Click to edit Master title style

Sustainable
Development

1
Click toOutcome:
Course edit Master title style

1. Describe sustainable development, development processes and

relate impact of various levels of development.
2. Formulate the methodology for assessment of sustainability of
project using various indicators.
3. Apply environmental legislations to various development
processes and projects

2 2
Click toContent
Course edit Master title style
1. Development: Goals and means of development, MDG’s and SDG’s sustainable
development, Comparing levels of development, GDP, GNP, global development
level.
2. Industrialization and Post-industrialization era: Major structural shifts, knowledge
revolution, implications for development sustainability
3. Environmental episodes: Ozone depletion, global warming, greenhouse effect,
Bhopal gas tragedy etc.
4. Pollutions: Major sources, permissible standards and controls of urban air pollution,
water pollution, Solid and hazardous waste disposals
5. Climate Change: The Risk of Global Climate Change
6. Environmental legislation: Legislative provisions and measures towards sustainability
7. Indicators of Development Sustainability: Composition of National wealth,
Accumulation of National Wealth as an Indicator of Sustainable Development,
Development Goals and Strategies, Gross happiness index, Millennium
Development Goals, Role of National Development Policies, Life cycle assessment,
Carbon foot print

3 3
Click to edit Master title style
Development:

• Specific state of growth and advancement

• How to account the development
• Developed and developing countries
- Rich or poor
- Quantity of resources available
- Equitable distribution of income among social group
- Health and educational facilities provided
• According to the Human Development Report 1996, published by the
United Nations Development Program, “human development is the end—
economic growth a means”
4 4
Click to edit Master title style

5 5
Click to editDevelopment:
Sustainable Master title style

• According to the classical definition given by the United Nations

World Commission on Environment and Development in 1987,
“Development is sustainable if it, meets the needs of the present
without compromising the ability of future generations to meet their
own needs.”
• Rio Declaration, adopted by the United Nations Conference on
Environment and Development in 1992 (also called the Earth
Summit, held in Rio de Janeiro, Brazil), puts it this way: “Human
beings are at the center of con- cern for sustainable development.
They are entitled to a healthy and productive life in harmony with
nature.”

6 6
Click to edit
Objective of Master
Sustainable
title style
Development

7 7
Click to editLevel
Comparing Master
of Development
title style
• Any country development depends on
- The natural resources available in tertiary
- Atmospheric condition
- Export and Import
• Some countries benefit from fertile agricultural soils, while others have to put a lot of effort into
artificial soil amelioration. Some countries have discovered rich oil and gas deposits within their
territories, while others have to import most “fossil” fuels.
• A lack or wealth of natural resources made a big difference in countries’ development. But only
a wealth of natural resources is not the most important determinant of development success.
• The productivity with which countries use their productive resources is
- Physical capital
- Human capital
- Natural capital
is widely recognized as the main indicator of their level of economic development

8 8
Click to edit Master title style
• Theoretically, the economists compare the development of different
countries by calculating how productively they are using their capital.
• But such calculations are extremely challenging, primarily because of the
difficulty of putting values on elements of natural and human capital.
• In practice economists use Gross National Product (GNP) per capita or
Gross Domestic Product (GDP) per capita for the same purpose.
• These statistical indicators are easier to calculate and provide a rough
measure of the relative productivity with which different countries use
their resources and measure the relative material welfare in different
countries,
• Also whether this welfare results from good fortune with respect to land
and natural resources or from superior productivity in their use is verified.

9 9
Click to
Gross Domestic
edit Master
Product
title and
styleGross National Product

• GDP is calculated as the value of the total final output of all goods and
services produced in a single year within a country’s boundaries.
• GNP is GDP + incomes received by residents from abroad - incomes
claimed by non-residents.
• There are two ways of calculating GDP and GNP:
1. By adding together all the incomes in the economy—wages, interest,
profits, and rents.
2. By adding together all the expenditures in the economy—
consumption, investment, government purchases of goods and services.

10 10
Click to edit Master title style
• So basically, when the calculations include expenditures made or
incomes received by a country’s citizens in their transactions with foreign
countries, the result is GNP.
• And when the calculations are made exclusive of expenditures or
incomes that originated beyond a country’s boundaries, the result is GDP.
• Therefore for development of country GNP > GDP
• To judge a country’s level of economic development, these indicators
have to be divided by the country’s population.
• GDP per capita and GNP per capita show the approximate amount of
goods and services that each person in a country would be able to buy in
a year if incomes were divided equally.
• That is why these measures are also often called “per capita incomes.”

11 11
Click to edit Master title style
• To compare the development of countries nominal GNP per capita
(expressed in U.S. dollars in accordance with the market exchange
rate of the national currency) into its real GNP per capita (an
indicator adjusted for the difference in prices for the same goods
and services between this country and the United States, and
independent of the fluctuations of the national currency exchange
rate
• GNP in purchasing power parity (PPP) term thus provides a better
comparison of average income or consumption between economies.
• The PPP conversion factor shows the number of units of a country’s
currency required to buy the same amount of goods and services in
the domestic market as one dollar would buy in the United States.

12 12
Click to edit Master title style

• In developing countries real GNP per capita is usually higher than

nominal GNP per capita

13 13
Click to edit
Grouping Countries
Master by
title
Their
styleLevel of Development

The World Bank, uses GNP per capita to classify countries as

• low-income (GNP per capita of $765 or less),
• middle- income (including lower-middle-income, $766 to $3,035, and
upper- middle-income, $3,036 to $9,385),
• high-income ($9,386 or more)

14 14
Click to edit Master title style

15 15
Click to editofMaster
Limitations GDP and
titleGNP
style
• It do not show how equitably a country’s income is distributed.
• It do not account for pollution, environmental degradation, and resource depletion.
• It do not register unpaid work done within the family and community, or work done in
the shadow (underground and informal) economy.
• It attach equal importance to “goods” (such as medicines) and “bads” (cigarettes,
chemical weapons) while ignoring the value of leisure and human freedom.

Thus, to judge the relative quality of life in different countries, one should also take into
account other indicators showing, for instance,
- the distribution of income and incidence of poverty
- people’s health and longevity
- access to education
- the quality of the environment, and more.

16 16