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New Views of Trade and Sustainable Development

Explore Sen's concept of development in trade debates, analyzing impacts on sustainability. Evaluate individual freedoms, poverty links, and institutional importance for trade dynamics.

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New Views of Trade and Sustainable Development

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  1. New Views of Trade and Sustainable Development Using Sen’s Conception of Development to Re-Examine the Debates

  2. Introduction • How do we currently conceive of development? • What is Sen’s conception of development? • How does Sen’s conception impact on trade and SD debates? • What policy options?

  3. Trade & Environment: Two current models • Trade as great destroyer • Scale, direct and regulatory impacts • Trade as saviour • Liberalization = growth = improvements

  4. Trade and Sustainable Development • A better framework than trade and environment, because: • Politically: allows dialogue • Morally: recognizes poverty-growth needs • Instrumental: neither economy nor environment can go it alone

  5. Have We Got it Right? • Too much research on trade and sustainable development relies on the implicit linkage: • Liberalization = economic growth = (if we are careful) environmental improvement

  6. Sen’s Concept: Development as Freedom • Individuals as agents of social change • “Greater freedom enhances the ability of people to help themselves and also to influence the world.”

  7. Types of Freedom • Political freedoms/civil rights (e.g., free speech, elections) • Economic facilities (e.g., opportunities for participating in trade and production, access to credit) • Social opportunities (e.g., socially provided education and health facilities) • Transparency guarantees (e.g., openness in government and business) • Protective security (e.g., social safety net)

  8. Development as Freedom • Each individual has a capability set: the set of desirable things that they are able to achieve. • Function of both processes (institutions) and opportunities.

  9. Development as Freedom • Development aims to expand the capacity of individuals through the provision of freedoms.

  10. Incomes and Markets • Disposable income greatly expands the capability set, but is not development (is a rich slave content?) • Poverty as lack of choices, abilities to fulfill needs. Wealth only one avenue.

  11. The Role of Environment • Environment is also an important constituent of well-being. • Resource base • Environmental services • Degradation is freedom-inhibiting: health problems, disasters.

  12. Trade and Sustainable Development • Liberalization is one element • Too often placed higher in priority than other important development goals • Domestic institutions are important as complements

  13. Institutions for Trade (Rodrik) • Property rights • Market regulatory institutions • Macroeconomic stabilization • Social insurance/safety net • Conflict management/rule of law

  14. Sustainable Development Through Trade • What are trade’s impacts on domestic institutions? (research, capacity important) • Impacts on other freedoms is important (regulatory impact, priority and sheer cost)

  15. Policy Options • Better tailored liberalization • Linkages between WTO and other organizations

  16. Conclusions • For environment: only one of a set of relevant concerns • For trade: understand non-economic impacts; focus on strengthening institutions • For TKN: broaden scope of analysis

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