BGS - Micro

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What is Sustainability?
Being capable of maintaining a steady level without exhausting natural resources or causing severe ecological damage.
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What was the Brundtland Commission?
the Brundtland Commission's mission is to unite countries to pursue sustainable development together. 3 main pillars: economic growth, environmental protection and social equality.
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Problem with defining sustainability?
Problem of scale: what may be sustainable for one person may not be sustainable for everyone.
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What is sustainable development?
1) Inter generation Fairness. 2) Controlling Externalities
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Criticisms of sustainability? (4 ans)
1) Lacks clear definition. 2) Controversy around the science (Global Warming). 3) Calls that it's anti-business/capitalism. 4) Implications on the developing world
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Criticisms of sustainable DEVELOPMENT? (4 ans)
1) Lacks precise definition. 2) Can development be sustainable? 3) Is sustainable development only for wealthy countries? 4) Greenwashing accusations.
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Can business ever be sustainable? (4 ans)
1) Current business is short-termist. 2) businesses need to maintain competitiveness. 3) Western society expects certain living conditions. 4) is it Governments job to force business?
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Can the Government be sustainable? (5 ans)
1) Importance of economic growth to Govm't. 2) Lobbying powers. 3) Subsidies non-sustainable businesses (CAP farming subsidy). 4) Assumption of future technology. 5) Reliance on fossil fuels.
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Is the recent flooding the result of a lack of Governments interest in sustainability?
1) Lack of flood prevention ( land management/ lack of dredging/ less house planning restrictions). 2) Government farming policies promote deforestation etc. 3) Reluctance to invest in long-term sustainable land management.4)contempt for specialist
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Is tax management and CSR compatible?
Yes - It is providing increased returns to their shareholders. No - it is neglecting society of a basic economic aspect (tax).
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Difference between tax evasion and tax avoidance?
Tax evasion is illegal, tax avoidance is legal.
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Who wrote 'The Affluent Society'?
Galbraith
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What are the main themes of 'The Affluent Society'?
1) There is a wealth gap in the US. 2) indirect tax regimes hit the poorer harder. 3) Low tax yields have an affect on the future of the country in terms of security, social cohesion and future wealth generation.
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What are the implications of a low tax regime in an industrial country? Think of Ireland. (4 ans)
1) Disinvestment. 2) lower standards of living. 3) Declining markets/economy. 4) Mid/long term implications on the business environment.
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Problems with tax policy in developing countries? (4 ans)
1) Workers are often paid in cash and pay for goods in small stores in cash. 2) lack of educated and well trained staff to man a tax administration system. 3) Lack of statistics. 4) Massive wealth gap.
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Lighthouse Example - Private sector vs the Government.
1) should lighthouses be provided by the government? 2) Actually, in 18 hundreds, 75% of current lighthouses had already been built and were being run privately. Sailor societies had set up to help fund/pay the owners
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Why do Government regulate business?
1) Public/ Social interest. steward for citizens. 2) Protection of special interests. 3) Economic.
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Expand on Public Interest...
Equality of access, food/marketing regulation, public protection (speed limits on motorway), maintain customs and traditions, externalities.
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Expand on Economic reasons...
provision of information, ensure market entry, stop monopoly power, act in times of scarcity, rationalize the market
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Challenges with regulation
1) no set definition of regulation. 2) Normative thinking. 3) Regulation can be expensive/risk adverse.
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What are the different forms of regulation? (6 ans)
1) Command and control. 2) Incentives. 3) Market harnessing control. 4) Disclosure. 5) Rights and liabilities. 6) Public compensation.
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Who regulates?
1) Parliament. 2) Local Authorities. 3) Regulatory Agencies.
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Examples of Government regulatory failure?
1) cost. 2) Bureaucratic. 3) Regulatory capture. 4) Conflicting goals. 5) Unintended consequences. 6) Market distortion.
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Are we seeing the end of Government regulation?
Political Criticisms - doesn't work, business is better at regulation, restrictions on individual liberty and freedom. Economic - Reg costs jobs/profits, makes companies non-competitive, stifles innovation, prevents market entry.
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Name an example of a company that has had private regulation on a global scale
The East India Company
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The future of regulation? (neoliberalism)
The loss of government sovereignty has reduced nation reach in regulation, a better capacity to self regulate and support private regulation. Self regulation by codes of conduct (e.g. with tax)
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Give 3 example of self/private regulation
1) Professional Bodies. 2) Industry Self regulation. 3) Private regulation.
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How to enforce global regulation?
Public - international agreement, trans-governmental, competing national standards developed by global public bodies. Private - Standard setting bodies, competing standards by individual firms
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Examples of global and private regulation. (3 ans)
!) Credit rating agencies. 2) International Organization of standardization. 2) Accounting Standards.
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Criticisms of private regulation. (4 ans)
1) Week accountability to stakeholders. 2) Lack of external scrutiny. 3) Shared values/bounded rationality. 4) Lacks enforcement, voluntary
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What is shared values/bounded rationality?
When everyone is so similar in their views on the scenario that nothing changes/problems are not seen.
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what is VET?
Vocational Education Training
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Whats the benefits of VET
Business - Produces skilled employees. Government - Supports business, global competitiveness. Society - Skilled workforce.
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What the main tensions between society and government? (4 ans)
1) Ideological tensions. 2) Government support for the weakest in society. 3) management of labor markets. 4) Supply side reforms.
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What is the difference between hard and soft support?
Hard Support - financial. Sort Support - Training/education.
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Why cant business live without government and visa versa? (4 ans)
1) Defence and property rights. 2) Public and merit goods. 3) Information imbalances. 4) Externalities.
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what is PPP
Public Private Partnership.
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Benefits of PPP
The private sector is often seen as being cheaper/more efficient.
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What is PFI?
Public-Finance Initiative - Private funding of major public building projects
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In 2011, approximately how many PFI projects happened?
700
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What are some criticisms of PFI?
1) Contacts are long term and seen as inflexible. 2) Flawed models used to compare PFIs, especially to guage risk. 3) Loss of transparency and accountability for public money.
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Name 3 links between business and government relations
1) Lobbying. 2) Financial donations to parties. 3) Business people in government.
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Why Tax the public? (4 ans)
1) to pay for merit goods. to risk pool. 2) As a collective provision that holds society together. 3) Without it, it would be worse. 4) Taxation can be a tool to promote/discourage certain behaviours.
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What gets taxed?
Income, inheritance, property, transactions, exercise, business, consumption.
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Who benefits from government expenditure?
Social welfare - unemployed, weakest in society. Corporate welfare (indirect) - education/health. Corporate welfare (direct) - grants and tax breaks/subsidies.
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Why have government revenues declined?
neoliberalism.
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What is 'rent-seeking behaviour'?
When busineses will pursue alternative methods (e.g.lobbying) to gain wealth/profits than just wokr
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What is Arrows Paradox?
A theory that when there are 3 or more choices in a decision (voting), no order system can accurately say the community wide feel of the ballot. e.g. representative democracy is impossible.
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What type of tax would Neoliberalism favour?
indirect tax over direct tax.
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Other cards in this set

Card 2

Front

What was the Brundtland Commission?

Back

the Brundtland Commission's mission is to unite countries to pursue sustainable development together. 3 main pillars: economic growth, environmental protection and social equality.

Card 3

Front

Problem with defining sustainability?

Back

Preview of the front of card 3

Card 4

Front

What is sustainable development?

Back

Preview of the front of card 4

Card 5

Front

Criticisms of sustainability? (4 ans)

Back

Preview of the front of card 5
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