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               1
           What Is Development?


           Are you sure that you know what “devel-                      Goals and Means of Development
           opment” really means with respect to                                                                                     How do we
           different countries? And can you deter-                      Different countries have different priori-                  determine which
           mine which countries are more devel-                         ties in their development policies. But to
           oped and which are less?                                     compare their development levels, you
                                                                                                                                    countries are more
                                                                        would first have to make up your mind                       developed and
           It is somewhat easier to say which coun-                     about what development really means to                      which less?
           tries are richer and which are poorer. But                   you, what it is supposed to achieve.
           indicators of wealth, which reflect the                      Indicators measuring this achievement
           quantity of resources available to a soci-                   could then be used to judge countries’
           ety, provide no information about the                        relative progress in development.
           allocation of those resources—for
           instance, about more or less equitable                       Is the goal merely to increase national
           distribution of income among social                          wealth, or is it something more subtle?
           groups, about the shares of resources                        Improving the well-being of the majority
           used to provide free health and education                    of the population? Ensuring people’s free-
           services, and about the effects of produc-                   dom? Increasing their economic security?1
           tion and consumption on people’s envi-
           ronment. Thus it is no wonder that                           Recent United Nations documents
           countries with similar average incomes                       emphasize “human development,” mea-
           can differ substantially when it comes to                    sured by life expectancy, adult literacy,
           people’s quality of life: access to educa-                   access to all three levels of education, as
           tion and health care, employment oppor-                      well as people’s average income, which is
           tunities, availability of clean air and safe                 a necessary condition of their freedom of
           drinking water, the threat of crime, and                     choice. In a broader sense the notion of
           so on. With that in mind, how do we                          human development incorporates all
           determine which countries are more                           aspects of individuals’ well-being, from
           developed and which are less developed?                      their health status to their economic and

           1
            If you think that the “simple” answer to this question is something like “maximizing people’s happiness,” think
           of the different factors that usually make people feel happy or unhappy. Note that a number of special surveys in
           different countries appear to show that the average level of happiness in a country does not grow along with the
           increase in average income, at least after a certain rather modest income level is achieved. At the same time, in each
           country richer people usually reported slightly higher levels of happiness than poorer people, and people in coun-
           tries with more equal distribution of wealth appeared to be generally happier.
                                                                                                                                                     7
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     BEYOND ECONOMIC GROWTH



                                 political freedom. According to the            provided by nature, such as pollution
                                 Human Development Report 1996, pub-            absorption and resource regeneration.
                                 lished by the United Nations Develop-          Moreover, economic growth must be
                                 ment Program, “human development is            constantly nourished by the fruits of
                                 the end—economic growth a means.”              human development, such as higher
                                                                                qualified workers capable of technologi-
                                 It is true that economic growth, by            cal and managerial innovations along
                                 increasing a nation’s total wealth, also       with opportunities for their efficient use:
                                 enhances its potential for reducing            more and better jobs, better conditions
                                 poverty and solving other social               for new businesses to grow, and greater
                                 problems. But history offers a number of       democracy at all levels of decisionmaking
                                 examples where economic growth was             (see Fig. 1.1).
                                 not followed by similar progress in
                                 human development. Instead growth was          Conversely, slow human development
                                 achieved at the cost of greater inequality,    can put an end to fast economic growth.
                                 higher unemployment, weakened                  According to the Human Development
                                 democracy, loss of cultural identity, or       Report 1996, “during 1960–1992 not a
                                 overconsumption of natural resources           single country succeeded in moving from
                                 needed by future generations. As the           lopsided development with slow human
                                 links between economic growth and              development and rapid growth to a vir-
                                 social and environmental issues are better     tuous circle in which human develop-
                                 understood, experts including econo-           ment and growth can become mutually
                                 mists tend to agree that this kind of          reinforcing.” Since slower human devel-
                                 growth is inevitably unsustainable—that        opment has invariably been followed by
                                 is, it cannot continue along the same          slower economic growth, this growth
                                 lines for long. First, if environmental and    pattern was labeled a “dead end.”
                                 social/human losses resulting from eco-
                                 nomic growth turn out to be higher than
                                 economic benefits (additional incomes          Sustainable Development
                                 earned by the majority of the popula-
                                 tion), the overall result for people’s well-   Sustainable development is a term
                                 being becomes negative. Thus such              widely used by politicians all over the
                                 economic growth becomes difficult to           world, even though the notion is still
                                 sustain politically. Second, economic          rather new and lacks a uniform interpre-
                                 growth itself inevitably depends on its        tation. Important as it is, the concept of
                                 natural and social/human conditions. To        sustainable development is still being
                                 be sustainable, it must rely on a certain      developed and the definition of the term
                                 amount of natural resources and services       is constantly being revised, extended,
     8
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                                                                                                    1 WHAT IS DEVELOPMENT?




