Sustainability and Environmental Pathologies

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is one major consequence of rising temperatures due to global warming?

Decreased use of renewable energy

Melting of ice sheets in Greenland and Antarctica (correct)

Stabilization of sea levels

Increase in global agricultural productivity

What percentage of the non-human vertebrate population has declined over the last 40 years?

50%

70%

40%

60% (correct)

How might the current financial system be contributing to ecological problems?

By encouraging the growth of renewable energy technologies

By facilitating investment in fossil fuel economies (correct)

By regulating carbon emissions effectively

By promoting equitable wealth distribution

Which of the following is a documented effect of global warming mentioned?

Wiped out sea fauna Signup and view all the answers

What has happened to sea levels as a result of climate change?

They have experienced a significant rise Signup and view all the answers

What kind of political movements have been rising in response to current socio-economic conditions?

Populism and illiberal democracies Signup and view all the answers

What is a significant challenge in shifting to a low-carbon economy?

Existing investments locked in fossil fuels Signup and view all the answers

Which documentary highlights the decline of sea life?

Seaspiracy Signup and view all the answers

What is one benefit of inclusive growth for companies?

A more educated and engaged workforce Signup and view all the answers

Which of the following is a key pillar for promoting inclusive workplaces?

Diversity and gender balance Signup and view all the answers

How does advancing human rights in supply chains potentially impact productivity?

By boosting productivity for all involved actors Signup and view all the answers

Why are investors focusing on corporate ESG performance?

To incentivize positive externalities Signup and view all the answers

What is one action companies can take to strengthen inclusion in their value chains?

Expanding access to affordable basic products Signup and view all the answers

Which of the following is NOT a component of a new model of growth for inclusive business?

Promoting child labour in operations Signup and view all the answers

What role do banks primarily play with the savings of individuals?

They act as intermediaries for savings to finance personal consumption. Signup and view all the answers

What is the primary goal of defining actions or strategies for inclusive growth?

To trigger systemic change Signup and view all the answers

What percentage of bank lending is directed towards the non-financial corporate sector?

17% Signup and view all the answers

What percentage of the world population still lives in extreme poverty?

10% Signup and view all the answers

What is the primary concern regarding self-sustainability in the financial system?

Whether the financial system can endure indefinitely without external help. Signup and view all the answers

What has been the trend in income inequality in the US over the last four decades?

Income inequality has increased. Signup and view all the answers

What aspect of the middle class is highlighted as a benefit of inclusive growth?

A larger size with greater purchasing power Signup and view all the answers

Why do low-income individuals face more difficulty in borrowing money?

They have lower credit ratings and fewer assets. Signup and view all the answers

What was a significant factor contributing to the collapse of the financial system in the Weimar Republic?

The burden of reparations from WW1. Signup and view all the answers

What is a major consequence of banks focusing lending on property rather than productive sectors?

It contributes to rising asset prices and wealth disparity. Signup and view all the answers

Which group has experienced the largest income growth in the recent period of income inequality in the US?

Ultra-rich individuals Signup and view all the answers

What percentage of loans to individuals and financial actors does property lending represent?

50% Signup and view all the answers

What is the average annual income growth for the ultra-rich in the US from 1980 to 2014?

6% Signup and view all the answers

Which aspect of economic sustainability is highlighted in relation to the finance system's performance?

The adequacy of lending to the productive economy. Signup and view all the answers

In the context of ecological and societal sustainability, what aspect does the financial system impact?

The management of natural resources and social well-being. Signup and view all the answers

What challenge does the focus on property lending create for small and medium-sized enterprises?

It stifles their ability to expand and hire workers. Signup and view all the answers

What has happened to the incomes of the poorest individuals in the US from 1980 to 2014?

They have seen no real growth. Signup and view all the answers

How do banks benefit from the rising property prices?

They can lend more, leading to higher profits. Signup and view all the answers

Which region of the world has seen an increase in the number of people living in extreme poverty post-COVID?

Sub-Saharan Africa Signup and view all the answers

What key issue was highlighted about banks in relation to the real economy?

Banks do not significantly lend to the productive economy. Signup and view all the answers

What implication does the financing pattern of banks have on economic growth?

It leads to stagnation due to insufficient support for the productive economy. Signup and view all the answers

What notable documentary depicts the roots of the 2007-08 financial crisis?

Inside Job Signup and view all the answers

What is the primary consequence of the rising income inequality in the US?

The bottom 10% experiencing slower income growth than the top 10% Signup and view all the answers

What does the increase in the number of billionaires illustrate about global income distribution?

Wealth concentration at the top has intensified. Signup and view all the answers

How does the B4IG coalition aim to combat inequality?

By promoting more inclusive workplaces and supply chains. Signup and view all the answers

What is one of the underlying causes of financial instability in economic systems, such as illustrated by the Wall Street Crash of 1929?

Overproduction in major industries. Signup and view all the answers

Study Notes

Current Pathologies

Human activities contribute significantly to CO2 emissions, leading to global warming, melting ice sheets, and rising sea levels.
Flooding from rising sea levels affects major global cities; urgent action is needed to transition from fossil fuels to renewable energy.
A 60% decline in non-human vertebrate populations over the last 40 years highlights the biodiversity crisis.
Close to 90% of marine fauna has been lost, stressing the dire state of ocean life.
Financial systems often exacerbate ecological issues, raising questions about their capacity to contribute to solutions.

Outbreak of Populism

Surge in populism exemplified by movements like Trumpism and Brexit; linked to economic stagnation and rising inequality.
Stagnating real wages coupled with increasing inequality strains democratic processes and fosters extremist parties.
The financial system's role in promoting or mitigating populism remains under investigation, as economic conditions influence political stability.

Inequality and Global Poverty

10% of the global population lives in extreme poverty, specifically those earning less than $1.90 per day.
Extreme poverty in Sub-Saharan Africa has risen post-COVID, revealing vulnerabilities in economic resilience.
Income inequality is stark; rich nations like the US display significant disparities with stagnant earnings for the bottom 10% compared to growth for the ultra-rich.
In the US from 1980-2014, the richest saw an average income growth of roughly 6%, while the poorest experienced no real wage increases.
Inclusive growth benefits businesses through an educated workforce, a larger consumer base, and enhanced trust among stakeholders.

Financial System Sustainability

Self-sustainability refers to whether the financial system can operate indefinitely; the 2007-08 financial crisis raised doubts about its resilience.
Economic sustainability questions if the financial system effectively supports real economic growth; historically, weak connections exist.
Ecological and societal sustainability examines how financial practices impact resource use and social welfare; current systems often favor asset purchases over productive investments.

Structural Issues in Finance

Banks primarily allocate only 17% of their lending to the non-financial corporate sector, limiting growth opportunities for small businesses.
Financing focuses predominantly on property, making housing costs high and financially inaccessible for low-income individuals.
The disparity in borrowing power leads to an uneven cycle of wealth, where affluent individuals navigate favorable terms while the lower-income population faces barriers.
The financial sector must pivot toward supporting productive economic activities to foster growth and break the cycle of inequality.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the current pathologies related to human impact on the environment, focusing on global warming, CO2 emissions, and the resultant effects such as rising sea levels and flooding. Test your knowledge on the components of sustainability and the urgent issues facing our planet today.