Posts Tagged ‘development’

working 9-5

November 9, 2009

feel good with your work-life balance?

think that work has too big a part in your life? your identity?

bought a nice lamp from this store in Venezia. in the part where locals live.

check out the store hours. works every day. monday-friday 5 in the evening to 8:30. when people come back from work? perhaps.

on weekends, both saturday and sunday 3-8:30. longer hours. hey, this guy works 7 days a week!

seems to me this guy has figured things out that we hi-tech savvy people have not. ( for other references to us champagne socialists take a look at this post). i bet you he will work till he is 75. you should have seen the smile on his face too.

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the bridge at the edge fo the earth

October 15, 2008

discussion with author on his book, the bridge at the edge of the earth

can capitalism sustain the environment? can the environment sustain capitalism?

key takeaways:

  • why ‘green’s are not effective: change from within the system will not work. must change the system.
  • we live in corpo-tacracy – corporates rule.
  • GDP as a poor measure of progress: growth in money supply can be reflective of a loss of well-being: that lacks of essential natural and social services were being paid for in cash and that this was expanding the economy but degrading life
  • the ability of nature to provide services
  • US would be much more secure if it had half the power.
  • over-silo specialization creates ineffectiveness and experts with no common space. this can have a spillover effect to private-public sphere. fudraising could be a reason for a multitude of 1-casue organizations. this survival by fragmentation, differentiation and niche development causes inefficiency and inter-broker co-ordination problems resulting in incoherency.

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must see movie documentary. ‘the corporate’. corporates are sociopaths. book by UBC professor bakan. read review. if corporate was a person it would be:

    • Irresponsible – it puts others at risk in pursuit of its own goals.
    • Manipulative – it manipulates people an opinion in pursuit of its goals
    • Grandiose – it always insisting that it is the best
    • Reckless – it refuses to accept responsibility for its actions
    • Remorseless – it cannot feel remorse
    • Superficial – it relates to others always in a way that does not reflect their true selves
    • Put this all together, and you have a psychopath.

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only major success to today is CFC

ozone was depleted greatly before that effect was discovered, and it was discovered by accident.

Key terms and ideas:

Leiserowitz, values attitude and behavior discuss five value required for sustainability and has some good graphs and notions

the genuine progress indicator (GPI). modify gdp according to welfare.

  • The GDP vs the GPI is analogous to the difference between the Gross Profit of a company and the Net Profit; the Net Profit is the Gross Profit minus the costs incurred. Accordingly, the GPI will be zero if the financial costs of crime and pollution equal the financial gains in production of goods and services, all other factors being constant.
  • if policymakers measure what really matters to people—health care, safety, a clean environment, and other indicators of well-being—economic policy would naturally shift towards sustainability.

According to Lawn’s model (no wiki, University of Southern Australia), the “costs” of economic activity include the following potential harmful effects:

  • Cost of resource depletion
  • Cost of crime
  • Cost of ozone depletion
  • Cost of family breakdown
  • Cost of air, water, and noise pollution
  • Loss of farmland
  • Loss of wetlands

income vs capital depletion

Hicks (1946) pointed out that the practical purpose of calculating income is to indicate the maximum amount people can produce and consume without undermining their capacity to produce and consume the same amount in the future. From a national income perspective, it is necessary to answer the following question: ‘‘Can a nation’s entire GDP be consumed without undermining its ability to produce and consume the same GDP in the future?’’

enjoyment of life vs production of goods

Fisher (1906) contended that “economic welfare depends on the psychic enjoyment of life,” not just the production of goods.

an interesting measure of environmentally friendly countries is misnamed – happy planet index. take a look at rankings. surprising. perhaps we should travel to countries according to this index.

i dream of gini

October 8, 2008

discussion with Gustav Ranis. leading development economist who helped build HDI. not wikipedia entry. maybe i should create one.

key takeaways:

balanced growth (diversification) driven by strong agricultural growth. p (see below) should grow, people should be absorbed.

dutch disease – in foreign aid donor countries want to give aid, recipients are eager to receive. money flows fast. little reason for change.

dutch disease is an economic concept that tries to explain the apparent relationship between the exploitation of natural resources and a decline in the manufacturing sector combined with moral fallout.

protection of infant industries is addictive. botswana and diamonds is interesting case study. can they move upstream? not many cases of success

you can eat the cake and keep it two- growth with labor intensive jobs eliminates poverty and keeps income distributions fair

poverty lines are poor measurements – they are set low. can mis-align focus on crossing the line.

remittances, especially domestic ones are under researched

see also:

http://www.econ.yale.edu/~granis/papers/Causal-Chain-between-HD-and-EG.pdf“Causal Chain between Human Development and Economic Growth,” HD Insights, March 2007, Issue 6.

http://www.econ.yale.edu/~granis/papers/human-develop-poverty-2006.pdfHuman Development: Beyond the HDI,” with Frances Stewart and Emma Samman in Poverty in Focus, Dec 2006, pp.12-14.

Composition of Human development index and related indices explained: http://hdr.undp.org/en/humandev/hdi/

Key terms:

MEG – modern economic growth

classical theory, new growth theory. new classical school (chicago school)

there should be an agricultural revolution prior to an industrial revolution

urban informal sector – agriculture surplus of labor moving into urban area, not finding a job. provide low level services (watch your car for a cigarette) and are income sharing – bring some money back home for people to eat – not real income earners – often supported by family back in rural area

see works of simon kuznets 1971 economics noble on economic development

if you are not familiar with HDI, please take a look

human development index (HDI)

growth is necessary but not sufficient. GDP

rather than measuring income, measure what income can buy:

education

health

infant mortality rate (IMR)

inequality and income distribution

some countires who have done well, do it post tax, not pre-tax (scandinavian)

inequality as measured by gini coefficient:

who gets the benefits of growth? gini coefficient.

why is gini (ineqaulity increasing)

taiwan is an exception. chimneys in the countryside. labor intensive non-agriculture.

labor intensive agriculture means lower gini.

industrialization is less equally distributed. higher gini

strong natural resources. elite gets a hold. uses is as they like. higher gini

education is a key role, primary, secondary and tertiary.

see also Kuznets curve is the graphical representation of Simon Kuznets‘s theory (‘Kuznets hypothesis’) that economic inequality increases over time while a country is developing, then after a critical average income is attained, begins to decrease.

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agricultural Surplus and its uses

L= V+B

Labor= V people still in agriculture + B people out of agriculture

p=Qa/V

p (population increase)

c=Qa/L

consumption (assumed average)

O= B/L

theta is amount of people out of agriculture.

1-O= V/L

p=Lc/L(1-O)= c/(1-O)

so if there is growth, how is it distributed. consuption adjustment and allocation adjustment