As more countries tend to develop and grow, the more negative aspects and concerns tend to arise. Aspects such as pollution and environmental degradation, cause damage to our society and environment. Pollution is “the act or process of polluting or the state of being polluted, especially the contamination of soil, water, or the atmosphere by the discharge of harmful substances” [www.dictionary.com]. Degradation can be defined as poverty or suffering dreadful conditions. Once more the “clash of opinion” [Alan Glanville] over development versus growth will be mentioned in this paper.
The concern As population increases the environment can be degraded, through putting too much pressure on the land. In parts of Africa, Latin America and Asia one of the major problems is the soil erosion, since people need marginal land for farming, they move to live on the hills. In order to fabricate fuel, forest cover has to be cut and therefore trees go lost. There are much more trees cut, than planted as stated by Alan Glanville. Desertification is another significant problem.
Desertification means “the transformation of arable or habitable land to desert, as by a change in climate or destructive land use” [www.dictionary.com]. The land is overgrazed by animals. “An area the size of Ireland is lost to desert every year in this way” [Alan Glanville]. Another example of rapid population growth is the over-fishing of lakes and rivers. People, animals and fish reproduce way too quickly and too much to be able to keep the damage in the environment down. This is also due to the pollution in our society, and to the goal of people to raise our standards of living.
The serious international environmental consequences of depleting the ozone layer and of global warming are, however, first and foremost the creation and responsibility of the industrialised countries says Alan Glanville. The use of ozone depleting CFCs is correlated with National Income and the most per cent of all fuel is used and burnt by 20% richest people. This is a major problem in rich countries, which should be dealt with urgently. If or when LDCs rapidly grow, the pollution status will increase by a multiple.
China is an example of that increase. As stated in Glanville, China contains over 500 bicycles for every car, though only 10% of Chinese households own a refrigerator. China is known as the fastest growing country in the world. As people will to raise their standards of living, they do not consider that with an extra unit produced our society and environment is effected in a negative way. Such as if more cars, more ships, trains or planes are produced, that pollute our system and air, this shows the negative aspects of development.
The belief over development versus growth is one of the most “fundamental” in the study of development economics. During development improvements are included which are distributed throughout the population. Which means that income is distributed more or less evenly. Growth is usually considered to be better than development, and given more precedence. The argument goes further, where investment and savings, are more likely to follow from an unequal income distribution. Poor people tend to have a high marginal propensity to consume, whereas rich people save.
In early 2001, Britain’s offshore energy exploitation reached a midway point with 24 billion barrels extracted and an estimated 24 billion to come. The remaining oil fields will be difficult work – only 36 blocks from the 300 available in the 20th Offshore Licensing Round were applied for. Oil prices fell until recently and the various mergers that this prompted also reduced exploration in the North Sea. Despite current rising prices, their instability is not easing the difficulties of smaller, more inaccessible fields that await exploitation. The bad news for the sector include the cost rises which are due to the labour shortages. That there is an ageing workforce. There is less focus on cost reductions due to high oil prices, since also UK costs are second highest in the world.
An externality is an activity which affects people both negatively and positively. Negative externality affects people negatively. Pollution is an example of negative externalities, as well as an example of negative aspects of development. People that use cars and pollute the atmosphere, cause a damage to out environment, even though they don’t pay enough for polluting. PMC is the private marginal cost which includes private costs. The firms pay for the cause of pollution. Whereas when the second supply curve is caused the social marginal cost is shown, where the social societies pay for the pollution, the polluter pays as well. SMB shows the social marginal benefit which the society gets from the good. Kyoto is an arrangement to solve the problem.
Production Possibility Frontier (PPF)
The Production Possibility Frontier from point D to G, shows economic growth. Economic growth and economic development are very relative to each other. Growth involves development, where there is growth there is also development. From G to D there would be anti-growth or negative aspect of economic development, which would also cause a decrease in national output.
The more economic development will occur, with it there will be more negative aspects to it. Of course it is good to have high standards of living, though people must also see the damaging sides to the well being.