Page 108 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 99-112

environmental and social systems. World trade and investment flows involving developing

countries have significantly increased in recent years. But a large number of poorer countries
have failed to benefit from globalization. Although, developed countries can help developing

countries avail themselves of the opportunities of globalization and to achieve sustainable
development domestically in a variety of ways, but mainly by increased access to needed

investment flows and markets and more effective development cooperation programs, so as to
help developing countries build their own capacity to attract private investment, protect the

environment and reduce poverty.

Finally, there is a huge variety of areas where sustainable approach is needed but there are
some where the risk of non-sustainability are highest and where international cooperation is

required to modify unsustainable trends. These areas are human interference with the climate

system and the unsustainable management of a range of natural resources.
5. Measures fostering sustainable development

Every person is not only using natural resources, but with his activity influencing
surrounding environment. Constantly increasing population and its needs arrived to the level of

influence with harmful consequences. If we want to achieve sustainable development we need to
implement essential changes in all described sectors. To gain that we can accumulate a wide

range of measures – regulatory, administrative, economical, ethic, educational, etc. But in this

paper will be covered only economic instruments of sustainable development management as
their effectiveness relies on many different factors of economic activity.

Economic factors of sustainable development define the cohesion of economic outcomes
derived from decisions made by economic subjects and extent and nature of environmental

impact. According to this, economic factors can be divided into two interrelated groups:
incentives, i.e. economic leverages of sustainable development, and outcomes, i.e. the impact of

sustainable development and its management leverages on financial results of economic subjects.

The following economic measures of sustainable development might be notified:
Progressively eliminate subsidies that together with taxation systems are often used to

reallocate in favor of those who need that the least and that are damaging for environment,

because support unsustainable production and consumption.
Often subsidies not only contort competition conditions, but also result in resource waste

and social inequality. Subsidies should be addressed to reduce all kind of activity that is

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