Economic growth Vs Environmental conservation.
Economic growth
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.[1]
Growth is usually calculated in real terms - i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced. Measurement of economic growth uses national income accounting.[2] Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure. The economic growth rates of nations are commonly compared using the ratio of the GDP to population or per-capita income.[3]
The "rate of economic growth" refers to the geometric annual rate of growth in GDP between the first and the last year over a period of time. This growth rate is the trend in the average level of GDP over the period, which ignores the fluctuations in the GDP around this trend.
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An increase in economic growth caused by more efficient use of inputs (increased productivity of labor, physical capital, energy or materials) is referred to as intensive growth. GDP growth caused only by increases in the amount of inputs available for use (increased population, new territory) is called extensive growth.[4]
Development of new goods and services also creates economic growth.[5]
Measurement[edit]
The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods included in the analysis of the analyst.
Long-term growth[edit]
Living standards vary widely from country to country, and furthermore the change in living standards over time varies widely from country to country. Below is a table which shows GDP per Person and Annualized Per Person GDP growth for a selection of countries over a period of about 100 years. The GDP per Person data are adjusted for inflation, hence they are "Real". GDP per Person (more commonly called "Per Capita" GDP) is the GDP of the entire country divided by the number of people in the country; GDP per Person is conceptually analogous to "Average Income".
Seemingly small differences in yearly GDP growth lead to large changes in GDP when compounded over time. For instance, in the above table, GDP per Person in the United Kingdom in the year 1870 was $4,808. At the same time in the United States, GDP per Person was $4,007, lower than the United Kingdom by about 20%.
However, in 2008 the positions were reversed: GDP per Person was $36,130 in the United Kingdom and $46,970 in the United States, i.e. GDP per Person in the United States was 30% more than it was in the United Kingdom. As the above table shows, this means that GDP per Person grew, on average, by 1.80% per year in the United States and by 1.47% in the United Kingdom.
Thus, a difference in GDP growth by only a few tenths of a percent per year results in large differences in outcomes when the growth is persistent over a generation. This and other observations have lead some economists to view GDP growth as the most important part of the field of Macroeconomics:
Determinants of per capita GDP growth[edit]
In national income accounting, per capita output can be calculated using the following factors: output per unit of labor input (labor productivity), hours worked (intensity), the percentage of the working age population actually working (participation rate) and the proportion of the working-age population to the total population (demographics). "The rate of change of GDP/population is the sum of the rates of change of these four variables plus their cross products."[8]
Economists distinguish between short-run economic changes in production and long-run economic growth. Short-run variation in economic growth is termed the business cycle. Generally, economists attribute the ups and downs in the business cycle to fluctuations in aggregate demand. In contrast, economic growth is concerned with the long-run trend in production due to structural causes such as technological growth and factor accumulation.
Environmental conservation
Environmental protection is the practice of protecting the natural environment by individuals, organisations and governments.[1] Its objectives are to conserve natural resources and the existing natural environment and, where possible, to repair damage and reverse trends.[2]
Due to the pressures of overconsumption, population growth and technology, the biophysical environment is being degraded, sometimes permanently. This has been recognized, and governments have begun placing restraints on activities that cause environmental degradation. Since the 1960s, environmental movements have created more awareness of the various environmental problems. There is disagreement on the extent of the environmental impact of human activity and even scientific dishonesty occurs, so protection measures are occasionally debated.
Approaches with regards to environmental protection[edit]
Times are ever changing. Having said, it is crucial for societies, countries and organizations to avoid resistance and adapt to the needs of all living species and resources. Key concepts of conservation pertain to sustainability of resources and species, the longevity of individual product usage and the concerned domino effects that reckless usage of resources is creating. Sustainable developments, ecological restorations alongside animals welfare are not only all important aspects when discussing conservation and change but it also provides a valid reason as a topic of concern and awareness. By educating current and upcoming generations, and equipping them with the necessary knowledge and tools, change to help replenish the environment and a healthier living style as a society is bound to reap great results.
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Voluntary environmental agreements[edit]
In the industrial countries, voluntary environmental agreements often provide a platform for companies to be recognized for moving beyond the minimum regulatory standards and thus support the development of best environmental practice. For instance, in India, Environment Improvement Trust (EIT) has been working for environmental and forest protection since 1998. A group of Green Volunteers get a goal of Green India Clean India concept. CA Gajendra Kumar Jain a Chartered Accountant, is the founder of Environment Improvement Trust in Sojat city a small village of State of Rajasthan in India [3] In developing countries, such as Latin America, these agreements are more commonly used to remedy significant levels of non-compliance with mandatory regulation.[4] The challenges that exist with these agreements lie in establishing baseline data, targets, monitoring and reporting. Due to the difficulties inherent in evaluating effectiveness, their use is often questioned and, indeed, the whole environment may well be adversely affected as a result. The key advantage of their use in developing countries is that their use helps to build environmental management capacity.[4]
Ecosystems approach[edit]
An ecosystems approach to resource management and environmental protection aims to consider the complex interrelationships of an entire ecosystem in decision making rather than simply responding to specific issues and challenges. Ideally the decision-making processes under such an approach would be a collaborative approach to planning and decision making that involves a broad range of stakeholders across all relevant governmental departments, as well as representatives of industry, environmental groups and community. This approach ideally supports a better exchange of information, development of conflict-resolution strategies and improved regional conservation. Religions also play an important role in the conservation of the environment
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The economic growth and development have been debated for centuries. Industrialization had brought
forth permanent changes in the economic and human activity. After the Depression of the 1929-1933
span, the importance of these processes increases. Overcoming any economic difficulties, whether we
speak about the decreasing of the unemployment rate or about the external equilibrium, a correlation
was made with the economic growth and development. Any decision made at a state or supra-state
level aimed at reaching these two objectives. Today, more than anytime, in a recessionary, liberalized
economy, in a world marked by a strong demographic increase, by the depletion of natural resources,
by changes of climate and of ecosystem destruction, we are more preoccupied than ever by the
problems of economic growth and development. Hereinafter will make, an epistemological analysis of
these two processes.
The economic growth and development have been debated for centuries. Industrialization had brought
forth permanent changes in the economic and human activity. After the Depression of the 1929-1933
span, the importance of these processes increases. Overcoming any economic difficulties, whether we
speak about the decreasing of the unemployment rate or about the external equilibrium, a correlation
was made with the economic growth and development. Any decision made at a state or supra-state
level aimed at reaching these two objectives. Today, more than anytime, in a recessionary, liberalized
economy, in a world marked by a strong demographic increase, by the depletion of natural resources,
by changes of climate and of ecosystem destruction, we are more preoccupied than ever by the
problems of economic growth and development. Hereinafter will make, an epistemological analysis of
these two processes.
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