Transcript Society
Society, Environment and Sustainability of Business 2nd Annual International Conference of The Latvian Economic Association Akad. Raita Karnīte Riga, 4 March 2011 What Three dimensions and six questions for discussion From the economist’s point of view – all are interrelated Society – people and relations Environment – quality of life, resources: availability, use, economic megastrategy Sustainability of business – what to produce and how Society How big is society? Is number of population important? Who we are, what is our motivation? Population age structure – males and females, begining of 1992 Vīrieši Sievietes 8075-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 120000 70000 20000 30000 80000 Population age structure – males and females, begining of 2010 Vīrieši Sievietes 8075-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 120000 70000 20000 30000 80000 Population age structure – males and females, begining of year 2009 2060 Vīrieši Vīrieši 80+ 62372 Sievietes 80 Grupa 80+ 128154 80 76 76 72 72 68 68 64 64 60 60 56 56 52 52 48 48 44 44 40 40 36 36 32 32 28 28 24 24 20 20 16 16 12 12 8 8 4 4 0 20000 Sievietes Grupa 80+ 71983 0 15000 10000 5000 0 5000 10000 15000 20000 20000 15000 10000 5000 0 5000 10000 15000 20000 Demographic profile of Latvia – Eurostat forecasts (2009 - 2061) – % change 1.80 1.60 1.40 1.20 1.00 2061/2050 2061/2009 0.80 0.60 0.40 0.20 0.00 BU LT RO LV SI PL SL DK EE CZ HU IT GR ES MT ES27 NL PT AT FI DK BE CH FR SE NO UK IE LU CY Population structure in Tajikistan on January 1, 2009, thsd people.Total 7373.8 thsd people, 3698.9 thsd males 3674.9 thsd females) vīrieši 100000 sievietes 80000 60000 40000 20000 0 10 10 96 96 92 92 88 88 84 84 80 80 76 76 72 72 68 68 64 64 60 60 56 56 52 52 48 48 44 44 40 40 36 36 32 32 28 28 24 24 20 20 16 16 12 12 8 8 4 4 0 0 0 20000 40000 60000 80000 100000 GDP per head (2009) (%, EU-27=100) and average population density (2007), people per 1 km2 Blīvums (2007), cilv vidēji uz 1 km2 1400 MT 1200 1000 800 600 NL 400 BE UK DE IT 200 PLHU RO BG LV LT CZ SK PT SI ES27 GRCY ESFR EE 50 AT IE FI 0 0 LU DK 100 SE 150 200 250 300 GDP (2009) in market prices per 1 km2 and population density (2007), average per 1 km2 IKP EUR tirgus cenās 2009. gadā uz 1 km2 25000.00 20000.00 MT LU 15000.00 NL BE 10000.00 DE UK DK 5000.00 IT AT FR ES27 ES CY GRSI PT CZ SK HUPL SE FI EE LV LTBG RO IE 0.00 0 200 400 600 800 1000 1200 1400 Government expenditure (2009) in market prices per 1 km2 and population density (2007), average per 1 km2 Valdības budžeta izdevumi, EUR tirgus cenās uz 1 km2 12000.00 10000.00 MT 8000.00 NL LU BE 6000.00 4000.00 UK DE DK IT 2000.00 IE AT FR ES27 ESSI PT CZ GR CY HU SKPL SE FI EE LVLTBG RO 0.00 0 200 400 600 800 1000 1200 1400 Relations – social choice and individual preferences Preferences: what people want: Young people: to have good education, to have good job and carrier opportunities to live in prosperity Latvia – other country – who knows? Relations – social choice and individual preferences Adult: to live better now to be honest if others are, if the government is not able to change things. Latvia – other countries – who knows? Individual pereferences dominate Organisation of the society – political parties – civil society – collective pressure deminishes Relations – social choice and individual preferences What remains for social choice: Low tax discipline – low social quaranties – essential needs are threatened Irrelevance to the state – somebody will come and do for me – emigration – lack of workforce – who are left should be highly effective These simple facts should be taken into account in economic policy Consolidation should be subbordinated – not main issue The quality - education Formal education Life-long learning Lot of theories and reform proposals Major goal - to make people economically independent But also – to get value added from the spent money Society Economy as if people matter: provocative issue - kind of “should be” what it is? – how much people may expect to receive - how much should they pay sustainable consumption – yes, but how who is supervisor – the state, traditions, ethics, material goals Items of concern regarding “society” dimension The size – population policy The motivation - relations with the state The quality – education The organisation – civil organisations The expectations – what may I receive and what should I pay Environment – issues for consideration Economy as a subsystem of nature – or nature as a factor in competition Economic use of resources (wood, sea) Compromise between economic activities and environment – dilemma of economic growth Competition of resources (land is also resource) Green economy – environment protection or mega business project Sustainability of business In search of new business philosophy – lifestyle business, intrapreneurship, EFP What is needed for business to be sustainable: market stable business environment scale (other businesses around) effective business structure (sectors, size of companies) smart and creative people who are in Latvia trust to future living conditions – schools, roads, home Sustainability of business – current trends - macro GDP growth – Baltic countries Industry growth Foreign trade, mln. LVL Foreign trade - structure Exports/Imports 2009 2010 2009 2010 Capital goods 10.6 8.4 10.7 11.7 Intermediate goods 55.8 58.5 46.1 47.5 Consumer goods 25.8 25.2 30.9 26.4 Other 4.1 5.1 7.8 10.1 Cars 3.1 2.7 2.1 2.6 Foreign trade Most important goods: Agriculture and food - 17.5% Timber and products – 18% Metal – 14% (steel and 8.4%) Mechanisms and appliances – 14.6% Total 64.1%) Oil and mineral fuel – 5.6% Chemical industry – 7.5%, of which pharmacy 4 percent points Transport vehicles and their parts – 5.6% of which surface transport means – 5 percent pionts Issues for consideration Sustainable consumption Market, the state external economic policy, theoretical explanations Economic policy – development versus consolidation Environment – helps ar harms Business education – theory, practice, intersystems Motivation