Socsci Reviewer Module 1-3 PDF

Module 1 20 Multiple Choice, 20 T/F, 10 Identification (Answers can be repeated) 1.1 Introduction to Sustainable Development Development is about the enhancement of HUMAN WELLBEING Individuals have different NEEDS, PRIORITY, and ASPIRATION Participation from stakeholders is VER...

Module 1 20 Multiple Choice, 20 T/F, 10 Identification (Answers can be repeated) 1.1 Introduction to Sustainable Development Development is about the enhancement of HUMAN WELLBEING Individuals have different NEEDS, PRIORITY, and ASPIRATION Participation from stakeholders is VERY IMPORTANT in development There is NO ONE SIZE FIT ALL solution to development There are TRADE-OFFS to pursuing the different dimensions of development Wellbeing is MULTIDIMENSIONAL - Implies priorities and tradeoffs - Defining development is a national and personal choice reflecting the social needs and aspirations of the corresponding individual, group, class, or nation Dimensions of Development Millennium Development Goals (MDGs) Why do Goals matter? 1. Goals are critical for social mobilization a. The world needs to be oriented in a direction to achieve sustainable development or eradicate poverty b. Networks of expertise, knowledge, and practice around specific challenges 2. Peer Pressure a. Each country would be compared to each other Threats to development Gender Inequality Big gaps between poor and rich Climate change and environmental degradation The current state of the world 1. Growing Economy 2. Highly Unequal 3. Environment Threats 3 Sustainability Perspectives (Economy, Society, Environment) Sustainable Development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland) The Future we want World leaders agreed to transition from MDGs to SDGs ○ MDGs; apply to poor countries and reference rich countries mainly as donors ○ SDGs; universally applicable SDGs face a set of more complex challenges 1.2 The Tragedy of the Commons Problems we can relate to on campus (ex. Parking, school wifi, seats, water) Common among the examples 1. Shared finite resources (shared by all and is finite) a. Shared resources = “Commons” i. The resource is owned by no one ii. Everyone has access to the resource iii. Ex. Air, water, Soil, Bodies of water, Trees 2. Self-Interest a. Individuals act independently based on their own self-interest 3. Overuse and Depletion a. Resources are overused and eventually depleted or damaged Tragedy of the Commons: a situation in which individuals with access to a common act in their interest and, in doing so, ultimately deplete the resources “What’s the harm of taking one more for myself?” Infinite desires over a finite world of resources Ex. Overfishing, Traffic, Deforestation Policy Never perfect, loopholes exist Politically charged How can we make everyone practice this? 1.3 Wicked Problems SDG 1: No Poverty National Poverty: 18.1 or 19.99 million Filipinos Subsistence Poverty or “Food Poor”: 5.9% or 6 in 100 Filipinos are food poor Poorest in the Philippines (2021: Fisherfolks, 2018 and 2015: Farmers) 2 Statistics 1. SWS Survey: 51% of Filipinos are considered poor in 2023 a. Ask Filipinos about their thoughts and other factors of being poor b. Based on self-rating 2. PSA Survey: 22% of Filipinos are considered poor in the first half of 2023 a. Purely Income; may not be able to capture all the dimensions of poverty b. Based on the Family Income and Expenditure survey What is considered Poor? Non-poor: 12,030 per month for a family of 5 Non-food poor: 8,379 per month for a family of 5 Being poor should not be defined by just an adequate consumption of income. Poverty is a more entrenched problem (Multidimensional view) Share of the poor is approximately 50% higher than when relying solely on monetary poverty Includes consumption, education, access to basic infrastructures Wicked Problems: Not as evil but highly resistant to resolution (Commonwealth of Australia, 2007) 1. Difficult to clearly define a. Conflicting goals b. “Wicked” nature of urban development (requires integrated planning) c. Metro Manila’s urbanization led to traffic, pollution, overpopulation d. Traffic management → improve public transport → can lead to displacement of informal settlers 2. Attempts lead to unforeseen circumstance a. Possibility of future harm 3. Often Unstable a. Constantly evolving due to the needs of society b. Schools during the pandemic; a lot were unprepared 4. Usually have no clear solutions a. Problems and resolutions are never simply black and white Module 2 2.1 Monetary Measures Measures of Income Gross Domestic Product The market value of all final goods and services produced within a country in a given period of time Measures a country’s economic health (whether contracting or expanding) 1. Output is valued at market prices 2. Only the value of final goods are recorded, not intermediate goods (raw materials not included) 3. GDP includes both tangible and intangible services (Haircut, Education, Financial Advice) 4. GDP includes goods and services currently produced, not transactions in the past 5. Measures only the value of production within the geographic confines of a country 6. Measures the value of production within a specific interval of time (a year, or a quarter) - A portion of a Filipino farmer’s harvest is used to feed his family (Not DGP) - An American working as a consultant in BGC is paid for her services (GDP, within the boundaries of the Philippines) - Volunteers participating in local clean-up drives (Not GDP, no value of production) - Buying taho from a street vendor (Not GDP, informal) - A Filipino OFW currently residing in Canada received payment for providing financial services (Not