Analysis of Economic Situation
2. THEORY
Areas of Study
• Traditional approach: Economy matters
– economic growth
– macroeconomic stability
• Contemporary approach: Well-being matters
– in the economy:
• not only growth
• not only national economy
– not only economy
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Welfare Economics & Human
Development
• Welfare economics: “capabilities” approach (Amartya Sen). Positive
freedoms (Development as Freedom, 1998):
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political freedoms
economic facilities
social opportunities
transparency guarantees
protective security
• Human Development (UNDP). Pillars of human development (Human
Development Report 2009):
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equity
sustainability
productivity
empowerment
cooperation
security
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Sustainable Development
• Definition: Sustainable development is the kind
of development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs.
(World Commission on Environment and Development
aka Brundtland Commission)
• Pillars of the concept:
– do not jeopardize the development of further generations
– all the dimensions are linked together and mutually dependent
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Dimensions of Sustainable Development
Source: The Future of Sustainability: Re-thinking Environment and Development in the Twenty-first Century,
Report of the IUCN Renowned Thinkers Meeting, 29-31 January 2006.
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