Soc Sci Midterm Reviewer PDF

○ A situation of being unable to meet the minimum levels of M1.1 Poverty and Development income, food, clothing, health care, shelter, and other...

○ A situation of being unable to meet the minimum levels of M1.1 Poverty and Development income, food, clothing, health care, shelter, and other essential Impoverished are the people who fall below a poverty line Development ○ Income poor Traditional development is marked by a distinct history 10.9% among families = 3 millions families ○ Hunting society 15.5% among individuals = 17.54 million people ○ Agrarian society ○ Food poor: ○ Industrial Society 2.7% among families = 740,000 families ○ Information society 4.3% among individuals = 4.84 million people ○ Super smart society Chronic Poverty Enhancement of human well-being ○ Long-term poverty ○ Wellbeing is a multidimensional concept implying priorities Persistent or Situational poverty and trade-offs, with the consequence that defining ○ Insistent movement from poor to non-poor development is a national and personal choice reflecting the ○ Poverty caused by sudden or temporary shocks social needs and aspirations of the corresponding individual, Causes of poverty group, class, or nation. ○ Income deprivation Exercise of the imagination ○ Severe entitlements deprivation Adequate income ○ Capability failure Quality entitlements ○ Social exclusion Capability freedom ○ Vulnerability Social inclusion ○ Exhibiting ‘poor’ livelihood or life outcomes Managed risk ○ Being left behind Sustainable Multidimensional Moving forward ○ Economic ○ Social Poverty ○ Political ○ Environmental Opposite of development Deeply rooted The depravity of human well-being ○ Historical Inability to imagine ○ Systemic Absolute poverty Philippines: Income Breakdown  National poverty line: 33,296 Greater focus on vulnerabilities Monthly: 2,774.67 ○ Facing the reality of climate change, globalization, global Weekly: 640.31 competition Daily: 91.22 Need for political stability, good governance, and cooperation from all sectors and social classes Subsistence Breakdown Challenges to sustainability National: 22,995 Monthly: 1,916.25 Impact of climate change Weekly: 442.21 Hunger and malnourishment still exist in many developing nations Daily: 63.0 Income inequality is rising Rapid urbanization Where are the impoverished? Energy needs unmet Total 1.1Billion Financing sustainable development ○ 534 million: Sub-Saharan Africa ○ 389 million: South Asia Millenium Development Goals (MDG) 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve mental health 6. Combat HIV/AIDS, malaria, and other diseases 7. Ensure environmental sustainability 8. Develop partnerships for development Most successful: ○ MDG 1 ○ MDG 3a ○ MDG 7 Economic growth is effective in reducing extreme poverty ○ Economic growth is not enough, especially for those further away from the poverty line  M1.2 Inequality ○ Regions within a particular country ○ In the world as a whole ○ Vertical Inequality - among different individuals or Inequity vs inequality households Inequity ○ Horizontal inequality - within a group ○ Ex-ante event In what space ○ Degree of equality of opportunities to generate or achieve ○ Income future life outcomes ○ Capability ○ Relative probability ○ Access to resources Inequality Over what time ○ Ex-post event ○ The nature and extent of inequality and its consequences are ○ Current spread of life outcomes very different if particular individuals move in and out of ○ Measured through Gini coefficients and Lorenz curves poverty/riches 0-1 ○ Inequality needs to be measured over different time periods Perfect inequality - closer to 1 to understand its full welfare implication Perfect equality - closer to 0 Inequality as a problem Leads to economic inefficiency ○ The higher the inequality, the smaller the fraction of the population that qualifies for a loan or other forms of credit ○ Can create debt or poverty traps People in lower income brackets may not meet credit/load criteria of more manageable/regulated agencies Limits capacity to navigate unexpected shocks Reliance on informal sources with suspicious interest rates or collateral 3 aspects in defining inequality Undermines social stability ○ High inequality strengthens the political power of the rich Among whom and hence their economic bargaining power ○ Individuals or households within a particular society ○ High inequality facilitates rent-seeking behaviors: distorting ○ Across different groups (age,gender,ethnic/religious groups) policy decisions and misallocate resources through  Excessive lobbying - lobbying involves interest better institutions and may instead prefer to exploit groups or individuals influencing policymakers in existing extractive institutions for their benefit favor of their interests When individuals make irreversible investments that Large political donations - financial contributions are complementary to a particular set of institutions, made to political campaigns, parties, or candidates they will then be more willing to support them, Bribery - offering, giving, receiving, or soliciting making the inefficient