- Sustainable development contains three pillars, namely economic, environmental and social development. Inability to fulfill any of these three aspects can make the sustainable development objectives void. If the economic growth pattern of any nation is being looked at, then it can be seen that the growth is being attained by continuous consumption of natural resources. This has two side effects. First, the balance of natural resources is going down rapidly, and second, due to combustion of these resources, the emission level in the environment is rising. In this process, the environmental sustainability is compromised to a great extent.
- As the economic growth of the nations is majorly driven by consumption of several natural resources, economists around the world are afraid that this growth cannot be sustained for a longer period. As soon as the pool of resources will be exhausted, the growth may come to a screeching halt. In order to sustain the economic growth, nations have to look for alternate sources of energy, which may be in the form of bio-fuel, renewable energy, nuclear energy etc. If the alternate sources of energy cannot be located, then the economic sustainability aspects can also be compromised to a great extent.
- While traversing along the growth trajectory, it has to be observed that whether the wealth is being distributed among all the segments of the population, or not. In most of the cases, the wealth distribution is not equal, and that is the reason behind the rise in income inequality in the nations. While attaining the rapid economic growth, fair distribution of income takes a back seat for the policy makers, and they try to exploit their labor force to get the maximum out of them, without compensating them in accordance with the industry standard. As a result, their living standard, hygienic state, and in turn efficiency is affected. This compromises the social sustainability aspects.
Achievement of extremely good economic growth is a dream of all the nations across the world. This is the way, through which one nation can prosper in all aspects. However, it has been seen several times that in the course of economic growth, one thing is terribly hampered and misaligned, and that is economic development. Evidences can be found from history that while achieving economic growth, sustainable development came as the price. There are several poor sides of any economic growth, and those can be stated as per the following:
Economic growth of any nation largely depends on the pool of natural resources, and the pattern, at which those natural resources are utilized in the process of economic growth. If the pattern is a very systematic one and is regulated by the governments of that nation, then attainment of sustainable economic growth can never be a big problem for those nations. However, it has been seen in most of the cases that the consumption pattern is not at all systematic, and in turn, the economic growth of those nations turns out to be unsustainable. Natural resources are deemed as Public Goods and that is the reason, the citizens do not impose legitimate value on those resources. They share the fate of any other public property, despite the rules and regulations being set by the governments in order to protect them.
Economists across the world have observed this phenomenon for several years, and they have come up with two hypotheses in order to put forth their thoughts and concerns. Those two hypotheses are as per the following:
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