Economy and ecology: problems of interaction

Utarov K.A.-candidate of economical sciences.

K. A. Yassavi International Kazakh-Turkish University

Toleshova M.T. - master of Economics, senior teacher

M.Auezov South Kazakhstan state University  

 

            Desert land without a single blade of grass, a deserted town, the water, teeming with waste, the air temperature has Fahrenheit...No, it's not a nightmare, just a picture of a fantastic future. However, it may at any moment become a reality.

What are reasons for this? A lot of them: industrialization, urbanization, intensification, and many other clever words ending in "tion". All of them can be grouped under one word: Throughout its existence, of a man who sought to build without having a full picture of the world and by solving only short-term objectives, be it food production or the construction of a nuclear power plant. And every time the vector of creation and development has been directed towards the environment which man has exploited according to their needs.

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But at the turn of the new Millennium clearly marked horizons of human activity, manifested in the threat of ecological disaster and dangerous for all mankind. The question arose about the change of world view, rethinking of the old and search for new ways of development. This applies to the problem of interaction between man and nature, and the global economy and ecology. What can the economy to the environment and how can we achieve this - that is the main issue of this work. Its structure is as follows. In the beginning we will discuss the following questions:

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·       Modern ecological situation;

·       Economic growth as one of the causes of the environmental crisis;

·        Positions that exist on this issue in the economic literature; Then will be given possible solutions to environmental problems from the point of view of economy:

·        Is it possible to harmonize environmental and economic development in modern conditions?

·        Rational use of natural resources;

·       Greening of the economy within the concept of sustainable development;

·        Solving urgent problems of environmental development: the case of China.

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            Finally, the conclusion on the need of interaction and consolidation of different approaches to solving environmental problems. It remains to note that the work focuses on economic aspects of environmental problems and opportunities, beyond it be all possible social, political, etc. implications that open the field for other research.

            The conflict between man and nature that existed throughout the development of humanity, has become universal and determined the nature of economic-environmental issues: economic progress at the expense of environmental regress. Why economic development leads to the final? The answer lies in its principles.

The economy has always been aimed at meeting the material needs of society. In the evolution of social needs increased, making necessary the further development of technology. As a result, in the 20th century economic development[1] is already impossible without scientific and technical progress, provision and maintenance of constant production growth rates, implying increasing dependence on natural resources.

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            Of course, the available natural and human resources, level of technical knowledge, the institutions determine the conditions of functioning of the economy. Society has always depended on natural resources, but the problem is that this dependency is not taken into account in the economy. A person tends to consume, not save. Thus, the basic contradiction between economic and ecological development lies in the fact that, on the one hand, the economy should to develop, on the other hand, this development generates adverse environmental effects.

            To get a complete picture of the extent of this influence, it is necessary to digress and refer to realities. What has led the rapid development of economy and human activity? Pollution around the space, ocean, air, and water - the greenhouse effect, deforestation, desertification, extinction of many species of plants and animals are just some of the major anthropogenic impact on the environment. Here are the concrete facts.

            During the years after the second world war it was used so many minerals, how much for the entire previous history of mankind that has created the problem of depletion of natural resources.

            While environmental risk increases, economists are not asleep. Increasing attention is paid to the explanation of the economic causes of environmental problems. One of them, some economists believe the economic growth.

            Economic growthlong-term increase in production the ability of an economy based on technological progress, is able to provide the population increasing diversity of wealth.

Does in fact economic growth on the environment? Opinions of economists on this issue were divided.

Arguments against growth

            Opponents of economic growth, above all, concerned about the deterioration of the environment. They argue that industrialization and economic growth give rise to such negative phenomena of modern life, like pollution, industrial noise and emissions, deterioration of cities, traffic congestion, etc.

            All these costs of economic growth occur because of the production process converts natural resources, but not dispose of them completely. Almost everything involved in the production, eventually returned to the environment as waste. The greater economic growth and higher standard of living, the more waste will have to absorb or try to absorb the environment. In any sufficiently advanced society, further economic growth can only mean to meet the more urgent needs with increasing threat of environmental crisis. Therefore, some economists believe that economic growth should aim to hold back.

This position is close to "zero growth theory", based on the study the relationship of population growth[3], the depletion of natural resources and environmental degradation. According to it, the only way out is to end or, at least, stabilization of economic growth at some optimal level that does not pose threat to natural conditions. However, an opposing point of view.

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In defense of economic growth

            Supporters of economic growth believe that its relationship with the environment are exaggerated. In fact, these problems can be separated from each other. If the company refuses from economic growth, saving GNP at a constant level, he will still have to choose between different structures of production, and this choice will affect the environment and quality of life. Society still needs to determine whether to preserve the natural beauty of the forest, or cut it for firewood. And if the forest is cut down, you must decide whether to use wood to build houses or to put it on billboards.

            According to defenders of this approach, pollution is not as much side product of economic growth as the result of incorrect pricing, namely: a significant part of the natural resources (rivers, lakes, oceans and air) is regarded as "common property" has no value. Therefore, these resources are used excessively intense, which worsens their condition. Environmental pollution is an example of a by-product or spillover costs. The solution to this problem is possible with the introduction of legislative restrictions or special taxes ("payment for water"), to compensate for the defects of the system of pricing and to prevent irrational use of natural resources. Proponents of this perspective do not deny the serious problems associated with environmental pollution, but consider that limiting economic growth will not solve them. The essence of their position: "to limit pollution, we need to limit it, and not the economic growth".

      It is clear now that stopping economic growth is impossible, because there is feedback: one of its sources is the quantity and quality of natural resources. In conflict "environment – economic development" it is not so much about the dilemma or economic development, or clean environment, the need to achieve a common goal: to provide such a level of development that involved not only the creation of material goods needed by society, but also to maintain "clean" environment. Based on this and the principle of sustainable development.

Conclusion

So, analyzing the principles of interaction of economy and ecology, we can draw the following conclusions. The utilitarian approach to nature has identified the contradiction between economic and ecological development. Focus development on economic growth has led to global ecological problems of modern the scale of which is incalculable.

From an economic point of view in solving this conflict it is not about a complete cessation of economic growth, and new directions economic development combined with environmental: rational environmental management involves the use of alternative resources; greening of the economy, taking into account environmental factors in production and technology.

In this article it was noted that currently environmental issues can be overcome in an economic way. However, it causes new contradictions. Ecological development in principle undermines the main task of the economy: achieving profit. In fact, the conflict remains intractable.

Modernity strives to embody the idea of consolidating the various principles – social, legal, political – to resolve the conflict. But this is a superficial solution to the problem. In the run output is possible only in a radical revision of the very foundations of human existence, in changing human needs, combining a scientific approach to worldview, combining scientific research with a spiritual understanding of the nature of the problem. This is the only way to reach consensus.

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            In conclusion, I want to bring the ancient Indian aphorism:

Nature is not something we inherited from our ancestors, and the fact that we took a loan from descendants.

Humanity has to be reasonable by the debtor and to pay interest, for a second loan online....

 

References

    

1) V. A. Vasilenko Economy and ecology: problems and ways sustainable development.Novosibirsk., 1995.

 2) Girusov E. V. the Fundamentals of social ecology: M.,1998.

3) Lacko, R. Economic problems of the environment.M, 1995.

4) Markovich, D. J. Social ecology. M., 1991.

5) Oleinik, E. M., Harmonization of economic and environmental development. M., 1999.

6) Rodionova I. A. the Global environmental problems. M, 1995.

7) Todaro, M. Economic development. M, 1997. 8) V. Kurbatov. Experience in solving environmental problems in China.//Russian economic journal, 1996, No. 7, p. 101-108