institutions persist something of value to influence action of an official History or other person in charge ○ Path dependence Cronyism - the practice of favoring close friends, Processes where past events or decisions constrain especially in political appointments or business later events or decisions matters, irrespective of their qualifications The future development of a country is locked by its ○ Bahramdipity - the suppression of serendipitous discoveries past decisions or research results by powerful individuals Future outlooks are given blinders The inequality experiment ○ Colonization Simply unfair Extractive states ○ Veil of ignorance - experienced uncertainty of your position Settler colonies in society ○ Extractive states Behind it, you can act impartially Transfer as much of the resources of the colony to ○ Under this veil, most vote for less inequality the colonizer, with the minimum amount of ○ Inequality can be a reality by chance investment possible Did not introduce much protection for private Causes of inequality property, nor did they provide checks and balances Weak institutions against government expropriation ○ Uncertainty of property rights and opportunities to bribe ○ Settler colonies ○ Flimsy legal system makes resolving disputes and contracts The settlers tried to replicate European institutions difficult Great emphasis was placed on private property and ○ Political instability causes uncertainty checks against government power ○ Corrupt markets leading to market failure Megatrends in inequality ○ Why do they exist When the new elites inherit extractive institutions, Megatrends they may not want to incur the costs of introducing ○ Large, transformative, and global forces that shape the world  ○ Have far-reaching impact on disparities in wealth, resources, ○ A powerful symbol of global inequality, whether in terms of and opportunities wages, opportunities, or lifestyles ○ Can be harnessed to encourage a more equitable and ○ Millions of people move each year across countries and sustainable world continents to seek better job opportunities, study, marry, ○ Can also exacerbate inequality reunite with family members, or flee conflict or natural Technological innovation disasters ○ Technological change tends to create winners and losers ○ Positives ○ Implication on job destruction, creation, and remaking Remittances and other transfers by migrant ○ Highly skilled workers are benefiting the most from the 4IR communities abroad ○ Large movements towards reskilling and upskilling Migrants abroad and those who return can generate ○ Multisectoral innovations due to digitization and artificial flows of knowledge, FDI, and trade intelligence ○ Negatives ○ Access to critical and crucial: those without it lose out, Can lead to shortages of professionals with key skills, creative ‘digital divides’ such as teachers, doctors, and nurses (Brain drain) Climate change Hampers economic growth and essentially subsidizes ○ Rising temperatures have adversely affected economic richer countries with highly trained workers growth in countries located in the tropics Very unpredictable weather and environment shocks Zemblanity of the world: making unhappy, unlucky, and expected discoveries occurring by design and trends Some evidence that cooler countries tend to do better developmentally M1.3 Market Failure The marginalized are disproportionately exposed to climate change, especially those living in rural areas ○ Chronic and persistent poverty is intensified Welfare Economics Urbanization Pareto efficiency ○ More people live in urban than rural areas ○ The likelihood that a change makes some individuals better ○ Urban areas are catalysts for economic growth, innovation, off without making anyone else worse off and employment Limited ○ Weak institutions can further exclude and marginalize ○ Highly individualistic Under or unregulated land and housing markets Considers each’s welfare and not relative well-being Poor urban planning to each other It is not explicitly concerned with inequality Congestion issues Rich can get richer, but poor are not made worse off International Migration  ○ Perception of individual matters Oligopoly - when only a few firms control a market Individuals are the best judge of their welfare Reasons for competition failure If the economy is competitive, it is Pareto efficient ○ More efficient production by one firm Every Pareto efficient resource allocation can be obtained through a Average cost of better firm declines as it produces competitive market process with an appropriate initial redistribution more, leading to a competitive advantage of one over of wealth others ○ Natural monopoly A situation in which it is cheaper for a single firm to Limits of the free market produce the entire output than for each of several firms to produce any part of it Under ideal conditions, the market ensures that the economy is ○ Market only allows efficiency for a few Pareto efficient High transportation or barriers to entry costs Still, several think that the “grass is always greener on the other ○ Imperfect information side” False scarcity - consumer may not be aware of ○ Reorganized to make some people even better off competitors ○ Current setups make some worse off: ○ Strategic control Overproduction leading to air and water pollution Cut prices significantly against a new competitor Underproduction for support for the arts, research ○ Some government actions or societal institutions into the nature of matter, or the causes of cancer Intellectual property - double-edged sword of Reality of some people having little income to live on innovation or dominance Government intervention ○ Shoulder set-up costs Market Failure ○ Provide open support to those in the same market ○ Set price ceilings and price floors Role of government ○ Make information available through various means Welfare economics aims for Pareto efficiency ○ Intellectual property - set term limits Conditions under which Pareto efficiency is not attained are classified ○ Institute regulation as market failure Public goods Government activity or intervention is necessary Non-rivalry - goods or services that do not cost any more to have an additional person to enjoy the good or service Non-exclusive - it is generally difficult or impossible to exclude others 6 forms of market failure from enjoying the good or service Private sector only sees their benefit: they will not necessarily Competition failure shoulder the costs of others benefitting from their investment Pareto efficiency requires perfect competition ○ Sufficient number of large firms believe they have no individual effects on the prices of goods Monopoly - when a single firm controls a market  ○ Marketable permits Incomplete markets Goods or services that may be too expensive to produce but people wait to access at a relatively low price Insurances ○ Better now than they were before but still lacking ○ Crop insurance ○ Health insurance Loans ○ Student loans ○ Small business loans r&D funding Undersupply of innovation Government intervention ○ While many new products come out, those that we truly ○ Invest or spend on public goods need are often undersupplied ○ Bear the cost of free riders Transaction costs ○ Stimulate the market to make it enticing for the private ○ It is costly and risky to innovate and offer a product with no sector to enter assurance of buyers Externalities Information asymmetry and enforcement costs The occurrence of unintended harm or benefit to others as a result of ○ People hide information and that creates a lot of risk my production or use of a good or service The case of complementary markets Production externalities ○ Markets for two or more goods and services that need ○ Positive - honey production; upcycling; fixing my house coordination ○ Negative - waste dumping; manufacturing noises and waste ○ Acting alone, they may not offer their goods and services Consumption/use externalities Government intervention ○ Positive - vaccination; food waste for mulch of others ○ Bear the costs ○ Negative - road congestion; smoking ○ Do large-scale coordination Negative externalities ○ Establish third-party arbitration bodies ○ Individuals do not bear the full cost of their actions, so they Information failure/information asymmetry overproduce or overconsume Information is key Positive externalities The economy works on information ○ Individuals do not enjoy the full benefits of their actions, so ○ Tells market what people need and want they underproduce or under-consume ○ Tell the people what are available and may be offered Government intervention Information is missing or withheld ○ Incentivize positive externalities ○ Markets can take advantage of this ○ Penalize negative externalities ○ Underhanded selling ○ Subsidize lowered production of negative externality ○ People demand privacy ○ Subsidize abatement of negative externality ○ People may want a better deal  Government intervention Pool of common resources shared by a population ○ Set standards General examples: air, land, wildlife ○ Law and regulation creation and enforcement Better examples: clean air, arable land, huntable wildlife Unemployment, inflation and disequilibrium Real life examples Macroeconomic disturbances Grazing of cattles Market failures during COVID Fishing from a body of water Incomplete markets - lack of vaccine market Garbage disposal Public good - then private learning materials became public good Wastewater disposal necessities Expansion of housing and agriculture Externality - vaccine hesitancy and mask aversion Incomplete market - online selling platforms Information asymmetry - targeted scamming Problem Infinite selfish desires over a finite world of provisions Government intervention What’s the harm of taking more for myself? A pareto efficient economy says nothing about income distribution ○ When everyone thinks this, tragedy strikes ○ A competitive market can lead to inequality ○ Tragedy of commons - a situation where many people take Persons may not always act in their best interest more of their share in a pool of common resources by a ○ People can still make ‘bad’ decisions even when they are fully population informed Is it preventable? What can the government do? ○ Policy to prevent overuse or penalize violators ○ Provide or require merit good ○ Goods and services that governments compel people to avail Never perfect: loopholes exist Is government intervention the answer? Politically charged ○ Not always, and not always in the long run ○ Recognition of necessity ○ Government ought to be under public goods provision mindset ○ Government intervention is not always perfect nor Characteristics of wicked problems competitive ○ Efficiency of certain services may not be their priority Difficult to clearly define ○ Varying definitions Many interdependencies and are often multi-casual M1.4 Wicked Problems ○ Presence of conflicting goals; interrelatedness of problems Attempts lead to unforeseen consequences Commons ○ Possibility of future harm  Often unstable Safeguarding the future ○ Constantly evolving due to society’s whims ○ Healthy planet Usually have no clear solutions ○ Strong institutions ○ Management of problems at best ○ Health, social protection Socially complex ○ Education, work ○ Coordination extremes are necessary ○ Preparedness Never at the responsibility of any one group Global public goods and the global commons ○ Everyone needs to be involved ○ Public goods Necessitates changing behaviours Global Health ○ Requires dismantling of detrimental social and personal Information practices Global economy Characterized by chronic policy failure Healthy planet ○ Longstanding problems have been exacerbated or kept by Science policy failures Peace Digital ○ Commons Ways forward High seas Atmosphere Renewed social contract Antarctica ○ Individual Outer space ○ Civil society ○ State/institutions ○ Private sector Foundations ○ Trust ○ Inclusion, protection, participation ○ Measuring and valuing what matters to people and the planet Solidarity between generations ○ Voice and participation ○ Quality education ○ Sustainable jobs ○ Long-term thinking ○ Represent future generations  M2.1 Monetary Measures of Development GDP and GNP Gross Domestic Product Poverty ○ Aggregate value-added by all firms in a country Gross National Product/Income (GNP/GNI) Headcount ratio (HCR) ○ GDP + net factor income from abroad ○ Percentage of people in a population below a poverty line ○ Repatriated profits ○ a=0 ○ Remmitances by migrants Depth of poverty/ Poverty Gap Ratio Computing GDP ○ Average distance of the poor from the poverty line ○ C + I + G = (X-M) ○ The sum of poverty gaps gives the minimum cost of ○ C - consumption eliminating poverty, if transfers are perfectly targeted ○ I - investments ○ a=1 ○ G - Government expenditure Severity of poverty ○ X - exports ○ Degree of income inequality among the poor ○ M- imports ○ Highlights the distance between incomes of the poor, but GDP/GNIPPc puts more weight on observations well below the poverty ○ GDP or GNI divided by the population of a country line Growth in GDPPc/GNIPc is a good measure of average income ○ a=2 progress over time Foster, Greer, and Thorbecke (FGT) Index Nominal GDP ○ Raw GDP value ○ Based on current prices Global economy measure Real GDP ○ GDP value taking inflation into account GNI per capita PPP ○ Based on a peg price set at a common year Income is necessary to improve well-being ○ A growing economy often equates to increased employment opportunities Income Without sufficient economic growth, raising the well-being of the poor becomes socially costly ○ Requires taxation and redistribution Redistributive growth ○ A preferred labor-intensive and agricultural growth  Growth rates Genuine Progress Indicator Consumer Price Index (CPI) Conceptualized by William Norkhaus ○ Sometimes called the GDP deflator Additionally accounts for non-marketed services ○ A calculated value that allows GDP to adjust to inflation ○ Child care work ○ A base year is often chosen that equates prices to 100 or 1 ○ Z-goods (home-produced goods or services like preparing ○ Real GDP / GDPPc meals or cleaning the house) Income across countries GPI = GDP + value of unpaid work - cost of crime, social breakdown, ○ GDPPc$ = GDPPc local currency/nominal exchange rate and environmental damages Purchasing Power Parity ○ Calculation of GNI using a common set of international prices for all goods and services, to provide more accurate comparisons of living standards ○ PPP-adjusted GDPPc$ = GDPPc local currency/PPP exchange rate M2.2 Non-Monetary Measures of Development and Measuring the SDGs Lessening vulnerability Risk reduction (Prevention) - reducing the probability and severity of Vulnerability shocks ○ Pursuing education, vaccination, investing in irrigation, For everyone: the probability of falling into poverty as a consequence climate-adaptive plant varieties of exposure to shocks Risk management (Mitigation) - reducing the impact of shocks ○ May increase poverty incidence ○ Self - choosing low-risk activities, savings, income, Especially for the poor: Probability that future outcomes are lower diversification than current outcomes because of shocks ○ Mutual - investing in relationships and social capital ○ May increase depth of poverty ○ Formal - crop insurance, fire insurance, life insurance ○ Lower