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Public Management Program

 

Public Management Initiative (PMI)

Sustainable Economic Development (2002-3)

What is "Sustainable Economic Development"?

In 1987, the World Commission on Environment and Development, coined the phrase "sustainable development." The Commission, chaired by former Norwegian Prime Minister Gro Harlem Brundtland, defined sustainable development as "improving people's life-enabling habits to meet our needs in the present without compromising the ability of future generations to meet their needs"

Five years later, in 1992, more than 100 heads of state met in Rio de Janeiro, Brazil for the United Nations Conference on Environment and Development (UNCED). The "Earth Summit," as this gathering became known, was convened to address urgent problems of environmental protection and socio-economic development. The world leaders at Rio adopted a comprehensive and unprecedented global plan of action for sustainable development, which included action points on both economic development as well as environmental protection. The Earth Summit helped shape a consensus that economic growth, human development, and environmental protection need not be at odds with each other—in fact, they could be interdependent and mutually supportive goals.

Over the past 10 years, nations and communities small and large around the world have sought to harness the momentum of the global movement to stimulate sustainable development in their own part of the world. In the United States, much attention has been focused on urban revitalization—by attracting large corporations, developing the workforce, or improving local infrastructure. Internationally, where 1.2 billion people live in extreme poverty (defined as living on less than $1 per day) a substantial debate has occurred around issues such as market liberalization and the resulting impact from the entry of multinational corporations, the relative benefits of centrally-driven versus more grassroots-oriented poverty alleviation efforts, and how to optimally balance economic development vis-à-vis environmental considerations.

Why study Sustainable Economic Development now?

Scale of the problem. Despite efforts by local and national governments as well as other stakeholders, sustainable economic development remains a daunting challenge. On both domestic and international fronts, the income gap between rich and poor continues to widen while clean air, water, and biodiversity are continually threatened. Without further research, discussion, and engagement on the part of future social leaders, the world's ability to achieve economic development with environmental protection will surely be limited.

  • Timeliness. This past August witnessed the 10-year anniversary of the Earth Summit—which prompted another conference in Johannesburg known as the World Summit on Sustainable Development. In Johannesburg, attendees discussed the successes and failures of the past 10 years and agreed on a revised plan of implementation, including targets and timetables. Thus, the PMI has an opportunity to capitalize on both the learnings and momentum of the Johannesburg Summit in developing the year-long discussion on sustainable economic development.
  • Multi-sector role. As the most successful cases of urban revitalization and international development seem to suggest, the best approaches to sustainable development involve partnerships that span across the private, public, and non-profit sector. The international community has realized this, which encouraged a high level of attendance at the Johannesburg Summit from private corporations as well as non-governmental organizations (NGOs). Thus, business school students, as future leaders in all three sectors, will likely have a major opportunity to shape the ability for their community and nation to develop in a sustainable fashion.

Issue Areas to Explore

Within the broad topic of Sustainable Economic Development, this year's PMI will focus on three issue areas:

Urban revitalization

The urban revitalization piece of the PMI seeks to discuss effective strategies in addressing the decline of urban areas that has plagued the United States over the last two decades. Some of the questions to be addressed by this area of the PMI include:

  • What can be learned from the experiences of cities such as East Palo Alto that can be applied to other communities in both the United States and around the world?
  • What are examples of effective public-private partnerships in urban revitalization?
  • What incentives should communities provide?
  • What role do business leaders have in assisting communities?
Environmental sustainability

The environmental sustainability aspect of the PMI will facilitate discussion of the "sustainable" part of "Sustainable Economic Development." Here, the PMI will work closely with ongoing efforts at the GSB that are seeking to highlight the intersection of business and the environment - such as the Environmental Management Club, the fall quarter course on Corporate Environmental Management (POLECON 365), and the spring term course on Social Entrepreneurship and Sustainable Tourism. Specific questions to be addressed within the environmental sustainability piece include:

  • Do companies have a responsibility to engage in environmental protection?
  • What new trends/technologies might enable improved environmental performance without diminishing economic upside for both businesses and nations?
International Development

Within the context of international development, the PMI would seek to address the following key questions:

  • What is the role of multinational corporations in international development?
  • To what extent is environmental protection a "luxury good" in countries where grinding poverty is the norm?
  • What are examples of effective public-private partnerships in international development?
  • In what spheres can well-trained MBAs interested in international development be most valuable?

Methods of Exploration and Deliverables

The PMI will engage and educate the GSB community on these issues through a variety of means, including public speakers and presentations from prominent private and social sector leaders, brown bag lunches with faculty and alumni, published articles and opinion pieces, study trips, and independent research (e.g., class projects and 390s), and culminating with a final report and presentation in Spring 2003.