Introduction: Sustainable economic growth can only be achieved through innovative
ideas and social development:
Defining innovative ideas and social indicators.
Major dimensions of sustainable economic growth. L Economic growth which also promotes social mobility.
Conservation of natural resources for coming generations.
ii. Protection of environment to ensure long-lasting growth.
Innovative ideas and social development play a crucial role in materializing abovementioned three dimensions of sustainable economic growth.
Innovative ideas play a vital role:
In setting up enterprises and creating employment opportunities;
. In ensuring GDP growth and improving per capita income; i
. In formalizing the informal sectors of the economy:
iv. In tackling environmental challenges.
Historically, innovative ideas have played significant role in ensuring sustainable growth: the Agricultural and the Industrial Revolution were the outcomes of innovative ideas.
In the contemporary world, innovative ideas are major driving force behind multi-billion dollars industries like social media.
In addition to innovative ideas, social development is equally important for sustainable economic growth.
Economic growth without social development is meaningless and cannot last long.
Social development also works as a catalyst for sustainable economic growth.
Sustainable economic growth means a rate of growth which can be maintained for period of time without creating socio-economic and environmental problems, especially for the future generations. For sustainable economic growth, there is a trade-off between rapid growth today and growth in the future. The idea is to achieve economic growth while protecting environment and conserving natural resources for the future generations. Sustainable econom growth can only be achieved through innovative ideas and social development. In the absence of either of them, economic growth will not be sustainable instead it would be short-lived Innovative ideas are essential for setting up new enterprises and creating new jobs which plays vital role in the growth of GDP and per capita income.
The growth in economy when translated into up-gradation of living standards of the citizens results in sustainable economic growth Moreover, innovative ideas are crucial in mitigating environmental challenges faced by the contemporary world. In addition to innovative ideas, social development is equally significant in materializing sustainable economic growth. No society in the past could sustain its economic growth without social development. Positive social indicators in the form of literacy rate, women empowerment and employment opportunities are essential impetus behind sustainable economic growth. Unfortunately, Pakistan’s economic growth has never been sustainable owing to the absence of innovative ideas and social development. Right steps in the right direction are required for fostering the culture of innovation and social development which will eventually lead to economic
sustainable economic growth. To begin with, it is imperative here to understand that economic growth and sustainable economic growth are two different concepts. Economic growth can be achieved by increasing GDP and per capita income alone. However, sustainable economic growth means achieving growth in GDP and per capita income while protecting environment and conserving natural resources for the future generations. An economic growth which does not take into account environmental aspect and needs of the future generations is not considered as sustainable.
Basically, there are three dimensions of sustainable economic growth. The foremost among them is growth in GDP and per capita income which is used to transform the living standards of the people in presence of enabling factors. No doubt, growth in GDP alone is an encouraging sign. Nevertheless, it becomes meaningless if it does not translate into improving the living standards of the citizens by giving them education, health and sanitation facilities and job opportunities. Economic growth which cannot up-grade the living standards of people cannot be termed as sustainable economic growth. This is because of the fact that such situation indicates that the dividends of economic success are not distributed equally among the masses. A certain segment of the society has taken undue advantage at the cost of the majority. This is a recipe for
social instability and political chaos which are detrimental for sustainable economic growth.
The second dimension of sustainable economic growth is that it ensures conservation of natural resources for the generations to come, If resources are not spared for the future generation, the growth will come to a halt at a certain point when no further resources are left means that innovative ideas are required that ensure growth and conservation of resources at the same time.
Basically, there are two types of natural resources: renewable resources and non-renewable resources. The latter type of resources includes fossil fuels, oil, gas and coal which are in limited quantity. Their excessive use will lead to their depletion. Thereby they should be used wisely so that the next generations will not be left deprived of them. On the other hand, renewable resources are replaceable and can be used repeatedly. By adopting innovative technology, renewable resources can be made the main drivers of economic growth to achieve sustainability.
The third dimension of sustainable economic growth is that it protects the environment. Without protecting the environment, growth in economy cannot be long lasting. This is because of the fact the devastating effects of poor environment will make further growth in economy mpossible. Thereby, the protection of environment should ustainable economic be given special attention if growth is the target, and innovative idea. can prove to be quite helpful
in this regard. Having mentioned the three dimensions of sustainable economic growth, it is pertinent here to say that sustainable economic growth cannot be achieved without materializing all of its three dimensions. In the absence of any of the three dimensions, economic growth would not be ustainable instead it will be short-lived. Innovative ideas and social development complement
cach other in achieving all of the three dimensions of sustainable economic growth.
Innovative ideas play a crucial role in setting up enterprises and creating new jobs. Creation of new enterprises and provision of new jobs strengthens the economy as a whole. Moreover, innovative ideas curtail unemployment rate and poverty rate. Along these lines, economic growth helps in mitigating social problems which is essential for sustainable economic growth.
Secondly, innovative ideas play a significant role in the growth of GDP and per capita income. Companies operating in the Silicon Valley are the outcome of innovative ideas which generate employment opportunities and contribute billions of dollars towards the GDP of the United States of America. These companies contribute in GDP growth without creating any social and environmental problems which are a must for sustainable economic growth.
Thirdly, innovative ideas are vital in formalizing the informal sectors of the economy. The creation and development of innovative enterprises can lead to reductions in the informal sector. First, new innovative ventures are less likely to operate in the informal economy, as they have higher returns from operating in the official economy by partnering with financial institutions and cooperating with established firms. Second, they may provide employment opportunities that encourage people and businesses to move from the informal sector to the formal sector. By formalizing informal sectors of the economy, innovative ideas help in achieving sust