future income than current income Risk coping - relieving the impact of experiencing shocks ○ Decline in food consumption compared to current ○ borrowing, selling assets, migration, child labor, consumption or expenditure postponement Risks Basic needs or entitlements The poor are more risk averse ○ A decline in income or food consumption for the poor has Commodities or services over which a person can exercise higher impact than the same happening to the non-poor ownership or command Sources of risk Necessary aspects of life for human development ○ Natural disasters Broad agreement on basic needs ○ Health shocks Multi-dimensional ○ Social disasters Public goods ○ Economic shocks ○ Political shocks ○ Environmental shocks Dimensions of Basic Needs Covariate risks - affecting many people Idiosyncratic risks - affect individual or particular households Health - life expectancy, infant mortality, maternal mortality, access Risk of irreversibility - shocks could lead to to and quality of health services ○ Chronic poverty - long-term poverty Education - enrollment rates, dropout rate, repetition, literacy rate, ○ Persistent or situational poverty - insistent movement from availability of and distance to schools, class size poor to non-poor; poverty caused by sudden or temporary Nutrition - malnutrition and hunger, height-for-age, weight-for-age shocks Indicators of basic needs Z-scores for child health, Global burden of disease, malnutrition  Human Development Index (HDI) A need for the participation of the most industrialized countries ○ An index measuring national socioeconomic development, based on combining measures of education, health, and PPP-GNIPPc Quality of Life Multidimensional Poverty Index To capture other important aspects of development Two main schools of thought Accessing basic needs ○ QoL indicators by William Easterly ○ Freedom and Capabilities by Amartya Sen Available William Easterly Accessible Describes 81 QoL indicators Secure Individual rights and democracy Acceptable Political stability and peace Quality Absence of “bads” Amartya Sen Development is a process of expanding freedom Sustainability Capabilities - choices a person makes among “functionings” that they can achieve, and the freedom to exercise such choices The concern with intergenerational equity: that the wellbeing of Functioning - what people can be or do future generations should not be inferior to that of the current Freedom - Exercise of choice generation as a consequence of the current generation’s behavior Capabilities is the freedom of opportunities toward the use of natural resources and the environment Sen’s central human capabilities Freedom from Aspects of sustainability Early death Morbidity Climate change and carbon emissions Hunger and malnourishment Transmission of the stocks of assets across generations (Natural, Engage in productive activity physical, human, social) Fear Accumulation of public debt Ignorance and illiteracy Participate in the social and political life of the community Fell loved Challenges of sustainability Thinking about the future SDGs and measuring development ○ How many generations Social scope Goals → Targets → Indicators ○ For whose wellbeing Each goal has targets  ○ 169 targets Setting upper bound Each target has indicators Lower bound set at the 2.5th percentile of the distribution ○ 231 unique indicators ○ 248 listed as total International Spillover Index Tracks the impacts of a given country’s actions on others Five criteria in selecting indicators ○ Environmental and social impacts embodied into trade ○ Economy and Finance Relevance and applicability to a broad range of county contexts ○ UN-based multilateralism, peace, and security Statistical adequacy - represents valid and reliable measures Timeliness - current and published on a timely schedule Coverage - available for at least 80% of UN member states with a population over one million Distance to targets must be measurable to define optimal performance and opportunities Challenges to measuring the SDGs Indicators can still be vague Indicators update themselves Some targets still don’t have completely agreed upon indicators Data availability is uneven across the world Index ranking and score must not be compared with previous results outright New reports have portions that recalculate rankings and scores based on updated measure Creating the indexes and scoring Establish performance thresholds and censor extreme values from the distribution of each indicator Rescale data to ensure comparability across indicators Aggregate the indicators within and across SDGs Establishing thresholds  ○ If growth can be sustained for a substantial time (a 3.1 Economic Sustainability generation or more), it is more unusual for economic development to later get off track for long Concerted, economy-wide, and typically public policy-led effort to Coordination Problem initiate/accelerate economic development across a broad spectrum Complementarities - an action that increases incentives for other of new industries and skills agents to take similar actions Addresses coordination problems ○ The more I