16.6 Considering Poverty, Inequality, and the Environmental Crisis
3 min read•june 18, 2024
's focus on growth often leads to environmental degradation and . Poor communities face more environmental risks, while lacking resources to resist. This creates a cycle where and environmental issues reinforce each other, highlighting the need for systemic change.
Economic policies and technology can both help and hurt reduction efforts. While some approaches reduce inequality, others may exacerbate it. The debate between and offers different visions for addressing these interconnected challenges.
Poverty, Inequality, and Environmental Issues in Capitalist Systems
Interconnections of poverty and environment
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- Capitalist systems prioritize economic growth and profit maximization
- Leads to exploitation of natural resources (, mining) and disregard for environmental consequences (pollution, )
- Concentrates wealth and power in the hands of a few (corporations, wealthy individuals)
- Inequality exacerbates poverty and environmental degradation
- Low-income communities often bear the brunt of environmental hazards
- Lack political and economic power to resist polluting industries (factories, landfills)
- Have limited access to clean air, water, and green spaces (urban slums, rural areas)
- concerns arise from unequal distribution of environmental risks and benefits
- Low-income communities often bear the brunt of environmental hazards
- Poverty and environmental issues are mutually reinforcing
- Environmental degradation limits economic opportunities (loss of agricultural land, depleted fish stocks) and perpetuates poverty
- Poverty leads to unsustainable practices for survival needs (deforestation for firewood, poaching)
- intensifies competition and conflict over remaining resources
Economic Policies, Technology, and Global Poverty
Economic policies and global poverty
- Economic policies influence the distribution of wealth and resources
- and programs reduce inequality and poverty
- Trade policies and create both opportunities and challenges for developing nations
- Provide access to global markets and foreign investment
- Potentially exploit and displace local industries (small farmers, artisans)
- Technological advancements can contribute to poverty reduction efforts
- Improved agricultural techniques () and crop varieties (drought-resistant seeds) increase food security
- Access to information and communication technologies enhances education and economic opportunities (mobile banking, online learning)
- However, technological progress can also exacerbate inequality
- Unequal access to new technologies and digital infrastructure ()
- Automation and job displacement particularly affect low-skilled workers (manufacturing, agriculture)
Addressing Environmental Challenges: Degrowth vs. Sustainable Development
Degrowth vs sustainable development
- approach
- Calls for reducing economic output and consumption levels
- Emphasizes quality of life and environmental sustainability over GDP growth
- Challenges the notion of infinite economic growth on a finite planet
- Proposes redistributing wealth and resources, reducing work hours, and localizing economies
- Sustainable development approach
- Aims to balance economic growth with social and environmental considerations
- Promotes efficient use of resources and adoption of clean technologies (renewable energy, green infrastructure)
- Emphasizes importance of international cooperation and partnerships (, )
- Seeks to decouple economic growth from environmental degradation through innovation and policy reforms (, )
- Comparing the two approaches
- Degrowth offers a more radical critique of the current economic system and its environmental impact
- Sustainable development is more widely accepted and compatible with existing institutions and policies
- Both approaches recognize the need for systemic change and a shift towards more equitable and sustainable societies (reducing inequality, protecting ecosystems)
Economic and Environmental Considerations
Income distribution and environmental impact
- affects consumption patterns and ecological footprints
- Higher-income individuals tend to have larger ecological footprints due to increased consumption
- can influence environmental attitudes and behaviors across socioeconomic groups
Economic externalities and intergenerational equity
- Many environmental costs are not reflected in market prices ()
- Current economic activities may have long-term consequences for future generations ()
- Addressing these issues requires policy interventions and a shift in economic thinking
Key Terms to Review (40)
Bono: Bono, the lead singer of the Irish rock band U2, is widely recognized for his activism in the fight against poverty, inequality, and for environmental sustainability. His efforts include raising awareness, mobilizing resources, and engaging with political leaders globally to address these critical issues within the framework of international political economy.
Capitalism: Capitalism is an economic system in which private individuals rather than the state own and control property and businesses, operating for profit. Under capitalism, the production, distribution, and prices of goods and services are determined primarily by competition in a free market.
Capitalism: Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. It is characterized by the accumulation of capital, competitive markets, and the motivation of producers to maximize their wealth.