                                                                                                     Why is equity
                                                                                                     important for
                                                                                                     sustainable
                                                                                                     development?




           and refined. Using this book, you can       ple continue to jeopardize the well-being
           try to formulate your own definition as     of people belonging to other groups or
           you learn more about the relationships      living in other parts of the world.
           among its main components—the eco-          Imagine, for example, that emissions of
           nomic, social, and environmental factors    greenhouse gases, generated mainly by
           of sustainable development—and as you       highly industrialized countries, lead to
           decide on their relative significance       global warming and flooding of certain
           based on your own system of values.         low-lying islands—resulting in the dis-
                                                       placement and impoverishment of entire
           According to the classical definition       island nations (see Chapter 14). Or con-
           given by the United Nations World           sider the situation when higher profits of
           Commission on Environment and               pharmaceutical companies are earned at
           Development in 1987, development is         the cost of millions of poor people being
           sustainable if it “meets the needs of the   unable to afford medications needed for
           present without compromising the abil-      treating their life-threatening diseases.
           ity of future generations to meet their
           own needs.” It is usually understood that   “Sustainable” development could proba-
           this “intergenerational” equity would be    bly be otherwise called “equitable and
           impossible to achieve in the absence of     balanced,” meaning that, in order for
           present-day social equity , if the eco-     development to continue indefinitely, it
           nomic activities of some groups of peo-     should balance the interests of different
                                                                                                                        9
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     BEYOND ECONOMIC GROWTH



                                 groups of people, within the same gener-     value of greater national security with the
                                 ation and among generations, and do so       negative value of slower economic growth
                                 simultaneously in three major interre-       (loss of jobs and income) and some, pos-
                                 lated areas–economic, social, and envi-      sibly irreversible, environmental damage?
                                 ronmental. So sustainable development is     There is no strictly scientific method of
                                 about equity, defined as equality of         performing such valuations and compar-
                                 opportunities for well-being, as well as     isons. However, governments have to
                                 about comprehensiveness of objectives.       make these kinds of decisions on a regular
                                 Figure 1.2 shows just a few of the many      basis. If such decisions are to reflect the
                                 objectives, which, if ignored, threaten to   interests of the majority, they must be
                                 slow down or reverse development in          taken in the most democratic and partici-
                                 other areas. You are invited to add more     patory way possible. But even in this case,
                                 objectives and explain how, in your opin-    there is a high risk that long-term inter-
                                 ion, they are connected to others. In the    ests of our children and grandchildren
                                 following chapters you will find many        end up unaccounted for, because future
                                 examples of such interconnections.           generations cannot vote for themselves.
                                                                              Thus, to ensure that future generations
                                 Obviously, balancing so many diverse         inherit the necessary conditions to pro-
                                 objectives of development is an enormous     vide for their own welfare, our present-
                                 challenge for any country. For instance,     day values must be educated enough to
                                 how would you compare the positive           reflect their interests as well.




    10
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                                                                                                    1 WHAT IS DEVELOPMENT?



           The challenge is further complicated by     also stands in the way of achieving most
           the fact that in today’s interdependent     other goals of development, from clean
           world many aspects of sustainable devel-    environment to personal freedom.
           opment are in fact international or even    Another, closely related, global problem
           global. On the one hand, many deci-         is establishing and preserving peace in
           sions taken at the national or even local   all regions and all countries. War, as
           level actually have international conse-    well as poverty, is inherently destructive    What are the
           quences–economic, social, environmen-       of all economic as well as social and         necessary
           tal. When these consequences are            environmental goals of development
           negative, the situation is sometimes        (see Fig. 1.2).
                                                                                                     conditions for
           referred to as “exporting unsustainabil-                                                  sustainable
           ity.” On the other hand, national poli-     In the final analysis sustainable develop-    development?
           cies are often inadequate to effectively    ment is about long-term conditions for
           deal with many challenges of sustainabil-   humanity’s multidimensional well-being.
           ity. Thus international cooperation on      For example, the famous Rio
           the wide range of so-called transbound-     Declaration, adopted by the United
           ary and global problems of sustainable      Nations Conference on Environment
           development becomes indispensable.          and Development in 1992 (also called
                                                       the Earth Summit, held in Rio de
           Arguably, the most critical problem of      Janeiro, Brazil), puts it this way:
           sustainable development—in each             “Human beings are at the center of con-
           country as well as globally—is eradicat-    cern for sustainable development. They
           ing extreme poverty. That is because        are entitled to a healthy and productive
           poverty is not only an evil in itself. It   life in harmony with nature.”




