What does sustainable mean? What does prosperity mean?

1
What does sustainable mean? What does prosperity
mean?

• Sustainable to maintain something
• Prosperity a successful, flourishing, or
  thriving condition
• What might sustainable prosperity mean?

2
Globalization and SustainabilityShipping and
Shipbreaking

• Assignment booklet
• Text pgs 266-268

3
Sustainable Prosperity

• Like the word globalization, the term
  sustainable prosperity is defined differently
  depending on a persons POV and reason for using
  the term in a particular context.
• Sustainable prosperity
• practicing stewardship of the environment and
  resources so that future generations are able to
  achieve prosperity.
• The goal is to balance environmental, social, and
  economic factors.

4
Examples of Sustainable Prosperity

• Practicing stewardship of the environment and
  resources for future generations.
• (Reducing greenhouse gas emissions, limiting the
  amount of garbage going to landfills).
• Freer trade among all countries, including
  developing countries.
• This would allow every country to increase its
  productivity and make prosperity possible for
  everyone (shared prosperity).
• Figure 12-2 pg. 280

5
What is Not Sustainable Prosperity?

• Logging a forest beyond its re-growth capability.
  (economy, -environment)
• Closing down a logging operation without suitable
  transition arrangements for those workers who are
  laid off. (environment, -economy, -social)
• Mining native land. (economy, social,
  -cultural)
• Pg 265

6
What is standard of living? What is quality of
life?
7
Standard of Living

• Standard of living
• A level of material comfort as measured by the
  goods, services, and luxuries available to an
  individual, group, or nation.
• Standard of living is directly related to money.
  
• Indicators of standard of living include
• income,
• unemployment rate,
• housing affordability,
• gross domestic product, etc.

8
Quality of Life

• The state of being healthy, happy, or prosperous.

• Indicators of quality of life include

• life expectancy,
• adult literacy rate,
• school enrollment,
• air quality,
• right to vote,
• right to marry,
• religious freedom,
• gender equality,
• equal protection of the law, etc.

9
Our standard of living usually affects our QOL,
our QOL does not affect our standard of living.
10
Does a higher standard of living mean for a
better quality of life?
11
Measuring Quality of Life

• Usually
• higher standard of living means for a better
  quality of life.
• NOT ALWAYS.
• when we are measuring quality of life, we need to
  take this into consideration.
• Do we use standard or living factors to measure
  quality of life at all? If so, to what extent?

12
How does one come up with a measure of
prosperity?
13
Gross Domestic Product

• Gross domestic product is a standard of living
  measure. It is the value of all the goods and
  services a country produces in one given year.
• These figures are in trillions of dollars for the
  year 2008.

1United States14,264,600 2People's Republic of
China7,916,429 3Japan4,354,368 4India3,288,345 5Ge
rmany2,910,490 6Russia2,260,907 7UnitedKingdom2,23
0,549 8France2,130,383 9Brazil1,981,207 10Italy1,8
14,557 11Mexico1,548,007 12Spain1,396,881 13SouthK
orea1,342,338 14Canada1,303,234
14
Importance of GDP

• Changes in GDP can be used to track the health of
  a countrys economy. Agencies like Statistics
  Canada monitor and record these changes.
• The income and standard of living of the people
  in a country are closely tied to GDP.
• How is GDP only a standard of living measure?

15
GDP Per Capita

• The GDP of a country divided by the number of
  people who live there. (per capita think per
  cap, i.e. per head)
• If Canada has a population of 34 million and a
  GDP of 1.330 trillion, what is its GDP per
  capita?
• 39,117.65 (1.330 trillion divide by 34 million)

16
(No Transcript)
17
Could GDP per capita be misleading? How so?
18

• It includes children, the unemployed, and the
  retired. Also, it is an average, and averages can
  be deceiving.