GDP, not within the Philippines) Some limitations 1. Overlooks non-market transactions a. Actions that contribute to development and well-being are not represented b. Informal businesses, Volunteering, Subsistence Farming = farming consumed by household) 2. Overlooks quality of life factors a. Education and environmental quality, healthcare access, political freedom, etc. 3. Overlooks Income Inequality a. A high GDP does not necessarily mean that wealth is reaching poorer segments of society b. Does not show distribution Gross National Income (GNI) The total domestic and foreign output claimed by residents of a country OFW included; Filipino residents GNI = GDP + net factor income from abroad ○ Net factor income from abroad = factor income earned by foreign residents - income earned in domestic economy by non-residents GDP per capita (GDP/population) GDP divided by total population If total GDP rises, at least 1 one of these must be true 1. The economy is producing a larger output of goods and services (higher production) 2. Goods and services are priced at higher prices (higher prices) It is better to measure the total quantity of goods and services the economy is producing that is NOT AFFECTED BY CHANGES IN THE PRICES Real GDP Production of goods and services valued at constant prices Nominal GDP Production of goods and services valued at current prices Real GDP as a Measure It reflects the economy’s ability to satisfy people’s needs and desires A better gauge of economic well-being than nominal GDP Purchasing Power Parity “Exchange rate” that allows the same amount of goods and services in every country Calculation of GDP using a common set of international prices for all goods and services To provide more accurate comparisons of living standards (Price of BigMac in different countries) Monetary Measures of Inequality Lorenz Curve A graphical representation of income inequality Depicts the variance of size distribution of income from perfect equality Y axis: percentage of income; X axis: percentage of population (from poor to rich) 50 percent of the poorest population holds 20% of the total income Gini Coefficient (range from 0-1); degree of inequality in distribution of income Closer to 0 is considered better 0 (Perfect Equality); 1 (perfect inequality) Highly unequal: 0.50 to 0.70 Highly Equal: 0.20 to 0.35 Formula: Shaded region/total area 2.2 Measures of Poverty and Livelihood The FGT Index Foster, Greer, and Thorbecke Index Headcount ratio (a = 0) ○ Percentage of people in a population below poverty line Depth of poverty (a = 1) ○ Average distance of the pooer from the poverty line Severity of Poverty (a = 2) ○ Degree of income inequality among the poor ○ More weight on the poor who are further away from the poverty line High headcount, low depth Many poor but not far from poverty line Less people experience extreme poverty Low headcount, high depth Few poor but much further away from poverty line More people experience extreme poverty Addressing income deprivation: Employment: 1. Employed 2. Unemployed 3. Underemployed a. Employed but needs to earn more b. Current employment income is lacking c. Wants more working hours *Employment does not secure one’s future Limitations of Employment as the Poverty Solution 1. External Shocks (Unforeseeable events; typhoon, pandemics, earthquakes) 2. Prices and inflation 3. Skills and Knowledge (determinant of salary, appraised value may vary) 4. Not all forms of employment may be sustainable a. Varying degrees of vulnerabilities b. Person or group specific contextual assets c. Effects of policies, institutions, and processes Shift from work/employment to livelihood Livelihood Means to secure necessities and desires of life Capabilities, assets, and activities required for a means of living Sustainable Livelihood Copes with and recovers from stresses and shocks Maintains and enhances the capabilities and assets of a person both now and in the future Does not undermine the natural resource base Sustainable Livelihood Framework Asset Pentagon 1. Human (Capacity to work, Education, Skills, Health) 2. Social (Networks, relationships, formal and informal groups) 3. Physical (transportation, vehicles, shelter, technology) 4. Natural (land, water, trees) 5. Finance (savings, remittances, wages) Vulnerability Context Insecurity in the well-being of individuals, households, and communities in the face of changes in their external environment – over which they have no control Shocks (conflict, illnesses, floods), Critical Trends (Demographic, environmental, econ, tech trends), Seasonalities (Prices, opportunities) Difficult to assess, can only manage the community’s resilience Policies, Institutions, Processes Institutions, organizations, policies, and legislations that shape livelihood Direct feedback to vulnerability context Can facilitate or hinder asset-building Livelihood Strategies Activities or interventions that aim to achieve sustainable livelihood Livelihood Outcomes Outcomes the poor aspire for More income, increased well-being, reduced vulnerability, improved food security 2.3 Income and Quality of Life Quality of Life Indicators Individual Rights and Democracy Human-rights rating, percentage of children working, freedom from corruption Political Stability and Peace Frequency of cabinet changes, death from political violence Absence of “Bads” Scams, robberies, environmental pollution Inequality Across Class and Genders Gini Coefficient, ratio of women’s literacy to men Health and Education Schooling years, enrollment ratio, infant mortality, life expectancy Transport and Communication Road length per car, TVs per Capita, paved roads as share of all roads