A2 Economics - F585 June 2013

I really think the 20 marker is going to be on sustainable development indicators as it fits so well with the last extract

Could any one help me with the benefits and disadvantages of during the EU not the euro zoneeuro zone

Is everyone learning/ has everyone learned the role of the IMF and World Bank as a possible 4 mark question?

Here you go

Sustainable Development Indicators Pros and Cons
Sustainable Estonia 21:
Pros:
•Very detailed – can pinpoint exactly where development is needed with 78 indicators.
•Links in with EU’s Sustainable Development Strategy – things such as the viable cultural space and social inclusion are linked, so national target setting is integrated into regional target setting. Teaching Estonian ancestry and heritage would bring the society closer together and could make them more happy as a labour force under a common identity.
•Climate change and clean energy – shows non-economic development indicators that helps the environment by becoming more sustainable due to using greener forms of energy.

Cons:
•Too detailed – maybe there are too many areas to develop, meaning that development might not be sustainable in the long run.
•Teaching Estonian culture – might be seen as a bad thing because Estonia vows for a ‘viable cultural space’. In teaching Estonians about their past traditions and culture, it might lead immigrants who aren’t of Estonian origin (like the large number of Russian immigrants) to feel isolated and ignored, leading to conflict and tension and therefore opposing a ‘viable cultural space’.
•Targets without policy – targets are good as long as government policy meets the target. If the government policy does not meet the target then the development is not good.

Human Development Index (HDI):
Pros:
•Focuses on sustainable development rather than economic growth.
•Shows how differing country policies affect HDI – countries with the same GDP per capita could have varying HDI levels.
•Takes into account the standard of living – different countries will have their HDI measurement affected due to varying GDP levels, so the indicator is adjusted to take this into account.

Cons:
•Only focuses on three aspects of development and therefore doesn’t give a full picture of development in that country.
•No economic or social justification to the weighing of the components – different weightings of the components will lead to different HDI measurements and how HDI changes over time.
•Opportunity cost – in order to promote sustainable development in one area, there will be an opportunity cost of the resources in another indicator. E.g. Estonian development in schools for better education could mean that there is less spending on Estonian hospitals, meaning that the general health of the population is not improved.
•Doesn’t indicate the quality of the non-economic factors – better quality of healthcare and schooling will obviously lead to better development in the long term, but HDI doesn’t account for this and only tells of how much development there is.

Index of Sustainable Economic Welfare (ISEW):
Pros:
•Takes into account the extent of externalities and subtracts it to make sure a purer figure is reached.
•Adds measurements that include the quality of life
•Reduces anything that results in a poorer standard of living

Cons:
•Choice of component – selects specific things which might not change the indicator a lot, or might leave out other useful indicators.
•Weighting given – the weighting of one indicator/component might be more than another indicator/component and therefore different weightings produce different outcomes.
•Monetary values placed on components – difficult to put a monetary value on an externality because the true cost of the externality is not always known.

What do u mean by sustainable development 'indicators' ?


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Yes, just in case. My College put it as a question on the mock. They think it is a likely 4 marker. It really doesn't take long to learn it compared to some stuff, every potential mark counts.

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Thankyou so much that has really helped!

Thank you so much; I really appreciate this - good luck for your exam!

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What could the question be though?

maybe cause of bad education and no skills?[/QUOTE

One possibility is the large income inequality between Tallinn and other less developed/rural areas, thus these people may find it difficult to enter the labor force (occupational/geographical immobility) you could also bring the argument of relative poverty with your answer.

hope that helps

I'm gonna leave this thread alone now, it's just making me worried about what could come up that I haven't revised. I'm sure some people are going into far too much detail as well. Better safe than sorry, I suppose.

Intro: define sustainability and development. Points that Estonia has progressed: Good infrastructure (increased productivity), well educated and trained labour force, spending on innovation Points that they have not progressed: inefficient use of non-renewable resources, social and economic differences between Tallin and other regions of Estonia (lack of social cohesion) (and can use a Lorenz curve here), one of the lowest rating EU states for health. Conclusion: your judgement Hope this helps

Quick Question: why is solving income inequality (e.g. in terms of having a progressive tax) a sustainable policy?