Economics for Sustainability

Table of Contents

Introduction2

Causes of Recent Financial Crisis3

Sustainability “Challenge in the Global Economic Crisis"4

Changes in Economy Boom Phases6

Fundamentals of Sustainable Development after the Global Financial Crises7

Lessons and Implications Learnt from the Global Financial Crisis9

Impact of Global Recession on Leadership Styles13

Conclusion15

End Notes16



Economics for Sustainability

Introduction

There is not much more accurate definition of "sustainable development". Its meaning depends on social power relations between different interest groups who defend this name who are targets, we shall see, largely contradictory. These are indeed officially three types: maintain the integrity of the environment, improve social equity, and improve economic efficiency. According to social workers concerned, environmentalists, industrial states (more or less industrialized), “sustainable development” priorities overlap so completely different, without that meaning that is imposed in the direction common - synonymous with respect for the environment and become an instrument of political marketing and sales is affected.

For decades, the U.S. has had the largest economy in the world. But even the strongest economies struggle sometimes. Throughout its 232-year history, the country has endured several recessions' periods of economic contraction and declines in business activity. Some of these economic downturns have been mild, lasting as little as three months. Others have been severe, lasting for years and resulting in widespread unemployment, bankruptcies and even social unrest. As of early 2008, the U.S. finds its economy sluggish. Business growth slowed to a near standstill, consumer confidence deteriorated, U.S. dollar weakened in power as it has been in 17 years and the country is losing jobs. Many economists say the combination of these factors makes it clear that a recession has already begun.

The financial and economic crisis is a major event that will mark the beginning of this century. It heralds the end of the system we live in and represent the major failure of the leaders who govern us for decades. It carries very serious disturbances that will jeopardize the standard of living and undermine the economic and social balance of our society. But it can also be the beginning of a profound change, because, beyond the very serious difficulties that will result, it can be an opportunity to beneficial mutations and give rise to a new economic and financial system and a more new geopolitical balance in the interests of the European peoples.

The purpose of this assignment is to discuss how responding effectively to the global financial crises can bring sustainable economic development.

Causes of Recent Financial Crisis

More often than not, a recession is not caused by a single event or factor. Instead, there is usually a confluence of factors and trends that causes the national economy to contract. Tax hikes, natural disasters, soaring energy prices, high interest rates, terrorist attacks or misguided investments are some of the many factors that might slow or halt economic growth. And recessions are notoriously difficult to predict. The most recent economic slowdown likely began in 2007, and the U.S. economy now finds itself weathering its most uncertain stretch since 2001, the last time the country endured a ...