Growth, Development, and Economic Transformation Essay

Growth, Development, and Economic Transformation - Essay ExampleThis would result in lesser contrast when a particular level of GDP per capita is achieved because of the trickling down of growth benefits. Furthermore, as scotch growth takes place, mints incomes grow and the resulting structural changes in the mindset and attitudes of people invoke them to become environmentally witting which leads to greener measures in the society, thereby reducing the rate of environmental degradation. The other aspect is that increased incomes and environmental sensation can induce administrations to impose tighter environmental controls thereby enhancing environmental quality. Another theoretical framework to explain this is the self-regulatory market mechanism associated with the exchange of congenital resources within an economy (Unruh & Moomaw, 1998). The stock of natural resources tends to decrease during the aboriginal growth stages which results in increased prices. This price signa ling mechanism then induces lower exploitation of natural resources at subsequent stages in economic growth (due to high prices) (Unruh & Moomaw, 1998) (World Bank, 1992). Due to this reason, economies also tend to turn on towards technologies that are less resource intensive. Thus, the shape of the Kuznets Curve (see Appendix 1) is not only explained by intensify environmental government expenditure but also the price signaling mechanism of the free markets (Torras & Boyce, 1998). iodine school of thought argues that the present rate of environmental degradation has a tendency to enlarge in the long run, hence, government policy should aim at more rapid economic growth in order to climb up the hump or the turning point soonest possible. However this perchance a tedious process, taking several years before the curve slopes downward the longer the turn back the higher the abatement costs. Hence, the policy of waiting for the relationship to become negative can be potentially dam aging. A more appropriate policy is to tunnel through the curve and to flatten it through government interventions such as subsidies on energy and agrochemicals and property rights on natural resources. It is also important to stigmatize that developing nations cannot follow what their developed nations did in early stages of development (Unruh & Moomaw, 1998). Infact, the amount of greenhouse emissions inherited by todays less developed nations is much higher than that inherited by their developed counterparts in similar stage of development. Infact, several resource-intensive industries have shifted from the North to South, thus putting the latter at a disadvantaged position. In the absence of an international government, international environmental policies under the umbrella of sustainability are require to enforce both wings (the developed and developing) to cut down environmentally harmful emissions. The change in proportions of labor and capital across various sectors in an economy is one of the most significant features of economic progress of a nation. Research by Clark, Kuznets and Chenery has produced solid evidence for the notion of decline in the subprogram of agricultural (primary) and secondary sectors of an economy and the simultaneous increase in the role of tertiary sector as the economy develops (Clark, 1940). However, in recent years there has been growing consensus amongst researchers such as Maddison, Buera and Kaboski that while the