19
Other Countries GDP

• If Norway has a population of 5 million and a GDP
  of 259 billion, what is its GDP per capita?
• 51,800
• If India has a population of 1.2 billion and a
  GDP of 3.862 trillion, what is its GDP per
  capita?
• 3,218.33

20

• February 2007 The Globe and Mail
• the chief executives of some companies in Canada
  earn up to 400 times more than the average
  worker.,
• If a company has 100 workers who earn 35,000 a
  year and a president who earns 200 times as much,
  what would be the total earnings of the workers
  and the president?
• What happens when you average the earnings of the
  101 people?
• How accurately does this number reflect the real
  prosperity of the workers? Of the company
  president? (FYI pg 282)
• 10.5 million, 103,960, not very accurate

21
Human Development Index (HDI)

• The human development index was created by the
  United Nations to measure quality of life in
  countries. It is measured on a scale of 1.
• HDI calculations are based on 3 main categories
• Longevity (life expectancy)
• Knowledge (school enrollment, adult literacy)
• Standard of living (GDP per person)

22
(No Transcript)
23
A Comparison of Countries and their HDI (2006)

• Top 10 HDI
• 1   Norway0.963 
• 2   Iceland0.956 
• 3   Australia0.955 
• 4   Canada0.949 
• 4   Luxembourg0.949 
• 4   Sweden0.949 
• 7   Switzerland0.947 
• 8   Ireland0.946 
• 9   Belgium0.945 
• 10 United States0.944 
•  

Bottom 5 HDI 174   Chad0.341 
175   Mali0.333  176  
Burkina Faso0.317 177   Sierra Leone0.298 178
  Niger0.281 (Figure 12-5, pg 283) 
24
World Map Indicating HDI (2006)
0.95 and over
0.7 0.75
0.35 0.5
25
Why Make the HDI?

• The HDI was created to
• draw attention to indicators that go beyond GDP
• reveal information that is not reflected in GDP
  stats.
• Kuwait
• very high GDP
• low level of education attainment.
• Canada
• ranks high on the HDI
• has been criticized for the sharp differences
  between the level of QOL indicators for the
  general population and for Aboriginals.
• Figure 12-6 Voices pg. 283

26
Other Measures of Prosperity

• GNH (Gross National Happiness)
• GPI (Genuine Progress Index)

27
In Bhutan, the king has brought in the gross
national happiness index, GNH. It is all about
your inner self and well being.
28
Gross National Happiness Index

• The GNH index
• based on Buddhist spiritual values rather than
  economic growth.
• The focus is on the inner happiness and
  well-being of the people in a country, their
  spiritual and material development.
• The king is determined to help Bhutan keep its
  own cultural identity despite outside pressures,
  including the influence of TV and the Internet.
  The govt strictly controls trade, tourism, and
  foreign investment. (Voices pg. 285)

29
Why do you think Bhutan is so resistant to
globalization?
30
Genuine Progress Index (GPI)

• The GPI index being developed to measure
  sustainability, well-being, and QOL.
• Advocates of the GPI say that GDP does not
  measure growth accurately because it does not
  take ppls real prosperity into account.
• GDP, for example, does not reflect the toll of
  economic growth on the environment, nor does it
  measure the inequality of income among the people
  in the country.

31
What is Uneconomic Growth?

• The "costs" of economic activity which include
  the following potential harmful effects
• Cost of resource depletion
• Cost of crime
• Cost of ozone depletion
• Cost of air, water, and noise pollution
• Loss of farmland and wetlands
• For example, the GPI will be zero if the
  financial costs of crime and pollution directly
  from economic growth equal the financial gains in
  production of goods and services.

32
What is privatization?
33
Privatization

• To eliminate the cost of operating services and
  to raise cash, some govts are choosing
  privatization.
• Privatization the selling of a public service,
  such as electricity delivery or health care, to a
  private company so that the service is no longer
  owned by the govt.
• Around the world, govts have privatized services
  such as electric utility companies, health care,
  highway repair and upkeep, etc.

34
(No Transcript)
35
Arguments for Privatization

• Privatization lowers taxes because we as
  taxpayers no longer have to pay for the govt to
  run the service. This means more money for us!
• Competition that arises from privatization
  improves service and lowers prices. (If Wendy's
  raises the price of their burgers you can just go
  to Dairy Queen. If Wendys wants to stay
  competitive they have to lower their burger
  prices or they risk losing your business.)

