new views of trade and sustainable development using sen’s conception of development to re-examine...
TRANSCRIPT
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New Views of Trade and Sustainable Development
Using Sen’s Conception of Development to Re-Examine the
Debates
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Introduction How do we currently conceive of
development?
What is Sen’s conception of development?
How does Sen’s conception impact on trade and SD debates?
What policy options?
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Trade & Environment: Two current models
Trade as great destroyer– Scale, direct and regulatory impacts
Trade as saviour– Liberalization = growth = improvements
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Trade and Sustainable Development
A better framework than trade and environment, because:– Politically: allows dialogue– Morally: recognizes poverty-growth needs– Instrumental: neither economy nor
environment can go it alone
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Have We Got it Right?
Too much research on trade and sustainable development relies on the implicit linkage:– Liberalization = economic growth = (if we
are careful) environmental improvement
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Sen’s Concept: Development as Freedom
Individuals as agents of social change “Greater freedom enhances the ability of
people to help themselves and also to influence the world.”
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Types of Freedom Political freedoms/civil rights (e.g., free speech,
elections) Economic facilities (e.g., opportunities for
participating in trade and production, access to credit) Social opportunities (e.g., socially provided education
and health facilities) Transparency guarantees (e.g., openness in
government and business) Protective security (e.g., social safety net)
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Development as Freedom
Each individual has a capability set: the set of desirable things that they are able to achieve.
Function of both processes (institutions) and opportunities.
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Development as Freedom
Development aims to expand the capacity of individuals through the
provision of freedoms.
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Incomes and Markets
Disposable income greatly expands the capability set, but is not development (is a rich slave content?)
Poverty as lack of choices, abilities to fulfill needs. Wealth only one avenue.
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The Role of Environment
Environment is also an important constituent of well-being.– Resource base– Environmental services– Degradation is freedom-inhibiting: health
problems, disasters.
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Trade and Sustainable Development
Liberalization is one element Too often placed higher in priority than
other important development goals Domestic institutions are important as
complements
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Institutions for Trade (Rodrik)
Property rights Market regulatory institutions Macroeconomic stabilization Social insurance/safety net Conflict management/rule of law
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Sustainable Development Through Trade
What are trade’s impacts on domestic institutions? (research, capacity important)
Impacts on other freedoms is important (regulatory impact, priority and sheer cost)
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Policy Options
Better tailored liberalization Linkages between WTO and other
organizations
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Conclusions
For environment: only one of a set of relevant concerns
For trade: understand non-economic impacts; focus on strengthening institutions
For TKN: broaden scope of analysis