                                                                                                                        11

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Wb what is development

  • 1. BEG_i-144.qxd 6/10/04 1:46 PM Page 7 1 What Is Development? Are you sure that you know what “devel- Goals and Means of Development opment” really means with respect to How do we different countries? And can you deter- Different countries have different priori- determine which mine which countries are more devel- ties in their development policies. But to oped and which are less? compare their development levels, you countries are more would first have to make up your mind developed and It is somewhat easier to say which coun- about what development really means to which less? tries are richer and which are poorer. But you, what it is supposed to achieve. indicators of wealth, which reflect the Indicators measuring this achievement quantity of resources available to a soci- could then be used to judge countries’ ety, provide no information about the relative progress in development. allocation of those resources—for instance, about more or less equitable Is the goal merely to increase national distribution of income among social wealth, or is it something more subtle? groups, about the shares of resources Improving the well-being of the majority used to provide free health and education of the population? Ensuring people’s free- services, and about the effects of produc- dom? Increasing their economic security?1 tion and consumption on people’s envi- ronment. Thus it is no wonder that Recent United Nations documents countries with similar average incomes emphasize “human development,” mea- can differ substantially when it comes to sured by life expectancy, adult literacy, people’s quality of life: access to educa- access to all three levels of education, as tion and health care, employment oppor- well as people’s average income, which is tunities, availability of clean air and safe a necessary condition of their freedom of drinking water, the threat of crime, and choice. In a broader sense the notion of so on. With that in mind, how do we human development incorporates all determine which countries are more aspects of individuals’ well-being, from developed and which are less developed? their health status to their economic and 1 If you think that the “simple” answer to this question is something like “maximizing people’s happiness,” think of the different factors that usually make people feel happy or unhappy. Note that a number of special surveys in different countries appear to show that the average level of happiness in a country does not grow along with the increase in average income, at least after a certain rather modest income level is achieved. At the same time, in each country richer people usually reported slightly higher levels of happiness than poorer people, and people in coun- tries with more equal distribution of wealth appeared to be generally happier. 7
  • 2. BEG_i-144.qxd 6/10/04 1:46 PM Page 8 BEYOND ECONOMIC GROWTH political freedom. According to the provided by nature, such as pollution Human Development Report 1996, pub- absorption and resource regeneration. lished by the United Nations Develop- Moreover, economic growth must be ment Program, “human development is constantly nourished by the fruits of the end—economic growth a means.” human development, such as higher qualified workers capable of technologi- It is true that economic growth, by cal and managerial innovations along increasing a nation’s total wealth, also with opportunities for their efficient use: enhances its potential for reducing more and better jobs, better conditions poverty and solving other social for new businesses to grow, and greater problems. But history offers a number of democracy at all levels of decisionmaking examples where economic growth was (see Fig. 1.1). not followed by similar progress in human development. Instead growth was Conversely, slow human development achieved at the cost of greater inequality, can put an end to fast economic growth. higher unemployment, weakened According to the Human Development democracy, loss of cultural identity, or Report 1996, “during 1960–1992 not a overconsumption of natural resources single country succeeded in moving from needed by future generations. As the lopsided development with slow human links between economic growth and development and rapid growth to a vir- social and environmental issues are better tuous circle in which human develop- understood, experts including econo- ment and growth can become mutually mists tend to agree that this kind of reinforcing.” Since slower human devel- growth is inevitably unsustainable—that opment has invariably been followed by is, it cannot continue along the same slower economic growth, this growth lines for long. First, if environmental and pattern was labeled a “dead end.” social/human losses resulting from eco- nomic growth turn out to be higher than economic benefits (additional incomes Sustainable Development earned by the majority of the popula- tion), the overall result for people’s well- Sustainable development is a term being becomes negative. Thus such widely used by politicians all over the economic growth becomes difficult to world, even though the notion is still sustain politically. Second, economic rather new and lacks a uniform interpre- growth itself inevitably depends on its tation. Important as it is, the concept of natural and social/human conditions. To sustainable development is still being be sustainable, it must rely on a certain developed and the definition of the term amount of natural resources and services is constantly being revised, extended, 8
