The IMF supports an orderly international monetary system.
Neoliberalism advocates for innovation to lead without regulations, promoting a win-win scenario through open borders.
In low to middle income countries, an increase in GDP is associated with increased life expectancy, lower child mortality, and higher school enrollment.
A justification for inequality in exchange for economic growth, often viewed from a utilitarian perspective.
The flawed assumption is that developing countries should follow the model used by industrialized nations, which can lead to Westernization rather than genuine development.
Development is defined as the redistribution of wealth for social needs, regulation of trade to promote indigenous industry, and sustained public investment in health, education, and welfare services.
The switch marked a transition in measuring economic performance, with GDP growth becoming a political necessity and de facto goal.
It refers to the concept of ever-growing output being seen as progress, characterized by a continuous upward trajectory.
Trade liberalization refers to the removal of government regulations on trade, allowing for free market operations.
Secular stagnation refers to a prolonged period of slow economic growth, as described by Larry Summers, where some economies are already at the top of the S curve.
The principle of Futurity emphasizes the needs of future generations in the context of equity.
The principle of Social Justice asserts that all individuals should be capable of achieving their potential and accessing resources equitably.
The growth of GDP is often used as a measure of sustainable development progress, focusing more on economic development than on environmental and social issues.
Exergy is the proportion of total energy that can be harnessed for useful work, and is a key concept in understanding productivity gains.
Critical Planetary Degradation refers to conditions that exceed the Ecological Ceiling, leading to issues such as climate change and biodiversity loss.
The WDM urges industrialized countries to take responsibility for the activities of corporations and advocates for regulations to promote quality investment and core standards for corporate responsibility.
Debt crises prevent development by creating a cycle of loaning and repayments, leading to cuts in essential services.
Sustainable Development is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs.
The two axes are Openness to Change vs. Conservation and Self-enhancement vs. Self-transcendence.
No country has ended human deprivation without a growing economy, nor ecological degradation with one.
An initiative aimed at tackling tax loopholes, promoting corporate transparency, accountability, and fair international tax rules.
The idea of having just enough resources to meet needs, contrasting with the insatiable wants of the rational economic man.
A vision of a global economy that creates a thriving balance through distributive and regenerative design, emphasizing that growth is irrelevant.
It is separated from economic growth, indicating that economic metrics do not fully capture the well-being of individuals.
The 12 Basics include sufficient food, clean water, decent sanitation, access to energy and clean cooking facilities, education, healthcare, decent housing, minimum income, decent work, and access to networks of information and social support.
The outer border signifies the Ecological Ceiling, which represents the planet's capacity and the limits of environmental sustainability.
The critique highlights that the model oversimplifies human behavior by ignoring social influences and the complexity of human motivations.
Strong reciprocity refers to the behavior of conditional cooperators who are willing to cooperate if others do, promoting large-scale cooperation.
Economic development is measured by economic growth or income criteria, specifically per capita income.
The sharing economy refers to a cultural shift from ownership to access, where individuals share resources like laundry services and cars.
Questions include: growth of what, why, for whom, who pays costs, how long can it last, cost for the planet, and how much is enough?
He refers to the lack of discussion about values and goals in policymaking, which has been overshadowed by monetary considerations.
Sen emphasizes that development should focus on advancing the richness of human life rather than solely on economic growth.
They are restructured to expect, demand, and depend on continual GDP growth, often leading to destructive measures.
The Anthropocene is the first geological epoch that is significantly shaped by human activity, impacting the planet's conditions.
High rates of population growth require higher rates of total income growth to maintain constant per capita income.
Agnostic Growth refers to the idea that upward growth does not necessarily equate to progress or thriving.
The profit-driven model of neoliberalism emphasizes maximizing profits, often facilitated by favorable trading conditions and institutions like the World Bank and IMF, which can lead to exploitation of resources and labor in developing countries.
TRIPS allows transnational corporations (TNCs) to patent intellectual property, including indigenous medicines and seeds.
The economy dominates decision-making, especially for governments influenced by transnational corporations (TNCs), leading to a lack of democratic control.
The Donut hole represents Critical Human Deprivation, which occurs when basic needs fall below the Social Foundation, leading to issues like hunger and illiteracy.
The Richard Easterlin Paradox suggests that increasing incomes do not necessarily lead to increased happiness.
Absolute decoupling occurs when resource use falls absolutely while GDP continues to grow, which is required for high income countries.
Transnational corporations often use a 'green' image as a marketing tool, which can mislead the public about their actual environmental impact.
The modified stages of growth include: 1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption, and 6. Arrival.
The 'Safe and just space for humanity' is the area between the Social Foundation and the Ecological Ceiling, where human needs are met within the planet's means.
A positive GDP/GNI gap indicates that GDP is greater than GNI, meaning that income outflows to the rest of the world exceed income inflows.
