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2.Sustainable Development

2.Sustainable Development. Development that meets the needs of the present without compromising the ability of future generations to meets their own needs (WCED, 1987) The basis of this SD definition both intergenerational equity and intragenaritonal equity.

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2.Sustainable Development

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  1. 2.Sustainable Development Development that meets the needs of the present without compromising the ability of future generations to meets their own needs (WCED, 1987) The basis of this SD definition both intergenerational equity and intragenaritonal equity.

  2. The conditions of sustainabilityFundamentaly, how do we compasate the future for damage that our activities to day might cause? The answer is through the transfer of capital bequest (human, physical, natural capital) • Weak Sustainability (Transfer of an aggregate capital stock no less than one that exist now), Based on a very strong assumtion, perfect subtitutability between of different forms of capital • Strong sustainability (The assumsi perfect of subtitutability between of form af capital is not valid to make. The assets are critical natural capital and since they are not easily subtitutability, if at all, the SS rule requires that we protect them.

  3. TEST FOR WEAK SUSTAINABLE DEVELOPMENT • An economic sustainable if it saves more than depreciation on its human made and natural capital • Y denotes that the values are expressed as a percentage of GDP • S/Y taken from WB • Dm/Y taken from UN System of National Accounts. • Z ≥ S/Y-Dm/Y-Dn/Y (Z must be greater or equal to zero for sustainability)

  4. Save Minimum Standards approach to sustainability Irreversible system-wide instability effects Sm Sde St St Sustaiability Imperatives:SS Market forces, Resouce subtitutions WS Damage costs Sm Sde Minimal damage reversible effects Increasing irreversibility of damge and possible ecosytem-wide instability

  5. Sustainable Development: Operational principles • A number of ruler for the sustainable utilization • of natural capital stock can now be outlined: • Market and interventions failures to resources pricing and property right should be corrected • Maintenance of the regenerative capacity of renewable natural capital • Tecnological changes • RNC should be exploited, but rate equal to the creation of RNC subtitutes • The overall scale of economic activity must be limited so that it remains within carrying capacity of the remaining natural capital. Given the uncertainties present, a precautionary approach should be adopted with a built-in safety margin

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