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GGH3702 Assignment 01
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Critically debate (in an essay) how theories of sustainable economic development differfrom classic theories of economic development. In the last three paragraphs, explain how
theories of sustainable economic development have influenced the economic development of
South Africa or your country.
Introduction
The concept of sustainable development is broad though it can be interpreted in different ways,
but at its core is an approach to development that looks to balance the difference, and often
competing needs against an awareness of the environmental, social and economic limitations
societies face (Dresdner, 2002). Though it is a multi-dimensional long term process whose focus
is on improvement of human conditions through the strategies and policies implemented by the
global committee (Rubenstein et al 2016) its outcomes are still being questioned as for why it has
been hard for African states, mostly the sub-Saharan countries to reach the target of the goals.
The main research of this essay is to determine how theories of sustainable economic
development differ from classic theories of economic development and explain how theories of
sustainable economic development have influenced South Africa’s economic development or
your country’s economic development.
How theories of sustainable economic development differ from classic theories of economic
development.
Theories of sustainable economic development
Since it was launched by the World Commission on Environment and Development (1987)
sustainable development has over a quite short period of time become the main concept in the
study of interactions between the economy and the biophysical environment, as well as a
generally accepted goal of environmental policy. Although there has been, and still is, debate on
the precise definition of the concept of sustainable development a broad consensus exists that it
means that economic activities should be consistent with: sustainable use of renewable natural
, resources, protection of ecosystem features and functions, preservation of biological diversity, a
level of harmful emissions remaining below critical (assimilative) thresholds, and avoidance of
irreversible damage to the environment and nature (Daly, 1990). Non-renewable resources pose
some difficulties in the context of sustainable development. One can choose to reduce their use
as much as possible, oriented towards a long-run goal of being completely independent of them.
This can be based on investments in renewable changes (depending on the potential uses, for
example, supplying energy or materials) and technological progress in general (materials and
energy efficiency increases in production and consumption).
Sustainable development has become the dominant concept in the connections between the
economy and the biophysical environment, as well as a generally accepted goal of environmental
policy. So far, economists have predominantly applied standard or neo-classical theory to
environmental economic problems. (Toye, 1997) state that to fully understand a transformation
of the economic system towards sustainability, standard environmental economics needs to be
complemented by an evolutionary approach, that focuses the attention on irreversible, path-
dependent change and long-run mutual selection of environmental and economic processes and
systems. (Toye, 1997) state that an impression of the main existing evolutionary contributions to
environmental economics. Moreover, several research directions of an evolutionary approach in
environmental economics are discussed. It is suggested that such an approach should go beyond
evolutionary theories of technical change, which control evolutionary economics so far, by
including co-evolution of economy and environment, sustainable consumption, endogenous
preference change, and climate change modeling.
It has been argued that a transformation of the present economic system towards a sustainable
economic system requires new policies, institutions, and mechanisms (Escobar, 1995). It can be
argued that major shifts in economic structure involve uncertain and irreversible changes,
selection of existing alternatives, learning, errors in decision-making, and a persistent economic
disequilibrium. So far, economists have predominantly applied standard or neoclassical theory to
environmental economic problems. This includes externality or welfare theory, with an emphasis
on optimal choice of policy instruments (Dreze & Sen, 1995). (exogenous or endogenous)
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