The Economics of Sustainable Growth: Why There is Not Enough for All?

Abstract

In spite of economic growth and development, the dwindling confidence on the impact of growth failing to penetrate and benefit the deeper masses of the developing nations raises an important question. The question is regarding the essence and affectivity of such an economic growth; why there is not enough for all? More than that, is such a growth sustainable in the long run which would leave a huge proportion of the general masses outside the realms of benefit? Are there any sustainable solutions to the present dilemma of jobless, redundant growth? In the face of ever-dwindling energy and non-renewable resources, this raises a serious issue about the effective allocation of resources for the poorest who require more than those who can afford it all. The issue becomes burning when the benefits of globalization are accrued by the few while leaving the most, and the rest, out of purview. More than that, higher demand for resources which are scarce and shrinking explains much about ‘why there is not enough for all’. The disparity is not just in misallocation of resources, but more about apposite provisioning of how knowledge, being the driving power of industrial revolution and globalization, should be shared uniformly, so as to benefit those who are in need. This paper touches on these aspects of sustainability of the present economic growth hinged on the concept of knowledge economy, and hence mandates corrective allocation of resources more efficiently among the poorest. Perhaps this lack of knowledge in a knowledge economy about how scarce resources should be efficiently allocated is the “biggest gap in knowledge” about such a dynamic process. This research attempts to address these core issues which are fundamental to the study of the economics of sustainable growth and resource allocation.

Keywords: Sustainable growth, knowledge-resources, poverty, hunger, allocative efficiency

JEL Classification: J10, O10, O15