Adjustments for GDP and GNI include accounting for population size, price changes over time, and income distribution.
Nicholas Georgescu-Roegen, who emphasized the limits imposed by Earth's resources.
The Cuckoo analogy illustrates how GDP can hijack other economic goals, laying its 'eggs' in the nests of other measures.
Conditional loans require countries to implement structural adjustment programs (SAPs) in exchange for financial assistance.
TNCs are companies that operate in multiple countries, often accumulating revenues that can exceed the Gross National Product (GNP) of the countries they operate in, leading to significant political influence.
Doughnut Economics reconciles meeting human needs with meeting the Earth’s needs, providing a new model that combines diverse perspectives beyond traditional capitalist frameworks.
TNCs are companies that use capital to capture new markets, often operating in developing countries under favorable trading terms.
Homo Economicus is a concept depicting a rational economic man who is self-centered and driven by utility maximization.
The Quad, consisting of Canada, EU, Japan, and the USA, seeks to secure maximum advantage for their economies and facilitate privatization of the public sector.
The challenge is the integration of different actions and sectors while balancing the interconnected relationships between society, environment, and economy.
It suggests that true progress should be measured by balance and sustainability rather than just continuous growth, reflecting various cultural philosophies.
An economic model that combines various schools of thought, emphasizing that the economy is embedded within society and the living world, focusing on resources that determine well-being beyond just monetary flows.
A conceptual framework that illustrates how human society is nested within the Earth, participating in economic activity while respecting environmental boundaries.
The environment, resources, and biodiversity that are essential for sustaining life and economic activity.
A perspective that views society as composed of isolated individuals, ignoring the importance of relationships and social cohesion.
The belief that ever-growing GDP is essential as it allows everyone to become better off, easing social inequalities.
Aldo Leopold emphasizes the need to switch from viewing humans as conquerors of nature to seeing ourselves as members or citizens of the ecological community.
These boundaries are critical thresholds to maintain Holocene-like conditions and include factors like climate change, biodiversity loss, and pollution.
Globalization has worsened poverty levels and provided no benefits to the poor, making them even poorer.
The take-off stage refers to low income, high growth countries that are at the beginning of the S curve of economic development.
This perspective ignores the interconnectedness and dependency of human life on the environment.
There is no single definition that fits all needs, it is too ambiguous, prioritizes human needs over other life forms, and does not provide concrete action guidelines.
Transfrontier Responsibility refers to the geographical responsibility for environmental impacts that cross national borders.
Internalizing Externalities means that the creator of a cost, such as environmental damage, should bear the full cost of that damage.
Loss aversion is the strong preference to avoid losses rather than acquiring equivalent gains.
A stage where growth leads to surplus income, allowing households to buy durable consumer goods.
A powerful entity that should be embedded wisely within regulations and accountability to prevent exploitation and promote social cohesion.
A state where growth is checked by natural limits such as soil, climate, and situation.
Worldview refers to the lens through which we interpret the world, influencing our understanding and perceptions.
Create to Regenerate means that the economy should function in a cyclical manner rather than a linear upward trajectory.
The WTO arbitrates trading disputes and imposes sanctions on nations that breach regulations.
Economic Empowerment emphasizes giving innovation a purpose and ensuring fairness in its application.
Connecting with people’s values and identity, rather than focusing on their financial situation.
Thriving by connecting with each other and with the living home we share.
Humans are the most social species and are interdependent.
Acceptable, resilient financial returns from mature low- to no-growth enterprises, focusing on profitable, non-growing businesses for stable long-term investment.
Sampling bias occurs when research studies predominantly represent WEIRD societies—Western, Educated, Industrialized, Rich, Democratic—leading to skewed findings.
Gross National Income (GNI) is the total value of all income received by residents of a country, regardless of the source.
It refers to the unprecedented stress on the planet due to rapid economic growth and resource-intensive lifestyles, particularly with the rise of the middle class.
Per capita income is significant as it allows for the ranking of countries and helps assess the quality of life and standard of living.
Trade involves the exchange of imports for exports, impacting the flow of income and resources.
Framing is how we make sense of experiences, determining what we see and how we interpret information.
Nurturing human nature acknowledges that humans cannot exist without the Earth and its resources, emphasizing community.
GDP, or Gross Domestic Product, is a measure of economic growth and is often prioritized by governments, but it has limitations.
Tariffs are taxes on imported goods that can be reduced or exempted as an incentive to encourage cheaper imports over domestic products.
Criticisms include relocating profits to their country of origin, preventing unions, exploiting child and women workers, paying low wages for long hours, causing environmental problems, and breaching environmental and labor standards.
The Law of Diminishing Returns states that as one consumes more of a good, the satisfaction derived from each additional unit decreases.
'Keep on flying' advocates believe that economic growth is a social and political necessity, while 'prepare for landing' advocates argue that growth is no longer necessary.
