Sustainable Development: Key Concepts and Challenges

Consequences of Eliminating Export Tax on Cashew Nuts

By eliminating the export tax on raw cashew nuts, it was believed that removing trade barriers would alleviate poverty by increasing the price farmers would receive. Several industrialists who purchased factories opposed the elimination of the export taxes on cashew nuts. The advice failed because the World Bank did not completely analyze the consequences of lifting the export tax barrier. They applied economic theory without considering if the theory would be pertinent in light of the development history of Mozambique. Some consequences were that workers and farmers lost their jobs.

Capital According to De Soto

1. Describe the definition of capital according to De Soto. Why in the non-Western world is capital not sufficiently generated?

Dead capital is an economic term related to property which is informally held and not legally recognized. The uncertainty of ownership decreases the value of the asset and/or the ability to lend or borrow against it.

De Soto estimates there is US$ 9.3 trillion in dead capital globally. These are assets owned by poor or middle-class people in emerging economies which cannot be realized due to poor policies, procedures, or bureaucracy. If these assets in the informal sector were recognized and brought into the mainstream market economy, they could become the key to fostering development.^[2]

Problems Associated with Dead Capital

Local political instability, corruption, and rational underinvestment.

Evolution of Sustainable Development

1. Describe the evolution of the concept of sustainable development adopted by international organizations, including the UN.

Personal Definition of Sustainable Development

1. Provide your own definition of sustainable development and explain the rationale behind it.

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The purpose of this concept is to balance different, and often competing, needs against an awareness of the environmental, social, and economic limitations we face as a society. The longer we pursue unsustainable development, the more frequent and severe its consequences are likely to become, which is why we need to take action now. The focus of sustainable development is also about ensuring a strong, healthy, and just society. This means meeting the diverse needs of all people in existing and future communities, promoting personal well-being, social cohesion, and inclusion, and creating equal opportunity. By incorporating health plans into the planning of new communities, for instance, we can ensure that residents have easy access to healthcare and leisure facilities.

Cultural Diversity and Sustainable Development

1. Should cultural diversity be part of the concept of sustainable development? Provide the rationale for your answer.

Humanity has inhabited every corner of the world, except Antarctica, for centuries. Together, the cultures of the world create a rich and varied tapestry. The resulting cultural diversity nurtures a variety of skills, human values, and worldviews and provides wisdom from the past to inform the future. Cultural diversity is a mainspring for sustainable development for individuals, communities, and countries. Thus, building an effective global approach to sustainable development needs to address respecting, protecting, and maintaining the cultural diversity of the world now and in the future. Sustainable development requires intercultural understanding if people are to live together peacefully, tolerating and accepting differences amongst cultural and ethnic groups.