Chapter 12 To what extent can globalization bring sustainable
prosperity to all people? Sustainable Prosperity Challenges and
Opportunities
Slide 2
In this chapter we will explore answers to the following
questions: What is sustainable prosperity? What political and
economic challenges and opportunities are associated with
globalization? What choices are associated with sustainable
prosperity? Key Terms Sustainable prosperity Sustainable
development Knowledge economy Privatization Global Climate
Change
Slide 3
Sustainable Prosperity Challenges and Opportunities It is in
this chapter that we tie everything together and ask the question
To what extent can globalization bring sustainable prosperity for
all people?
Slide 4
Sustainable Prosperity Challenges and Opportunities Turn to
page 278 and 279. Examine the images and read the captions. Now
read the top three paragraphs on page 279
Slide 5
What does prosperity mean to the young people in these
photographs?
Slide 6
Sustainable Prosperity Challenges and Opportunities What is
sustainable prosperity? This term can mean different things to
different people. Turn to page 280 and read the two Voices boxes.
Here are two differing opinions on what it means to be sustainable
prosperous. We have seen that the predominant view of prosperity
connects it to free trade. Is this view still relevant today in
light of current knowledge of the environment and human
society?
Slide 7
Sustainable Prosperity Challenges and Opportunities How can we
measure prosperity? Gross Domestic Product: measures the total
economic output in a country. Gross Domestic Product Per Person:
measures the total economic output per person in a country.
Slide 8
Sustainable Prosperity Challenges and Opportunities What is the
problem with using GDP as a measure of prosperity? Turn to page 282
for an explanation of why GDP is not an accurate measure by
itself.
Slide 9
Sustainable Prosperity Challenges and Opportunities The Human
Development Index as a measure of prosperity. HDI is more complete
than GDP because it measures more than one aspect of prosperity
Longevity: life expectancy at birth Knowledge: school enrollment
and literacy Standard of Living: GDP per person What aspects of
prosperity are still missing from this measure?
Slide 10
Sustainable Prosperity Challenges and Opportunities
Slide 11
Slide 12
There is still no adequate tool to measure the sustainable
prosperity of a society, but some other ideas have been suggested.
Turn to page 285 and read the section entitled Other Measures of
Prosperity.
Slide 13
Sustainable Prosperity Challenges and Opportunities Reflect and
Respond List five non-economic factors that should be included in
determining a nations level of sustainable prosperity. Be prepared
to explain why you included them.
Slide 14
Sustainable Prosperity Challenges and Opportunities What
political and economic challenges and opportunities are associated
with globalization? The rapid expansion of globalization provides
many opportunities and challenges. The ideas of Friedrich Hayek and
Milton Friedman continue to create free markets and free trade that
create wealth (at least for a few) and limit the interference from
government.
Slide 15
Sustainable Prosperity Challenges and Opportunities There are
five basic challenges and opportunities that are offered by
expanding globalization. Economic Growth Trade Liberalization The
Knowledge Economy Privatization Foreign Investment
Slide 16
Sustainable Prosperity Challenges and Opportunities Economic
growth and sustainable prosperity Economic growth depends on the
production and sale of goods on an ever increasing scale of volume
and speed. Many economists believe that continuous economic growth
will lead to prosperity. There are problems with using this
criteria for determining prosperity. What are they?
Slide 17
Sustainable Prosperity Challenges and Opportunities Trade
Liberalization and Sustainable Prosperity The head of the IMF
believes that sustained trade liberalization will lead to
prosperity around the globe. Do you agree with him? Why? Trade
liberalization has made many people and countries very rich, but it
has left even more people behind in an ever increasing income
gap.
Slide 18
Sustainable Prosperity Challenges and Opportunities The
Knowledge Economy The knowledge economy refers to businesses and
people who use knowledge, research, education, new ideas and
information technology for practical purposes. This type of economy
has led to great advances. But it leaves poorer countries behind
because they cant afford the high tech expertise required.
Slide 19
Sustainable Prosperity Challenges and Opportunities
Privatization Another feature of rapid globalization is
privatization of services. Traditionally basic services were
provided by the government (Post offices, water, gas, electricity,
etc.). There is a push by those who agree with Hayek and Friedman
that these services should not be run by the government.
Slide 20
Sustainable Prosperity Challenges and Opportunities What do you
think the upsides would be to privatizing these services? What are
the drawbacks? Turn to page 292 and read about Privatizing
Water.
Slide 21
Sustainable Prosperity Challenges and Opportunities Foreign
Investment Globalization opens borders and countries are now open
to corporations and investors that come from other places. This may
increase business and productivity but it takes money out of the
host country to be spent or saved somewhere else.
Slide 22
Sustainable Prosperity Challenges and Opportunities What
choices are associated with sustainable prosperity? There is
considerable debate around the world on how to create sustainable
prosperity The ultimate success or failure in these areas will
depend on the choices made by international organizations,
governments, industry, and individuals.
Slide 23
Sustainable Prosperity Challenges and Opportunities There are
two aspects to sustainable development. The sustainability of the
human population. The sustainability of the environment.
Slide 24
Sustainable Prosperity Challenges and Opportunities The
sustainability of the human population can be summed up by the UNs
Millennium Development Goals. Turn to page 294
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Sustainable Prosperity Challenges and Opportunities
Slide 26
The primary threat to the sustainability of the earths
environment is Climate Change. Turn to page 295
Slide 27
Sustainable Prosperity Challenges and Opportunities