Adam Smith posited that self-interest is a crucial driver that makes markets function effectively through trade and exchange.
The phrase 'Motherhood & apple pie' refers to concepts that sound good and are widely agreed upon, but can become meaningless due to varying interpretations and biases that shape priorities and policies.
Extrinsic motivation is driven by external rewards such as status or money, while intrinsic motivation is driven by the inherent satisfaction of the activity itself.
Promoting human prosperity regardless of GDP’s status.
Nudge policies are part of choice architecture that alters behavior in predictable ways without removing options or significantly changing incentives.
Heuristics are unconscious mental shortcuts or 'rules of thumb' that help individuals make decisions more efficiently.
The core unit that sustains essential goods and services through unpaid, undervalued, and often exploited labor, highlighting the need to value its contributions.
Okun's Law describes the correlation between economic growth and unemployment, suggesting that output growth reduces unemployment.
GATT, established by the WTO, aims to liberalize trade and reduce state protection over domestic markets by lowering tariffs.
The OECD's first priority is economic growth, which is emphasized in Chapter 1 of their guidelines.
An organization that prioritizes the highest sustainable economic growth, focusing on sustaining output growth rather than environmental concerns.
It embeds us in a web of life where societies co-evolve with the living world.
A small fee for holding money, resulting in a loss of value the longer it is held, exemplified by systems like stamps.
Economic activities that generate income without government permits and do not involve paid taxes.
A model that depicts the economy as dependent on outer layers, such as society and the environment, straying from a compartmentalized approach.
Gross Domestic Product (GDP) measures the total value of all income or final output created within a country's borders, while GNI includes income received by residents from abroad.
High-quality growth refers to sustainable economic growth that leads to lasting gains in employment and living standards, reduces poverty, and promotes equity.
Refers to the concept of a blank slate, suggesting that the current generation has the chance to transform the economy through public policy and collaboration.
Design to Distribute suggests that inequality and environmental degradation are not inevitable and calls for wealth redistribution.
Macroeconomics is the study of the economy as a whole, focusing on aggregate indicators and overall economic performance.
The inner border represents the Social Foundation, which includes the bare minimum needs of all individuals, such as sufficient food, clean water, and access to education.
Conspicuous consumption refers to the practice of purchasing luxury goods to signal social status.
Edward Bernays is known for the principle that the best way to advertise is to associate a product with deeply held values such as freedom and power.
The skill of trusting, reciprocating, and cooperating.
Altruistic punishers are individuals who punish defectors and free riders regardless of the cost, contributing to cooperative behavior in society.
The resources and services provided by the environment that contribute to economic and social well-being.
Doughnut Economics aims to reshape economic thinking by focusing on long-term human goals and integrating diverse economic perspectives to address current inefficiencies.
Images and models serve to simplify complex economic concepts, making expert knowledge accessible to the masses and facilitating effective mass communication.
Banks receive income as savings and return it as investment, acting as intermediaries in the financial system.
To provide public goods, support the core caring role of households, unleash the dynamism of commons, and embed the market in institutions that promote the common good.
It is an alternative measure to GDP that assesses the overall development and well-being of a nation, focusing on health, education, and income.
Doughnut Economics advocates for shifting goals from capitalism to human-centered and Earth-centered objectives.
Economic policies that emphasize free markets, deregulation, and limited government intervention, often leading to a decline in the Index of Sustainable Development.
An emergency measure used by countries like Japan and Sweden to resurrect GDP growth, manage exchange rates, and raise inflation.
The five factors are Population, Distribution, Aspiration, Technology, and Governance, which together help stabilize resource use and reduce pressure on the planet.
It considers the interconnectedness of economy, society, and environment, aiming for integrated solutions that promote human well-being.
A household supplies labor and capital in exchange for wages and profit, which are then used to buy goods and services.
1. Connecting to people around us 2. Being active in our bodies 3. Taking notice of the world 4. Learning new skills 5. Giving to others.
A growth pattern that eventually plateaus, checked by limiting factors.
Kuznets argued that national income measures exclude goods and services produced for households and do not indicate distribution, thus welfare cannot be inferred from it.
Availability bias is a cognitive bias that leads individuals to make decisions based on recent or easily accessible information.
It outlines the stages all countries pass through in their economic development.
The government collects taxes and uses them for public spending, influencing the flow of income in the economy.
Finance should serve society by ensuring that money and investments flow continuously rather than accumulate, promoting overall well-being.
A situation where shared resources are depleted due to individual self-interest, leading to calls for government regulation and private ownership.
Internalizing externalities refers to the process of accounting for the external costs or benefits of economic activities in decision-making.
Neoliberalism promotes limited government intervention in markets, trade liberalization, and the privatization of public services.
Embedded Economy emphasizes seeing the big picture beyond money, prioritizing society and nature.
