Sustainable economic development: necessity and barriers

Abstract

Relevance of the topic: The topic of sustainable economic development is increasingly being analyzed. There are many goals that cover sustainable development, such as a healthy environment, protection of the planet, prosperity and other goals. Despite the needs, there are many barriers that hinder this process. For this reason, the aim of this research is to review literature and provide the most important barriers as well as necessities for sustainable economic development. Methodology: Literature review. Results: Sustainable development means the development where meeting present needs does not reduce the ability for future generations to satisfy their own needs. The necessity for sustainable economic development is related to four main themes: economy (job creation, energy security, innovation, financing, etc.), equity (income distribution, distribution between and within countries, etc.), environment (sustainable use of resources, enhancement of natural resources, water and other natural resources, etc.), and constituents (partnerships between various sectors, participation of community in development decisions). However, despite the necessity, sustainable economic development faces barriers that can be described as related to four main themes: competition (conflict of interest, inter-regional competition, etc.), social (population growth, absence of changes in human behaviour, limited knowledge on sustainable development, etc.), poor monitoring (lack of special targets, lack of information available to decision-makers, etc.), and practice (incentive based practice, mismatch between what is publicly declared and what is practiced). Conclusions & practical implications: Literature review revealed that there is a number of important reasons why sustainable development is necessary. Yet, there are many barriers that hinder sustainable development. This research has a practical meaning in terms of the main[...]