4.2 Sustainable Development
4.2.1 Sustainability
Sustainable development should allow us to satisfy our own needs, while we keep in
mind that enough resources must remain to permit future generations to meet their
own needs. We cannot afford to present apologies to future generations, particularly
if certain actions are irreversible.
How do we know that enough remains for future generations, unless we are able
to measure quantitatively what we want to improve, as Cole (2012) says.
The world exists since a long time and history has already shown several cases,
where development does not seem to have been sustainable, the most popular being
Easter Island, the Maya civilization in Central America and the ancestors of the
Maoris in New Zealand.
Acemoglu and Robinson (2013) give several examples of countries where
extractive economies (Latin America, Korea) have resulted in different parts of the
same country developing differently, or compared the whole country with other
countries, where economies are inclusive (United States). They explain that inclusive economies allow and motivate the general population to participate in economic
activities that make the best use of their talents and skills, while providing opportunities for individuals to make the choices they wish. In order to become inclusive,
economic institutions must show features such as legal private property rights, an
unbiased rule of law, and a host of public services that offer a level playing field
where people can trade, exchange and contract. This playing field also allows the
entry of new entrepreneurs and permits people to choose their careers. Diamond
(2011) similarly compares Haiti and the Dominican Republic.
In contrast, extractive economies do the exact contrary, with people having little
right to do anything for themselves or of their own free will, or owning anything.
Inclusive economic institutions, in turn, rest on foundation stones supported by
inclusive political institutions, which allows broad distribution of power in society
and inhibits its arbitrary exercise. Such inclusive political institutions also render it
more difficult for others to appropriate power and undermine the fundamentals of
inclusive institutions. Politicians in control of political power cannot use it easily to
establish extractive economic institutions for their own advantages. Inclusive economic institutions, in turn, generate a more equitable sharing of resources, enabling
the perseverance of inclusive political institutions. In general, combinations of
inclusive and extractive institutions are usually unstable. Extractive economic institutions under inclusive political institutions are unlikely to persist for long
(e.g. Barbados).
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109
4.2.1 Sustainability
Sustainable development should allow us to satisfy our own needs, while we keep in
mind that enough resources must remain to permit future generations to meet their
own needs. We cannot afford to present apologies to future generations, particularly
if certain actions are irreversible.
How do we know that enough remains for future generations, unless we are able
to measure quantitatively what we want to improve, as Cole (2012) says.
The world exists since a long time and history has already shown several cases,
where development does not seem to have been sustainable, the most popular being
Easter Island, the Maya civilization in Central America and the ancestors of the
Maoris in New Zealand.
Acemoglu and Robinson (2013) give several examples of countries where
extractive economies (Latin America, Korea) have resulted in different parts of the
same country developing differently, or compared the whole country with other
countries, where economies are inclusive (United States). They explain that inclusive economies allow and motivate the general population to participate in economic
activities that make the best use of their talents and skills, while providing opportunities for individuals to make the choices they wish. In order to become inclusive,
economic institutions must show features such as legal private property rights, an
unbiased rule of law, and a host of public services that offer a level playing field
where people can trade, exchange and contract. This playing field also allows the
entry of new entrepreneurs and permits people to choose their careers. Diamond
(2011) similarly compares Haiti and the Dominican Republic.
In contrast, extractive economies do the exact contrary, with people having little
right to do anything for themselves or of their own free will, or owning anything.
Inclusive economic institutions, in turn, rest on foundation stones supported by
inclusive political institutions, which allows broad distribution of power in society
and inhibits its arbitrary exercise. Such inclusive political institutions also render it
more difficult for others to appropriate power and undermine the fundamentals of
inclusive institutions. Politicians in control of political power cannot use it easily to
establish extractive economic institutions for their own advantages. Inclusive economic institutions, in turn, generate a more equitable sharing of resources, enabling
the perseverance of inclusive political institutions. In general, combinations of
inclusive and extractive institutions are usually unstable. Extractive economic institutions under inclusive political institutions are unlikely to persist for long
(e.g. Barbados).
4.2 Sustainable Development
109