  • 3. BEG_i-144.qxd 6/10/04 1:46 PM Page 9 1 WHAT IS DEVELOPMENT? Why is equity important for sustainable development? and refined. Using this book, you can ple continue to jeopardize the well-being try to formulate your own definition as of people belonging to other groups or you learn more about the relationships living in other parts of the world. among its main components—the eco- Imagine, for example, that emissions of nomic, social, and environmental factors greenhouse gases, generated mainly by of sustainable development—and as you highly industrialized countries, lead to decide on their relative significance global warming and flooding of certain based on your own system of values. low-lying islands—resulting in the dis- placement and impoverishment of entire According to the classical definition island nations (see Chapter 14). Or con- given by the United Nations World sider the situation when higher profits of Commission on Environment and pharmaceutical companies are earned at Development in 1987, development is the cost of millions of poor people being sustainable if it “meets the needs of the unable to afford medications needed for present without compromising the abil- treating their life-threatening diseases. ity of future generations to meet their own needs.” It is usually understood that “Sustainable” development could proba- this “intergenerational” equity would be bly be otherwise called “equitable and impossible to achieve in the absence of balanced,” meaning that, in order for present-day social equity , if the eco- development to continue indefinitely, it nomic activities of some groups of peo- should balance the interests of different 9
  • 4. BEG_i-144.qxd 6/10/04 1:46 PM Page 10 BEYOND ECONOMIC GROWTH groups of people, within the same gener- value of greater national security with the ation and among generations, and do so negative value of slower economic growth simultaneously in three major interre- (loss of jobs and income) and some, pos- lated areas–economic, social, and envi- sibly irreversible, environmental damage? ronmental. So sustainable development is There is no strictly scientific method of about equity, defined as equality of performing such valuations and compar- opportunities for well-being, as well as isons. However, governments have to about comprehensiveness of objectives. make these kinds of decisions on a regular Figure 1.2 shows just a few of the many basis. If such decisions are to reflect the objectives, which, if ignored, threaten to interests of the majority, they must be slow down or reverse development in taken in the most democratic and partici- other areas. You are invited to add more patory way possible. But even in this case, objectives and explain how, in your opin- there is a high risk that long-term inter- ion, they are connected to others. In the ests of our children and grandchildren following chapters you will find many end up unaccounted for, because future examples of such interconnections. generations cannot vote for themselves. Thus, to ensure that future generations Obviously, balancing so many diverse inherit the necessary conditions to pro- objectives of development is an enormous vide for their own welfare, our present- challenge for any country. For instance, day values must be educated enough to how would you compare the positive reflect their interests as well. 10
  • 5. BEG_i-144.qxd 6/10/04 1:46 PM Page 11 1 WHAT IS DEVELOPMENT? The challenge is further complicated by also stands in the way of achieving most the fact that in today’s interdependent other goals of development, from clean world many aspects of sustainable devel- environment to personal freedom. opment are in fact international or even Another, closely related, global problem global. On the one hand, many deci- is establishing and preserving peace in sions taken at the national or even local all regions and all countries. War, as level actually have international conse- well as poverty, is inherently destructive What are the quences–economic, social, environmen- of all economic as well as social and necessary tal. When these consequences are environmental goals of development negative, the situation is sometimes (see Fig. 1.2). conditions for referred to as “exporting unsustainabil- sustainable ity.” On the other hand, national poli- In the final analysis sustainable develop- development? cies are often inadequate to effectively ment is about long-term conditions for deal with many challenges of sustainabil- humanity’s multidimensional well-being. ity. Thus international cooperation on For example, the famous Rio the wide range of so-called transbound- Declaration, adopted by the United ary and global problems of sustainable Nations Conference on Environment development becomes indispensable. and Development in 1992 (also called the Earth Summit, held in Rio de Arguably, the most critical problem of Janeiro, Brazil), puts it this way: sustainable development—in each “Human beings are at the center of con- country as well as globally—is eradicat- cern for sustainable development. They ing extreme poverty. That is because are entitled to a healthy and productive poverty is not only an evil in itself. It life in harmony with nature.” 11