Does life during growth get better? Higher per Capita Income (Positive): 1. Civil liberties and democracy 2. Life expectancy Higher per Capita Income (Negative): 1. Infant mortality 2. Pollution 3. Political and gender oppression Changes in quality of life as income grew were uneven Income per capita had a positive effect on only 32 out of 81 indicators ○ Long lags between income growth and quality of life ○ Changes in home country’s QOL depends as much on changes in world income as on changes in the home country growth According to William Easterly: 1. The relationship between economic growth and social progress is intricate, some indicators improve, and some do not show significant changes 2. A diverse range of indicators must be considered to measure QOL 2.4 Capabilities Approach Development as Freedom In the 1990s, income, and happiness were the most used measure in economic literature Third measure: quality of life (Amartya Sen) Functionings The various things a person may value doing or being Something counts as a functioning for a person only if that person values it People should have reason to value these and should improve a person’s quality of life Capability Tells us what a person is substantively free to do One’s freedom to achieve, the alternative functioning combinations from which this person can choose Agency A person’s ability to act and bring out change, whose achievement can be evaluated in terms of their own values and goals A person's ability to pursue and realize goals (or functionings) that they value Opposite: forced, oppressed, or passive The Capabilities Approach Development as a process of expanding the real freedoms that people enjoy Examines the extent of freedom people have to achieve the functionings they value Arguments for using this approach 1. Different individuals have different “conversion factors” a. Person A and B have 100k each; but B has a physical disability b. Both have access to the same resources c. Personal, Social, and Environmental Conversion Factors  2. Means and End a. Freedom is both a means and an end of development b. Constitutive Role i. Primary end of development ii. Importance of substantive freedoms in enriching human lives c. Instrumental Role i. Principal means of development d. Ex. Political Freedom, Economic Freedom, Basic Needs i. Freedoms complement and strengthen each other Common Misconceptions: 1. Choice is the same as capability a. Capabilities are the expansion of people’s choices that have value 2. Individualistic a. The applications of the capability approach has engaged groups, not only on individuals b. Choices are made by groups, not individuals c. Includes what groups can do and be together Capabilities Approach also looks at what happens to every single individual in a society If we only look at social groups, we may overlook inequalities within groups By looking at the well-being of each person, we may discover these inequalities According to Amartya Sen: 1. Development can be viewed as a process of expanding real freedoms that people enjoy 2. Increase the range of choices people have and their ability to exercise these choices 3. Focus of development to the enhancement of human life and well-being Module 3 3.1 Economic Sustainability 1. The Coordination Problem 2. The Big Push Model 3. Doughnut Economic Model Complementaries An action taken by an individual or organization that increases the incentives for others to take similar actions “The more I do something, the easier it is for others to do the same” Not necessarily a good thing (Corruption, bribery) Complementaries can lead to status quo bias: a preference to maintain the current state of affairs Coordination Problem The inability of agents to coordinate their behavior/choices leads to an outcome that leaves all agents worse off than in an alternative situation that is also an equilibrium It is possible for agents to be fully aware of a better alternative but choose not to act on it because changing their behavior would not lead to improvement Making a coordinated switch to a new equilibrium is very hard to do ○ Changing driving directions, from left to right Complementaries → Coordination Failure → Bad Equilibrium ○ Each person depends on the actions of others ○ Everyone settles into a not-so-good outcome even if a better alternative exists The Big Push Model (Economic Sustainability) Whether an economy has been growing sustainably for some time or has been stagnant seems to make a very big difference for subsequent development ○ Impacts its future development If growth can be sustained for a substantial time (a generation or more), it is more unusual for economic development to later get off track for long ○ Establishing a stable foundation that makes it less likely to regress into stagnation A concerted, economy-wide and typically public policy-led effort to initiate or accelerate economic development across a broad spectrum of new industries and skills Addresses Coordination Problems Limitations of Big Push Model 1. Expensive 2. Insufficient Information on where to invest 3. Insufficient Information on final equilibrium 4. Government may prevent coordination Doughnut Economics “Economics is the tool used to guide policies that tackle poverty and manage our limited resources” Dominates decision-making for the future Kate Raworth, 2012 Aim to meet the needs of all people within the means of the living planet Center Ring (Social Foundation) – Proportion of people that lack access to life’s essentials (healthcare, education, food) Outer Ring (Ecological Ceiling) – Planetary boundaries that life depends on and must not be overshot The Safe and Just Space for Humanity – Dynamic