36
Example of Privatization Working

• 2007, Japan
• privatized its government-owned post office.
• (The post office also was Japans largest savings
  and investment bank).
• The post office was privatized and divided into
  four separate companies
• a bank,
• insurance company,
• courier service, and
• post offices
• This made dealing with the post office easier for
  consumers since they all didnt need to go to one
  place for different services.

37
Arguments against Privatization

• Many government-run services do not make money so
  the government simply eats the cost.
• If we privatize an unprofitable business then
  the company, in order to ensure it makes a
  profit, will raise their prices and hurt us as
  consumers.
• Government-run services meet the needs of all
  citizens, not just those who can afford to pay
  for them.
• Risk of monopoly.

38
Privatization Not Working Example

• 1989, the New Zealand
• govt sold Air New Zealand to an international
  group that included Qantas and American Airlines.
  
• By 2001
• the airline had run into severe financial
  problems and, because the airline is essential
  for their economy, the New Zealand govt had to
  take back control.

39
Issue Privatizing Water

• The debate on whether to privatize water or not
  is a HUGE issue.
• American business magazine Fortune calls control
  of water resources
• one of the worlds great business opportunities.
  It promises to be to the 21st century what oil
  was to the 20th.
• http//www.globalresearch.ca/the-privatisation-of-
  water-nestle-denies-that-water-is-a-fundamental-hu
  man-right/5332238
• Nestle Chairman Peter Brabeck-Letmathe believes
  that access to water is not a public right. Nor
  is it a human right.
• http//www.trueactivist.com/nestle-ceo-water-is-no
  t-a-human-right-should-be-privatized/ (video)

40
Privatization of Water

• Assigment Booklet article and paragraph

41
Privatization of Water Happening

• Despite the debate, privatization of water is
  already happening.
• In 56 countries water supply is controlled by
  large transnational corporations.
• Ironically, some of the people who pay the most
  money for water are the most poor!
• Many governments do not properly regulate the
  private providers of water. There is no way to
  ensure water is safely and efficiently delivered
  to everyone who pays for it in certain countries.

42

43



44

45

46

47
What is trade liberalization?
48
Trade Liberalization

• Trade liberalization is to make trade easier and
  more fair for everyone.
• Horst Kohler, head of International Monetary
  Fund trade liberalization is the most important
  element to promote sustained growth for
  industrialized countries and for low-income
  countries.

49
Is Canada Two-Faced?

• Subsidies are govt grants.
• In the case of agriculture, the Canadian govt
  gives subsidies to Canadian farmers to offset
  their production costs. This allows prices to
  stay low for consumers.

50
Doesnt this action go against the principles of
trade liberalization? Who does this action help?
Who does it hurt?
51
Who Does This Help?

• Canadian farmers they get money from the govt
  just for the sake of being farmers.
• Canadian consumers we pay less for food then we
  would have to if this industry was not
  subsidized.

52
Who Does This Hurt?

• Canadian taxpayers the govt pays the subsidies,
  which means we pay more taxes.
• Farmers in developing countries they cannot
  compete with Canada and US farmers because they
  are not getting financial help and thus have to
  charge higher prices. Since consumers will go for
  the lowest price, nobody buys their product,
  putting them out of business.

53
If We Remove Tariffs/Grants

• In 2005, the World Bank predicted that if all
  tariffs, subsidies, and other supports for
  agriculture were abolished, the global economy
  could grow by nearly 200 billion over the next
  10 years.
• Should the Canadian govt get rid of grants to
  Canadian farmers? Why or why not?

54
Foreign Investment

• Foreign investment is the purchase of assets in
  one country by individuals, institutions, or
  governments in another country. (Kind of like
  buying stocks in a company).
• Foreign investors can buy shares in existing
  businesses, set up new businesses, or invest
  money in the currency of another country.

55
Why Foreign Investment?

• It keeps Canada competitive in an interconnected
  and fast-moving global economy and strengthens
  ties among Canadas trading partners.
• It strengthens the sustainable prosperity of
  Canadian companies, consumers, and workers.

