II.

SUSTAINABLE DEVELOPMENT

BY

I MADE BENYAMIN

LECTURER AT THE FACULTY OF ECONOMICS AND HEAD STUDY

PROGRAM OF RESOURCE ECONOMICS, GRADUATE PROGRAM,
HASANUDDIN UNIVERSITY, MAKASSAR.

1
1. DEFINITION:

a). SUSTAINABLE DEVELOPMENT = A PROCESS OF AN INTEGRA-

TION OF ECONOMY, ECOLOGY, AND SOCIO-CULTURAL,
WHEREBY AN ECONOMIES RIEL NATIONAL INCOME
INCREASES OVER A LONG PERIODE OF TIME WITH
OR WHITOUT USE OF FOREIGN DEBT.

b). Key words:

1). A PROCESS

2). AN INTEGRATION OF THREE ASPECTS : -ECONOMY

- ECOLOGY
- SOCIO- CUL-
TURAL.

3). AN ECONOMIES RIEL NATIONAL INCOME INCREASES.

4). A LONG PERIODE OF TIME

5). WITH OR WHITOUT USE OF FOREIGN DEBT. 2

A PROCESS = WORKING PROCESS OF INTERRELATIONSHIP ECONOMIC
VARIABLES YIELD : THE CHANGES:

1. THE CHANGES OF FUNDAMENTAL SUPPLY OF INPUT:

A. THE CHANGING OF QUALITY & QUANTITY OF

POPULATION.

B. INTODUCING OF THE NEW INPUTS.

C. THE CHANGING OF INSTITUTIONS.

2. THE CHANGES OF FUNDAMENTAL DEMAND OF OUTPUT:

A. THE CHANGING OF STRUCTURE & QUANTITY OF

POPULATION.

B. INCOME

C. THE CHANGING OF INSTITUTIONS.

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AN INTEGRATION OF ECONOMY, ECOLOGY & SOCIO-CULTURAL=

C=ENV. ECOLOGY
DEVELOPMENT
ECONOMY
A=SUSTAINABLE
C=
DEVELOPMENT PEOPLE
CENTERED
B= SOCIAL DEVELOPMENT
DEVELOPMENT

SOCIO-CULTURAL

Fig. 1. Sustainable Development: Integrated aspects of Economy,

Ecology, and Socio-cultural.
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 HUMAN
INCOME,
MANPOWE TASTE,
R ETC.
Recycling
CULTIVATION
CONSERVATION
REHABILITATION
EXPLOITATION.
PRODUCT DISTRIBUTION CONSUMP
ION TION

Raw
Material Recycling Waste
Waste
E= E=GOODS
RESOURCES Waste SUPPLIER E= AMENITY
SUPPLIER

+ ++ _ _

A>W A<W
ENVIRONMENT AS WASTE ASSIMILATOR

Fig.2. Detail Concept of Sustainable Development 5

1. ECONOMIC ACTIVITIES:
A. PRODUCTION
B. DISTRIBUTION
C. CONSUMPTION.
2. ENVIRONMENT FUNCTIONS:
A. AS RESOURCES SUPPLIER
B. AS GOODS SUPPLIER
C. AS AMENITY
D. AS WASTE ASSIMILATOR.
3. ECONOMIC AND SOCIO- CULTURAL:
A. TASTE
B. INCOME
C. QUANTITY AND QUALITY OF LABOR.
D. CONSERVATION, REHABILITATION , CULTIVATION, EXPLOITA-
TION OF NATURAL RESOURCES.
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WASTE,
W
ASSIMI-
LATIVE
CAPACITY

A. A

o
X1 X* X2 TIME/EC.ACT.
OPTIMUM
ECONOMIC
ACTIVITY

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1. Economic activities on X1 = Assimilative capacity of Environment is still

greater than waste flow on Environment =

good for environment.

2. Economic activities on X2 = Assimilative capacity of Environment is less

than waste flow on environment =

bad condition for environment (e.g. Sungai Ciliwung)

3. An increases of Economic activities, more waste flow to Environment.

4. In order to decrases the gap between Under Developing Countries (UDC),

and Developed Countries, UDC need to increases their economic growth

much faster than DC.

5. So, it is need to decreases waste disposal to environment and increases

the assimilative capacity of environment. 8
AN INCREASES OF ECONOMIES RIEL NATIONAL INCOME=

- NOMINAL INCOME

- PRICE INDEXES.

OVER ALONG PERIODE OF TIME =

- BUSINESS CYCLE THEORY

WITH OR WITHOUT USE OF FOREIGN DEBT =

- QUALITATIVE STRUCTURE OF DEBT.