Carbon Pricing: Carbon pricing is an approach to addressing the environmental crisis by placing a monetary value on the emission of carbon dioxide and other greenhouse gases. It aims to incentivize individuals, businesses, and governments to reduce their carbon footprint and adopt more sustainable practices.
Circular Economy: A circular economy is an economic system that aims to eliminate waste and the continual use of resources. It is based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.
Climate Change: Climate change refers to long-term shifts in global or regional climate patterns, primarily driven by human activities that release greenhouse gases into the atmosphere, trapping heat and altering the Earth's temperature and weather patterns. It is a complex, multifaceted issue that has far-reaching environmental, economic, and social implications.
Deforestation: Deforestation is the process of clearing or removing trees and forests, often for the purpose of converting the land to other uses such as agriculture, urban development, or resource extraction. It is a significant environmental issue with far-reaching consequences.
Degrowth: Degrowth is a political, economic, and social movement aimed at reducing a country's overall production and consumption to achieve sustainability and address issues like poverty, inequality, and the environmental crisis. It challenges the traditional focus on economic growth as a measure of progress by advocating for a downscaled economy that prioritizes ecological health and human well-being.
Degrowth: Degrowth is a political, economic, and social movement that advocates for the deliberate reduction of economic production and consumption, with the goal of achieving environmental sustainability, social equity, and overall well-being. It challenges the dominant paradigm of perpetual economic growth as the primary measure of progress and societal development.
Digital Divide: The digital divide refers to the gap between those who have access to and the ability to use digital technologies, and those who do not. This disparity can lead to social, economic, and educational inequalities as digital technologies become increasingly integrated into daily life and essential for participation in modern society.
Downton Abbey: Downton Abbey, in the context of International Political Economy within the subject of Introduction to Political Science, can be seen as a representation of the social hierarchy and economic disparities prevalent in early 20th century Britain. It showcases the interconnectedness of wealth, political power, and social status, highlighting issues of poverty, inequality, and environmental concerns through its depiction of both the aristocracy and their servants.
Drip Irrigation: Drip irrigation is a highly efficient water delivery system that slowly and directly applies water to the root zone of plants, minimizing water waste and maximizing plant uptake. This method is particularly useful in the context of addressing poverty, inequality, and environmental concerns.
Ecological Footprint: The ecological footprint is a measure of the impact human activity has on the environment. It represents the amount of land and natural resources required to sustain a given population's lifestyle and consumption patterns. This concept is closely tied to the idea of sustainability and the right to a healthy environment, as well as the connections between poverty, inequality, and environmental degradation.
Economic Externalities: Economic externalities refer to the unintended positive or negative consequences of economic activities that affect third parties not directly involved in the transaction. These spillover effects can impact individuals, businesses, or the environment, and are not reflected in market prices.
Environmental Justice: Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. It aims to ensure that no group of people bears a disproportionate burden of environmental harms and that all communities have access to a healthy environment.
Gates: In the context of International Political Economy, "Gates" metaphorically represent barriers or entry points that regulate the flow of resources, goods, and services between countries, affecting poverty, inequality, and environmental sustainability. They can include tariffs, trade laws, and environmental regulations that either facilitate or hinder economic activities across borders.
GDP (Gross Domestic Product): GDP is the total monetary value of all the finished goods and services produced within a country's borders over a specific period, typically a year. It is a widely used metric for measuring the size and health of a nation's economy.
Globalization: Globalization refers to the increasing interconnectedness and interdependence of the world's economies, cultures, and populations driven by the expansion of international trade, investment, and communication. It is a multifaceted process that has profound implications across various aspects of political, economic, and social life.
Globalization Introduction,: Globalization is the process through which businesses, ideas, and cultures spread around the world, creating a more interconnected and interdependent global economy. It involves the increasing interaction among governments, companies, and people across international borders.
Greenhouse gases: Greenhouse gases are gases in Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming. They include carbon dioxide, methane, nitrous oxide, and fluorinated gases, significantly impacting climate change.
Income Distribution: Income distribution refers to the way in which the total income of a society or economy is divided among its members. It is a measure of the degree of inequality or disparity in the incomes of individuals or households within a population.
Inequality: Inequality refers to the unequal distribution of resources, opportunities, and outcomes among individuals or groups within a society. It encompasses disparities in areas such as wealth, income, education, health, and social status, and can have far-reaching implications for economic, social, and environmental well-being.
