Sandra Silverman

Sustainable Societies
Beyond Engineering
Vero.Vanden.Abeele@groept.be

ECOLOGICAL SUSTAINABILITY
Rates of renewable resources should not exceed regeneration rate Rates of use of non-renewable resource should not exceed rate to develop

alternatives Rates of pollution should not exceed assimilative capacity of the environment

a sustainable society.
Meets the need of the present without compromising the ability of future generations
Brundtland report

Poverty is the result of

A. A countrys geographical location (a lack of natural resources or a hostile climate) B. Cultural attributes of its citizens C. Ignorant politicians D. An elite that holds the power and that impedes economic growth

Are you a capitalist?

A. Yes, I am B. No, I am not C. Actually, I do not really know what that means
[Default] [MC Any] [MC All]

CAPITALISM
A social-economic system based on
the private ownership of capital goods (means of production) creation of goods and services for profit capital gains accrue to private owners

Adam Smith
The invisible hand
Free markets lead to competitiveness and innovation Education and specialization Good products and services at good prices The persuit of self-interest leads to well-being for all

Are you a socialist?

A. Yes, I am B. No, I am not C. Actually, I do not really know what that means
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SOCIALISM
A social-economic system based on
Social ownership of the means of production Returns on the means of production accrue to society at large Goods and services are produced directly for their utility (as opposed to being produced by profit-seeking businesses)

Marx
Separating labour power from ownership of the means of production is wrong Capitalism leads to the exploitation of labour Lower classes (proletariat) should rebel to take the power (from the bourgoisie) => ideal form of socialism is communisme
underpaid work is the ultimate source of profit

Where would you situate a cooperative?

A. In a capitalist philosophy B. In a socialist philosophy

Where would you situate utilitarianism and egalitarianism?

A. Utilitarianism fits with socialism, and egalitarianism fit with capitalism B. Utilitarianism fits with capitalism, and egalitarianism fit with socialism

Which of the two socio-economic models leads to greatest wealth?

A. Capitalism B. Socialism

The case of Korea

North
Socialism (communism)
No private ownership Centrally planned government No free markets

South

(State) capitalism
Private ownership Steered economy Free markets

North and South Korea

http://www.youtube.com/watch?v=KYjdUeYT49c

The Case of Korea

South
(State) capitalism Private ownership Steered economy Free markets Democratic system Technological advancements High level of eduction High level of freedom

North

Socialism (communism) No private ownership Centrally planned government No free markets Dictatorship Not technological advancements Famines Poor education No freedom

The winner is

GROSS DOMESTIC PRODUCT (GDP)

The sum of the market value of all officially recognized final goods and services produced within a country in a given period of time.

GDP IN THE WORLD

Engines of prosperity
Inclusive political institutions
Inclusive markets
Secured private property Unbiased law s and regulations Level playing field

Extractive political institutionos

No inclusive markets
No secure private ownership (corruption)

equality of opportunity
Provision of public services

Education
Freedom to choose your career

No or little education No or little technological advancements Elite

decides how to redistribute income and wealth, in favor of themselves

Technological advancements

=> encourage economic growth

=> impedes economic growth

WHY WOULD AN ELITE BLOCK ECONOMIC GROWTH?

Why would even the worst predatory dictator not even want to make his country as wealthy as possible?

Losers of the industrial revolution

Aristocrats

CREATIVE DESTRUCTION
Economic growth Economic growth
Is transformative and destabilizing process Is not just a process of advancements
creates winners and losers

challenges the power of the elitist group

Old processes are replaced by newer, better processes. Resources are moved from old sectors to new sectors. Old skills are rendered obsolete in favor of new skills.

DIFFERENT FLAVORS OF CAPITALISM

Free-market capitalism (neo-liberalism)
prices for goods and services are set freely by the forces of supply and demand highly-competitive markets, private ownership of all productive enterprises and services Very little taxes , no intervention by government policy

Social-market economy

Government intervention in price formation is kept to a minimum State relies on taxation and provides significant services in the area of social security, health, education and unemployment benefits State ownership of the means of production within a state, Organization of state enterprises as commercial, profit-seeking businesses. Governments, whether democratic or autocratic, exercise a widespread influence

State capitalism

Which socio-economic form has seen the greatest increase in wealth in the past decade?
A. Free market capitalism B. Social market economy C. State capitalism

WORLD WEALTH

THE DISAPPEARING (US) MIDDLE CLASS

http://www.motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph

Trickle-UP Economies
Joseph Stiglitz
Nobel price winner in Economics

THERE IS NO SUCH THING AS A FREE MARKET!

And no such thing as an invisible hand
Economic growth on debt is not real growth

Perfect markets, competition and information do not exist

We need:
Fair regulations Tax system (no escape routes) Good information (media)

How about (belgian) engineers?

While wages for engineers are increasing, other wages are decreasing.

How about inequality in Belgium?

Top 10% earns 2,25 more than bottom 10% This inequality is amongst the lowest in the world

What income inequality do you think is acceptable?

A. Everyone should earn exactly the same (per hour), regardless of what your work is B. C. D. E. Twice as much Five times as much Ten times as much No limit

WEALTH VS WELL-BEING

BETTER LIFE INDEX

op http://www.oecdbetterlifeindex.org/

PROSPERITY INDEX

http://www.prosperity.com/ExploreData.aspx#

GDP VERSUS LIFE SATISFACTION

POVERTY
Absolute poverty Relative poverty
deprivation of basic human needs, which commonly includes food, water, sanitation, clothing, shelter, health care and education.
economic inequality in the location or society in which people live (income equality)

What is the minimum day income, not to live in poverty?

A. B. C. D. 1,25 USD 2,5 USD 5 USD 10 USD

GETTING BY ON $1,25 A DAY

Is absolute poverty increasing or decreasing?

A. Increasing B. Decreasing

We are living through a period of rapid global poverty reduction. According to recent estimates, high, sustained growth across most of the developing world has helped nearly half a billion people escape $1.25-a-day poverty between 2005 and 2010. Never before have so many people been lifted out of poverty over such a brief period.

Poverty rate in the world declines

From 1970 to 2006, poverty fell by
86% in South Asia 73% in Latin America 39% in the Middle East 20% in Africa

Getting by on $1,25 a day

Is reduction of poverty good for ecological sustainability?

A. A good thing B. A bad thing

POVERTY AND FERTILITY RATE

What is really going on?

A. High fertility causes poverty, so we should reduce fertility (perhaps by means of obliged birth control, neo-malthusian) B. Poverty causes high fertility, so we should lift people out of poverty, as soon as possible

How about the world population?

A. Average fertility rate is ever increasing B. Average fertility rate is stable C. Average fertility rate is ever decreasing

WORLD POPULATION TODAY

GLOBAL POPULATION GROWTH, BOX BY BOX

http://www.ted.com/talks/hans_rosling_on_global_population_growth.html

Use Public Data

www.gapminder.org
www.google.com/publicdata/dir ectory

CONCLUSION
Socio-economic models, poverty, population growth and (ecological) sustainability are inseparable Inclusive political institutions that provide equality of opportunity
Decrease poverty Decreased population growth Decreased stress on the planet

CHILD SURVIVAL IS THE NEW GREEN