History shows that when an economy reaches it's heights it starts declining. Such decline starts to be observed (in economic terms) by less growth, more debt, and higher unemployment. However, this is not to say that decline is immediate. It becomes more and more difficult to keep in line with current requirements of sustainability. Often increasing complexities of the system and it's interrelationships with other components such as the industry, markets (national and international), and modes of governance increase the vulnerability of the economic model which must acquire more flexibility. If this flexibility is attainable in the long run, then can we say that economic prosperity is sustainable?
Hi Mohamed,
I would like to challenge a bit your - certainly interesting - question: What you claim as historical finding, namely economic decline, may be simply a relative smaller growth rate than other countries. Countries may be still wealthy and people prosperous, possibly even increasingly rich, but at slower pace than other emerging countries. So, it amy be worth considering to distinguish between prosperity (which may be sustainable) and growth (which results from innovation and innovation cycle come to an end).
Sustainability of economic development depends upon the balance between demand for and supply of natural resources that determine economic development.
I think the answer is Yes & No; and it depends.
The case of South Korea suggests that economic prosperity can be sustained.
However, the cases of many oil-rich economies in Latin American and African countries gives the picture that economic prosperity can be punctured in the face of economic shocks due to:
1) weak economic structure;
2) low value-adding prodcutinve system;
3) dependency on very few/mono-cultural products;
4) corruption and weak accountability/transparency in the public domain --
-the list can go on.
So, it depends on the economy in question, whether economic prosperity can be sustained or not.
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