Sustainable development

Indian Economy glossary

Also called: Sustainability of development, sustainability · Topic: Environment and Sustainable Development · NCERT: Class 8, Ch 7 "Factors of Production"; Class 9, Ch 8 "Building Blocks in Economics: The Problem of Choice"; Class 9, Ch 9 "The Price Puzzle: What Drives the Market"; Class 10, Ch 1 "Development"; Class 11, Ch 5 "Rural Development"; Class 11, Ch 7 "Environment and Sustainable Development"

Meaning

Sustainable development is "development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs". This definition comes from the World Commission on Environment and Development (WCED), also called the Brundtland Commission, in its report Our Common Future (1987).

  • Why it matters: growth that uses up forests, water and clean air can raise incomes today and then make people poorer later.
  • Sustainable development changes the test of success. The aim is non-declining welfare for all, meaning well-being that does not fall over time, for people now and for people not yet born.
  • Core rule for renewable resources (Daly): harvest ≤ regeneration.

Explanation

What the definition asks for

  • "Needs" is about distribution.
  • It means meeting the basic needs of all, especially the poor majority.
  • This needs redistribution of resources from rich to poor.
  • So NCERT calls sustainable development a moral issue, not only a technical one.

  • "Future generations" is about intergenerational equity.

  • Intergenerational equity means fairness between people alive now and people not yet born.
  • Rule: pass on a stock of "quality of life" assets (clean air, water, soil, forests, knowledge) that is no smaller than what we inherited.

  • Edward Barbier's definition: sustainable development directly raises the material standard of living of the poor at the grassroots.

  • It can be measured through income, real income (income adjusted for price rise), education, health care, sanitation and water supply.
  • Its goal is to reduce absolute poverty (people below a fixed minimum level of living) through lasting and secure livelihoods. These are jobs and incomes that do not destroy resources.

  • Three compatibility conditions. Development must be able to go along with all three: 1. Conservation of natural assets: do not run down forests, soil and water. 2. Preservation of the regenerative capacity of ecosystems. This is nature's ability to renew itself, for example fish stocks breeding or forests growing back. 3. No added costs or risks for future generations: do not leave debts in the form of pollution, toxic waste or climate damage.

Herman Daly's five operating rules

Herman Daly was an ecological economist. His five rules are practical rules for running a sustainable economy.

# Rule Simple meaning
1 Population within carrying capacity Carrying capacity is the largest population an environment can support without being damaged. Daly calls this limit the "Plimsoll line of the economy". The Plimsoll line is the load mark on a ship's side.
2 Input-efficient technology Technology should get more output from fewer inputs.
3 Renewables: harvest ≤ regeneration Take fish, timber or groundwater no faster than nature replaces them.
4 Non-renewables: depletion ≤ creation of renewable substitutes Use up coal or oil only as fast as solar, wind or other substitutes are built.
5 Correct pollution inefficiencies Pollution is a negative externality, which means a cost the polluter does not pay. Correct it through taxes, standards or "polluter pays".
  • Worked example (Rule 3): a forest grows 2 lakh cubic metres of timber each year.
  • Cut 2 lakh m³ or less, and the forest stock stays the same. This is sustainable.
  • Cut 3 lakh m³, and the stock falls by 1 lakh m³ every year. This is unsustainable.

Weak and strong sustainability

  • Weak sustainability (Solow-Hartwick view)
  • It assumes man-made capital (machines, roads, skills) can replace natural capital (forests, minerals, clean air).
  • What matters is that the total capital stock does not fall.
  • Hartwick rule: invest all resource rents in man-made capital. Resource rent is the profit from extracting a resource after paying the cost of extraction.
  • Worked example: a state earns ₹1,000 crore of rent a year from coal.

    • It invests the full ₹1,000 crore in schools and infrastructure.
    • Natural capital falls by ₹1,000 crore, and man-made capital rises by ₹1,000 crore.
    • Total capital does not change, so the path counts as "weakly sustainable".
  • Strong sustainability

  • Some natural capital cannot be replaced by anything. This is critical natural capital, for example the ozone layer or aquifers (layers of water under the ground).
  • It must be kept as it is, whatever the money value of other capital.

