ASRJC Theme 3 Issues and Strategies for Sustainable Development

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 1 THEME 3: ISSUES AND STRATEGIES FOR SUSTAINABLE DEVELOPMENT SYLLABUS CONTENT (H3)

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 2 THEME 3: ISSUES AND STRATEGIES FOR SUSTAINABLE DEVELOPMENT CHAPTER 1: SUSTAINABLE DEVELOPMENT AND INCLUSIVE GROWTH ➢ SUSTAINABLE DEVELOPMENT • WHAT IS SUSTAINABLE DEVELOPMENT • CAPITAL APPROACH • WHAT IS INCLUSIVE GROWTH • MEASURING INCLUSIVE GROWTH ➢ SLOW GROWTH AND INEQUITABLE GROWTH • DIFFERENCES IN GROWTH RATES • CAUSES OF INEQUITABLE GROWTH • IMPACTS OF INEQUITABLE GROWTH ➢ PROMOTING INCLUSIVE GROWTH • STRATEGIES AND POLICIES • ROLE OF MNES AND INTEGRATION • DYNAMIC COMPARATIVE ADVANTAGE CHAPTER 2: RESOURCE DEPLETION AND ENVIRONMENTAL DEGRADATION-FRAMEWORKS ➢ ISSUES ARISING FROM ECONOMIC GROWTH • ECONOMIC GROWTH AND RESOURCE DEPLETION • ECONOMIC GROWTH AND ENVIRONMENTAL DEGRADATION • APPROACHES ➢ ENVIRONMENTAL PROTECTION • ISSUES • IMPACT ON THE ENVIRONMENT ➢ STRATEGIES AND POLICIES • MNES AND FIRM INTEGRATION • CIRCULAR ECONOMY APPROACH • EFFECTIVENESS Anderson Serangoon Junior College JC2 H3 Economics 2024

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 3 Issues and Strategies for Sustainable Development Overview Theme 3 examines how global economies can promote sustainable development, in particular, inclusive economic growth and environmental protection, through various strategies and policies. We will learn about the fundamental growth theories and the role of institutions, and how to evaluate various sustainable development strategies and policies in real-world economies. Inclusive Growth In Theme 3.1.1, we find out how various international organisations define inclusive economic growth and its indicators. Some of the key questions in this sub-theme are: • What is sustainable development? • How is sustainable development measured using the Capital Approach? • How do we define inclusive economic growth? • How do we measure inclusive economic growth? In Theme 3.1.2, we seek a deeper understanding of inclusive economic growth by exploring two issues: slow growth and inequitable growth. Extending from our knowledge of the causes and impacts of slow economic growth from the H2 syllabus, we delve deeper into the issue of slow growth by using growth models to investigate the differing growth rates of economies. For this sub-theme, key questions are: • Why do the economic growth rates of some economies stagnate while others increase? • What are the causes of inequitable growth? • What are the impacts of inequitable growth? In Theme 3.1.3, we study the strategies and policies that promote inclusive economic growth. Emphasis is placed on multinational enterprises (MNEs) and how dynamic comparative advantages can, in turn, promote economic growth. Some key questions for this sub-theme are: • What are the strategies and policies that can promote inclusive economic growth? • What is the role of MNEs and integration in promoting inclusive economic growth? • What are the strategies to gain dynamic comparative advantage for the economy?

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 4 Environmental Protection For sustainable development to be achieved, besides inclusive growth, environmental protection is another key area of focus for countries. To achieve economic growth and development, countries often experience significant resource depletion and environmental degradation, which leave fewer resources worsens the living environment for future generations. Hence, for economic growth to be sustainable, strategies and policies to protect the environment are required so that the rate of resource utilisation and environmental degradation can be controlled and kept within manageable levels. In Theme 3.2.1, we start off with the analysis of the relationship between economic growth, resource depletion and environmental degradation. Some of the key questions that will be explored in this sub-theme are: • Why may economic growth cause resource depletion? • Why may economic growth cause environmental degradation? • What are the various approaches towards environmental protection? In Theme 3.2.2, we will gain a deeper understanding of the need for environmental protection by looking at specific issues such as the exploitation of emerging economies, the resource curse, renewable vs non-renewable resources, and climate change. The key questions that will be addressed for each of these issues are: • What is the issue (i.e. exploitation of emerging economies, the resource curse, renewable vs non-renewable resources, climate change) about? • What is the impact of the issue on the environment? In Theme 3.2.3, we conclude the analysis by looking at strategies and policies that can be employed for environmental protection. We will first look at how the behaviour of MNEs and firm integration may affect the environment before looking at how environmental protection can be promoted through the circular economy approach to waste reduction. In this section, the key questions explored are: • How have MNEs and firm integration affected the environment? • How can the circular economy approach to waste reduction be used to protect the environment? • How far can these approaches help reduce resource depletion and environmental degradation?

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 5 1. Sustainable Development and Inclusive Economic Growth 1.1 Sustainable development includes inclusive economic growth Sustainable development United Nations (UN) defines sustainable development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” For sustainable development to be achieved, it is crucial to harmonize three core elements: • economic growth, • social inclusion and • environmental protection These elements are interconnected and all are crucial for the sustained improvement of well- being of individuals and societies. The Sustainable Development Goals (SDGs) are the blueprint to achieve sustainable development, born at the 2012 United Nations Conference on Sustainable Development. The 17 Goals are all interconnected, and in order to leave no one behind, it is important that these goals are achieved by 2030. Refer to https://www.un.org/sustainabledevelopment/sustainable-development-goals/ for more information.

THEME 3: Issues and Strategies for Sustainable Development Anderson Serangoon Junior College Economics Department A 6 Capital Approach to measuring sustainable development One way to measure sustainable development is the Capital Approach. To do that, sustainable development can be simplified as increasing well-being over a very long time, where well-being encompasses: • utility obtained from the consumption of goods and services purchased in the market • It also includes consumption of goods and services provided freely by nature (e.g., forest products and beautiful sunsets), and • abstract ideas of enjoyment of the benefits of human rights and “psychic fitness” (well- being of the soul, spirit and mind). By measuring the economy’s capital stock amount either at a point in time or over a period of time, the sustainable development level or how much the economy has developed sustainably, can be determined. In classical development the