Sustainable development has been widely discussed in the recent years. Yet, this issue dates back in time. The concept of sustainable development of economy and population on was first presented in economic literature by James Stuart Mill (1857). According to him, a static status is characterisc of a static population, operating with static capital.
Daly, H. contributed further to the understanding of sustainable development by relating it to a steady reserve of population and resources, at that, technical progress and population are presented as an integral part of environment. H. Daly recommended that population is stabilized by means of birth control (2 offspring per family) as well as resource control within reasonable limits by means allocation policy. This is the solution he offered to excessive consumption of resources, claiming that in this case environmental activities did not have to be controlled.
The Roman Club (1968) presented its solution to the issue of limiting the intensive use of natural resources in the report ”Limits to Growth”,which predicted extinction of humanity unless it ceased its development and changed its attitude to natural resources.
Other reports with more moderate and optimistic forecasts followed. Gradually, the theory of sustainability expanded beyond the limits of environmental economy. It acquired an interdisciplinary character by connecting multiple economic and non-economic sciences and posed the issue of resource allocation between generations that would make economic development a result of interaction of different forms of capital – natural, material and social.
-Material capital (Cm) is the material and technical foundation of economy. It comprises the machines, equipment, buildings, producing animals and perennial plants.
- Social capital (Cs) is the form of capital that includes society with its institutional organization and social values.
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