  • Exam angle: Daly's rules lean towards strong sustainability. The Hartwick rule is weak sustainability.

How the idea grew and how it is measured

  • Stockholm Conference (1972): the UN Conference on the Human Environment. It was the first global meeting on the environment.
  • Limits to Growth (1972): a Club of Rome report. It used computer models to warn that growth in population and output would run into resource limits.
  • WCED (1987) coined the definition. UNCED, the Rio Earth Summit of 1992, spread the idea through four outputs: Agenda 21 (an action plan for the 21st century), the Rio Declaration (27 principles), the UNFCCC and the CBD.
  • Sustainable Development Goals (SDGs):
  • Agenda 2030 was adopted at the UN in September 2015 and runs from 2015 to 2030.
  • It has 17 goals and 169 targets [4].
  • It replaced the 8 Millennium Development Goals (MDGs) of 2000-2015. The MDGs mainly targeted developing countries. The SDGs are universal: they apply to rich and poor countries alike.
  • The UN's global indicator framework has 231 unique indicators. It was agreed at the 48th UN Statistical Commission (March 2017) and adopted by the UN General Assembly on 6 July 2017 [4][5].
  • After the 2020 Comprehensive Review, the UN lists 234 unique indicators, or 247 in total if you count indicators repeated under more than one target [5].

In India

  • Monitoring institutions:
  • MoSPI (Ministry of Statistics and Programme Implementation) keeps the National Indicator Framework (NIF). This is India's own list of indicators for tracking the SDGs.
  • NITI Aayog publishes the SDG India Index and Dashboard, which ranks States and UTs. Its first edition was the Baseline Report 2018 [6].
  • The SDG India Index 2023-24 is the fourth edition. It uses 113 indicators aligned to MoSPI's NIF [2].

  • India's composite score:

Edition India's score
2018-19 57 [3]
2019-20 60 [3]
2020-21 66 [3]
2023-24 71 [2]
  • In 2020-21, 22 States and UTs were Front Runners [3].
  • Worked example (composite score): a State has 4 goal scores of 80, 60, 70 and 50.
  • Composite score = (80 + 60 + 70 + 50) ÷ 4 = 65.
  • Each goal score is on a 0-100 scale. A score of 100 means the 2030 target has been met.

  • Regulation: the Central Pollution Control Board (CPCB) was set up in 1974 under the Water (Prevention and Control of Pollution) Act, 1974.

  • Policy push: "Green Growth" was one of the seven priorities (Saptarishi) of the Union Budget 2023-24.
  • Mission LiFE (Lifestyle for Environment):
  • The global LiFE Movement was launched in June 2022 [8].
  • Mission LiFE was launched by the Prime Minister with UN Secretary-General António Guterres at the Statue of Unity, Ekta Nagar, Kevadia (Gujarat) in October 2022 [7].
  • Its targets are to mobilise at least 1 billion Indians and other global citizens to take pro-environment action during 2022-2027, and to make at least 80% of villages and urban local bodies environment-friendly by 2028 [9].
  • It builds a network of "Pro-Planet People" (P3) [9].

  • Indian ideas: Gandhi said, "The earth provides enough to satisfy every man's need, but not every man's greed." E.F. Schumacher's Small is Beautiful (1973) argues for small, local, low-resource technology.

  • Class 8 link: society has duties towards the factors of production. Firms carry out these duties through Corporate Social Responsibility (CSR), which includes protecting the environment.

Don't confuse with

  • WCED vs UNCED: WCED (Brundtland Commission, 1987) coined the definition in Our Common Future. UNCED (Rio Earth Summit, 1992) only spread the idea. The Class 11 NCERT gives the definition to UNCED, which is a known exam trap.
  • Economic growth: growth means a rise in output or GDP. Sustainable development asks whether that rise can continue without running down natural capital or hurting the poor and future generations.
  • Weak vs strong sustainability: weak sustainability allows natural capital to be replaced by man-made capital, as long as total capital does not fall (Hartwick rule). Strong sustainability says critical natural capital such as the ozone layer and aquifers must be kept as it is.
  • MDGs vs SDGs: the 8 MDGs (2000-2015) mainly targeted developing countries. The 17 SDGs (2015-2030) are universal.

