The concepts of sustainable development and green growth are of great importance today. In fact, these areas constitute a part of the work of the World Bank and the World Trade Organization.
Economic growth is a term that has different meanings depending on where it is used. When we hear the concept of economic growth while listening to the news on television, it is understood that we are talking about the growth of economic output over time. But from a technical point of view, this is not economic growth, but an ongoing growth in the economy. economic growth; should be interpreted as an increase in full employment output. We can say that more employment will define economic growth for us.
If only the increase in Real Gross Domestic Product, that is, GDP, is mentioned, it is a kind of growth, but it will be a concept that does not technically correspond to the concept of economic growth. Again, decreases in GDP do not show us an economic contraction, they show a certain contraction in the economy. Wherever we are in the economic cycle; If there is an increase in full employment output, we can talk about economic growth here. In other words, if there is no increase or change in full employment output while GDP increases, there cannot be economic growth here. Even though GDP is shrinking, economic growth can occur because at this point there may be an increase in full employment output, which corresponds to growth.
Economic Growth in Simple Language
In the neoclassical growth model, also known as the Solow Growth Model, it is aimed to show how the growth in the capital stock, the growth in the workforce and the development in technology interact with each other and how they affect the economic growth of a country. The aim is to increase output per capita, that is, income. After the economic crises in the world, it was understood that economic growth for sustainable development could no longer be sustained based on this and it was started to be considered that the ecological effects of growth should also be examined. The concept of green growth/green economy also comes into play here.
Sustainable Development and Green Growth
While the conventional concept of economic growth takes large exports by taking large outputs from the industry, imports being lower than exports, and the low unemployment rate as indicators, different concepts have been started to be evaluated in green growth indicators. Because for a sustainable economy and the world, the concept of growth should go green. The purpose of green growth is based on social benefit and shaping the future. Sustainable development will be a more important concept after COVID-19 and will become the main indicator of the development of countries.
Green Cities Under Green Economic Growth
For the first time in human history, more than half of the world's population lives in urban areas. By the end of the century, this share is expected to rise to 85%. In other words, 85% of the total population will live in cities. The main feature of green cities is to provide productivity gains and technological innovation thanks to the proximity of economic activities, while reducing high-intensity pollution and resource consumption. Addressing the additional environmental benefits comes the improvement of eco-systems in urban areas. Social benefits include job creation, poverty reduction, improvements in human health and road safety, and a higher quality of life in the city, increased accessibility and social cohesion.
The European Commission has been presenting the Green Capital Awards since 2010 to improve the quality of life of growing urban populations, improve the environment and the economy, and recognize and reward the efforts of local municipalities. All European Union member countries with a population of two hundred thousand or more, cities of candidate countries for the European Union – including Turkey – and cities of European Economic Area countries can be candidates for the award. Likewise, the largest cities of countries with a population of less than two hundred thousand can apply. The award aims to encourage the best municipal services identified in a friendly competitive environment to set an example for other European cities. In this way, it is aimed to change the economic growth on the basis of cities.