World Economic Order and Demography Sustainability Indicators

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World Economic Order and DemographySustainability
Indicators

• PEEP course Global Trends
• 21 September 2006
• Mats Johansson
• Lisa Van Well

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National Income Accounting

• Defining GDP and PPI (PPP)
• GNIused by World Banks Atlas (3-year average)
  Method takes into account all production in the
  domestic economy (such as GDP), plus the net flow
  of factor income (profits, labour income from
  abroad)
• Defining NNP, NIAs

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Gross Domestic Product (GDP)Closed economy
GDPFCCIG-TIOpen economy GDPFCCIGX-Z-TI
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Business cycles and structural transformation

• Business cycles Regular cyclical fluctuations in
  the ec
• economy (short term), repetitive phases
• Structural transformation From one economic
  phase to another qualitative different phase
  (long term), a completely new phase Business
  cycles Investment a central variable
• Investment Increases the production capacity,
• income creating (profits, wages), increases the
  purchasing power
• More demand, more investments ?higher
  employment?upswing
• After a while production capacity gt consumption
  capacity? overcapacity?unemployment, income
  decline?downswing
• In the downswing depreciation of K ?increased
  investment, higher employment? income creating
  ?upswing
• Today more synchronised business cycles (effects
  of the globalisation processes)

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World Economic Order

• Processes of globalisation
• Comparative advantages, economies of scale and
  scope
• Trade flows between regions of the world
• Models of economic world order
• Global economic institutions (World Bank, IMF,
  WTO)

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World Bank

• Mission to fight poverty and improve the living
  standards of people in the developing world.
• Specialised UN institution

• Provides loans, policy advice, technical
  assistance and knowledge sharing services
• Promotes growth to create jobs and to empower
  people to take advantage of opportunities

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International Monetary Fund (IMF)

• Organization of 184 countries
• Goal to foster global monetary cooperation,
  secure financial stability, facilitate
  international trade, promote high employment and
  sustainable economic growth, and reduce poverty.

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World Trade Organisation (WTO)

• Multilateral Organisation dealing with rules of
  trade between nations
• Negotiation Forum for trade agreements and
  dispute resolution, technical assistance
• Principles Free trade without discrimination,
  fair competition, transparency

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Environmental costs of Globalisation/Free Trade?

• Environmental costs of consumption
• Environmental costs of transport
• Environmental costs of production

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Demography

• Population trends in various parts of the world
• Dependency ratio
• Problems with population decline
• New trends in agriculture
• Migration and immigration

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• Measuring Sustainability

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Sustainable Development-Beyond concepts to action

• Think globally, act locally
• Each local authority should enter into a dialogue
  with its citizens, local organizations and
  private enterprises and adopt a local Agenda 21
• Earth Summit- Agenda 21 (ch. 28)

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Indicators and stragegiesLocal Agenda 21

• Europe 5292 LA21 in 36 countries (80)
• Africa 151 LA21 in 28 countries
• Asia-Pacific 674 LA21 in 17 countries
• Latin America 119 LA21 in 17 countries
• N. America USA 87, Canada 14
• Middle East 79 LA21 in 13 countries

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Local Agenda 21 in Sweden

• 289 municipalities
• Focus on stakeholder dialogue (citizens and
  businesses), process, integration of environment,
  economy and social aspects

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Local SD indicatorsSustainable Seattle (NGO)

• Waste Reduction and Recycling Program
• Environmental Priorities Project
• Comprehensive plan
• Sustainable Seattle Citizens Initiative
  Voluntary network and civic forum, developed
  local sustainability indicators

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Seattle sustainability indicators Criteria

• Relevant
• Reflect community values
• Attractive to local media
• Statistically measurable
• Logically or scientifically defensible
• Reliable
• Leading and
• Policy-relevant.

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European Sustainable Cities Towns Campaign
project

• Towards A Local Sustainability Profile European
  Common Indicators
• Launched by Environmental Commissioner Margot
  Wallström, 1999

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European Common Indicators Survey method

• Citizen Satisfaction with the Local Community
• Local Contribution to Global Climatic Change
• (and/or local Ecological Footprint)
• Local Mobility and Passenger Transportation
• Availability of Local Public Open Areas and
  Services
• Quality of Local Outdoor Air
• Childrens Journeys to and from School
• Sustainable Management of the Local Authority and
  Local Businesses
• Noise Pollution
• Sustainable Land Use
• Products Promoting Sustainability
• equality and social inclusion , local governance,
  empowerment, democracy, local/global relationship
  , local economy, environmental protection ,
  cultural heritage/quality of the built
  environment

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Principles of sustainable governance- strategies

• Urban Management, including a range of tools for
  managing sustainability
• Policy integration-vertically and horizontally
• Ecosystems thinking, with a social dimension
• Cooperation and Partnership Learning by doing
  and by example, networks
• EUROPEAN SUSTAINABLE CITIES EXPERT GROUP
  ON THE URBAN ENVIRONMENT, MARCH 1996, BRUSSELS

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Global indicators?

• World Development indicators (WDI) 630 different
  indicators (World Bank Group)
• Millennium Development Goals indictors
• Bellagio Principles (1996 by international group
  of measurement practitioners, organised by IISD),
  indicators impossible for consensus, but
  developed principles for assessment of
  sustainable development
• what matters gets measured!

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Bellagio Principles

• Guiding Visions and Goals for SD
• Holistic Perspective
• Essential Elements (inter and intra-generational
  equity, ecological conditions, market and
  non-market activities)
• Adequate scope (timeframe, local and far-reaching
  impacts, build on historic and future conditions)
• Practical focus (to give clear picture of
  sustainability)
• Openness and accessible
• Effectively communicated, especially to
  politicians
• Broad participation
• Ongoing assessment (adjustable goals)
• Supportive of Institutional capacity

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Environmental Sustainability Index (ESI)

• Involved 3 groups World Economic Forums Global
  Leaders for Tomorrow, Environmental task force,
  Yale University and Center for International
  Earth Science Information (Columbia University)
• Measures overall progress towards environmental
  sustainability in 142 countries by 20 indicators
  and 5 core components
• Environmental systems, Reducing Stresses,
  Reducing Human Vulnerability, Social and
  Institutional Capacity, Global Stewardship

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Problems with measuring Sustainable Development?
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The social constructions of sustainability

• Sustainability is inherently problem-driven
  concept, rather than scientific (like climate
  change)
• About values and norms of the type of lifestyles
  we want and attitude to the resources upon which
  these are based.

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