Prelims Hooks

  • The Brundtland definition comes from WCED, Our Common Future (1987), not from UNCED. UNCED (Rio, 1992) produced Agenda 21, the Rio Declaration, the UNFCCC and the CBD.
  • "Plimsoll line of the economy" is Herman Daly's term for keeping population and scale within carrying capacity.
  • Daly Rule 4: use up non-renewables no faster than renewable substitutes are created. Rule 3: harvest ≤ regeneration.
  • Hartwick rule (invest resource rents) = weak sustainability. Preserving critical natural capital = strong sustainability.
  • SDGs: 17 goals, 169 targets, 231 unique indicators (234 after the 2020 review), replacing the 8 MDGs [4][5].
  • SDG India Index is published by NITI Aayog (first edition 2018) [6]. India's score rose from 57 (2018-19) to 71 (2023-24), and the 2023-24 edition uses 113 indicators [2][3].

Mains Points

  • Growth vs environment for India: the Environmental Kuznets Curve (an inverted-U link between income and pollution, Grossman-Krueger 1991) suggests "grow first, clean up later".
  • But the evidence is weak for CO₂ and biodiversity loss.
  • Part of the fall in rich countries' pollution came from moving dirty industry abroad (the pollution haven effect).
  • So India should aim for absolute decoupling, where emissions fall while GDP rises, through Green Growth (Budget 2023-24) and renewables. Policy must also allow for the rebound effect, where cheaper use from efficiency leads people to use more.

  • Equity dimension (GS-II/III): NCERT's focus on "needs" and Barbier's definition make sustainability a poverty and distribution issue.

  • Degrowth (rich countries deliberately producing and consuming less) may suit rich countries, but India still needs growth to end absolute poverty.
  • This supports India's stand on common but differentiated responsibilities in climate talks.

  • Policy tools and governance:

  • Mineral-rich states can apply the Hartwick rule by investing mining rents in human and physical capital, for example through District Mineral Foundations.
  • Critical natural capital, such as the aquifers of Punjab and Haryana and the Western Ghats, needs strict protection rather than trade-offs.
  • The SDG India Index (57 to 71 between 2018-19 and 2023-24) promotes competitive and cooperative federalism, though gaps in indicators and data remain [2][3].
  • Mission LiFE adds action on the demand side, by changing how people consume, to supply-side technology fixes. It draws on Gandhi's idea of need, not greed [9].

Related concepts

Read more

Sources

  1. 1Class 8, Ch 7 "Factors of Production"; Class 9, Ch 8 "Building Blocks in Economics: The Problem of Choice"; Class 9, Ch 9 "The Price Puzzle: What Drives the Market"; Class 10, Ch 1 "Development"; Class 11, Ch 5 "Rural Development"; Class 11, Ch 7 "Environment and Sustainable Development" (primary)
  2. 2Release of SDG India Index 2023-24 (PIB)pib.gov.in · tier 1
  3. 3India's score on NITI Aayog SDG India Index & Dashboard improves to 66 in 2020-21; front runners increase to 22 States/UTs: Economic Survey (PIB)pib.gov.in · tier 1
  4. 4Sustainable Development Goals, UN DESA Population Divisionun.org · tier 2
  5. 5SDG Indicators list, UN Statistics Divisionunstats.un.org · tier 2
  6. 6NITI Aayog releases SDG India Index: Baseline Report 2018 (PIB)pib.gov.in · tier 1
  7. 7PM launches Mission LiFE at Statue of Unity in Ekta Nagar, Kevadia, Gujarat (PIB)pib.gov.in · tier 1
  8. 8PM launches global initiative 'Lifestyle for the Environment - LiFE Movement' (PIB)pib.gov.in · tier 1
  9. 9Explainer: Mission LiFE – Lifestyle for Environment (PIB)static.pib.gov.in · tier 1