balance is met wherein our social needs can be met without overburdening the planet  1. Regenerative Economy a. Materials and energy use work within the cycles of the living world and within the planetary boundaries b. Taking from the environment without damaging; resources are renewed and restored c. Renewable energy 2. Distributive Economy a. Redistributing wealth creation b. Health and Education are sources of wealth creation 3.2 Social Sustainability 1. Participatory Development 2. Human Rights Based Approach 3. Social Protection and Risk Management Rights Based Development Development through capitalism did not lead into better well-being for all Need to learn about the cries, needs and aspirations of the poor UN: advocating free markets → recognition of the need for more active forms of public policy 1990s, UN started evaluating and monitoring human development through Human Development Index “The poor must have input into decision-making in order to truly benefit from development efforts” Participatory Development Active involvement of all stakeholders Necessity of the people’s participation in the development process and in defining development goals Strong emphasis on democratization and humane governance (contradicted by the commitment to neoliberal approaches to governance) ○ Involvement of local communities in decision-making processes Empowerment ○ Increasing the capacity of the community to make decisions Devolution ○ Transferring decision-making resources and responsibilities to local communities or local government bodies Human Rights Based Approach Enables freedoms that demonstrate social importance and social influenceability Realization of rights have a sense of accountability by persons Rights holders: those who have the ability to claim and exercise those rights Duty bearers: those responsible in realizing the rights Human rights are our obligation to everyone Social Risk Management Risk Management Strategies 1. Prevention – reduce the probability of risk occurring 2. Mitigation – reduce the potential impact of risk if it were to occur 3. Coping – Relieves the impact of risk once it has occurred Risk Management Arrangements 1. Informal a. Self protection through informal, personal arrangements b. Sidesteps information and coordination problems c. Expensive, limited in effectiveness 2. Market-based a. Use of market-based institutions (banks, money, insurance companies) b. Requires well-functioning financial markets and some degree of financial literacy 3. Public a. Useful when informal and market-based strategies are non-existent or dysfunctional b. Coverage in developing countries are typically low 3.3 Environmental Sustainability 1. Ecosystem Services 2. Common Pool Resource Management 3. Blindsides of Going Green Ecosystem Services Benefits people obtain from ecosystems 4 Major Categories: Provisioning, Regulating, Cultural, Supporting 1. Provisioning a. Material benefits b. Food, water, fiber, wood, fuels 2. Regulating a. Benefits from regulation b. Air quality, soil fertility, flood control, crop pollination 3. Cultural a. Non-material benefits b. Recreation, Tourism, Aesthetic appreciation, Inspiration, spiritual experiences 4. Supporting a. Necessary natural processes for other ecosystem services b. Habitats, biodiversity, nutrient cycling, water cycle Tragedy of the Commons – “Freedom in a common brings ruin to all” (Hardin, 1968) Commons and Humanity Commons: shared pool of resources by a population ○ Finite resources but can be sustained and replenished ○ However, human desire is an endless pit Tragedy: continuous deterioration of our common pool of resources Challenges of Sustainability: ○ Future-sight: This will eventually replenish itself ○ Social scope: I need to make sure that I have more than enough for myself, family, community ○ Bigger picture: Large entities take more than anyway. If they can, so can I How to combat human greed towards commons? Ostrom’s Eight Design Principles 1. Clearly defined boundaries 2. Proportional Equivalence between benefits and costs 3. Collective Choice agreement 4. Monitoring 5. Graduated Sanctions 6. Conflict resolution mechanism 7. Minimal recognition of rights 8. Nested Enterprise (coordination in governance across sales) Is this tragedy simply born out of human greed? No. Overpopulation – inevitable cause of tragedy of the commons Combatting rapid population growth ○ Investing in Social Security (Risk management, financial aid, better provision of public goods and services, education) ○ Women Empowerment Aiding with Green Technology Blindsides of Going Green Jevon’s Paradox ○ William Stanley Jevon ○ Efficiency-increasing technologies have counterintuitive effects ○ Makes technology cheaper, Increases demand ○ Shift from coal to steam, fluorescent to LED, regular to inverter ACs Negative Production Effect ○ Efficiency-increasing technologies lead to more investments ○ Results in an increase in negative effects used in production ○ Solar cell manufacture and nitrogen trifluoride 17,000 times more harmful than CO2 ○ Biofuel and food Decrease in food supply → Increase in prices Green Conscience Phenomenon Ozzie Zehner People’s easy seduction by the promise of new clean-energy technologies Latching onto the belief that technological advancement is a cure-all Relying on technology is an illusion that we can live free and unchanged without any consequences to the environment Policy and Ideology Shifts Focus on policies that encourage less consumption Ban child advertising Redesign cities Protect forests, peats and wetlands, and restore degraded land Promote and support ocean farming “An integrated and balanced approach is most necessary”