do/use something, the easier/cheaper it is for ○ Incentivization others to do the same ○ Investing ○ Not always necessarily a good thing Limitations of the Big Push model ○ Can lead to status quo bias - a preference to maintain the ○ Expensive - massive investment current state of affairs ○ Insufficient information on where to invest Coordination failure ○ Insufficient information on final equilibrium ○ Inability of agents to coordinate their behavior (choices) ○ The government may prevent coordination - corruption leads to an outcome (equilibrium) that leaves all agents worse off than in an alternative situation that is also an The Doughnut Economic Model equilibrium ○ Possible for agents to be fully aware of a better alternative ○ Individually suboptimal to deviate from the current equilibrium Applications to development ○ Complementarities may lead to coordination failure ○ Coordinated switch to a new equilibrium is very hard to do ○ Complementarities → Coordination failure → An economy is in a “bad” equilibrium Sustainable economic growth The Big Push Model Doughnut economics ○ Kate Raworth Economic stability ○ Aim is to meet the needs of all people within the means of ○ Whether an economy has been growing sustainability for the living planet some time or has been stagnant seems to make a very big difference for subsequent development  Center Ring (Social Foundation) - depicts the proportion of people ○ Empowerment that lack access to life’s essentials (Healthcare, education, food, ○ Devolution water, etc.) Outside Ring (Ecological ceiling) - planetary boundaries that life depends on and must not be overshot Human Rights Based Approach The safe and just space for humanity Amartya Sen’s perspective of human rights ○ The area between the ecological ceiling and the social ○ Primarily ethical demands foundation ○ Underlying principles of freedoms ○ A dynamic balance is met wherein our social needs can be Often discussed in a legal context, but constitutively ethical met without overburdening the planet Some rights are best protected by “mere” social acceptance and Regenerative Economy - our material and energy used work within legal protections may come after cycles of the living world Significance of Human Rights Distributive Economy - redistributing wealth creation ○ Enables freedoms that demonstrate social importance and ○ Sources of wealth creation - Health and Education social inalienability ○ Realization of rights has sense of accountability by persons ○ Rights holders - claim and exercise those rights 3.2 Social Sustainability ○ Duty bearers - realizing rights Human rights are our obligation to everyone - respect, protect, Social Sustainability and fulfill it Empowerment - critical to combat poverty Failed promise of development Rights PESCC ○ Development through capitalism did not lead to better ○ Civil well-being for all Life, liberty, and personal security ○ For whom is development for Equality before the law ○ There is a need to learn about the cries, needs, and Protection from arbitrary arrest aspirations of the poor and the vulnerable Religious freedom Due process of the law etc Participatory Development ○ Political Free speech and expression Necessity of the people’s participation in the development process Assembly and association and in defining development goals Vote and political participation Significantly important factors for success ○ Economic Work and fair remuneration  Form trade unions and free associations Development progress is challenged to sustain Social security, insurance ○ What needs to be done now ○ Social ○ What needs to be sustained in the future Family Developing countries pose more grave challenges Education ○ Cost and cost-effectiveness concerns Health and well-being Leisure time ○ Disproportionately affected by all forms of risks Widest possible protection and assistance for the (compounding on one another) family Risk Management is necessary to accelerate and sustain ○ Cultural development Benefits of culture ○ Risk Reduction (Prevention) - reducing the probability and Indigenous land, rituals, and shared cultural severity of shocks practices ○ Rish Management (Mitigation) - reducing the impact of Speak one’s own language and mother tongue in shocks education Self - choosing low-risk activities, savings, income diversification Exclusion to Protection to Risk Management Mutual - investing in relationships and social capital Historically, the world has prioritized hardware and software Formal - acquiring crop insurance, fire insurance, inventions life insurance Social protection was a third pillar of interventions that was ○ Risk coping - relieving the impact of experiencing shocks broadly understood as public measures to provide income security Borrowing, selling assets, migration, child labor, to the population consumption or expenditure postponement ○ Never at the center of development discussions 3 risk management arrangements ○ Broadly understood as public measures to provide income ○ Informal security to the population Social networks or personal arrangements However, the last few decades of poverty has shown