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Sustainable Global Economic Development 101: Challenges and Issues


This series of articles provides a detailed explanation of sustainable global economic development, issues that arise, ways of addressing these complex problems, and benefits for nature, humanity, and the world economy. The series of articles aims to emphasize the essence of making global finance and the economy more sustainable and reveal the steps to achieve these goals. The importance of the series is that the aspects of the topic described in the articles concern everyone, and each reader can understand what factors, decisions, technologies, and ideas affect sustainable global economic development.

The Sustainable Global Economic Development 101 series consists of six articles:

  1. Sustainable Global Economic Development 101: Definition and Principles

  2. Sustainable Global Economic Development 101: Challenges and Issues

  3. Sustainable Global Economic Development 101: The Indicators of Sustainable Economy Development

  4. Sustainable Global Economic Development 101: Sustainable Global Finance Methods

  5. Sustainable Global Economic Development 101: The Influence of Science and Technology

  6. Sustainable Global Economic Development 101: Enhancement for Sustainable Globalism

The topic of sustainable development remains relevant over recent years, attracting attention, efforts, and resources towards international cooperation, in particular, to eradicate extreme poverty, promote fair trade, and build infrastructure in undeveloped countries. Although, business interests often conflict with the aims of sustainability. To deal with a variety of continuing changes the world is constantly undergoing, such factors as digitalization, globalization, urbanization, and others that have a significant influence on the sustainability of the world economy must be studied to disclose their effect. The article describes the theoretical background of a sustainable economy, the benefits and limitations of sustainable business, its issues and challenges. It also highlights sustainable global economic challenges and issues such as the incorporation of sustainability into the business, the circular economy, government action, social justice, holistic thinking and action, climate change monitoring, and business influencing policy.

The Theory of Sustainable Economy

According to the research, conducted by Grossman and Krueger (1991), who were American economists and professors at Princeton University, the wealthier a society becomes, the more its members are seeking a sustainable environment. In this case, the government is called upon to bring legislation in line with international standards. So the concepts of sustainable development and economic growth are closely collected (Grossman, Krueger, 1991). The main idea is to find a balance between supply and demand in the process of solving human problems. Economic growth or construction of a capital-intensive production structure is caused only by entrepreneurship and genuine savings. In a case where it is politically induced, there will be no sustainable economic development (Espinosa, 2021). Wealthy people usually increase the supply and demand for loanable funds. The range of alternatives is opening to people to promote further economic activity, accumulation, and consumption of resources, advancing technology of production methods, and consequently, so improving the efficiency of entrepreneurship. Which in turn raises the global economic prospects, gross domestic product (GDP) growth, and household consumption. The respect for property rights, efficiency, and predictability of legal systems are the main preconditions for the development of the economy (Acs, Estrin, 2018; Acemoğlu, Robinson, 2019).

Only then people can trust the state, have confidence, and will take risks to invest or accumulate money. The basic principle is that confiscation risk should become extremely low. Because this risk is limiting entrepreneurship in most areas of the economy. In this case, the market process is very restricted, since no one will voluntarily give up their private property rights. Also, along with ending legal inequality, a wide range of possibilities will be available to all people regardless of their social background and country of residence. Ending poverty depends on institutional arrangements which are essential determinants of economic and entrepreneurship development. Entrepreneurship expands new ways of addressing people's problems. Competition in business is a driving force behind innovations in all areas of the industry and the service sectors. Moreover, it contributes to establishing social cooperation and the creation of a just and inclusive society (McCloskey, 2006).