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Growth, development and wellbeing. Buapun Promphakping buapun@kku.ac.th. Questions. Is growth equated to development? Is development necessarily achieved through growth? Is development and/growth a precondition for improving quality of life of the population?
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Growth, development and wellbeing Buapun Promphakping buapun@kku.ac.th
Questions • Is growth equated to development? • Is development necessarily achieved through growth? • Is development and/growth a precondition for improving quality of life of the population? • How development, growth and wellbeing are linked? How these implicate on poverty or wellbeing? • What does your government do in trying to cope with the worlds’ economy recession
The conventional mode of growth • There are unemployed or underemployed (surplus) labour in rural areas. • Growth can be achieved by removing these labourers to be employed in modern economy. • The non-poor will first enjoys benefits of growth which will be eventually ‘trickle-down’ to the poor.
How conventional growth helps to remedy poverty • Employment • The remittances send home will lead to the improvement of living standards • The removal of surplus labour from rural areas will give ways to improvement in productivity
Some evidences • Dollar and Kraay (2004): there is a positive relationship between growth in per capita income and income of the poor. • Data from 40 countries • Period of 4 decades • The study confirmed that the poor benefits from growth
Troubles with irrigated dam • It causes flooding and displacement • Forests in the reservoir are completely destroyed • There were 3 years continually floods after the Kong-Chi-Mun Project. • Inland fishery resources are depleted • Spread of salinity
Troubles with irrigated dam • Dams were usually built without proper consultation and participation of people. • Local knowledge of water management is disregarded. • Pollution • Impact on health, physically and mentally. • Human rights is usually violated.
Trouble with roads • Improving transport links tend to accentuate inequalities and promote social differentiation • There are sometimes (relatively and, sometimes, absolutely) losers: women, the elderly, ethnic minorities, and the poor • The spatial poverty traps of women and men, poor and non-poor, are different • Improving roads can, paradoxically and counter-intuitively, increase isolation (roads connect and disconnect)
Some Issues? • The persistent of small producers in rural areas. • The remittances were spent on excessive consuming goods. • Income gap – the rich and the poor has been widened. • Environment deteriorated.
General statements • Growth is necessary or a pre-condition for poverty reduction. • Recession will harm to the poor. • Growth is sometimes accompanied with inequality and growth can intensify poverty. • It must be specific kinds of growth that promote wellbeing of the poor.
Definition of pro-poor growth • Ravallion (2004): any increase in GDP that reduce poverty (poverty outcome). • Kakwani, Khandker and Son: income of the poor-grows more than average income (inequality outcome)
Definition • Kakani and Pernia define pro-poor growth by following to the notion of functioning and capability of Sen: • Growth is pro-poor when it improves wellbeing of the poor: growth that enables the poor to participate meaningfully in economic activities and lead their live
Growth can be pro-poor with • Growth that occurs through the removal of institutions that discriminates the poor, for example: • Currency exchange rate policy. • Investment on rural infra-structure rather than urban infra-structures. • Abolish subsidiary for the rich • Investment and expanding health services and education to the poor.
150(est.) 14 10 5 Car Growth in China ~ 0
79 78 73 64 52 50 49 31 22 Sweden (1st) (Rank out of 180 countries) Rethinking development Human WB Enviro WB Total WB Maximum Score 100 Similar Human WB, but different Enviro WB: How a nation meets its development goals as important as whetherit meets them 80 60 40 20 0 Netherlands (24th) United States (27th)
Environment and Wellbeing Key issues • Sustainability • Growth and/or development not matched by increase in wellbeing • stability • Change in behaviour and attitude
Wellbeing according to WeD • “Wellbeing is a state of being with others, where human needs are met, where one can act meaningfully to pursue one’s goals, and where one enjoys a satisfactory quality of life” • Building blocks: needs, socially meaningful goals, satisfaction with life • 3 dimensions: • material • relational • affective/cognitive
Basic Needs Food, shelter, secure livelihood Good Health Physical and mental health and a robust natural environment Healthy Social Relations A supportive social network Security Personal safety and security of one’s possessions Freedom The capacity to achieve one’s development potential Aspects of Well-being
Wellbeing Good Health Good governance Knowledge Environment Working Family Income and การกระจายรายได้ State Policy Source: National Economic and Social Development Board (www.nso.go.th)
Ecological Footprint • Footprint is a measure of people’s demand on nature. It compares the amount of resources we consume with nature’s ability to provide resources and absorb waste. It is not a measure of the physical size of the municipality. • It is about a balance of supply and demand.
Ecological Footprint - Methodology • International standard for calculation and guidelines for communication • Utilizes international and national statistical information • Assumptions and allocations are explicit and entail a conservative bias. • Includes life cycle consumption (creation – use - disposal) • Puts consumption in a land area context
Ecological Footprint - Overshoot 2008 Earth Overshoot Day = September 23
Ecological Footprint By Region, 1999 • The size of each box is proportional to the aggregate footprint of each region • The height of each box is proportional to the region's average footprint/capita • The width of the box is proportional to the population of the region
Calgary Canada Ecological Footprint of Nations
Can growth reduce poverty? • It depends on • How growth and development are defined and measured • How poverty is defined and measured