Categories: Indian Economy

What are the important dimensions of economic development?

There are three main dimensions of development: economic, social, and environmental.

The economic dimension deals with the efficiency of economic and technological activities, fostering investment and productivity, economic growth, and economic output potential. The economic dimension informs us on how to handle limited resources well and to use them in a way that will benefit our country. They include reducing land usage, balancing economic growth and opportunities with less environmental impact, and making supply chains more efficient with fewer resources required to operate or maintain them.

The social dimension deals with equality of opportunities for people, involving welfare, quality of life, and sustainable human development –development should liberate individual capacities and fulfill human needs, thus ending poverty and improving individuals’ quality of life offering a secure life with full rights and liberties in the long term – and social cohesion.

The environmental dimension deals with the ability to use natural resources without undermining the equilibrium and integrity of ecosystems to reduce the burden on the environment.

The economic dimension (economy), the social dimension (society), and the ecological dimension (environment) were built on a few basic principles toward achieving sustainable development goals. The idea of sustainable development is that a good balance between the three dimensions should be achieved. Instead of calling them dimensions, other terms commonly used are pillars, domains, aspects, and spheres.

Dimensions of Sustainable Development:

Sustainability is the ability to maintain or support a process over time. Economic sustainability denotes practices that support long-term economic growth without negatively impacting the social, environmental, and cultural aspects of the community. The main goal of economic sustainability is to create a balance between economic growth and the development of positive change for the environment and humanity. Thus, sustainable economic activity is closely connected with the two remaining dimensions.

In the UNCED 1992 Rio declaration, the developed countries acknowledged the responsibility that they bear in the international pursuit of sustainable development given the pressures their societies place on the global environment and of the technologies and financial resources they command.  The UNCED 1992 Rio declaration quotes the 7th Principle as “…to conserve, protect and restore […] the integrity of the Earth’s ecosystem […] the pressures their societies place on the global environment“.

In September 2015, all the 193 Member nations of the UN adopted an action plan for the next 15 years, achieving a better future for the people, environment, and our planet Earth by eradicating extreme poverty, fighting inequality and injustice, tackling climate change, and protecting our planet.

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Surendra Naik

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Surendra Naik

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