that: Sidesteps information and coordination problems ○ Poverty is not a static state (chronic, persistent) ○ Market-based ○ Poverty has long-term consequences Use of market-baed institutions (money, banks, ○ Social security and other safety nets are difficult to insurance companies, etc) establish during deep crises when experiencing chronic or Subject to market forces persistent poverty ○ Public ○ Various risks and complexities are not more transnational Fewer and have limited coverage in developing and global or universally affecting countries  Important for when informal and market-based Non-discrimination - Espouses no distinction between race, sex, strategies are non-existent, breakdown, or are gender, language, or religion dysfunctional Self-determination - Integrates self-determination on sovereignty ○ Ideal over natural wealth and resources Prevention - Informal and Public Mitigation - informal and Market-based Coping - public 3.3 Environmental sustainability ○ Actual Prevention – Informal Ecosystem Services Mitigation - Informal Coping - Informal and Public Benefits people obtain from ecosystems Categories ○ Provisioning - material benefits we get from the environment such as food, water, fiber, wood, and fuel ○ Regulating - Benefits from regulation such as air quality, soil fertility, flood control, and crop pollination ○ Cultural - Non-material benefits we get from the environment such as recreation, tourism, spiritual expression, aesthetic appeal, etc. ○ Supporting - Necessary natural processes for other ecosystem services to function, such as the natural habitats, biodiversity, nutrient cycling, water cycle, etc. While we benefit from nature, nature has its ways to manage itself Elements of the Right to Development too People-centered development - Centers people as the subject, participant, and beneficiary Common Pool Resource Management/Commons and Humanity Universality of Human rights - Entails realizing all human rights and fundamental freedoms Commons - shared pool of resources by a population Participation - Requires active, free, and meaningful participation ○ Resources are finite but can be sustained and replenished from the people ○ But human desire is an endless pit Equity - Needs fair distribution of development benefits Tragedy of Commons- continuous deterioration of our common-pool resources due to human desires  Challenges of sustainability Embracing risk management ○ Future-sight - this will eventually replenish themselves Financial aid and support ○ Social Scope - the belief that we need to ensure we have Better provision of public goods and services more than enough for ourselves or our family, community, Education country ○ Women empowerment ○ Bigger Picture - the belief that larger entities will take more Works together with social security mechanism → anyway so we can do it too lower rates of highly populated families Ostrom’s 8 design principles - to combat human greed ○ Clearly defined boundaries - persons with rights to withdraw from and the boundaries of the common-pool Aiding with Green technology/Blindside of Going Green resource are clearly defined Jevon’s Paradox ○ Proportional equivalence between benefits and costs - ○ William Stanley Jevon match and proportion appropriation roles' benefits, costs, ○ Efficiency-increasing technology has counterintuitive and local contexts effects ○ Collection-choice agreement - persons affected by the Makes technology cheaper rules can participate in modifying these Increases demand All stakeholders must have an agreement on this ○ Shift from coal to steam, fluorescent to LED, regular to ○ Monitoring - active auditors of the common-pool resource inverter ACs conditions and appropriate behavior are accountable to Negative Production effect the appropriators ○ Efficiency-increasing technologies lead to more ○ Graduated sanctions - rule violators are to receive investments resulting in increase in negative effects used in graduated sanctions production ○ Conflict resolution mechanism - ensure rapid access to Solar cell manufacture and nitrogen trifluoride low-cost and local dispute resolutions (NF3) ○ Minimal recognition of rights - external authorities respect 17000 times more harmful than 302 rules set; people who are outside the direct stakeholders 11% increase in the atmosphere per year must respect the rules already set there Biofuel and food ○ Nested enterprises - create multiple levels for the Decrease in food supply → increase in food governance of the common-pool resource; hierarchal prices levels; checks and balances/regulations running across In Brazil, change of sugarcane plantations Overpopulation - inevitable cause of the tragedy of the commons to biofuel farms Combatting rapid population growth ○ Investing in social security  Need for sugarcane plantations → Reappropriating rainforests Green Conscience Phenomenon ○ Ozzie Zehner ○ People’s easy seduction by the promise of new clean-energy technologies ○ Subconsciously believing that we can maintain our current levels of consumption ○ We latch onto the belief that technological advancement is a cure-all ○ Only and overly