Sustainable Development A Long Term Process

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1 Sustainable Development A Long Term Process Dr. Maria Sophia Aguirre September 2014

2 Developing $ Allocated Develop SITUATION TODAY

3 What do we think when we think about development? Bottom up/ Bottom Down Economic Resources Many Needs Poor Measurement Violence Remittances Many People Aging population Financial Crisis Environmental Hazard Corruption Moral Issues

4 Debate Regarding Sustainable Economic Growth Mainstream Economics searches for effective paths of sustainable development: Technical solutions are insufficient, need institutions. Necessary to develop/maintain these institutions. A revaluation of aspects not included in conventional economic analysis. Definition of advances in society : Progress in key economic indicators. Progress in quality of life. Development in people s potential.

5 WHAT IS SUSTAINABLE DEVELOPMENT?

6 MORE THAN AN ECONOMIC PROCESSES INTERACCIONS

7 Integral Approach Sustainable Development Incorporates in economic analysis the interpersonal dimension of any economic activity. First consequence: in the decision process, the economic agent maximizes as a social person and not as a self-utility maximizer Dynamics of economic processes and institutions are fundamental Incorporates the interpersonal dimension of any economic activity in design, implementation and impact evaluation Fundamental to consider long-term effects in addition to the immediate effects of any intervention

8 Integral Approach Sustainable Development Fundamental to consider Long- Term effects Maximizes as a social person and not as a self-utility maximizer In design, implementation and impact evaluation Dynamic of economic process and institutions are fundamental Interpersonal Dimension of Any economic Activity

9 STRONG CORRELATION INFRAESTRUCTURE FAMILIY Health and Income per Capital Human and social capital Economic Growth Technology Healthy InsDtuDons

10 Technological progress ProducDvity CompeDDveness Human capital is fundamental to reach:

11 DEVELOPMENT InsDtucions Institutions Policy Human Capital Policy Human Capital SUSTAINABLE DEVELOPMENT

12 How Does the Family Fit in the Economy? Basic Activities Means Used Role of the Family Purpose Production Resources Human Capital Basic Needs Exchange Market Human, Moral, Social Capital Profit Consumption Optimization and Distribution Appropriate distribution Wellbeing (welfare)

13 Family changes

14

15 Empirical Evidence in Support of Integral Sustainable Development Family structure and life style: their impact in numbers Long-run effects in individuals, in the economic welfare of families and in the growth process

16 Socioeconomic Relevance Ø Children develop best within a family that is functional, i.e., with their biological parents in a stable marriage Ø The academic and social performance of a child is very closely related to the structure of the family in which he lives and this is important for the quality of human and social capital Ø The psychological stability and health of a person is closely related to healthy families and this is important for worker productivity and government finances

17 Violence and Family Structure, Mixco Violencia en la Comunidad Proteger Hermanos vs Violencia Inseguro en la Comunidad Confrontar Violencia Casado Unido Viudo Separado Padre/Madre soltera Divorciado Source: Aguirre (2013)

18 Crime and Family Structure, Mixco Distribuye o usa droga Problema con Maras Uso Droga o Alchol Involucrado en Maras + 40 % Ascesinado a papa o hermanos Casado Unido Viudo Separado Padre/Madre soltera Source: Aguirre (2013) Divorciado

19 Violencia, Maras, y Adicciones en Niños, Villanueva 2013 Respuestas de Padres e Hijos (% total de cada grupo) Hijos Padres Preguntas TOTAL TOTAL Un amigo/a distribuye o usa drogas Tiene problemas con maras Está involucrado en maras Las maras han matado al padre o hermano de un amigo Ha tenido que proteger a un hermano/a en contra de la violencia Se ha senodo inseguro en su comunidad Viven en comunidades donde hay violencia Los padres de los amigos abusan el alcahol Un amigo/a sufre vioelcia domésoca Un amigo/a ha sufrido abuso sexual Un amigo/a ha sufrido abuso verbal Un amigo abusa drogas o alcahol Amigos estan adictos a la pornograra Amigas/os son sexualmente acovos

20 Percentage of Families, Women and Children who are in poverty by Family Structure and Ethnicity, Families Women Children 10 0 Married Single Married Single Married Single Married Single White Asian and Pacific Black Hispanic Annual Social and Economic Supplement, Current Population Survey.: US Census Bureau, 2014, Table POV21, and POV03.

21 Number of Families that Receive Government Assistance ,200,000 1,000, , ,000 Married Single Parents CohabiDng 400, , Sources: Temporary Assistance for Needy Families (TANF), Annual Report to Congress, HHS, Administration for Children and Families, 2014

22 Percentage of Families Receiving Government Family Assistance by Number of Children, AVERAGE ONE TWO THREE FOUR 5 OR MORE Sources: Temporary Assistance for Needy Families (TANF), Annual Report to Congress, HHS, Administration for Children and Families, 2014

23 Percentage of Households with Savings and Home Ownership: Muslim World (% of households in each marital structure) 100% 90% 80% Qatar Malaysia Turkey 70% 60% 50% 40% 30% 20% 10% 0% Homeownership Savings Homeownership Savings Homeownership Savings Homeownership Savings Married Widow Divorce Single Parents Sources: Aguirre (2013)

24 Long term impact is not about projects; is about transforming societies Mark Suzman

25 Sustainable Development It is more than economic processes it engages social and political processes. Interaction between these processes reinforce each other in ways that jeopardize or facilitate achieving sustainable development. It requires a better understanding of the socio-economic dynamics underpinning these processes. At its center is the economic agent who maximizes as a social animal, not a self-utility maximizer. The family is a necessary good for economic development: it should be included in the design of development interventions, promoted and protected if poverty reduction wants to be achieved.

26 SOLUTIONS

27 Thanks!!

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