Page 111 - Azerbaijan State University of Economics

Saulė Augaitytė: Sustainability aspect of economic development

Lower inflation rate would lead to clearer price signals and better investment decisions

made by economic agents; also would protect citizens getting fixed salary. These are essential
assumptions encouraging ecologically sustainable activity.

Conclusions

1. There are many definitions of the concept of sustainable development in the literature;
however, its essential idea is presented by the Brundtland Commission definition “the needs of

current generations cannot compromise the needs of future generations”. Such an approach

means that current generation should take care of the needs of future generations; the well-being
of people society is closely linked to the welfare of natural ecosystems; economic development

covers not just physical, but also ethic restrictions, and common economic purpose is to achieve

sustainable development combining economic, social and ecological development.
2. Sustainability cannot be achieved once and forever. Each society will be sustainable in

its own way, but no one of them will guarantee absolute sustainability. In different countries and
regions having different economic, cultural development levels, different traditions, variety of

natural resources and environmental pollution, the aims of sustainable development may be quite
different.

3. Economic aspects of sustainable development are reflected in the concept of maximal

income received by maintaining stocks of capital generating economic benefit. The base of
sustainable development – to find the optimal cohesion level between three concepts – biologic

and natural resources system with economic and social system. Sustainable economic
development includes sustainable development of main economic sectors – energy, transport,

agriculture, industry.
4. The world’s centre of economic gravity is changing and developing economies are

among the key drivers of global economic growth. Attaining path of sustainable development

requires elimination of negative externalities that are responsible for natural resources depletion
and environmental degradation; securing public goods that are essential for economic

development, such as those provided by well-functioning ecosystems, cohesive society; retaining

the flexibility to respond to future shocks, even if their probability, size and location cannot be
assessed with certainty.

110