Intergenerational Equity: Intergenerational equity is the concept that the current generation has an ethical responsibility to protect the environment and natural resources for the benefit of future generations. It emphasizes the need to consider the long-term consequences of our actions and ensure that the quality of life and access to resources are maintained or improved for generations to come.
Intergovernmental Panel on Climate Change (IPCC): The IPCC is a United Nations body responsible for assessing the science related to climate change, providing a scientific basis for governments at all levels to develop climate-related policies. It compiles and synthesizes vast amounts of research data to inform global action on mitigating the impacts of climate change.
Jobs: Jobs are positions of employment within organizations, companies, or within the economy at large, where individuals offer their skills or labor in exchange for compensation. They play a crucial role in determining economic stability and growth, influencing poverty levels, inequality rates, and contributing to environmental impacts through industrial activities.
Paris Agreement: The Paris Agreement is an international treaty adopted in 2015 that aims to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit it to 1.5°C. It serves as a framework for global action on climate change, with countries setting voluntary targets to reduce greenhouse gas emissions and adapt to the impacts of climate change.
Poverty: Poverty is the state of having insufficient financial resources to meet basic living expenses such as food, clothing, and housing. It is a significant challenge within the international political economy, contributing to inequality and environmental degradation.
Poverty: Poverty is a state of economic deprivation where individuals or households lack the financial resources and access to basic necessities such as food, clean water, shelter, healthcare, and education. It is a complex issue that intersects with various social, political, and environmental factors.
Progressive Taxation: Progressive taxation is a system where the tax rate increases as the taxable income increases. This means that individuals with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes.
Resource Scarcity: Resource scarcity refers to the limited availability of natural resources, goods, or services that are necessary for human survival and well-being. It is a fundamental concept in the study of economics, environmental science, and development studies, as it highlights the challenges societies face in managing and distributing finite resources.
Sachs: In the context of International Political Economy, particularly when considering poverty, inequality, and the environmental crisis, Sachs refers to Jeffrey Sachs, an economist known for his work on sustainable development, poverty alleviation, and debt relief for developing countries. His approach emphasizes the interconnectedness of economic development with environmental sustainability and global equity.
SDGs: The Sustainable Development Goals (SDGs) are a collection of 17 interlinked global goals designed to be a 'blueprint to achieve a better and more sustainable future for all'. They were adopted by the United Nations General Assembly in 2015 and are intended to be achieved by the year 2030. The SDGs are central to addressing issues of poverty, inequality, and the environmental crisis.
Social Mobility: Social mobility refers to the movement of individuals or groups within a social hierarchy, either upward or downward, in terms of socioeconomic status, occupation, education, or other measures of social position. It is a key concept in understanding the dynamics of social inequality and the opportunities available to individuals and groups within a society.
Social ownership of the means of production: Social ownership of the means of production is an economic system where the resources and tools used to produce goods and services are collectively owned by society rather than individual private owners. This concept emphasizes a shared control over production assets, aiming to distribute wealth more equally and address issues of poverty and environmental degradation.
Social Welfare: Social welfare refers to the system of government programs and policies designed to provide basic social and economic security for all members of a society. It aims to address issues of poverty, inequality, and the environmental crisis by ensuring access to essential services and resources.
Sustainable Development: Sustainable development is a concept that emphasizes meeting the needs of the present without compromising the ability of future generations to meet their own needs. It involves balancing economic, social, and environmental considerations to ensure long-term prosperity and well-being for all.
Sustainable Development Goals (SDGs): The Sustainable Development Goals are a global collection of 17 interlinked goals designed to be a "blueprint to achieve a better and more sustainable future for all" by 2030. These goals were adopted by all United Nations Member States in 2015 as part of the 2030 Agenda for Sustainable Development.
The End of Poverty: The End of Poverty signifies a global condition where extreme poverty has been eradicated, allowing all people to meet their basic needs such as food, water, shelter, education, and healthcare. It involves sustainable solutions that address the root causes of poverty and inequality within the international political economy.
Urbanization: Urbanization is the process by which rural areas become more industrialized and populated, leading to the growth of cities and urban centers. It is a key demographic and social transformation that has significant implications for poverty, inequality, and environmental sustainability.
Wages: Wages are the regular compensation paid to employees by employers for the work or services they provide during a specified period. This form of payment is a crucial aspect of the employment relationship and varies based on factors like industry, role, experience, and location.