist in otherwise wealthier areas (e.g., Rio de Janeiro’s favelas).
• Mobility and practical solutions
  • Community Health Workers (CHWs) and modern ICTs are promising approaches to improving access to health and development services in poor communities.
• The normative aim
  • SD seeks to end extreme poverty while ensuring inclusive growth and environmental sustainability.

XIII. Global Environmental Threats Caused by Economic Development

• The scale of human impact on the planet
  • Global output per person is about $12{,}000, with 7.2 billion people; total output is at least 100 times higher than at the start of the Industrial Revolution, with a 240-fold increase in some dimensions of activity.
  • Environmental threats include climate change, water stress, pollution, biodiversity loss, and ecosystem degradation.
• Climate change and weather events as illustrative shocks
  • Superstorm Sandy (Manhattan, Oct 2012) highlighted how climate-related events amplify economic damages.
  • Sea level rise off the US East Coast by roughly one-third of a meter over a century increases flood risks.
  • 2012 U.S. megadrought and Western heatwaves; 2011 Bangkok floods; 2014 drought in California; floods in Beijing; other global events illustrate climate-related vulnerability.
• The Anthropocene
  • The term Anthropocene marks the era in which human activity is driving major disruptions of Earth’s physical and biological systems.
  • Human activities, especially fossil-fuel combustion, are altering climate, water cycles, soil and groundwater, ocean chemistry, and biodiversity.
• Planetary boundaries framework
  • Scientists proposed a set of planetary boundaries representing “safe operating conditions” for humanity.
  • Ten major boundaries (in approximate order): climate change, ocean acidification, stratospheric ozone depletion, atmospheric aerosol loading, nutrient cycles (nitrogen and phosphorus), land-system change, freshwater use, biodiversity loss, chemical pollution, and others.
  • Current status: some boundaries (e.g., nitrogen flux and biodiversity loss) are already exceeded; others remain within bounds but are tightening toward the red zone.
• The planetary boundaries visualization
  • The figure shows the boundaries as a circle with wedges; red shading indicates crossing safe limits; most boundaries show increasing pressure toward the red zone.
• Implications
  • If humanity continues on BAU (business as usual), crossing planetary boundaries could threaten long-run stability and wellbeing.

XIV. Planetary Boundaries (Planetary Space and the Risk of Crossing Tipping Points)

• The safe operating space and the red zones
  • Some boundaries such as nitrogen flux and biodiversity loss are already in the red; others are approaching red with rising pressure.
• The synthesis and warning
  • The science community argues for moving toward a sustainable development path to avoid crossing planetary limits and to preserve Earth’s life-supporting systems for future generations.

XV. Pathways to Sustainable Development

• BAU vs SD trajectories
  • BAU: continued reliance on fossil fuels, soil and groundwater depletion, and rising environmental destruction; some progress in ICT access and poverty reduction, but sustainability challenges accumulate.
  • SD: rapid adoption of new technologies and practices designed to reduce emissions, improve resource use efficiency, and promote inclusive growth; requires global coordination and local innovation.
• The practical challenge of SD
  • Some argue SDGs are too costly or incompatible with short-term growth; proponents contend that SD and growth can be synergistic: fairness and environmental sustainability can enhance long-run efficiency and resilience.
• Transitional strategies
  • Investments in energy efficiency (better building design, insulation, and systems integration)
  • Electrification with low-carbon energy sources (e.g., solar and wind) as replacements for fossil fuels
  • Sustainable urban design and transport, water conservation, and pollution control
  • Policy tools: targeted R&D, public laboratories, regulations, and policy incentives to foster sustainable innovations
• The book’s aim
  • To examine challenges, discuss SDGs, and analyze how SD can be achieved through cooperative global problem solving and innovative practices.

XVI. Synthesis: The Analytical and Normative Core of Sustainable Development

• The dual nature of sustainable development

  • Analytical: understanding the interconnections among economy, society, environment, and governance.
  • Normative: pursuing a global path that integrates these dimensions toward inclusive, sustainable development.

• The central objective

  • Create inclusive and sustainable economic development with robust governance, ensuring livelihoods today and for future generations.

• The transport of theory into practice

  • The narrative contrasts BAU with SD trajectories to illustrate potential futures and the costs and benefits of each path.

• The roadmap forward

  • A coordinated global effort, combining local and national pathways, informed by science and guided by governance reform, innovation, and commitments to the SDGs.

• Equations and key notations used in the notes:

  • GWP = (GWP per capita) × (world population) \text{GWP} = \text{GWP per capita} \times \text{world population}
  • Doubling time under growth g%: \text{Doubling time} = \frac{70}{g}
  • Real growth and PPP concepts are used to compare across countries; GDP at PPP uses a common set of international prices to ensure equal purchasing power across countries.
  • CO₂ concentration in the atmosphere is currently around 400\ \text{ppm}, with concerns about exceeding planetary boundaries if emissions continue unabated; historical natural fluctuations range from roughly 170–260 ppm in the past 800,000 years, but current levels are unprecedented in that timescale.