Concept of Sustainable Development

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Thus, it takes into account both the present and future generations without over exploitation of natural resources and environmental degradation.

Features of Sustainable Development:

Sustained Rise in Real Per Capita Income

There should be a sustained rise in real per capita income and economic welfare on long term basis.

Rational Use of Natural Resources

Sustainable development simply means that natural resources should be rationally used in a manner such that they are not over exploited.

Preserving the natural resources for future generations

Sustainable development aims at making use of natural resources and environment for raising the existing standard of living in such a way as not to reduce ability of the future generations to meet their own needs.

Strategies for Sustainable Development

Sustainable development depends on optimum utilisation of resources and in a manner such that the pace of economic growth is sustained with inter-generational equity.

• Efficient Technology: Use of production technologies which are input efficient. It means more is produced per unit of input.
• Use of Environment-friendly Sources of Energy: promotion of wind energy, solar energy and other environment friendly sources of energy in place of fossil fuels.
• Promotion of Organic Farming: Adaption of chemical free agriculture.
• Recycling of the Wastes
• Stringent Laws on the Disposal of Chemical Effluents
• Creation of awareness to conserve natural assets for inter-generational equity
• Public Means of Transport: Public means of transport are to be rapid, comfortable and economical.

Measurement of Sustainable Development

The measurement of sustainable development is done in terms of two different aggregates

Green Net National Income

It is the difference between Net National Income and Depreciation of Natural Capital. Net National Income is the market value of the final goods and services produced by the residents of the country during the period of one year. Depreciation of Natural Capital meansloss of value of the capital because of its continuous use. Natural capital refers to the sum total of natural resources including environment.

Green Net National Income = Net National Income − Depletion of Natural Resources − Environmental Degradation.

Sustainable development is to be measured in terms of the rise in Green National Income.

Genuine Savings

The genuine savings are the rate of savings adjusted not only for depreciation of man-made capital but also for loss of value of the natural capital.

Genuine Savings = Gross Savings − Depreciation of Manmade Capital − Depreciation of Natural Capital (Depletion of Natural Resources and Degradation of Environment).

Increase in Genuine Savings implies higher rate of sustainable development and vice versa.