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III. ECOLOGIC-ECONOMIC ANALYSIS FOR REGIONAL
DEVELOPMENT:
-ECONOMIC MODELS FOR REGIONAL ANALYSIS:
- COMPARATIVE COST ANALYSIS
- INPUT-OUTPUT
- THE GRAVITY MODEL (SPATIAL
INTERACTION ANALYSIS)
- ACTIVITY COMPLEX ANALYSIS.
- NATURAL RESOURCES IN REGIONAL ANALYSIS:
- NATURAL RESOURCE CLASSIFICATION
- ECOLOGY AND NATURAL RESOURCES
- ECOLOGICAL PRINCIPLES IN REGIONAL
ANALYSIS
- ETC.

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- COMBINED ECONOMIC-ECOLOGIC ANALYSIS:
- THE GENERAL APPOACH
- THE GENERAL INTERRELATIONS TABLE

- THE CASE STUDY:

- INPUTS AND OUTPUTS OF RECREATIONAL
ACTIVITIES.
- THE MARINA SITE SELECTION PROCESS:
A COMPARISON OF KEY ECONOMIC AND ECOLOGIC
COST.
- ETC.

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IV. IMPLEMENTATION ON ECONOMIC POLICY:
PUBLIC NEEDS AND REQUIREMENTS OF THE STATE’S ROLE
REGARDING THE ECOLOGICAL POLICY:
1. DEVELOPMENT AND ENVIRONMENT MUST BE INTEGRAL
PART OF POLICY
2. THE MANAGEMENT OF THE NONRENEWABLE RESOURCES
MUST BE PERFECTLY EFFICIENT.
3. THE MANAGEMENT OF THE RENEWABLE RESOURCES MUST
BE EXPLOIT NOT EXCEED IT NATURAL GROWTH RATE.
4. IMPROVE SCIENCESES AND TECHNOLOGIES IN ONDER BE
ABLE TO UTILIZE FLOWS NATURAL RESOURCES.
4. TRADEBLE COMMODITIES MUST BE ENSURES THAT THE
SUSTAINABLE DEVELOPMENT HAVE TO OCCUR:
- BAN THE COMMODITIES EXPORT AND IMPORT
WHICH ARE PRODUCING/EXPLOITING IN NOT
SUSTAINABLE MANNER. 12
- REFUSE ILLEGAL LOGGING
- DEVELOPMENT OF ANY PROJECTS MUST PASS OVER:
- TECHNICAL PROPER TEST
- ECONOMIC PROPER TEST, AND
- ENVIRONMENTAL PROPER TEST.
- SO, AMDAL REGULATION POLICY MUST BE PROPERLY
IMPLEMENTED IN INDONESIA.
- AS SUMMARY, STATE HAVE TO INVOLVED
INTENSIVELLY ON THE SEVEN ENVIRONMENT GLOBAL
ISSUES:
- GLOBAL CLIMATE CHANGES
- SAFEGUARDING OCEANS AND WATER
RESOURCES
- POPULATION

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- PRESERVATION OF BIOLOGICAL DEVERSITY
- DEFORESTATION AND DESERTIFICATION
- OZONE DEFLETION
-AND SUSTAINABLE DEVELOPMENT.

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Kapital

A A’

75 ton X
B
50 ton X

O
Labor

15
Moda

isoquant

O
t.

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PAN YOTOOLOUS; ECONOMIC DEVELOPMENT AND INVESTIGATIONS

INVESTASI/ENGELUARAN DALAM SOC HARUS SEIMBANG DENGAN

INVESTASI/PENGEUARAN DALAM DA.

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Cost of DPA 450

D3 G
H
C

D2 E
F Q3
D1 A
B Q2

Q1

O S1 SSS2 S3
Cost of SOC.
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Fig.3. Minimum Cost Combination of DPA and SOC.

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1. Y = bo + b1 X1 + e
Y = 3059,38 + 0,0000 X1
t : 3,34*** 2,1***
R = 0,415
R2 = 0,172
Adjusted R2 = 0,133
F = 4,36***

2. Y = bo + b1 X1 + b2 X2 + e
Y = - 210,87 + 0,000004 X1 + 0,01 X2
t : -0,33* 1,48** 7,73*****
R = 0,89 ; R = 0,79 ; Adjusted R2 = 0,77 ; F = 38,19****
2

-----------------
Y = invesment on SOC (million of rupiah)
X1 = Investment on DPA /tourism industry (million of rupia
X2 = Number of tourist

*). Significant at 0,9

**). Significant at 0,2
***). Significant at 0,05
****). Significant at 0,01
*****). Significant at 0,001.
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xx x

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