The system is a threat to the 2 sustainability of production in the long run

The system is a threat to the 2 sustainability of

This preview shows page 1 - 3 out of 3 pages.

much greater externalisation of environmental effects of economic activity. The system is a threat to the
Image of page 1
2 sustainability of production in the long run, despite its economic advantages in the short- to medium-term such as reduced economic scarcity as a whole. Natural areas in isolated, or relatively isolated, economies are at particular risk when these economies are drawn into the global system, particularly if significant economic growth is achieved. In such cases, natural areas must increasingly be officially protected or set aside as national parks if irreversible genetic loss is to be avoided. At this time, aid from developed countries for nature protection may be crucial. Once a country becomes 'developed' and integrated into the global economic system, conservation of nature, and therefore biodiversity, becomes heavily dependent on government maintenance and protection of natural areas. In tum, such protection relies substantially on political processes, including lobbying by conservation groups. It has been claimed that free trade, for example, implementation of WTO (World Trade Organization) regulations, can be expected to foster greater nature conservation, as will the structural adjustment policies recommended by the IMF (International Monetary Fund) and World Bank to debtor countries. These call for freer markets and smaller government sectors. But these policies do not ensure greater conservation and can reduce biodiversity. The position is complex, but the safest approach is to target policies specifically to maintain biodiversity and natural areas. So, if the above policies are pursued they should be supplemented by specific policies aimed at protecting natural areas. As far as biodiversity is concerned, it is dangerous to rely on broad generalisations about the beneficial effects on conservation of the above-mentioned policies, especially if the meaning of 'greater conservation' remains undefined, as is common. Modem economic systems involve a serious employment-conservation conflict. They depend for the maintenance and expansion of employment on the growth of economic production. The 'need' for economic growth for employment-creation is especially apparent where the population is increasing, labour-saving technological progress is occurring, when real wages (income) are inflexible downwards or creep upwards, and when reduction of hours of work or sharing of jobs by the employed with the unemployed, is not an option. The global economic system continues to be locked into economic growth as a creator of employment. Reduced
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

  • Summer '20
  • Dr joseph
  • Economics, Global Economic System

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes