SEJARAH PEMIKIRAN EKONOMI
Prof. Jamal
Pemikiran Ekonomi Sustainomics
Latarbelakang
• Economic Growth vs Economic Development
– Economic growth – reflected by GDP (quantity) indicator
– Economic development – qualitative aspects (e.g income per capita, quality of
life indicators)
• Sustainable Development
– Development that meets the needs of the present generation as well as the
needs of future generation
– Such a development requires the balanced treatment/consideration of social,
ecological and economic dimensions
– No one dimension is more important than the other
• Background of Sustainable Development concept
– Development experiences of countries - high economic growth does not always
lead to trickle down effects in terms of poverty and income gap reduction
– High economic growth that leads to ecological and social degradation will not be
sustainable
– Importance of ecological resiliency – to provide inputs for economic processes,
waste sink and natural amenities
– Sustainomics – sustainable economics and business (coined by Prof Mohan
Munasinghe)
SUSTAINOMICS - Proposed Approach
for Malaysia
Prof. Mohan Munasinghe:
Adopt the balanced development concept—“Integrated
Solutions for Sustainomics”, i.e. apply “Sustainomics”
framework for more sustainable economic development-combination of sound economic policy management to address
vulnerabilities and risks for stability in economic growth, social
framework of governance, inclusion and institutional values,
and building environmental resilience through adopting
concepts on bio-diversity, optimizing rewards from natural
resources and eliminating pollution.
TOKOH
•
•
•
•
•
•
Herman E. Daly
David W. Pearce
Karl-Goran Maler
Partha Dasgupta
Jeffery Vincent
Mohan Munasinghe
SUSTAINABLE DEVELOPMENT –
THE IN THING
Economic
Management:
Growth, Efficiency,
Stability
Sustainable
Development:
Social
Empowerment:
Inclusiveness,
Governance, Social
and Moral Values at
Individual and
Institutional Levels
Growth with
economic stability,
environment
protection
Environment:
Resilience, Optimise
Natural Resources,
Address Pollution,
Make environment
key component of
policies
SUSTAINABLE DEVELOPMENT WORLDVIEW
Economy
3
1
Submission
to God
Interlinkages:
1. Intragenerational Equity
2. Intergenerational Equity
3. Internalizing Environmental
Externalities
* Environmental Policies
* Economywide Policies
* Environmental Valuation
Environment
Social
2
Enablers of SD
Efficient Monetary/Financial
System, Good Governance,
Politics, Institutions, Knowledge,
Technology
SYSTEMS APPROACH TO AGRICULTURE –
implication of Sustainomics
Agriculture Multi-functionality
Food and Fiber (marketed
benefits)
Multi-functionality (non
marketed benefits)
 Environmental Function
 Education Function
 Social Function
 Food Security Function
 Cultural Function
 Biodiversity
Farmers/
Consumers
Society at large
THE NEW ECONOMIC MODEL
(traits of Sustainomics)
Mindset change is paramount – from partial (self-assertive) to
system-wide thinking and values (integrative)
LIVING BEYOND OUR MEANS?
 If you live within your means, you plan to be better off in
the future
 Similarly, to maintain future well being, countries must
operate within her means
 Fallacy of GDP measure?
– Does not reflect welfare or true performance of an
economy
–
It measures only the benefits of resource use
– Depletion of natural and man made capital ignored.
Likewise, environmental impacts
– Does not reflect whether our economy is growing
sustainably
 Appropriate national income (GDP) - the level of income
that can be consumed without depleting our capital assets
(natural + man made) -> Green GDP
Alternatives to GDP Measure
 Green GDP = GDP - Dm - Dn - E;
where;
Dm = depreciation of man-made capital
Dn = Depletion of natural capital
E = environmental costs
Formally known as Adjusted Net Domestic Product
(ANDP)
 Gross Savings –> GDP minus public and private consumption. How much
income we set aside for future use? Does this tell anything about
sustainability of economic growth? How about Genuine Savings?
Holistic Project/Policy Appraisals
• Conventional vs Extended Social BCA
• Decision rules in CBA
• Notion of Environmental Values
– Use Values (UV)
• Direct Use Values
• Indirect Use Values
–
–
–
–
Option Values (OV)
Bequest Values (BV)
Quasi Option Values (QOV)
Existence Values (EV)
• Total Economic Values (TEV) = UV + OV +BV +QOV +EV
EXTENDED SOCIAL BENEFIT COST ANALYSIS
n
NPV =
NPV
Bt
Ct
Dt
Et
r
t
[(B
t=0
=
=
=
=
=
=
=
n
t
- Ct)/(1+r)t] +
[(D
t=0
t
- Et)/(1+r)t]
Net Present Value
Marketed (financial) benefits in year t
Financial Costs in year t
Non-marketed benefits in year t
Non-marketed costs in year t
social discount rate
time (year)
• Project desirable economically if NPV > 0.
• If Dt and Et are ignored, with NPV >0, only desirable from the market/financial
perspective -> not consistent with sustainability
• Conventionally, Bt and Ct are mainly Direct Use Values
Emerging Macroeconomic
issues in Malaysia
(1) Shift towards more localized approaches
(2) Addresses inequalities and social needs
(3) Promote more competition, innovation, entrepreneurship
and private sector-led development
(4) Strengthening regional and cultural links especially with
India, China and the Gulf
(5) Make better use of the existing production base in
manufacturing and natural resources
(6) Measures of macro sustainability