56
Does Foreign Investment Always Work?

• By the early 1990s, South Korea had the worlds
  11th largest economy and was growing quickly.
  They attracted a lot of foreign investment that
  helped stimulate the economy.
• However, by 1997, the value of South Koreas
  currency fell and with it people lost confidence
  in the economy. As a result, people pulled their
  money out, the economy shrank, South Koreans lost
  their jobs, and the govt had to borrow 58
  billion from the Intl Monetary Fund. (Figure
  12-13 pg. 292)

57
The Knowledge Economy

• Generally, knowledge economy is described as
  businesses and individuals who use research,
  education, new ideas, and information
  technologies for practical purposes.
• This includes industries that create high-tech
  products for business microsystem technologies,
  computer software, robotics, and biotechnology.

58
Challenges Opportunities

• The knowledge economy offers both challenges and
  opportunities for sustainable prosperity.
• Opportunities are that it contributes to the
  evolution of technologies and increased trade and
  competition.
• Challenges are that to remain competitive,
  knowledge workers must constantly upgrade their
  skills. This can be difficult as this often
  requires more education, time, and money.

59
Robotics

• Robotic systems continue to evolve, slowly
  penetrating many areas of our lives, from
  manufacturing, medicine and remote exploration to
  entertainment, security and personal assistance.
• Developers in Japan are currently building robots
  to assist the elderly, while NASA develops the
  next generation of space explorers, and artists
  are exploring new avenues of entertainment.

60
Robots work on an Iranian made Samand car at the
Iran Khodro auto plant, west of Tehran, on
September 30, 2008. (BEHROUZ MEHRI/AFP/Getty
Images)
61
Surgeons use a robot named da Vinci to aid a
hernia operation, at the University Hospital
Geneva, in Geneva, Switzerland, Thursday, Nov.
13, 2008. The University Hospitals of Geneva
opened the department for robotic surgery in
2008, where between 50 and 80 surgeons from
around the world will have the possibility to
train with da Vinci each year. (AP
Photo/Keystone, Salvatore Di Nolfi)
62
Vince Martinelli, an account manager at Kiva
Systems, right, checks packages on the "pods", or
shelves with dummy merchandise as robots run
through a demonstration of an inventory check at
the company's "demo warehouse" used to show their
warehouse automation robots in action. (Josh
Reynolds for The Boston Globe)
63

• http//www.youtube.com/watch?vlWsMdN7HMuAfeatur
  ePlayListp16A39FD504A786B1playnext1playnext_
  fromPLindex1

64
Tokyo Fire Department's rescue robot transfers a
mock victim onto itself during an anti-terrorism
exercise in the response to a radiological
dispersal device in Tokyo, on November 7, 2008.
Tokyo Metropolitan government conducted the
exercise with eleven organizations including
Metropolitan Police Department. (TOSHIFUMI
KITAMURA/AFP/Getty Images)
65
Mental commitment robotic baby seals named "Paro"
are recharged at robot exhibition Robo Japan 2008
in Yokohama, Friday, Oct. 10, 2008. The 350,000
yen (US3,480) Paro, a cooing baby harp seal
robot fitted with sensors beneath its fur and
whiskers, is developed by Japan's Intelligent
System Co, to soothe patients in hospitals and
nursing homes. (AP Photo/Itsuo Inouye)
66
NASA's Limbed Excursion Mechanical Utility Robot
(LEMUR) is being designed as an
inspection/maintenance robot for equipment in
space. A scaled-up version of Lemur IIa, could
help build large structures in space. The Lemur
IIa pictured here is shown on a scale model of a
segmented telescope. (NASA/Planetary Robotics
Laboratory)
67
A mock intruder, tangled in a net that was
launched by the remote-controlled security robot
T-34, lies on the floor while posing beside the
robot in Tokyo January 21, 2009. T-34 users can
see live images from the robot's camera and
control the robot using a mobile phone. The
robot, which has sensors that react to body heat
and sound, can launch a net against an intruder
by remote-control during its surveillance.
(REUTERS/Kim Kyung-Hoon)
68
Toyota Motor Corporation partner robots play
instruments at the company's showroom in Tokyo on
May 4, 2008. (REUTERS/Toru Hanai)
69

• http//www.youtube.com/watch?vXs_vL9g4IYk

70
A biomimetic underwater robot, named
"RoboLobster", designed by Professor Joseph
Ayers, is seen, Aug. 17, 2007, in Nahant,
Massachusetts. RoboLobster is intended to be used
to recognize changes in seawater and to locate
and destroy underwater mines. (Robert Spencer)
71
Matthew W. Fisher with Hanson Robotics makers of
conversational, character robots holds up a
synthetic face to show how light and easy it is
to move and show human expressions in Boston. MA
on May 15th, 2007. (David L. Ryan/Boston Globe)
72
Economic Growth

• Economic growth depends on businesses to produce
  more goods and services faster, more efficiently,
  and at a lower cost than the competition. Many
  agree that continuous economic growth leads to
  greater prosperity for everyone.
• One of the most common ways of measuring a
  countrys economic growth is by seeing how its
  GDP changes from year to year

73
Thinking about starting your own business?

• Economic growth and the living standards of a
  countrys people depend on the success of a
  countrys businesses.
• Not only do businesses provide jobs in a
  community but they account for a lot of the
  revenue that the govt gets from taxes.
  Businesses in Canada pay between 25 and 40 per
  cent of their profits in taxes!!!

74
Easy examples of foreign investment involve oil
companies. As we know many troubled areas of the
world have a lot of oil. Unfortunately for some
of them they do not have the resources to extract
the oil so they rely on foreign investment to
help them as well as their economy out.
Specifically some areas in South America, the
Middle East and Russia. One example is Kurdistan
(northern Iraq). By having foreign oil companies
working in their country it can kick start their
economy.
75
Millennium Development Goals
76
Eradicating Hunger Poverty

• United Nations has a goal of cutting in half, by
  2015, the proportion of the worlds people whose
  income is less than 1 a day. Can this
  realistically be done?
• Think about your spending over the past 3 days.
  List everything you bought and what it cost, then
  calculate the total. Divide this total by 3 to
  get your average daily spending. Then add to your
  list everything you used but did not pay for
  (shelter, food, clothing, telephone, and
  computer). Estimate their costs and recalculate
  your average daily spending. Could you live on 1
  a day?

77
The Greenhouse Effect

• The burning of fossil fuels coal, oil, and
  natural gas releases carbon dioxide and other
  greenhouse gases that were once trapped in these
  fuels.
• These gases form a barrier in the atmosphere that
  absorbs heat from the earths surface and
  radiates it back to Earth instead of allowing it
  to pass into space. Many scientists believe this
  process contributes to global climate change
  small but steady changes in average temperatures
  around the world.

78

• http//earthguide.ucsd.edu/earthguide/diagrams/gr
  eenhouse/

79
What does this all mean?

• Many scientists speculate that greenhouse gases
  already in our atmosphere will cause global
  temperatures to increase by and average of 0.5
  degrees Celsius every year until 2025.
• This warming increases the risk of drought and
  evaporation of water from lakes and rivers.

80

• Scientists still believe that actions we take now
  can slow the rate after 2025.
• If nothing is done the poorest people in the
  world will suffer the most as climate change
  affects animals, plants, and water supplies.
• Hardest hit areas will be the Arctic, sub-Saharan
  Africa, small islands, and large deltas in Asia,

81
(No Transcript)
82
Norway The Norwegian govt has made a seed
vault, located far above the Arctic circle on one
of Norways most northerly islands. The project
is to save Earths diverse seed sources in the
event of a global catastrophe or plant epidemic.
It will include seeds from both the developed and
developing countries around the world. Bolivia
the Bolivian govt is concerned about that speed
at which glaciers in the Tuni Condoriri mountains
are melting. These glaciers supply 80 of the
water for residents of La Paz, the countrys
capital. What would loss of water mean to the
people of this city?
Norway